On Friday, November 8, in morning trading, the single European currency is trading in negative territory, continuing the trend of the past day.
On Thursday, the currency pair during the trading session formed a downward movement in the direction of the corridor 1.1040-1.1050 amid reports that the U.S. and China have practically agreed to phase out tariffs on imports between the countries as part of the conclusion of the first phase of the trade agreement.
From macroeconomic statistics in Germany was published industrial production, which in September decreased by 0.6%, while analysts expected a decrease of 0.4%. At the same time, the August value was revised up from 0.3% to 0.4%. In the U.S. released data on the number of initial applications for unemployment benefits, which for the week amounted to 211,000, while analysts predicted the figure at 215,000. At the same time, the previous value was revised from 218,000. up to 219,000
Also yesterday there was a speech of the Representative of the Federal Reserve Rafael Bostic, who said that the U.S. economy looks strong, and the inflation rate is near the target of the regulator at 2%. In addition, he believes that the third interest rate cut this year was necessary in order to support the country’s economy.
Today, market participants should follow the statistics on the preliminary index of consumer confidence of the University of Michigan. According to our expectations, in September the figure was 95.9 points. In Germany, trade balance data will be released. Analysts expect a surplus of 18.1 billion euros in September. Fed spokesman Lyel Brainard will also speak.
At the 4-hour slice, the EUR/USD currency pair continues to practice the height of the side corridor of 1.1063-1.1179. However, the stochastic lines are in a favorable position for purchase and are located just above the oversold zone, so a corrective rebound is expected.
Vadim Sysoev, analyst at FINAM