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Market Review November 4, 2014

November 4, 2014
 

EUR/USD

The EUR/USD pair has slightly corrected its previous drop and returned above 1.2500 during the Asian session. Again the U.S. Dollar was influenced by the figures from Australia where the Reserve Bank of Australia decided to keep the interest rates at 2.50%. However, we should expect more bearish tension on the pair which should mainly come from Europe. At 10.00AM (GMT) the EU Economic Forecast will be posted and if the report downgrades the outlook we may see the pair testing the support at 1.2440. At the same time the EU Producer Price Index is coming out which may increase the deflation fears. At 3.00PM (GMT) the U.S. Factory Orders will be released and it is expected to see -0.4% decrease. The movement is sideways. The support is found at 1.2440 and resistance is at 1.2540.

Trend:  Sideways

GBP/USD

On Monday, the GBP/USD pair positively reacted on the U.K Manufacturing data and for a while managed to return above 1.6000. However, the strong expectation over U.S. Manufacturing PMI data pushed the pair back down and despite the fact that U.S. dollar weakened during Asian session the pair has remained below the 1.6000 level. Today, keep an eye on the U.K. Construction PMI which are coming out at 9.30AM (GMT) which might pull the pair higher. At 3.00PM (GMT) the U.S. Factory Orders will be announced. The prediction is to see slight decrease of 0.4%, which is better than last time -10.1%. The trend is sideways. The support is found at 1.5920 and resistance at 1.6020.

Trend:  Sideways

Gold

Yesterday, the price of gold remained in a narrow channel moving between $1,161/ounce and $1,173/ounce. The price was expected to increase slightly as a result of price correction after such a significant drop from Friday. However, as the U.S. Manufacturing data came above expectation deepened market speculation over Fed’s sooner interest rate increase. Regardless these fundamental news we should expect that the physical demand will pick up as the price of the yellow metal is on its 4-years low. The movement is sideways. The support is found at 1,160 and resistance at 1,178.

Trend:  Sideways