The Euro: a day in the USA will bring quiet trading
Wednesday, November 21, bidding on the Euro resulted in a slight growth. Correction of stock indices and oil prices supported the Euro throughout the day. Market participants even ignored the European Commission’s decision to “reject” a new version of the budget of the government of Italy. This decision increased the likelihood of sanctions against the country. Due to the fact that this procedure may take several months, the market responded poorly to the news.
My expectations on the weakening of the Euro on the European Commission’s decision was not justified. Upward correction was delayed in time. Amid General U.S. dollar weakness and a recovery in stock markets, buyers were able to raise the rate to the upside on 1,1415 (max — 1,1425). By the close of the day the price returned to the area 1,1332.
The technical picture remains bearish in the framework of the corrective movement to an upward movement from the low 1,1226. The price is about the balance and trend lines. Given that the market is balanced if the remaining uncertainty around Italy, I still expect the weakening of the Euro to the level of 1.1340 for the closing of the trading week.
Today is likely flat for the weekend in the United States. In this regard, expect fluctuations within yesterday’s range 1,1365-1,1425. If the background of the General strengthening of the dollar crosses with the Euro reverses to the downside, then it is necessary to lower the target level to 1.1340 for 1,1345. Now they are all traded in positive territory, so it is unlikely that someone will sell the Euro against them.
At 15:30 GMT the Euro area will report the ECB meeting on monetary policy.
At 17:45 GMT speech by first Deputy Governor of the Bank of Canada Carolyn Wilkins.
At 18:00 GMT Eurozone will release consumer confidence for November.
At 20:00 GMT with a speech by ECB Executive Board member Yves Mersch.
At 23:55 GMT speech by BoE MPC member Michael Saunders.