On Friday, November 15, the single European currency against the dollar consolidates in morning trading slightly above the mark of 1.10 after the upward dynamics, which was observed a day earlier.
The euro was supported yesterday by encouraging statistics within the region. Thus, according to preliminary data, Germany’s GDP increased by 0.1% k/k and 1.0% yoy in the third quarter, while analysts expected -0.1% to/k and 0.9% yoy.
Statistics on the American labor market, on the contrary, brought disappointment to the bidders, putting pressure on the “American”. Note that the number of initial applications for unemployment benefits amounted to 225,000 last week, although analysts on average predicted 215,000 after 211,000 a week earlier.
Moreover, the appetite for risky assets has weakened amid uncertainty over trade negotiations between China and the United States. The parties remain at odds on a number of important issues, with reports that Beijing does not want to include in the text of the agreement the exact amount of agricultural goods it pledges to buy as part of the agreement on the first phase of the settlement of the trade dispute.
Today will be rich in statistics. Thus, at 13:00 GMT will be released two indicators in the eurozone – the final data on the consumer price index for October, as well as September data on the trade balance. Five indicators will be published in the United States. At 16:30 GMT we advise you to pay attention to retail sales, import prices and export prices for October, at 17:15 GMT there will be October data on industrial production, and at 18:00 GMT production stocks for September will be published.
In addition, a speech by ECB board member Iwa Mersch (at 11:00 GMT) will be held today, as well as a meeting of the Council of Ministers of Finance and Economy of the EU.
From a technical point of view, the daily chart went beyond the upper boundary of the downward wedge, while the slow stochastic lines had just left the oversold zone. Given the above, in the short term, the growth of the pair is allowed.
Natalia Asedova, Lead Analyst in The Global Markets Analysis Department of FINAM