Event to pay attention to today:
15:00 EET. EUR – ECB President Christine Lagarde Speaks
EURUSD:
On Tuesday, the EUR/USD was trading between the 1.0550 and 1.0600 levels. It tested the lower boundary but then recovered, adding just 0.14% for the day. The final data on EU Harmonised Index of Consumer Prices (HICP) inflation had little impact on market movements, and the greenback will have to settle for a limited release schedule this week.
The European core HICP inflation rate remained at 2.0% y/y in October, in line with preliminary data. The data did not generate interest in the euro markets and was not a focus on either side of the bid-ask spread. US data remains inactive until the second half of the trading week, when jobless claims and retail sales data will be released.
On Wednesday, ECB President Lagarde will deliver the opening remarks at the ECB’s Financial Stability and Macroprudential Policy Conference. The ECB finds itself in a challenging position, with European inflation holding firm against initial expectations and the broader European economy displaying a lopsided tilt.
The first half of the US trading week will see few economic data releases. On Thursday, average initial jobless claims will be published, which are expected to show a slight increase in the number of people applying for unemployment benefits for the week ending 15 November. US Purchasing Managers’ Index (PMI) data will be released this week, but will not impact investors until Friday.
Trading recommendation: We follow the level of 1.0600, when fixing above it we consider Buy positions, when rebounding we consider Sell positions.
Origin: FreshForex
