EUR/USD is locked inside a potential pennant as traders wait for the U.S. NFP release AND more clarity on the results of the election.
Think we’ll see a breakout today?
Check out the top headlines during the Asian session if you’re planning on opening positions in the next few hours!
- Fed to add new details to quarterly economic forecasts
- Powell insists Fed is not out of fire power to support the economy
- Fed stays in holding pattern with rates and asset purchases unchanged
- Australia Services Sector Surges In October – AiG
- Japan’s September real wages fall for seventh straight month as COVID-19 weighs
- Australia central bank says recovery underway, population slowdown a major drag
- Asian shares at near 3-year peak, dollar soft in U.S. deadlock trade
- Dollar steadies, but more losses seen on post-election policy outlook
Upcoming Potential Catalysts on the Economic Calendar:
- Germany’s industrial production at 7:00 am GMT
- France’s trade balance at 7:45 am GMT
- U.K. Halifax price index at 8:30 am GMT
- Italy’s retail sales at 9:00 am GMT
- U.S. NFP report at 1:30 pm GMT
- Canada’s labor market numbers at 1:30 pm GMT
- Canada’s IVEY PMI at 2:00 pm GMT
What to Watch: EUR/USD
Germany is set to print its industrial production numbers but price action promises to be tight ahead of the U.S. NFP release.Analysts see some weakening in Uncle Sam’s labor market numbers in October. Not good when you consider that the U.S. has also recorded a new high for new daily coronavirus cases that could lead to delayed economic recovery.
Meanwhile, all eyes continue to be on the U.S. Presidential elections, which is seeing Biden narrowing deficits in key swing states.
Will today’s catalysts push EUR/USD beyond October’s highs? The pair is locked inside a potential bullish pennant after seeing a strong upswing yesterday.
A decisive win in the elections would encourage risk appetite and likely boost EUR/USD above 1.1900 and maybe even retest the 1.2000 mark.
More legal challenges, however, or a significantly worse-than-expected NFP report could weigh on risk sentiment and drag EUR/USD back to the 1.1750 levels.