Vector Securities - Analytics

Vector Securities

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There is a temporary balance of power in the market

There is a temporary balance of power in the market
Yesterday dollar’s index managed to renew monthly maximums, but under lack of strong drivers, the movement wasn’t developed. On the threshold of holiday in the U.S.A., players preferred to fix profit partially. At Asian session, in expectation of important statistics on crediting, retail sales and industrial production from China, dollar’s rollback strengthened. Players fear that weak data from China can influence the Fed’s readiness to increase rates. 
Today there is a holiday in the U.S.A. – Veteran’s Day. Markets work, still, activity usually decreases at American session. US news background is practically empty. However, in the first half of the day market’s movement can be quite active. Here, first, it is worth paying attention to the report on British labor market and speech of the Bank of England head Mark Carney. If the data are weak or Carney’s speech is soft, then pound won’t be able to resist and will come to new monthly minimums. Draghi’s speech will be significant for euro. Today it is the only notable event in the Eurozone. Still, European officials have long been known for their evasiveness and this speech can pass unnoticed. 
Trade tactics:
As we presumed yesterday, EURUSD pair couldn’t find strength to move in the direction 1.0600, though it tested levels below 1.0700. We closed our sales for 1.0685. Now we are out of the market. For today, renewed sales can be considered in the range 1.0790 – 1.0820 with stop at 1.0950. We don’t see grounds for purchases now. 
Any opinions, advice, news, research, analyses, prices or any other information presented on this webpage is provided as general market commentary and does not constitute investment advice. "Vector Securities" shall not be liable for any loss, including loss of profit, which may arise directly or indirectly from the use of this information. 

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