A large block of data on the European economy, published on Thursday, showed values worse than analysts’ forecasts. Nevertheless, EUR continued to grow within the short-term trend. The pound sterling is confidently hitting multi-month highs.
DAX30 chart of the day
But the most interesting thing happens with 2 protective currencies – the Japanese yen and the Swiss franc. Despite the rebound of the US stock market, the yen and the franc did not fall, but rose against the US dollar. What does this mean? The U.S. dollar has gone into disarray today, and it is also declining for all commodities.
After a break-down of the 1.11 level yesterday, which had been stubborn since November 5, the European currency rolled back a bit, but today it broke through again from the bottom to the top. The technical picture remains favorable. The next strong resistance level, which is the 200-day simple moving average, is at 1.116. With the SMA 200 above, the outlook for the dollar, despite the positive swap, will deteriorate sharply.
The gold market today follows the euro. If the weakening of the U.S. currency continues, we will see another test of $1500 per troy ounce the other day. Why can’t gold hold its ground higher? This raises a lot of questions from investors, especially against the background of forecasts of many investment banks that the yellow metal is expected to grow globally to $2,000 next year.
Global stock indices today have sharply reduced their volatility compared to the first 3 days of December. Bulls and bears took a break from licking their wounds. The main question is whether the history of the last year, when December instead of the traditional rally brought with it a huge correction of the markets, will not repeat itself. Tomorrow will be very important, fixing the closure of the first trading week of the month. It is possible that volatility will increase on the most important news from the USA.
What can we expect today?
08.00 Industrial production in Germany October
10.00 OPEC meeting
14.30 Number of new jobs in the United States November
14.30 Unemployment data in the US November
14.30 Changes in the number of employees in Canada November
14.30 Unemployment data for Canada November
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