US Dollar index continues to trade weak for 3rd consecutive week. the index shows a minor recovery of till 98 and started to decline. US Non-Farm payroll rose 128000 in Oct compared to the estimate of 89000, the unemployment rate ticked up to 3.6% and average hourly earnings came at 0.3% vs forecast of 0.0%. US Fed was little hawkish and cuts rates by 25 bps. The central bank mentioned it will pause for a while and follow the wait and watch approach.
Bank Canada has kept its borrowing costs unchanged at 1.75% and hints the chance of a rate cut on account downside risk due to trade war.
The previous week was filled with full of major economic data especially the US with CB Consumer confidence, ISM manufacturing came slightly weak than expected.
The yellow metals are consolidating after a jump till $1516 and markets eyes Brexit and US-China trade talks for further direction. Any break below $1458 confirms bearish continuation.
US 10-year yield is trading weak and lost more than 10% from high 1.86%. The spread between US 10-year and 2-year has widened to 15.6 bps.
Weekly Technical:
EURUSD:
Major trend reversal level- 1.1285
Near term support- 1.1130/1.060
Near term resistance – 1.1178/1.1245
USDJPY:
Major trend reversal level- 109.30
Near term support- 107.80/106.40
Near term resistance – 109.30/110.60
USDCHF
Major trend reversal level- 1.0030
Near term support- 0.9840/0.97700
Near term resistance – 1.0030/10060
USDCAD
Major trend reversal level- 1.3020
Near term support- 1.310/1.3020
Near term resistance – 1.3180/1.3235
Gold
Major trend reversal level- $1460
Near term support- $1480/$1460
Near term resistance – $1525/$1555
WTI Crude
Major trend reversal level- $57.05
Near term support- $50/$46
Near term resistance – $55.55/$57.05
Major Economic events for the week
US ISM Non-manufacturing index - Tuesday (3:00 GMT)
EU economic forecast - Thursday (10:00 am GMT)
Canadian Employment Change - Thursday (1:30 GMT)
