November 15, 2022 10:35 GMT
EUR/USD Nearing 200-dma Last Crossed in 2021
- The greenback is fading early Tuesday, prompting EUR/USD to print a fourth session of higher highs and narrow the gap with the next key upside level at 1.0429 - the 200-dma. The pair hasn't traded above this level consistently since May 2021.
- Markets continue to take recent Fed communications into balance, with WSJ's Nick Timiraos citing Brainard in writing this morning that the Fed are likely to slow their tightening pace in December - the so-called 'policy pivot' that markets have been on the lookout for over the past few months.
- As a result, growth proxies are outperforming early Tuesday, with AUD and NZD among the session's best performers. CHF and JPY are trading more moderately given the upside in US equity futures, with the e-mini S&P higher by 0.7% at typing.
- US Empire Manufacturing and PPI for October are the data highlights Tuesday, with Canadian manufacturing sales also due. The Fed speaker slate picks up, with commentary from Fed's Harker and Cook on the docket.