The Euro headed above the psychological mark of
In the European trading, the dollar continued to take positions on the entire market. He started to decline in Asia after strong data on GDP in New Zealand. The new Zealand dollar has become the locomotive for the entire market. Then it was replaced by the British pound. The pair pound/dollar began to rise after the publication of statistics on retail sales UK.
Sales of the U.S. dollar and a break out of the zone of resistance at 1.1725 pushed the pair Euro/dollar to 1,1771. I noticed that it is cheaper with rising yields on 10-year us bonds. Expectations of further tightening of monetary policy of the Federal reserve system is getting stronger, just now the attention of investors switched to technical factors.
A positive impact on the pound could have the news that the head of the European Council, Donald Tusk shall convene the extraordinary EU summit on 17-18 November, dedicated to negotiating the British exit from the community.
When the pair Euro/dollar mark 1,1777, buying the Euro is markedly decreased. Given that the crosses with the Euro now trading in positive territory, risks remain increase to the resistance zone 1,1790-1,1800 (MA U3).
If the Euro/dollar closes below 1,1755 for 2-3 hours, then begin a downward correction to the upward movement 1,1650 to 1,1777. The closure of the day below 1,1720 will return to the market sellers. In this case, sales can increase.
Statistics in the UK:
Retail sales in August rose 0.3% m/m and 3.3% y/y (the forecast of -0.1% m/m, 2.3% y/y, the previous value revised from 0.7% m/m and 3.5% y/y to 0.9% m/m and by 3.8%).