CANADA OCT CPI 2.0% YOY IN LINE W/ FORECASTS, PRIOR 1.6%

CORRECTED-MNI: Gas Base Effect Pulls Canada CPI Back Up To 2%

MNI BRIEF: China To Enhance Policy Support In 2025: NDRC

MNI CBRT WATCH: Rates To Hold As Inflation Forecast Raised

MNI NBH WATCH: Rates Held At 6.5% As Expected

MNI BRIEF: NDRC Considering Trade-in Scheme Next Steps

EZ/UK Bond Supply Calendar: 10-Year GGB Auction on Wednesday

MNI: US REDBOOK: NOV STORE SALES +4.9% V YR AGO MO

MNI: US OCT HOUSING STARTS 1.311M; PERMITS 1.416M

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

MNI EXCLUSIVE: German Turmoil Dashes EU's Joint-Funding Hopes -Officials

FED: Powell's Time Looks Up, Replacement Could Be Less Willing To Cut Rates?

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

FOREX: EURUSD Extending Highs, Approaching 50-Day EMA

FOREX
BulletMarketsForeign Exchange Bullets
  • Broad greenback weakness has been extending in recent trade and EURUSD (+0.45%) has edged up to a fresh recovery high of 1.0927. Price action continues to narrow the gap with the 50-day EMA resistance, intersecting today at 1.0938. However, given the expected overnight volatility, more meaningful resistance is found between 1.0997/1.1040, the October 08 and 04 highs respectively.
  • The ECB have repeatedly stressed the importance of the productivity-wage-profit channel as a fundamental driver of the inflation outlook, suggesting that growth concerns have moved the meter for the Governing Council. With that said, last week’s moderate upside surprises for Eurozone Q3 GDP will have likely been assisting the single currency bounce.
  • However, overall trend conditions continue to suggest the move higher for EURUSD is corrective, and a Trump victory would likely weigh on the pair and reassert the dominant downtrend. Note too, that moving average studies remain in a bear-mode position.
  • The bear trigger is unchanged at 1.0761, the Oct 23 low. Below here, market attention would be focused on 1.0710, the July 02 low and 1.0666, the June 26 low.
177 words

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
  • Broad greenback weakness has been extending in recent trade and EURUSD (+0.45%) has edged up to a fresh recovery high of 1.0927. Price action continues to narrow the gap with the 50-day EMA resistance, intersecting today at 1.0938. However, given the expected overnight volatility, more meaningful resistance is found between 1.0997/1.1040, the October 08 and 04 highs respectively.
  • The ECB have repeatedly stressed the importance of the productivity-wage-profit channel as a fundamental driver of the inflation outlook, suggesting that growth concerns have moved the meter for the Governing Council. With that said, last week’s moderate upside surprises for Eurozone Q3 GDP will have likely been assisting the single currency bounce.
  • However, overall trend conditions continue to suggest the move higher for EURUSD is corrective, and a Trump victory would likely weigh on the pair and reassert the dominant downtrend. Note too, that moving average studies remain in a bear-mode position.
  • The bear trigger is unchanged at 1.0761, the Oct 23 low. Below here, market attention would be focused on 1.0710, the July 02 low and 1.0666, the June 26 low.