The ADP national employment report on Wednesday showed that U.S. private sector payrolls increased by the most in eight months in October, suggesting overall job growth accelerated this month after Hurricane Florence weighed on restaurant and retail employment in September. The U.S. Federal Reserve increased interest rates in September for the third time this year and is expected to raise rates again in December.

The EUR/USD fell despite higher-than-expected inflation data from the euro zone. Eurozone inflation rose to 2.2% in the year to October, up from 2.1% the previous month. October’s rate is the highest since December 2012, when inflation was also 2.2%.

The Canadian dollar edged lower against its U.S. counterpart on Wednesday as the greenback broadly climbed, offsetting data that showed a surprise strengthening of the domestic economy in August.

Trading strategies:

EUR/USD

Trading strategy: Await signal

Open: –

Target: –

Stop-loss: –

Recommended size: –

Short analysis: A new short-term low is set and RSIs are biased down. A break of the 2018 low seems likely. Daily RSI studies are near oversold so any deepening of the slide might be a grind.

GBP/USD

Trading strategy: Buy

Open: 1.2730

Target: –

Stop-loss: 1.2650

Recommended size: 1.88 mini lots per $10,000 in your account

Short analysis: Brief drop under 1.27 Tues to 1.2697 low. Month-end buying and talk of Brexit deal progress from UK’s Raab boosted GBP/USD to 1.2831 flashes high on Wednesday, before settling in mid-1.27’s. Key support 1.2662 Aug 15 low. We have placed a bid at 1.2730, high-risk counter trend play.

USD/JPY

Trading strategy: Buy

Open: 112.35

Target: –

Stop-loss: 111.60

Recommended size: 2.91 mini lots per $10,000 in your account

Short analysis: USD/JPY’s bullish charge halted by the 113.34 Fibo level, a 61.8% retrace of the 114.55 to 111.38 October fall, a break and daily close above which will accelerate. Monday and Tuesday saw the third and second biggest one-day gains of October, reinforcing the bullish potential. We are looking to get long on dips, as the rising daily cloud (111.48-112.00) props.