In this article, we have covered the highlights of global market news about the GBP/USD, EUR/USD, NZD/USD and USD/CAD.
GBP/USD is now consolidating in the short term – UOB
According to UOB Group economist Lee Sue Ann and markets strategist Quek Ser Leang, given the recent price movement, GBP/USD may try to consolidate shortly.
24-hour view: “We said yesterday that we anticipated the GBP to move sideways between 1.1800 and 1.1950 and that it “is unlikely to gain further.” GBP moved within a smaller range (1.1834/1.1942) than anticipated. The GBP might teeter to the upside today as the underlying tone has firmed a little. Any improvement will most likely affect a test of 1.1970, however. It is not anticipated that Tuesday’s high of 1.2027 will be challenged. Support is located at 1.1850, but simply a breach of 1.1800 would signal a reduction in the slight upward pressure that is now present.
Within the next three weeks: “Yesterday (16 November, spot at 1.1880), we suggested that GBP may stabilize for a few days before making another push higher. “The likelihood of a clear breach of the next major barrier around 1.2100 does not seem to be great at this time,” we said. Our opinion hasn’t changed at all. Notably, 1.2027 is already an extreme resistance level. On the downside, a break of 1.1750 (a level that remains a “strong support” level from Yesterday) would signal that the GBP surge is about to pause.
The EUR/USD is still stuck around 1.0480 – UOB.
Markets Strategist Quek Ser Leang and Economist Lee Sue Ann of the UOB Group remark that a further rising in the EURUSD is anticipated to encounter a significant obstacle around 1.0480.
24-hour outlook: “We said Yesterday that there are conflicting expectations for the euro and that it will fluctuate between 1.0270 and 1.0420. But before tumbling, EUR climbed to a high of 1.0438. As a result of the price movements seeming to be consolidated, we anticipate that the EUR will trade between 1.0340 and 1.0440 today.
Within the next three weeks: “Our update from yesterday (16 November, spot at 1.0350) remains valid. As said, the EUR may continue to rise as long as the “strong support” level around 1.0260 (level was at 1.0230 yesterday) is not breached. However, the high from Tuesday of 1.0480 is functioning as a substantial obstacle, and the EUR could find it challenging to break through.
NZDUSD recovers from 0.6120 as DXY becomes erratic, yields cede gains
After falling to around 0.6120 in the Asian session, the NZDUSD pair has seen buying activity. The US dollar index (DXY) has seen offers as it has been more volatile after selling pressure at the pivotal level of 106.60. Despite rising geopolitical tensions between North Korea and the US, offers have been seen on the DXY, giving contradictory signals about the market’s stance.
Market players are waiting for further information on the North Korea-US tension before judgment. The bulk of the DXY’s intraday gains have been given up, and it is expected to stay volatile since this week’s US data calendar is relatively quiet.
S&P 500 futures are making erratic movements as the risk motivation remains unclear. After reaching an intraday high of 3.73%, the returns provided by long-term US government bonds have decreased to 3.71%. US rates have stayed the same due to San Francisco Federal Reserve (Fed) President Mary Daly’s higher interest rate forecast.
USDCAD Price Analysis: Retains weekly high above 1.3360 as investors get wary
In the early European session, the USDCAD pair’s auction profile moved over the pivotal threshold of 1.3350. As investor caution has increased in the wake of rising geopolitical tensions between North Korea and the US, the asset has seen a respectable amount of purchasing activity. A sharp decline in oil prices has helped the major to retest its weekly high above 1.3360.
The US dollar index (DXY), which is trying to surpass the crucial threshold of 106.60, has been under slight selling pressure. While the S&P500 futures have begun to rebound somewhat after the complete erosion of early Asian gains.
The asset has produced a breakout of the accumulation phase on an hourly basis, which denotes the transfer of inventory from retail players to institutional investors. The best time for investors to start long positions would be during a typical test of the breakout zone around 1.3336.
In addition to the positive filters, the 20-period Exponential Moving Average (EMA) at 1.3325 is moving upward.
Meanwhile, rising momentum has been awakened as the Relative Strength Index (RSI) (14) has moved into the bullish zone of 60.00-80.00.
Please click here for the Market News Updates from 16 November, 2022.