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November 13, 2020
- Traders cautious- new US COVID-19 cases 153,280 on Thursday
- Eurozone Q3 GDP rises 12.6% q/q
- US dollar opens on the defensive
FX Ranges at a Glance
Source: IFXA Ltd/RP
FX Recap and Outlook: The US reported 153,280 new coronavirus cases yesterday, with hospitalizations reaching another all-time high. You would think that those kinds of numbers would spark widespread lock-down measures, with the President addressing the nation. Not happening. Many American’s believe it is their constitutional right to not social distance or wear a face mask while having a Glock in their pocket to dissuade anyone from telling them differently. Trump is sulking on a golf course.
EURUSD traded quietly in a 1.1800-1.1834 range. There were plenty of economic releases, including German Wholesale Price Index, French CPI, and Eurozone GDP, Trade, and employment numbers. No one cared. ECB policymakers reiterated that they would continue to support the economy. Expectations for sizeable monetary stimulus from the ECB in December continues to weigh on the single currency. EURUSD continues to drift in a 1.1750-1.1850 range.
GBPUSD may be getting a bit of support following news that government communication director Dominic Cummings is quitting. Some analysts suggest his resignation may lead to less harsh UK trade rhetoric. However, gains are limited as the Brexit deadline nears. A spokesman for Prime Minister Johnson’s office said differences remain in EU trade talks, mainly, fisheries, and level playing field. GBPUSD is close to unchanged for the week.
USDJPY dipped to 104.74 in NY trading on mild safe-haven demand for yen, sparked by the surging number of coronavirus cases in the US. Prices were also weighed down by the drop in US 10-year Treasury yields which fell from 0.916% in Asia to 0.873% in Ny today.
AUDUSD and NZDUSDs trade quietly within narrow ranges. Dovish central bank policies and mild-risk aversion sentiment capped gains .
USDCAD consolidated Thursday’s gains in a 1.3118-1.3169 range overnight with prices tracking broad US dollar sentiment. BoC Senior Deputy Governor didn’t say anything of note in her speech, yesterday. USDCAD is in a broad 1.2950-1.3250 range, with direction dictated by overall US dollar sentiment.
USDCAD Technicals: The intraday technicals are bullish while trading above 1.3100 but needing to take out resistance at 1.3180 or else risk a retreat to Monday’s 1.2930 low. A break above 1.3180 targets 1.3250 . Longer term, the weekly chart shows USDCAD in a downtrend below 1.3430, and looking for a break below 1.2930-50 area to extend losses. For today, USDCAD support is at 1.3110 and 1.3080 Resistance is at 1.3170and 1.3210. Today’s Range 1.3110-1.3190
Chart: USDCAD weekly
Source: Saxo Bank
FX open (6:00 am EDT) High, Low, and previous close
Source: Saxo Bank