Today is a busy day for EURUSD traders ahead of Draghi speaking today about the final EZ Q3 GDP, Brexit-shaken GBP, and sold-off AUD. Let’s delve deeper into details.
EURUSD Ahead of Draghi
Single currency bulls are awaiting more impetus in today’s trading from the ECB President Mario Draghi’s speech scheduled today at 4:00pm GMT and mid-morning for the Americans.
The buck seems to be in recovery mode, gaining pace from the ADP forecast job report. According to ADP and Moody’s Analytics experts, the job market in the US will have added around 190k- 200k new jobs in November, slightly lower than October’s 261k jump and up from September’s actual NFP figure reflecting a 33k decrease in non-farm employment.
Tracking the ADP forecast and an eye to the German industrial output figures and EZ final Q3 GDP releases, EURUSD broke the ice today with an open of 1.18040. Away from S1 levels at 1.1768, the pair is hovering above the 1.179 territory and targeting R1 at 1.1810. More impetus in EURUSD is to be expected from Draghi’s speech but also from the actual NFP release due tomorrow.
A Few Words on the Blown-Off GBP
Failed Brexit lunch negotiations have hit the Sterling hard. After closing below 1.34 levels on Wednesday, GBPUSD started the day on the back foot, at 1.33909 (open) and revolves now around 1.3380. The delicate Irish border issue may have potentially influenced the cable’s movements.
AUD on a Silver Platter
A weaker than expected Trade Balance release moved the Aussie down to the trough as well, serving it on a silver platter to the bears. Below-expectations export earnings and higher import figures were the keynotes of Australia’s trade activity. In line with this, Westpac experts remarked an adverse price movement as overall figures showed a $0.1bn drop from $1.6bn in September. This number reflects a $0.9bn decrease in exports (2.8%), significantly lower than the estimated 1.9%, and an increase in import activity of 1.9%, which again beat the projected 0.9%.
Tracking poor economic data, AUDUSD started at 0.75667 (open), and hovers above 0.7525 levels.