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Currency
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Last
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High
|
Low
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Daily Change (pip)
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Daily Range (pip)
|
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EUR/USD
|
1.0941
|
1.095
|
1.0893
|
44
|
57
|
EUR/USD Daily
Chart – Created Using Trading View
The bear-flag formation in EUR/USD may continue to shape going into November as the Euro-Zone’s Gross Domestic Product (GDP) report is expected to show the growth rate expanding another annualized 1.6% in the third-quarter of 2016, while the core Consumer Price Index (CPI) is projected to hold steady at an annualized 0.8% in October; a series of positive developments may spark a bullish reaction in the single-currency, but the broader outlook remains tilted to the downside as price & the Relative Strength Index (RSI) preserve the bearish trends carried over from August.
May see growing expectations for a meaningful announcement at the European Central Bank’s (ECB) December 8 policy meeting as the Governing Council looks poised to adjust the duration as well as the guidelines of the non-standard measures, but more of the same from President Mario Draghi and Co. may spark a ‘taper tantrum’ should the committee preserve the March 2017 deadline for the asset-purchase program.
A closing price above 1.0940 (61.8% retracement) may push EUR/USD towards the top of the near-term channel, with aligns with the next topside region of interest coming in around 1.0970 (38.2% retracement).
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Currency
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Last
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High
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Low
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Daily Change (pip)
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Daily Range (pip)
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|
GBP/USD
|
1.2154
|
1.2189
|
1.2114
|
10
|
75
|
GBP/USD Daily
Chart – Created Using Trading View
GBP/USD may remain range-bound ahead of the Bank of England’s ‘Super Thursday’ event as Governor Mark Carney and Co. are scheduled to deliver the updated quarterly inflation report (QIR); the fresh projections may trigger a relief rally in the British Pound should the central bank highlight a growing risk of overshooting the 2% target for price growth.
Even though the BoE warns ‘a majority of members expect to support a further cut in Bank Rate to its effective lower bound,’ the recent comments from Governor Carney suggest the Monetary Policy Committee (MPC) will preserve a wait-and-see approach going into 2017 as the marked depreciation in the exchange rate is expected to push the economy from ‘no inflation to some inflation.’
Broader outlook for GBP/USD remains tilted to the downside, with near-term resistance coming in around 1.2360 (50% expansion); waiting for a close below 1.2100 (61.8% expansion) to open up the next downside region of interest coming in around 1.1680 (161.8% expansion) to 1.1730 (78.6% expansion).
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