Last Friday the US non-farm data caused an earthquake in all pairs with the USD. Due to the lack of important data for the major currencies, today a correction in different pairs is possible.
EUR/USD probably ranging market
The single currency got one of the hardest hits last Friday, and droped to the deepest low since April. Beside recovery of the US-economy and the extrem growing emploiment in October, the euro area is still struggling with it's crisis. While we are waiting for increased US-interest rates in December, there are strong evidence the ECB will will increase the bonds purchase program next month. In this constelation we will see the euro uder pressure in the coming weeks. Despite this we could see a limited correction this morning, followed by a ranging market between 1.075 and 1.079, with probably some good trading opportunities at the boundaries.
GBP/USD in a stable downtrend
The situation in this cross is similar to the previous pair. Especially the last week published UK inflation report sent the pound sterling in a solid downtrend. The inflation is still far to low, and this creates speculations about a possible rate cut by the Bank of England. From Thursday the GBP lost almost 360 Pips against the USD. This Trend will slow down, but it breaks the 1.498, the next target could be at 1.494.
EUR/JPY euro still lose ground
The economy in the euro area and in Japan are both still experiencing difficulties, but it seem the there is mor confidence in the Japanese yen by the investors. While further stimulation by the ECB is very likely, the BoJ denied any plans of coming measures in the next weeks. If the German Trade bilance this morning is better than expected, the euro could gain some ground to 132,, but after the EU Finance Ministers meeting at 15:00h CET, the price could turn again, with a target at 132,11
Risk disclaimer:
The opinions of the author to market behavior do not constitute a solicitation to buy or sell any financial products, but are merely a personal opinion. When you go into the trade in leveraged financial products, you must be aware that a loss up to the amount of your deposit and in addition, can also be an obligation to arise. Make yourself familiar with the active trade or get independent advice before you invest your own money and use only invest money that you can get over the worst case.