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UFXBank Forex Outlook: GBP Down vs USD on PMI Data

Written by UFXBank Research Team
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USD Dollar (USD) – The Dollar traded mixed against the major currencies in Forex trading today. Investors are still waiting for the Interest Rate Decision today in the U.S, which is expected unchanged. The momentum is still bearish for the Dollar against most of the major currencies .The Stock Markets in the U.S. closed with the Dow Jones rising by 0.58% and the NASDAQ advancing by 1.14%. Crude Oil advanced by 1.2% against the dollar and closed at $83.90 a barrel, breaking a 6 month high. Gold (XAU) rose by 0.2% and closed at $1353.20 an ounce. Today, the Interest Rate Decision is expected unchanged at 0.25%, the ADP Nonfarm Employment Change (MoM) is expected at 25.00K vs. -39.00k previously, and the FOMC Statement is expected today.

Euro (EUR) – The Euro strengthened against the green back today after the German Manufacturing PMI came out at 56.60, better than the expected 56.10, and the Manufacturing PMI (MoM) came out at 54.60, better than the expected 54.10. Holding above the support level of 1.4000 will keep the momentum positive for the pair. Overall, EUR/USD traded with a low of 1.3881 and with a high of 1.4058. Today, no economic data is expected for the Euro.

EUR/USD – Last: 1.4010

Resistance

1.4050

1.4100


Support

1.3989

1.3938

1.3883

British Pound (GBP) – The Pound fell against the dollar after the Construction PMI came out at 51.60, worse than the expected 53.00, which means that construction growth slowed more than forecast in October. Holding the rate above 1.6000 will keep the momentum bullish for the pound. Overall, GBP/USD traded with a low of 1.5961 and with a high of 1.6080. Today, the Halifax House Price Index (MoM) is expected at 0.40% vs. -3.60% last time.

GBP/USD - Last: 1.6036

Resistance

1.6074


Support

1.5969

1.5885

1.5749

Japanese Yen (JPY) – The Japanese Yen fell against the Dollar and almost reached the 81.00 resistance level.  Traders may use the combination of the American vote and the holiday in Japan in order to push the pair below 80.00 Yen per Dollar. Overall, USD/JPY traded with a low of 80.46 and with a high of 80.96. No economic data is expected today.

USD/JPY-Last: 80.65

Resistance

80.96

81.35

81.60

Support

80.26

80.00


Canadian dollar (CAD) Canada’s dollar gained for the fourth day against the US Dollar and had the longest stretch for the last 5 months. Trading below 1.0094 will keep the momentum bearish for the pair. Overall, USD/CAD traded with a low of 1.0079 and with a high of 1.0135. Today, no economic data is expected.

USD/CAD - Last: 1.0083

Resistance

1.0121

1.0171

1.0259

Support

1.0000