New York Forex Report: GDP To Drive Dolllar

New York Forex Report: GDP To Drive Dolllar

New York Forex Report: UK Preliminary Q3 GDP printed +0.5% q/q vs 0.7% previous against market expectations of 0.3% and an annualised preliminary Q3 GDP +2.3% y/y vs 2.1% previous against market expectations of 2.1%. UK Chancellor of The Exchequer Hammond suggested that the decline in sterling means the UK will see inflationary pressures increase. GBP popped on the data but has stalled as markets await USD GDP release. The Bank of Japan Deputy Governor commented that the BoJ will continue to promote monetary easing to support the economy which has weighed on the JPY. USD remain in a holding pattern ahead of tomorrow’s US GDP release.

FX Majors: EUR climbed from a seven-month low on signs the European economy may be improving enough to reduce pressure on the European Central Bank (ECB) to further ease monetary policy GBP UK’s property market continued to show signs of underlying weakness following Britain’s vote to leave EU. The Centre for Economic and Business Research forecasted that price growth will moderate to 2.6% next year from 6.90% this year. Home loans surge 2.7% to 38.5k in September but dropped 15.0% from a year ago despite record low mortgage rates, affirming that momentum in the property market was losing steam. JPY Separately, Japan’s small business confidence index climbed to its highest level since March despite modest economic growth. The index edged up to 48.3 in October (September: 47.7).

EURUSD
Outlook: Short Term (1-3 Days): Bearish – Medium Term (1-3 Weeks): Bearish

Technical: Bears seek the next downside objective sited at 1.0845, below here opens 1.08. Near term resistance is sited at 1.0930/50, medium term resistance is sited at 1.1030 only over 1.1230 eases bearish bias.
Retail Sentiment: Bullish
Trading Take-away: Short

GBPUSD
Outlook: Short Term (1-3 Days): Neutral – Medium Term (1-3 Weeks): Bearish

Technical: As 1.2250 rejects near term corrective advances bears now target pivotal 1.20. Medium term resistance is sited at 1.2330. Only a close over 1.25 eases bearish pressure.
Retail Sentiment: Bullish
Trading Take-away: Short

USDJPY
Outlook: Short Term (1-3 Days): Neutral – Medium Term (1-3 Weeks): Bullish

Technical: Equidistant swing corrective objective at 104.86 achieved expect profit taking, near term support is at 103.80 only a close below 102.80 eases bullish pressure. As downside supports survive and 105 is atained bulls target 107 symmetry swing objective next
Retail Sentiment: Bearish
Trading Take-away: Long

EURJPY
Outlook: Short Term (1-3 Days): Bullish – Medium Term (1-3 Weeks): Bearish

Technical: 113.30 removed, channel resistance at 113.95 rejects on first test, while this area caps bears target 1.12 only a close over 114.30 eases bearish pressure.
Retail Sentiment: Bearish
Trading Take-away: Long

Commodities FX: GOLD was little changed but market participants expect further gains after a retreat in the dollar and signs of healthy physical demand. OIL continued to decline, falling nearly 2% on Wednesday after Russia’s energy minister was reported by the country’s Interfax agency as being in favour of production freezes versus cuts. Russia, Iran, Libya and Nigeria are all coming out against cuts on the path to the 30 November OPEC meeting in keeping with market warnings from the beginning about not getting carried away with the knee-jerk optimism that followed the Saudi-led OPEC announcements AUD lifted as inflation ran slightly faster than expected, strengthening views that the central bank will hold rates into next year. CAD stressed by lower oil prices and lasting risk that the Bank of Canada will cut interest rates further. The loonie weakened since the Bank of Canada admitted last week that it had considered cutting interest rates at its policy meeting.

AUDUSD
Outlook: Short Term (1-3 Days): Neutral – Medium Term (1-3 Weeks): Bearish

Technical: A close over .7730 reverses bearish bias and focus shifts to .7830. A further rejection above .7700 would open a quick test of .7500
Retail Sentiment: Neutral
Trading Take-away: Neutral

USDCAD
Outlook: Short Term (1-3 Days): Neutral – Medium Term (1-3 Weeks): Bullish

Technical: 1.3360 equidistant AB=CD upside objective achieved as 1.3230 supports bulls target a move to 1.35, only below 1.2960 threatens this objective and suggests a test of pivotal 1.2820.

Retail Sentiment: Bearish
Trading Take-away: Long

XAUUSD
Outlook: Short Term (1-3 Days): Bearish – Medium Term (1-3 Weeks): Bearish

Technical: Anticipate test of 1229 symmetry swing support failure here lets bears target 1200 as the next downside objective, near term resistance is sited 1276 ahead of pivotal 1300.

Retail Sentiment: Bullish
Trading Take-away: Short

USOIL
Outlook: Short Term (1-3 Days): Neutral – Medium Term (1-3 Weeks): Bullish

Technical: Equidistant swing objective sited at 52.40 is the primary upside objective. Failure at 49.50 opens symmetry swing support at 47.20
Retail Sentiment: Neutral
Trading Take-away: Neutral