- Easing tensions around Brexit.
- Industrial production in the euro area in September exceeded market expectations.
- The University of Michigan Consumer Sentiment Index for November fell to November 2011 levels.
By the end of the week, all major currencies closed in the red. The largest decline was shown by the single currency (-1.08%). A smaller drop was shown by the New Zealand dollar (-1.03%), the Swiss franc (-0.98%), the Australian dollar (-0.92%), the Canadian dollar (-0.76%), the British pound (-0.61 %) and Japanese yen (-0.41%).
On Friday, November 12, at the end of the day, the single currency fell 0.06% to 1.1444. The euro and franc closed in the red. The rest of the currencies showed good growth against the American. The growth leader was the Australian.
The single currency came under pressure due to the fall of the EUR / GBP cross pair. The pound strengthened as tensions eased over Brexit. European Commission Vice President Maros Sefcovic said the EU was pleased with the long-awaited change in the UK's tone in negotiations. UK to bring down
tensions with the EU, does not want to run Article 16. The article allowed the UK to unilaterally suspend part of the Northern Ireland protocol that governs the movement of goods to and from Northern Ireland.
According to British Brexit Secretary Lord David Frost, negotiations on the implementation of the Northern Ireland Protocol will continue this week.
According to the latest data from Eurost, industrial production in the euro zone in September rose by 5.2% against the forecast of 4.1%.
In the American session, the dollar's fall intensified after the release of American statistics. The University of Michigan consumer sentiment index for November fell to 66.8 from 71.7 in October, the lowest since November 2011. Consumer sentiment fell in early November to its lowest level in a decade due to rising inflation.
Scheduled statistics (GMT +3):
- At 12:30, Jonathan Haskell, member of the Monetary Policy Committee of the Bank of England, will deliver a speech.
- At 13:00. the head of the ECB K. Lagarde will deliver a speech.
- At 13:00, the eurozone is to publish the September trade balance.
- At 16:30, in the US will be released the manufacturing index according to the Federal Reserve Bank of New York for November.
- At 17:30, parliamentary hearings on the Bank of England report will take place. E. Bailey will deliver a speech.
Current situation:
At the time of writing this review, major currencies are trading in positive territory. The yield on 10-year bonds and the dollar index are declining. The leaders of growth are the Australian and the Swiss franc. The euro remains weak against the dollar as the euro is weak against the British currency. The divergence of the ECB's and the Bank of England's policies contributes to the decrease in the euro / pound pair.
Lagagrde and Bailey are scheduled to perform today. They are performing more than once this week, so their impact on the market will be limited.
Technical analysis:
EUR/USD recovered to 1.1464. The price trades in a limited range for several hours. Technical conditions are favorable for continued growth to 1.1480. If the EUR/GBP cross returns to growth as part of an upward correction, then the euro is able to recover to 1.15.
Summary: the euro closed slightly lower on Friday amid falling EUR/GBP on news that tensions between Britain and the EU have eased. At the auctions in Asia, the dollar index fell. EUR/USD recovered to 1.1464. As part of the upward correction, a recovery to 1.1480 is expected.