In favor of the truth that the downward correction of the greenback is near completion, is the truth that, in accordance with many economists, the Fed and different main world central banks, specifically the ECB, will start to concurrently scale back the speed of improve of their rates of interest. Which means that the influence of adjustments within the financial coverage of the Fed and different main central banks of the world on the dynamics of the greenback and main currencies shall be comparatively impartial. Then the overall financial state of affairs in every nation with the world’s largest financial system, in addition to geopolitical dangers, will once more come to the fore.
However right here, in america, issues are higher with this than, say, in Europe, the place there’s uncertainty within the vitality market, threatening much more severe disruptions of their provides, inflation is even greater (in accordance with up to date knowledge revealed at the moment, the extent of annual shopper inflation within the Eurozone in October it was 10.6%, whereas within the US it’s 7.7%), and in Ukraine, a part of this very Europe, the navy battle to date has the prospect of escalation. And this may harm the European financial system greater than the American financial system, given Europe’s nearer financial ties than the US to Russia.
As for the principle competitor of the greenback on the euro forex market and the EUR/USD pair, on the time of publication of this text, it was buying and selling close to the 1.0365 mark, once more failing to beat the important thing resistance stage 1.0390. Beneath this resistance stage, EUR/USD stays within the world bear market zone. Nevertheless, for brief positions resumption, the value must go right down to the zone under the help stage 1.0230 (for extra particulars and an alternate situation, see “EUR/USD: technical evaluation and buying and selling suggestions for 11/17/2022”). Beneath these ranges, brief positions stay preferable.
*) for the occasions of the week, see Key financial occasions of the week 11/14/2022 – 11/20/2022
Assist ranges: 1.0230, 1.0090, 1.0020, 1.0000, 0.9745, 0.9700, 0.9600, 0.9535, 0.9500, 0.9400, 0.9300, 0.9200, 0.9000
Resistance ranges: 1.0390, 1.0500