Today's U.S. economic data showed that the U.S. economic recovery remains uneven. This week's U.S. economic data was weaker than expected. Retails sales rose slightly in October, while producer prices continued to decline.
Comments by Fed officials were mixed. St. Louis Fed President James Bullard said in a speech on Thursday that the Fed should start raising its interest rate as the Fed's targets are reached. Chicago Fed President Charles Evans said in a speech on Thursday that he wants to be confident that inflation begins to pick up toward the Fed's target before to start raising interest rates. The Fed Vice Chairman Stanley Fischer said on Thursday that the interest rate hike in December is possible, but it will depend on the incoming inflation and employment data.
It is clear that the incoming U.S. economic data will be very important for the Fed's decision.
The European Central Bank (ECB) is likely to expand its quantitative easing. ECB officials often mentioned a deposit rate cut. It's likely that the central bank will lower its deposit rate. The deposit rate is -0.2%.
The foreign exchange market is likely to remain volatile as market participants will continue to look for further clues for the Fed's and ECB' monetary policy.
It is likely that the currency pair EURUSD will test the high of November 12 at $1.0830 or the level at $1.0896, if the U.S. economic data will negative and there will be no negative news from the Eurozone.
If the U.S. economic data is positive and in case of the negative news from the Eurozone, the currency pair EURUSD may test the low of November 10 at $1.073 or the low of April 21 at 1.0659 or the low of April 14 at 1.0531.
Risk Warning: Trading Forex and CFDs on margin carries a high level of risk and may not be suitable for all investors. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72.72% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Prior to trading, you should take into consideration your level of experience and financial situation. TeleTrade strives to provide you with all the necessary information and protective measures, but, if the risks seem still unclear to you, please seek independent advice.
© 2011-2021 Teletrade-DJ International Consulting Ltd
Teletrade-DJ International Consulting Ltd is registered as a Cyprus Investment Firm (CIF) under registration number HE272810 and is licensed by the Cyprus Securities and Exchange Commission (CySEC) under license number 158/11.
The company operates in accordance with the Markets in Financial Instruments Directive (MiFID).
The content on this website is for information purposes only. All the services and information provided have been obtained from sources deemed to be reliable. Teletrade-DJ International Consulting Ltd ("TeleTrade") and/or any third-party information providers provide the services and information without warranty of any kind. By using this information and services you agree that under no circumstances shall TeleTrade have any liability to any person or entity for any loss or damage in whole or part caused by reliance on such information and services.
TeleTrade cooperates exclusively with regulated financial institutions for the safekeeping of clients' funds. Please see the entire list of banks and payment service providers entrusted with the handling of clients' funds.
Teletrade-DJ International Consulting Ltd currently provides its services on a cross-border basis, within EEA states (except Belgium) under the MiFID passporting regime, and in selected 3rd countries. TeleTrade does not provide its services to residents or nationals of the USA.