Most major currencies have already bounced higher against the U.S. dollar as news of Trump’s impeachment broke out, but it seems that European currencies have yet to catch up.
Fresh Market Headlines & Economic Data:
- Japanese national core CPI up from 0.4% to 0.5% as expected
- U.K. GfK consumer confidence improved from -14 to -11
- New Zealand credit card spending up from 2.3% to 4.5%
- PBoC decided to keep lending rate unchanged
- U.S. House voted to approve new USMCA, Senate to vote next
- Andrew Bailey named as next BoE Governor
Upcoming Potential Catalysts on the Forex Calendar:
- German GfK consumer climate at 8:00 am GMT
- French consumer spending at 8:45 am GMT
- U.K. current account balance at 10:30 am GMT
- BOE MPC member Haskel’s testimony at 12:00 pm GMT
- U.K. Parliament to vote on PM Johnson’s Brexit deal (again!)
What to Watch: EUR/USD
This pair is still consolidating inside a descending triangle pattern on its short-term chart and could be gearing up for an upside break in the session.
There’s not much in the way of top-tier reports, but medium-tier releases like the German GfK consumer climate index and French consumer spending data might spur a bit of volatility.
Moving averages confirm a bullish trend for this pair:
Take note, however, that EUR/USD tends to go beyond its average daily volatility on Fridays. A buy stop order around the 1.1135 level with a stop of 60-70 pips could be enough to withstand any price swings.