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Forex News for November 22, 2021

by Seerat Fayaz   ·  November 22, 2021   ·  

Forex News for November 22, 2021

by Seerat Fayaz   ·  November 22, 2021   ·  
According to the ECB, regional banks must step up their efforts to address climate risks. This is based on the ECB’s first-ever large-scale supervisory review on the subject. Which shows how European banks are adapting their policies to manage climate and environmental risks, as stated by the ECB in November 2020.

Banks have made some measures toward absorbing climate-related risks. But none has come close to achieving all supervisory requirements. Only one-third of banks have strategies in place that are at least substantially sufficient. Half will not have finished implementation by the end of 2022.

On the day, EUR/USD fell 0.2 percent to 1.1265.

It has been difficult to identify support levels for the pair over the previous two weeks. However, the 61.8 retracement level of the surge higher from March last year to January this year @ 1.1290 and the 1.1300. It did provide some minor respite last week before being breached.

Things are looking bleak for the euro versus the dollar right now. The technical indicators indicating that there won’t be much reprieve on the way down. 

The dollar has been the star performer over the last two weeks and based on the EUR/USD chart above. It is difficult to argue against the greenback right now.

Returning to the EUR/USD, sellers will likely target 1.1200 before discussing 1.1000. The latter may appear to be a bit of a reach, so there may be some sort of pullback before traders review the move moving ahead.

Oil is under pressure to the downside, although it is approaching critical support levels.

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WTI is down 0.2 percent to $75.80. Although it is still off previous lows of $74.76 at least. It is indicating that purchasers are still struggling as a result of the recent decline. 

Germany has around 637,000 active COVID-19 cases. Its nearly twice the previous record during the November-December 2020 wave. 

Lawmakers are currently debating whether to make vaccines mandatory for citizens in order to avoid medical capacity from becoming overburdened.

German COVID-19 patients requiring intensive care (admitted to ICU) increased to 3,376 as of 18 November (it is 3,431 as of 19 November). While the rise isn’t as dramatic as prior waves, the trend isn’t looking good. There are warning flags to be noted. 

For one thing, the majority of the cases are now affecting persons who have not been vaccinated. Which is expected to increase the number of serious cases (and perhaps the fatality rate) in the coming weeks. 

Meanwhile, medical capacity has been hampered by a decrease in the number of ICU beds available across the country during the last year. In comparison to the same period last year, there are currently around 5,000 fewer beds.

This is something to keep an eye on. Since it has an influence on Europe’s largest economy and is only a mirror of a trend in some regions of the continent.

The European session will include economic statistics.

For the most part, major currencies are barely moved. The dollar remains in a strong location overall after some pushing and tugging last week. 

Treasury rates have risen somewhat following a drop in the long end on Friday. Which saw some signals of risk aversion (tech stocks bucked that) in European trade at the time due to the resurgence of pandemic worries.

US futures are also up, indicating a better risk sentiment so far today.

Looking ahead this week, there will be a number of noteworthy data releases in the coming days. These will be ranging from PMI data to US durable goods and PCE statistics. In terms of central bank concentration, the minutes of the RBNZ and FOMC meetings are the ones to keep an eye on. 

Also, bear in mind that the Thanksgiving holiday in the United States is coming up on Thursday. So we will have a shorter week in general. With no substantial data flow on the last day of the week, many traders and market players will most likely be off on Friday as well.

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