The euro price was supported by the report on the German business climate index from the Ifo that grew to 116.7, which is 1.5 above the forecasted figure. Investors are in no hurry to open new positions ahead of the statement by ECB President Mario Draghi tomorrow. The upward movement may also be explained by the covering of short positions. On the other side of the ledger, the greenback received support from a number of factors among which are the growth of durable goods orders in the US by 2.2% in September versus the 1.0% forecasted and new home sales increase to 667,000 against the 555,000 anticipated. Hints that the new Fed Chair may be more hawkish than the incumbent, Janet Yellen, have been positive for the US dollar. Another fact that will restrain traders from active actions is the expected release of US GDP data on Friday.
The British pound has shown a sharp rising impulse after the publication of the preliminary report on GDP in the UK for the third quarter which expanded by 0.4% against the 0.3% forecasted. This is giving additional stimulus for an interest rate hike by the Bank of England during the next meeting. Monetary tightening in the UK is highly anticipated due to rising inflation and hawkish statements by the officials of the Bank of England.
The price of the Canadian Dollar experienced an increase in volatility after the release of the decision of the Bank of Canada to leave the interest rate at the 1.00% level. Disappointing retail sales data published in the last week was one of the reasons to hold the rates at the current level.
EUR/USD
The EUR/USD demonstrates a positive movement after some consolidation above 1.1750. The closest objective within the current impulse is 1.1825 and near the inclined resistance line. On the opposite side, there is a high probability of further price consolidation between the support at 1.1730 and angled resistance line. Volatility is forecasted to increase and stay high until the end of the week.
GBP/USD
The GBP/USD price has shown a significant rising movement and was able to break through the resistance lines at 1.3150 and 1.3250. Fixing above 1.3250 may become the basis for continued growth with the next targets at 1.3400 and 1.3600. A rollback is possible to 1.3200 and the angled resistance line. The RSI recently touched the oversold zone, which is the basis for a correction soon.
USD/CAD
The USD/CAD experienced a high increase of volatility after the publication of the monetary policy statement by the Bank of Canada. The closest objective for growth is at 1.2800 and fixing above it may become the basis for continued growth up to 1.3000. The support is placed at 1.2665 and we do not eliminate a downward price correction after a powerful rising movement.
