On Tuesday the 28th of November, during trading in Europe, the euro and pound were both trading down against the US dollar. After a failed recovery, the pound dropped from 1.3357 to 1.3287 (-70 pips), while the euro dropped from 1.1920 to 1.1875 (-45 pips). This is the market readjusting itself after the US dollar’s recent decline.
Germany’s Gfk consumer confidence survey for December produced the same results as for November. This has had no effect on the euro. US trade balance and housing price data is set to be published later in the day. In addition to this macro-data, there are some speeches scheduled from members of the Federal Reserve (William Dudley, Jerome Powell, and Patrick Harker).
Traders will be most interested in Jerome Powell’s speech to the Senate as he is an official candidate to be the next Chair of the Federal Reserve. Donald Trump is also expected to meet with Republican senators as the vote on tax reform approaches.
The euro has reached the resistance zone 1.1860 – 1.1880. Here, there are some buy limit orders on the euro as well as stop levels on long positions. Once the bears outweigh the bulls in terms of trading volume, the euro will move towards 1.1840 – 1.1850. The pound is currently being held up at 1.3277. If or when it breaks this, it will move towards 1.3230.
