- December 1, 2017
- Posted by: range
- Category: MARKET RESEARCH
The EUR/USD retreated from the local high despite positive statistics from the manufacturing PMI in the Eurozone, which grew to 60.1 against the 60.0 expected. We should note that the pair’s price is showing a decline in the amplitude of price fluctuations ahead of the decision on tax reforms in the US.
The British pound is under pressure thanks to fears on the outcome of the Brexit talks due to misunderstandings amongst parliamentary members from Northern Ireland that are part of the ruling coalition. The strong statistics from the manufacturing PMI in the UK, which grew to 58.2 in November, 1.6 better than expected, was not able to change the mood of traders.
The USD/JPY saw some movement following the publication of the unemployment rate which remained at the 2.8% level and the core consumer price index in Tokyo which at 0.6%, also stayed at the same level as per the previous month. The pair may decline if we see increased interest in the Japanese yen as a defensive asset should the stock market experience further drops.
The strong mover today was the USD/CAD following the publication of labour market statistics. The unemployment rate in Canada sharply decreased to 5.9 in November which is 0.3% better than the forecast and 0.4% less than in October. At the same time, employment increased by 79,500 compared to 10,200 anticipated. After the sharp decline of the USD/CAD we may see the price pullback ahead of the weekend.
The common currency was not able to gain a foothold above the resistance at 1.1925 and is currently approaching the inclined support line. Breaking through the support at 1.1825 may become the basis for the further price drops to 1.1730 and 1.1620. On the other hand, the RSI on the 15-minute chart came close to the oversold zone, which may become an additional stimulus for the price increase to 1.1925 and 1.2000.
The USD/JPY was not able to continue the rising impulse and reach 113.00, and is currently consolidating. The amplitude of price fluctuations has slightly grown and in case of switching the current rising trend, the quotes may retreat to the support at 111.70. The growth potential is likely to be limited by 113.00.
The USD/CAD has broken the bullish trend and is currently falling, sharply. Within the current descending impulse, the price was able to break through the support at 1.2800 and it may become the basis for a further price fall to 1.2665. Currently there is a chance of a price correction amid profit taking ahead of the weekend.