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A busier economic calendar, COVID-19 news, Brexit updates, and chatter from Capitol Hill will keep the markets busy today.
For the EUR
It’s a relatively quiet day ahead on the economic calendar. German wholesale inflation and Eurozone consumer confidence figures are due out later today.
Expect the consumer confidence figures for the Eurozone to have the greatest impact. With the EU struggling to contain the COVID-19 pandemic, a slide in confidence would add further downside risks to the economic outlook.
Away from the economic calendar, Brexit, COVID-19, and chatter from Capitol Hill will also provide direction on the day.
At the time of writing, the EUR was flat at $1.1875.
For the Pound
It’s a busier day ahead on the economic calendar. October retail sales figures are due out later this morning.
Positive numbers may well have a muted impact on the Pound, however. The British government had to reintroduce lockdown measures at the start of November, which paints a gloomy picture for the quarter.
Away from the economic calendar, Brexit will continue to be a key area of focus.
At the time of writing, the Pound was down by 0.05% to $1.3255.
For The USD
It’s a quiet day ahead for the U.S Dollar. There are no material stats to provide the Dollar with direction on the day.
The lack of stats will leave COVID-19 news and any stimulus package news in focus.
At the time of writing, the Dollar Spot Index was down by 0.02% to 92.294.
For the Loonie
It’s a relatively busy day on the economic data front. October house price and September retail sales figures are due out.
Expect the retail sales figures to have the greatest impact on the economic data front.
Away from the economic calendar, however, a continued spike in new COVID-19 cases will test support for riskier assets on the day.
At the time of writing, the Loonie was down by 0.04% to C$1.3078 against the U.S Dollar.
USD/CAD made an attempt to settle above the 20 EMA but failed to gain sufficient upside momentum
USD to CAD has recently tested the resistance at the 20 EMA at 1.3120 but failed to gain sufficient upside momentum and declined below 1.3100. The nearest support level for USD to CAD is located at 1.3080.
If USD to CAD settles below this level, it will head towards the next support at 1.3050. A successful test of this support level will push USD to CAD towards the next support at 1.3000.
On the upside, USD to CAD needs to settle above 1.3100 to have a chance to get to another test of the resistance at 1.3120. If USD to CAD manages to settle above this level, it will gain upside momentum and head towards the resistance at the 50 EMA at 1.3170.
The AUD/USD pair is consolidating in the high 0.72s but economists at Westpac see the aussie fading at the 0.7350 barrier. On the flip side, dips below 0.72 would be an opportunity to buy.
“The combination of positive vaccine news, record China steel production driving record demand for iron ore and commodities in general, plus Lowe’s comments that ‘negative rates were still extraordinarily unlikely in Australia’ have lifted A$ sentiment in recent sessions.”
“We still see fresh closures/curfews and stay at home orders in the US and Europe as capping 0.7350 for now.”
“Signs that Asian central banks are becoming concerned by recent currency strength also acts as a cap on the A$ too.”
“Weakness to 0.7180/0.7210 is another opportunity to buy though.”
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