The night was lively for the US dollar which traded on a roller coaster. The tax bill is the culprit, though the hopes of today's vote in the US Senate are not out of the question. The stock market in Asia is drawing an ambiguous picture. Crude oil is stable after the decision of OPEC.
On Friday 1st of December, the event calendar is busy with important data releases. During the London session, the UK will post PMI Manufacturing data. During the US session, Canada will present Quarterly Gross Domestic Product Annualized, Gross Domestic Product, Unemployment Rate, Employment Change data. The US will post ISM Manufacturing PMI data. There are two speeches from FOMC members scheduled: Patrick T. Harker and Robert Kaplan. No NFP-Payrolls data today.
EUR/USD analysis for 01/12/2017:
In the afternoon, a packet of data from the US, the PCE Core inflation rate were the most important data, which, according to the expectations of market participants, accelerated to 1.4% y / y. The above-mentioned indication includes, among others, the revision of the indicator for September, when the monthly jump in the price index was recorded at the level of 0.2%. (previously: 0.1%). In the background there was a slightly stronger dynamics of household income, which was at the level of 0.4%. against 0.3% resulting from median forecasts. The above indications were accompanied by a weekly report from the labor market indicating a temporary stabilization of the number of applications for unemployment benefits (238 thousand, consensus: 240 thousand, previously: 240 thousand).
Let's now take a look at the EUR/USD technical picture in the H4 time frame. After the retracement to the level of 1.1807 (61% Fibo) the price bounced and currently is trying to rally towards the local high at the level of 1.1961. The momentum indicator supports this move and the market is bouncing from the oversold conditions as well. In a case of a further upward breakout, the next technical resistance is seen at the level of 1.2003.
Market Snapshot: USD/JPY breaks the trend line
The price of USD/JPY has managed to break out above the black trend line and made a new local high at the level of 112.70, just below the technical resistance at 112.72. Nevertheless, the market conditions remain overbought and the momentum is weakening as well, so the price might get back to the sideways range instead of rallying higher.
Market Snapshot: Gold breaks out of the channel
The price of Gold has broken out of the horizontal channel and hit the technical support at the level of $1,274. Currently, the price is trying to test the channel line from below, so it might rally towards the level of $1,280 again before the downtrend continues. The oversold market conditions support this view.
