USD, GBP, CAD and NZD big data releases on tap keep traders busy on Tuesday. The US consumer confidence index, GBP inflation hearing and BOC and RBNZ big data turn the wheel of trading.
USD in Spotlight
USD investors are waiting for some impetus from the US consumer confidence index release due today. Nomura analysts envisage a slight and encouraging increase in the index in November – 126.5 – following a 5.3-point increase in October. This would beat the 124.0 consensus.
Analysts note that consumer confidence in the US remained high, bolstered by a strong pace in job creation and a decrease in unemployment rates. Even in the areas affected by hurricanes, more jobs were added in October.
Ahead of big data releases and the Fed Chair-Designate Jerome Powell’s speech, EURUSD started the day at 1.19040 (open), dropping below the 1.19 handle to 1.18872-73 as the afternoon kicked in. Support is to be expected around the areas of 1.1881 and 1.1901.
After trading low on Monday, USDJPY saw a temporary drop below 111 levels. Hovering above 111.305 on Tuesday, the pair faces a downside risk near term with BoJ policy adjustment measures on tap.
GBP in Spotlight
As uncertainty continues to hover above the UK’s political arena, yet inconclusive Brexit talks and the edgy Irish border problem, the cable is likely to drop to session lows below the 1.330 level. GBPUSD trades now around 1.32857.
CAD in Spotlight
CAD bulls and bears are also keeping their eyes and ears wide open to the news, with a major focus on the semi-annual Financial System Review in BOC’s pipeline. The housing sector and the household indebtedness continue to be the main ‘vulnerabilities’, analysts highlight.
With the BOC’s 50 bps rate hikes and the OSFI mortgage rule changes on tap, USDCAD opened at 1.27586 and trades now around 1.27899.
NZD in Spotlight
NZD seems to gain some pace as ANZ analysts explain that a more solid national saving performance of the NZ economy helped keep the current account deficit at bay.
The RBNZ’s Financial Stability Report will be closely eyed by investors for more trading impetus. NZDUSD opened today at 0.69198 and is hovering above 0.69248.