The U.S. dollar remained stable on Wednesday, as Fed Chair Jerome Powell’s comments at his Congress testimony were large as expected. The ICE Dollar Index edged up 0.1% on the day to 98.31.
In his testimony before an “Economic Outlook” hearing in Congress, U.S. Federal Reserve Chairman Jerome Powell stated that the market is in its eleventh year of expansion with low unemployment and moderate inflation, adding that there is little need to cut interest rates further.
Later today, initial jobless claims for the week ending November 9 are expected to be 215,000. Producer prices are expected to grow 0.3% on month in October.
Economic Calendar – Retail Sales & Fed Chair Powell In Focus!
BTC/USD – Daily Analysis
The BTC/USD has not moved much as it continues to follow the same technical levels. The BTC/USD continues to consolidate in a trading range of 8,836 – 8,600. Bitcoin (BTC) will cross the market cap of gold and could eventually be worth $1 million, well-known industry numbers. In a string of tweets on November 10, Bobby Lee, who discovered the Chinese cryptocurrency exchange BTC and presently operates a Bitcoin wallet startup, displayed as the freshest voice in the expanding discussion on Bitcoin versus gold.
The BTC/USD has formed a bearish engulfing pattern on the hourly chart, which is suggesting the chances of a bearish reversal in the BTC/USD. The pair may continue to face resistance at 9110 levels along with support at 8850 and 8625 today.
BTC/USD – Daily Technical Levels
Pivot Point 8,903.51
BTC/USD – Daily Forecast
The 8,600 level is now working as the double bottom support for the BTC/USD. We may see further clarity in trend as soon as the BTC/USD violates this range. Below 8,550, the BTCUSD can drop until 8200. While the bullish breakout of 8,836 can lead BTC/USD prices towards 9,113.
EUR/USD – Profit Taking in Dollar
The euro was broadly flat at $1.1010. Official data reported that the eurozone’s industrial production grew 0.1% on month in September (-0.2% expected). Later today, the bloc’s third-quarter GDP growth will be reported (+1.1% on-year expected).
It should be noted that the movement of the pair depends on the german GDP German gross domestic product (GDP) which is scheduled to release at 07:00 GMT is anticipated to show the economy contracted 0.1% quarter-on-quarter in June to September (Q3) period, having decreased by 0.1% in the first quarter.
The annualized GDP is forecasted to release at +0.5% in Q3 against. The previous quarter’s reading of +0.4%.
However, how could the GDP affect the EUR/USD currency pair? The thing is this if the GDP release in negative figures so then the pair will not be a surprise and will likely strengthen the bearish pressures in the EUR/USD, although the future outlook of the German ZEW survey pointed to some improvement in the outlook for the German economy. Notably, at -2.1, the ZEW Economic Sentiment Index for November exceeded expectations of -13 by a significant margin.
The European Commission will release third-quarter GDP (+1.1% on-year expected). The German Federal Statistical Office will post third-quarter GDP (+0.5 on year expected). France’s INSEE will report final readings of October CPI (+0.7% on-year expected) and third-quarter jobless rate (8.4% expected).
EUR/USD – Daily Technical Levels
Pivot Point 1.1031
EUR/USD – Daily Forecast
The EUR/USD is gaining support above 1.0990, the previously suggested level. The chances of a bullish reversal remain pretty solid here. On the upper side, the immediate resistance stays at 1.1050 and 1.1080 later on. But in any case, a bearish breakout of 1.0990 can lead the EUR/USD towards 1.0955 level.
GBP/USD – Retail Sales In Focus
The GBP/USD was little changed at $1.2854. Government data showed that U.K. CPI grew 1.5% on year in October (+1.6% expected), and core CPI was up 1.7% (as expected). The U.K. Office for National Statistics will release October retail sales (+3.7% on-year expected).
At the Sino-US trade front, the uncertainty surrounding the United States and China trade deal getting more darker after the formers transit in Taiwan waters. As well as, the report came from the Wall Street Journal that the United States and China hit a snag over farm purchases.
President Trump recently said that China perpetrated buying up to $50 billion in U.S. soybeans and other agricultural goods as a portion of a phase one trade deal. But China is unwilling to quantify its farm purchases now, as in result instantly activated a risk-off sentiment in the American markets that destroyed the Wall Street party.
At the Hong Kong front, the Hong Kong civil unrest and violence take the worst turn for the 4th-straight day on Thursday, after the police reported that a man dressed in black and aged in his 30s died.
Lastly, the U.S. Labor Department will post October PPI (+0.9% on-year expected), and initial jobless claims in the week ended November 9 (215,000 expected).
GBP/USD – Daily Technical Levels
Pivot Point 1.2789
GBP/USD – Daily Forecast
The GBP/USD continues to trade in the narrow range of 1.2850 – 1.2835. On the hourly chart, the GBP/USD has formed a symmetric triangle pattern, which can trigger a breakout in either direction. Therefore, the British Retail Sales data today carry importance for the breakout. At the moment, the Cable is gaining support around 1.2830, and above this, a bullish trend can extend buying until 1.2870. Whereas, a bearish breakout of 1.2835 can lead GBP/USD towards 1.2800 and 1.2786.
All the best for today.