AMarkets App

AMarkets App

The best trading app

The best trading app

ratings of app
Download

US dollar gets new grounds for growth

November 21, 2022

EUR/USD: The euro declined against dollar on Friday as dovish comment from ECB policy maker weighed on the euro. The European Central Bank may slow the pace of interest rate hikes but should soon start running down its massive government debt holdings as that would ease the need for further rate rises. The ECB has raised rates by 200 basis points since July, but a slowdown in the rate of increases has been anticipated after the bank claimed “substantial progress” in policy tightening on the back of 75 basis point moves in September and October. Immediate support is seen at 1,0250. A breakout below could take the pair towards 1,0150.

SELL STOP 1,0250/TP 1,0150/SL 1,0280

 

USD/JPY: The dollar rose against the yen on Friday as investors continued to make bets on the U.S. Federal Reserves interest rate hiking path. Federal Reserve Bank of Boston leader Susan Collins said on Friday the central bank has more rate rises ahead of it as it seeks to lower inflation, adding that a 75-basis point hike was still on the table. Louis Fed President James Bullard said on Thursday that the minimum for the Federal Reserve System (FRS) rate will be between 5% and 5,25%. Additional support for the dollar came from the retail sales and jobless claims data in the US. Strong resistance can be seen at 141,00. A breakout to the upside can trigger growth towards 142,00.

BUY STOP 141,00/TP 142,00/SL 140,70

 

USD/CAD: The Canadian dollar weakened against its U.S. counterpart on Friday, with the currency adding to this week’s decline as oil prices fell and data showed the largest divestment of Canadian securities by foreign investors in nearly four years. Today it became known that the Chinese metropolis of Guangzhou is locked down for a five-day quarantine. The city of 19 million has become the epicenter of China’s latest covid outbreak, and it’s the worst case since the start of the pandemic to affect Guangzhou. Considering that there is a high probability that oil may continue its downward trajectory, the sales of the Canadian dollar may continue as well.

BUY STOP 1,3430/TP 1,3530/SL 1,3400