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On Tuesday the 30th of October, the euro closed down. Buyers tried to reverse the situation twice and both times were unsuccessful. The euro fell against the dollar to 1.1341. There were several factors which contributed to the weakening of the single currency.

1. The euro remains under pressure due to uncertainty around Italy. Italian bond yields rose this quarter against the background of weak GDP data in the country. The difference with the yields of similar German securities increased to 300 points. So far there’s no news with regard to any new budget plans.

2. US authorities are ready to introduce tariffs for the remaining imports from China by early December if new trade agreements are not reached, President Trump tweeted. US 10-year bonds shot up, and the dollar strengthened across the market.

Day’s news (GMT+3):

Fig 1. EURUSD hourly chart

Current situations:

The reversal formation did not work. External factors turned out stronger than technical signals. The price returned to the low of the 26th of October. At the time of writing, the euro is trading at 1.1340.

In the Asian session, the US dollar is showing mixed dynamics with regard to other major currencies. The franc and the pound are trading up, while the others are trading in the red. Today, traders’ attention will be focused on retail sales in Germany and Eurozone inflation data. If stock indexes don’t fall, then their attention will switch to the BOE meeting on Thursday and the US labor market survey slated for Friday. The market will now begin preparing for these events.

What can we expect today?