Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Currency Markets Look For Direction

By MarketPulse (Jeffrey Halley)ForexNov 24, 2020 04:39AM ET
www.investing.com/analysis/currency-markets-look-for-direction-200545666
Currency Markets Look For Direction
By MarketPulse (Jeffrey Halley)   |  Nov 24, 2020 04:39AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Dollar whipsaws against euro, sterling

Currency markets were whipsawed last night, with the dollar index trading in a near 80-point range before closing almost unchanged. The dollar was boosted by impressive PMI data, but reversed course as Biden announced key cabinet appointments and then as Trump allowed the GSA to release transition funds to the Biden team. The dollar index ranged between support and resistance at 92.00 and 92.80, before finishing the session, just 0.16% higher at 92.50.

Much the same price action was seen in the euro and sterling. EUR/USD ranged between 1.1800 and 1.1900 before closing midrange at 1.1840. Sterling ranged between 1.3270 and resistance at 1.3400 before closing 0.30% higher for the day at 1.3330. Markets continue to price in a 100% certainty that a Brexit trade deal with Europe will be signed. That has supported the euro and notably the GBP. GBP/USD should quickly test and move through resistance at 1.3500 if a breakthrough is achieved, initially targeting 1.3800 and 1.4000.

The session has also been notable for a rotation out of haven currencies such as yen and USD/CHF, with both sold heavily overnight and into pro-cyclical commodity currencies. The Canadian and Australian dollars rose strongly overnight and into Asia’s session. USD/CAD has fallen 0.27% to 1.3050 this morning and looks set to test support at 1.3000 and 1.2930. AUD/USD has risen 0.40% to 0.7315 today, reversing its modest losses overnight. It looks set to test resistance at 0.7340, which opens the path to further gains above 0.7400.

The New Zealand dollar has outperformed in the pro-cyclical space. It has risen 0.70% today to .6970, boosted by finance minister statements on the property market that have been interpreted as hawkish. The kiwi looks set to test 0.7000 imminently, although the Reserve Bank may have something to say if the rally accelerates from there.

The Chinese yuan is unchanged at 6.5820 today, after a neutral fixing by the PBOC. Regionally, the picture is mixed, with the baht, rupiah and ringgit falling against the US dollar. Meanwhile, the Korean won and New Taiwan dollar have risen against the US dollar. The counterintuitive nature of the price movements suggests that the market was already positioning for more good news on the vaccine front and that profit-taking is dominating flows today. Overall, though, my view is unchanged, and I expect Asian FX to strongly outperform into the end of the year in well into 2021.

Original Post

Currency Markets Look For Direction
 

Related Articles

Al Brooks
EUR/USD: Dip Likely? By Al Brooks - Oct 15, 2021 1

Yesterday was a doji bar with a big tail on top. So far, today is a second consecutive doji, forming a potential micro double top. The bears hope it is the second high in a double...

InstaForex Group
EUR/USD: Correction Continues By InstaForex Group - Oct 15, 2021

The US PPI results have halted a frenzy triggered by the inflation report. Producer prices in the United States increased to 8.6% from 8.3% and above market forecasts of 8.5%....

Currency Markets Look For Direction

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email