The USD/CAD Rate Drops to Its Minimum of 2 Months
This morning, 1 USD was selling for less than 1.354 Canadian dollars – for the first time since October 1st.
The strengthening of the Canadian dollar and the weakening of the USD was facilitated by the news published yesterday:
→ Canada's real gross domestic product (GDP) grew by 0.1% in September, which exceeded analysts' expectations and reduced the relevance of the recession scenario in Canada.
→ The number of applications for unemployment benefits in the US for the week amounted to 218k (a week earlier it was 211k), which may indicate a cooling of the US economy.
→ The price index for personal consumption expenditures (PCE) fell to 3% from the previous value of 3.4%. While 3% remains too high to declare victory over inflation, it marks a new series low that is sure to reduce the likelihood of a Fed rate hike.
In our previous analysis of the USD/CAD market, we wrote that the price could form a rebound from support in the area of 1.36625. However, the rebound to point E was very weak, and after the breakdown, the level 1.36625 showed resistance properties.
VIEW FULL ANALYSIS VISIT - FXOpen Blog...
Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Market Analysis: UK100 Shows Bullish Signs
On the morning of Friday, December 1, the UK stock market index rose to its November highs. This was facilitated by the fundamental background:
→ among the UK100 growth leaders are shares of companies mining ore and other resources. As metal prices rise and industry in China shows signs of recovery;
→ general sentiment on the world's stock markets due to the fact that the policy of raising rates pursued by the central banks of Western countries has come to an end. Fed Chairman Powell is expected to speak this evening, which could provide more evidence of this.
→ Since the UK100 index has performed weaker relative to other indices (due to higher inflation in the UK), it may be undervalued.
VIEW FULL ANALYSIS VISIT - FXOpen Blog...
Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
EUR/USD, GBP/USD, and USD/JPY Analysis: US Dollar Growing Against Euro and Pound
The US personal consumer spending price index rose 3% in October from a year earlier, down from the three-month rate of 3.4%, although still above the Fed's 2% target, raising the possibility of an early rate cut. Jobless claims rose over the past week, indicating a slowing labour market. Inflation, as measured by the price index for personal consumption expenditures (PCE), remained unchanged in October after rising 0.4% in September.
EUR/USD
According to the technical analysis of EUR/USD, the pair is showing noticeable growth, correcting after an active decline the day before, which turned out to be the most significant in the last few weeks. The euro is testing the 1.0900 mark for an upward breakout, awaiting the publication of macroeconomic statistics from the EU and the USA. Among other things, speeches are expected throughout the day from the heads of the US Federal Reserve and the ECB, who are likely to comment on the likelihood of ending the monetary policy tightening program amid a sharp slowdown in price pressure.
The day before, November inflation data was published in the eurozone. The consumer price index in annual terms fell from 2.9% to 2.4%, which was significantly lower than forecasts of 2.7% and was the slowest growth rate since July 2021, and in monthly terms the figure was -0.5%. Core inflation slowed from 4.2% to 3.6% in annual terms, which was also below expectations at 3.9%, and in monthly terms the index decreased by 0.6%. At the same time, the day before, ECB head Christine Lagarde said that price growth could resume in the near future due to certain factors.
Immediate resistance can be seen at 1.0940, a break higher could trigger a rise towards 1.1000. On the downside, immediate support is seen at 1.0872, a break below could take the pair towards 1.0800.
Based on the lows of two days, a new downward channel has formed. Now the price has moved away from the lower border of the channel and may continue to rise.
VIEW FULL ANALYSIS VISIT - FXOpen Blog...
Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
This morning, 1 USD was selling for less than 1.354 Canadian dollars – for the first time since October 1st.
The strengthening of the Canadian dollar and the weakening of the USD was facilitated by the news published yesterday:
→ Canada's real gross domestic product (GDP) grew by 0.1% in September, which exceeded analysts' expectations and reduced the relevance of the recession scenario in Canada.
→ The number of applications for unemployment benefits in the US for the week amounted to 218k (a week earlier it was 211k), which may indicate a cooling of the US economy.
→ The price index for personal consumption expenditures (PCE) fell to 3% from the previous value of 3.4%. While 3% remains too high to declare victory over inflation, it marks a new series low that is sure to reduce the likelihood of a Fed rate hike.
In our previous analysis of the USD/CAD market, we wrote that the price could form a rebound from support in the area of 1.36625. However, the rebound to point E was very weak, and after the breakdown, the level 1.36625 showed resistance properties.
VIEW FULL ANALYSIS VISIT - FXOpen Blog...
Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
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Market Analysis: UK100 Shows Bullish Signs
On the morning of Friday, December 1, the UK stock market index rose to its November highs. This was facilitated by the fundamental background:
→ among the UK100 growth leaders are shares of companies mining ore and other resources. As metal prices rise and industry in China shows signs of recovery;
→ general sentiment on the world's stock markets due to the fact that the policy of raising rates pursued by the central banks of Western countries has come to an end. Fed Chairman Powell is expected to speak this evening, which could provide more evidence of this.
→ Since the UK100 index has performed weaker relative to other indices (due to higher inflation in the UK), it may be undervalued.
VIEW FULL ANALYSIS VISIT - FXOpen Blog...
Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Post automatically merged:
EUR/USD, GBP/USD, and USD/JPY Analysis: US Dollar Growing Against Euro and Pound
The US personal consumer spending price index rose 3% in October from a year earlier, down from the three-month rate of 3.4%, although still above the Fed's 2% target, raising the possibility of an early rate cut. Jobless claims rose over the past week, indicating a slowing labour market. Inflation, as measured by the price index for personal consumption expenditures (PCE), remained unchanged in October after rising 0.4% in September.
EUR/USD
According to the technical analysis of EUR/USD, the pair is showing noticeable growth, correcting after an active decline the day before, which turned out to be the most significant in the last few weeks. The euro is testing the 1.0900 mark for an upward breakout, awaiting the publication of macroeconomic statistics from the EU and the USA. Among other things, speeches are expected throughout the day from the heads of the US Federal Reserve and the ECB, who are likely to comment on the likelihood of ending the monetary policy tightening program amid a sharp slowdown in price pressure.
The day before, November inflation data was published in the eurozone. The consumer price index in annual terms fell from 2.9% to 2.4%, which was significantly lower than forecasts of 2.7% and was the slowest growth rate since July 2021, and in monthly terms the figure was -0.5%. Core inflation slowed from 4.2% to 3.6% in annual terms, which was also below expectations at 3.9%, and in monthly terms the index decreased by 0.6%. At the same time, the day before, ECB head Christine Lagarde said that price growth could resume in the near future due to certain factors.
Immediate resistance can be seen at 1.0940, a break higher could trigger a rise towards 1.1000. On the downside, immediate support is seen at 1.0872, a break below could take the pair towards 1.0800.
Based on the lows of two days, a new downward channel has formed. Now the price has moved away from the lower border of the channel and may continue to rise.
VIEW FULL ANALYSIS VISIT - FXOpen Blog...
Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.