USD USD still traded in tight range yesterday because investors were waiting for the Friday's employment report. Yesterday the Nov ISM service index rose from 57.1 to 58.9 which stabilized the soft dollar. European currencies maintained the strength due to the solid interest rate and economic outlook. I believe that before the employment report, the dollar will still consolidate within the tight range.
EUR EUR/USD traded between 1.3280 - 13360. Yesterday EU Oct Retail sales rose 0.3% and 1.1% at the annual rate. The data showed that the EU consumer spending was still strong and supported the Euro. The market focuses on Thursday's ECB policy meeting and I believe that ECB will raise rate again. Investor should aware of the after policy meeting. I expect that there's a chance after the rate hike, the Euro will retrace back down in the short term. Technically, EUR/USD support is at 1.3280, and resistance is at 1.3360.
CAD CAD weakened yesterday and USD/CAD still traded above 1.14 level. Yesterday BoC maintained the cash rate unchanged and the central bank governor said that the current interest rate can enough contain the inflation. I believe that the CAD interest rate hit the peak and would be likely to cut the rate next year which was bearish to the Loonies. Technically, USD/CAD support is at 1.1420 and resistance is at 1.1520
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