The only thing that we can say about yesterday’s trades – consolidation in narrow ranges. Almost ignoring all events of the day, final production PMI of the Eurozone appeared to be slightly better than predicted. Although American production ISM decreased slightly, still it managed to stay above 50 points. Under such conditions dollar had no grounds for growth. However, the factor of increase in rates still takes place, what restrains American currency from sales. The most unexpected event of previous day was British production PMI, which grew considerably in October. Still, another attempt of pound to take 1.5500 failed, bulls had not enough strength, what returned the pair to the levels of day’s opening.
At Asian session the Reserve Bank of Australia left main characteristics of monetary policy unchanged, as expected, and repeated usual phrases about readiness to interfere if it’s necessary. Nevertheless, the note about some improvement of economic prospects allowed Australian dollar’s bulls to start an attack.
Today we don’t expect any clear movement in the market either. Production orders, NY production ISM and Mario Draghi’s speech are at the top of the agenda. For dollar economic statistics are still Achilles’ heel. This time forecasts aren’t optimistic and the reality is unlikely to be much better. However, the common currency has own Achilles’ heel, it is widening of assets buying-out program by the ECB. In this regard, today euro has risks provided by Draghi’s speech – whether he will mention these plans in his speech or not. If he doesn’t mention them, then this day can be as boring as previous one.
EURUSD pair has settled down in the range 1.1000 – 1.1100. Risks of exit from it can be in any direction. Herewith, it is quite difficult to predict any stable movement. Any exit from this range can be false. We prefer to stay observers in this situation.
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