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Dollar under pressure again

November 24, 2022

EUR/USD: The euro strengthened against the dollar on Wednesday after fresh data showed the downturn in euro zone business activity eased slightly in November. S&P Global Composite Purchasing Managers’ Index (PMI), rose to 47,8 from 47,3 in October. The downturn in German economic activity also eased in November, giving hope that the expected recession in Europe’s largest economy could be milder than initially feared. Additional support for the euro was provided by the weakness of the dollar, which fell after the release of the minutes of the last meeting of the Fed. Immediate resistance can be seen at 1,0450. A breakout to the upside can trigger growth towards 1,0500.

BUY STOP 1,0450/TP 1,0500/SL 1,0430

 

GBP/USD: Sterling strengthened on Wednesday, rising for a second consecutive day against a faltering U.S. dollar after preliminary British economic activity data beat expectations. Purchasing Managers’ Index (PMI) data on Wednesday showed British economic activity fell at close to its fastest pace in 21-month lows, adding to signs of recession as orders sank and employment growth slowed. Despite the latest PMI readings remaining below 50 – the threshold for contraction, the data was slightly better than economists polled had expected, which supported the British currency. Given the market optimism and a significant decline in the dollar following the results of the last trading session, the pound’s growth may continue. Immediate resistance can be seen at 1,2100. A breakout to the upside can trigger growth towards 1,2200.

BUY STOP 1,2100/TP 1,2200/SL 1,2060


USD/JPY
: The dollar declined against the Japanese yen on Wednesday after minutes from the Federal Reserve’s November meeting showed that most policymakers at the central bank agreed it would soon be appropriate to slow the pace of interest rate hikes. The readout of the November meeting, at which the Fed raised its key rate by three-quarters of a percent, showed officials were largely satisfied they could stop front-loading the rate increases and move in smaller steps. Immediate support is seen at 138,50. A breakout below could take the pair towards 137,50.

SELL STOP 138,50/TP 137,50/SL 138,90