For the whole first half of the week the market was consolidating in narrow ranges, delaying decisive actions to the end of the week. Yesterday most currency pairs spent the day in narrow ranges on the wave of weak information background and holiday in the U.S.A. The exception was only British pound. Unemployment report of the U.K. was contradictory – unemployment level decreased, still, growth rates of wages fell too. However, general reaction to the report was positive, what was reflected in pound’s growth above 1.5200.
Today Asian session has started with strong report on labor market from Australia, what lowered expectations of increase in rates by the RBA and naturally caused growth of Australian dollar. During this day the Eurozone will release final data on inflation for October and report on industrial production. Although preliminary data on inflation have shown some stabilization, still, they are already regained. So, the market can pay more attention to industrial production. Here prospects aren’t positive for euro. Taking into account similar data on Germany published last week, industrial production has fallen for the second month in a row. Such result can send euro below 1.0700 again. Today the U.S.A. has no significant statistics, except weekly applications for unemployment benefits. Still, speeches of the Fed representatives Fischer, Evans and Dudley and its head Janet Yellen are on today’s agenda. The market expects increase of rates in December and any such comments by the Fed will be accompanied by attempts to continue dollar’s growth.
EURUSD pair continues consolidation in the range 1.0700 – 1.0800. We don’t exclude testing of levels above 1.0800 within the correction. However, descending trend remains in force, there are no signals of its reversal, and pair’s purchases imply higher risks. Now we continue to observe.
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