BREAKING NEWS : $500 - $5000 No Deposit Bonus Hurry up, Join Now!
Written by experienced traders and professional market analysts, our Forex technical analysis is just what you need to get an edge in your Forex trading
Advertisement hotforex

No Surprises from the Fed - Dollar Continues to Rise

Written by By Valeria Bednarik | 2018-11-08 20:23:55 GMT

Support in EUR/USD is at 1.13. A smaller than expected German trade surplus and the Bundesbank's warning that the Germany economy may have stagnated in the third quarter made the euro one of the day's worst performing currencies. Although we firmly believe that the lower euro will bolster inflation and growth, the recent slide in oil prices could make it a slow move higher. The momentum has shifted back to the downside and as there are no major US and Eurozone economic reports scheduled for release on Friday the path of least resistance for the pair should be lower.

For sterling, the main focus is Brexit. The European Union convenes on November 23rdto discuss Britain's exit from the European Union and according to a times political report, an agreement could be made as early as next week. There's apparently a draft being circulated around and if it is well received by the EU, it could be published on Tuesday or Wednesday of next week. Of course, none of this could be true or the EU could simply find the draft unsatisfactory and they'll be back at status quo. Sterling traders will be skeptical until a deal is announced but once it is, we could see a very strong rally that could take GBP/USD all the way up to 1.34.

All 3 of the commodity currencies moved lower today with the New Zealand dollar leading the slide. Having traded sharply higher over the past month, NZD/USD is beginning to lose momentum now that the 2 major events (Q3 labor data and RBNZ) are behind us. The RBNZ left interest rates unchanged yesterday and boosted its inflation forecast but NZD/USD traders were not satisfied by Reserve bank of Governor Orr's comments. While he said that their rate outlook has not changed., they are not taking a rate cut off the table because its been a challenge to lift inflationary pressure further and if GDP falls short of forecast, they may have to resort to easing.   Regardless of how serious the RBNZ is the talk of rate cuts should be enough to take NZD/USD to 67 cents on US dollar strength and profit taking alone. The Australian dollar also turned lower but not until late in the day. The same was true of the Canadian dollar which collapsed into the NY close pushing USD/CAD up towards 1.32.


By Valeria Bednarik

Start Trading With Top Industry Brokers

Broker Profile Open Account
  • Minimum Deposit: 5 USD
  • Leverage of up to 1:30
  • Broker Type : Market Maker
  • Regulation : CySEC,ASIC ,FCA
  • xm
  • Minimum Deposit: 100 USD
  • Leverage of up to 1:500
  • Broker Type : Market Maker
  • Regulation : CySEC
  • Markets
  • Minimum Deposit: 250 USD
  • Leverage of up to 1:200
  • Broker Type : Market maker
  • Regulation : CySEC
  • trade

    The Best Crypto to Crypto

    Exchanger Advantages Open Account
  • Safety Stability: Multi-tier & multi-cluster system architecture
  • Binance charges a quite low commission fee
  • Multiple-Coin Support : BTC, ETH, LTC, BNB...
  • High Liquidity
  • Multiple-Language Support
  • binance
  • Instant cryptocurrency exchange
  • More than 500,000 satisfied users
  • Changelly charges a quite low commission fee
  • Safety Stability
  • changelly
  • Bitmex - Bitcoin Mercantile Exchange is a cryptocurrency derivatives trading platform.
  • Bitmex charges a quite low commission fee
  • Safety Stability
  • changelly

    Best Brokers to Trade Crypto

    Broker Profile Open Account
  • Minimum Deposit: 5 USD
  • Leverage of up to 1:30
  • Broker Type : Market Maker
  • Regulation : CySEC,ASIC ,FCA
  • XM
  • Offer: 50USD No Deposit Bonus
  • Offer: 100% Deposit Bonus
  • Minimum Deposit: 1 USD
  • Leverage of up to 1:500
  • Broker Type : Market Maker
  • Regulation : CRFIN (Russia), 009069697 IFSC (Belize), IFSC/60/230/TS/12
  • FBS
  • Offer: 1000USD Deposit Bonus
  • Minimum Deposit: 50 USD
  • Leverage of up to 1:400
  • Broker Type : STP
  • Regulation : ASIC, 335692 CFTC/NFA, 0382918 CySEC, 109/10
  • eToro

    Contact us