Since the U.S. will be celebrating Thanksgiving today and tomorrow, the Forex market is expected to be quiet with low liquidity. However, this is just an expectation and might not turn out to be the case.
Due to the holiday, we expect pairs, especially the EUR/USD, to trade within a tight range. But, since there are a lot of opportunities in the market, we might actually witness some volatility.
Here are the major Resistance (R) & Support (S) levels of the EUR/USD:
S2 S1 Pivot Point R1 R2
1.2364 1.2455 1.2510 1.2560 1.2615
We aren’t expecting any releases from the U.S. during Thanksgiving. However, we are expecting some other major data releases from the other part of the world, including Switzerland, which might have a major release this Sunday, related to Gold. This will have a massive impact on the entire Forex market.
The Swiss Gross Domestic Product (GDP) is expected to be released today; measuring the annualized change in the inflation-adjusted value of all goods and services produced by the economy. It is the broadest measure of economic activity.
Ø Forecast: 0.4%
Ø Previous: 0.2%
A higher than expected reading should be taken as positive for the CHF, while a lower than expected reading should be taken as negative for the CHF.
Moving to Germany, the core engine of Europe, the German Unemployment Change announcement will be released; measuring the change in the number of unemployed people during the previous month.
Ø Forecast: -1K
Ø Previous: -22K
A higher than expected reading should be taken as negative for the EUR, while lower than expected reading should be taken as positive for the EUR.
Mario Draghi, ECB’s governor, is expected to speak today at 11:30 GMT. Being the head of the ECB, which controls short term interest rates, he has more influence over the EUR value than any other person. His comments may determine a short-term positive or negative trend.
The German Consumer Price Index (CPI) is also scheduled for release; measuring the changes in the price of goods and services purchased by consumers.
Ø Forecast: 0.0%
Ø Previous: -0.3%
A higher than expected reading should be taken as positive for the EUR, while a lower than expected reading should be taken as negative for the EUR.
As from Canada, the Current Account Index will be released; measuring the difference in value between exported and imported goods, services and interest payments during the reported month. The goods portion is the same as the monthly Trade Balance figure. Since foreigners must buy the domestic currency to pay for the nation's exports, the data can have a sizable effect on the CAD.
Ø Forecast: -10.3 B
Ø Previous: -11.9 B
A higher than expected reading should be taken as positive for the CAD, while a lower than expected reading should be taken as negative for the CAD.
Moving to New Zealand, the Building Consents (also known as Building Permits) announcement is scheduled for release today; measuring the change in the number of the new building consents issued by the government. Building consents are a key indicator of demand in the housing market.
Ø Forecast: N/A
Ø Previous: -12.2%
A higher than expected reading should be taken as positive for the NZD, while a lower than expected reading should be taken as negative for the NZD.
Disclaimer: The prices and news mentioned in this outlook are absolutely no guarantee of future market performance. Financial markets can move in either direction causing profits to be made or complete losses to be incurred by the trader. Each trader must decide for themselves what their risk appetite is and ensure that correct risk management procedures are in place before placing any trades.
Engaging in CFDs or Spot FX carries a high risk to your capital. You should not engage in this form of investing unless you understand the nature of the Transaction you are entering into and the true extent of your exposure to the risk of loss. Your profit and loss will vary according to the extent of the fluctuations in the price of the underlying markets on which the trade is based.