The U.S. Dollar Index kept trading within a tight range on Thursday, closing flat on the day at 97.95. The U.S. indices gained traction on Thursday, as market sentiment was boosted by reports that the U.S. and China would roll back the additional imports tariffs when the phase one trade deal is signed.
The Dow Jones Industrial Average dropped 182 points (+0.7%) to 27,674, the S&P 500 added 8 points (+0.3%) to 3,085, and the Nasdaq Composite rose 23 points (+0.3%) to 8,434.
Regarding U.S. economic data, initial jobless claims fell to 211,000 for the week ending Nov. 2 (215,000 estimated) from 219,000 in the prior week. Later today, economists expect the University of Michigan Consumer Sentiment Index to be flat on the month at 95.5 in November
Economic Calendar – Canadian Figures in Focus
BTC/USD – Daily Analysis
The BTC/USD extended its bearish turn on Thursday, hardly keeping support over $9,200 as market analysts stay sober regarding the future.
The figures from Coin360 confirm BTC/USD is dropping 1.6% on the day, turning $9,250 after an unexpected dip observed markets bounce off $9,200.
The BTC/USD violated the support level of 9,250, which lead its prices towards our forecasted level of 9,130 and even below this level to place a low of 9070. The BTC/USD soon recovered it’s earlier losses to close the day around 9202.
BTC/USD – Daily Technical Levels
Key Trading Level: 9,359.35
BTC/USD – Daily Forecast
Today, the Bitcoin is likely to face resistance at 9250 levels, along with a support level of 9150. Below this, we can expect bitcoin to drop further until 9070 and 9010.
EUR/USD – Stronger Dollar Plays
The euro fell 0.1% to $1.1053. Official data showed that September German industrial production declined 0.6% on the month (-0.4% expected). The U.S. Treasury yields surged, and the greenback took a bullish turn during the recent risk-on sentiment. Therefore, the U.S. equity index futures were currently seen at the bullish track.
But now, the investors may start doing profit-taking, and the U.S. treasury yields can drop, decreasing the greenback and supporting the EUR/USD pair recovered some bullish trend.
Although, the certainty on trade deal slightly declined during the Asian trading hours mainly due to tension increased regarding delaying the signing on the agreement by the Trump Administration.
Moreover, the buying tone in the risky assets declined due to the comments by White House adviser Peter Navarro that there is no deal at this time to remove any of existing tariffs because of a condition of the round-1 agreement and the final decision will happen by Trump.
EUR/USD – Daily Technical Levels
Pivot Point 1.114
EUR/USD – Daily Forecast
The EUR/USD has finally violated the significant support level of 1.1065, and now this level is likely to keep the pair in selling. Below this level, the EUR/USD can continue to drop until 1.1022 and 1.1000.
GBP/USD – BOE Dovish Voting Shakes GBP
The British pound slid 0.3% to $1.2820. The Bank of England kept its benchmark rate unchanged at 0.75% as expected. However, two officials supported rates cut, the first votes for looser policy since 2016. At the same time, Governor Mark Carney, who voted to keep prices unchanged, admitted that risks to the U.K. economy are skewed toward the downside.
The eyes will keep on the trade progress and greenback progress, whereas the United Kingdom news takes aback seat, with increasing dovish BOE expectations. Moreover, of note remains the UK Preliminary Michigan Consumer Sentiment data, which is scheduled to release at 1500 GMT, for recent greenback trades.
The outlook as per the hourly chart will turn bullish if the falling trendline resistance at 1.2862 is violated. However, that seems doubtful, because the US treasury yields are increasing. Notably, the ten-year yield has risen from 1.80% to 1.97% – the highest level since August 1.
GBP/USD – Daily Technical Levels
Key Trading Level: 1.2885
GBP/USD – Daily Forecast
The Bank of England MPC members have shown a diversion in their sentiments as out of 9, two of their members voted for a rate cut. As a result, we have seen massive sell-off in the GBP/USD. Now, the Cable is consolidating above a stable support level of 1.2800 level.
On the 4 hour chart, the GBP/USD has formed a descending triangle pattern while the 50 periods EMA is also suggesting chances of a bearish movement below the 1.2840 level. The violation of the 1.2800 level can trigger over 100 pips drop in the GBP/USD. Let’s keep an eye on this crucial level.
All the best for today.