Daily Forex Reports | by alpari.com | Thursday, 05 November 2015 08:36 UTC
Expectations of a euro weakening rang true. Strong service PMI data from the US’ ISM and ADP and comments made by Yellen lent support to the dollar.
Employment creation in the US private sector was down from 190k to 182k (forecasted: 180k).
The ISM’s index for October stood at 59.1 (forecasted: 58.0, previous: 59.0).
Main news of the day:
The dollar is receiving support from a growth in the likeliness that the US interest rates will be increased in September, in addition to a relaxing of ECB monetary policy which is on the cards.
Today’s key event for the financial market is the Bank of England meeting. Forecasters expect the base rate to be left unchanged at 0.5%. The results of the MPC voting and what Carney has to say afterwards will bear importance for traders.
The euro/dollar has dropped beneath 28th October’s minimum. Now it just needs to break through the 1.0807-1.0838 support zone and open the road to 1.0520 up. The AO indicator isn’t showing bull divergence, so I expect to see an update of the minimum. My target is 1.0813. If the euro/pound cross doesn’t interfere, we could quite possibly see a test of 1.0800. Although, I highly doubt this will happen before the NFP comes out tomorrow.
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