Account
New to ADSS? Open an
account now to get started.
Already have an account?
Add funds to your ADSS account
Account
New to ADSS? Open an
account now to get started.
Add funds to your ADSS account
Asset Watch
Thursday, November 9, 2023
The Euro prices held steady this week on the back of statements by some European Central Bank officials that ruled out thinking about reducing European interest rates. However, the price fluctuation of the US dollar remains the most important factor that may currently affect the EUR/USD price.
The US Dollar was impacted by lower chances of hiking rates in the upcoming FOMC meeting in December due to the decline in oil prices, which reflects negatively on the inflation levels in addition to the decline in the strength of the US labor market, which was shown in the October jobs report, and finally, hints from some members of the Federal Reserve that high long-term bond yields are tightening economic conditions, especially for the real estate mortgage sector, which has reached levels of 8% providing the same effect as raising interest rates.
The markets will focus on the speeches of Federal Reserve members, Mr. Bostick, but the greatest focus will be on the speech of Federal Reserve Chairman, Mr. Powell, at the International Monetary Fund. As for the expected data, the market waits for the US jobless claims, and any higher than expected data may negatively affect the US dollar price because it highlights more weakness in the labor market as explained above.
Chart source ADSS Platform
On October 6, the EUR/USD rallied to a multi-week high at 1.0756 then the price retreated on taking profits operations. This week, the price stabilized within the current trading zone located between 1.0789- 1.0629 eyeing a test of the low end of the zone residing at the 50-day simple moving average. A daily close below that level could encourage bears to press towards 1.0482. Nonetheless, the support level marked at 1.0574 should be considered.
On the other hand, any U turn in the price direction with a daily close above the high end of the zone may embolden bulls to rally the price towards 1.0873. That said, the resistance level residing at 1.0831 should be watched closely.
ADSS
8th floor, CI Tower
Corniche Road
PO Box 93894
Abu Dhabi
United Arab Emirates
Trading Services
ts@adss.com
+971 2 657 2414
Investing in CFDs involves a high degree of risk that you will lose your money due to the use of leverage, particularly in fast moving markets, where a relatively small movement in the price can lead to a proportionately larger movement in the value of your investment. This can result in loses that exceed the funds in your account. You should consider whether you understand how CFDs work and you should seek independent advice if necessary.
ADS Securities LLC – S.P.C (“ADSS”) is authorised and regulated by the Securities and Commodities Authority (“SCA”) in the United Arab Emirates under First Category: Dealing in Securities and Fifth category: Arrangement and advice (Introduction). ADSS is a Limited Liability Company – Sole Proprietorship Company incorporated under United Arab Emirates law. The company is registered with the Department of Economic Development of Abu Dhabi (No. 1190047) and has its principal place of business at 8th Floor, CI Tower, Corniche Road, P.O. Box 93894, Abu Dhabi, United Arab Emirates.
The information presented is not directed at residents of any particular country outside the United Arab Emirates and is not intended for distribution to, or use by, any person in any country where the distribution or use is contrary to local law or regulation.
ADSS is an execution only service provider and does not provide advice. ADSS may publish general market commentary from time to time. Where it does, the material published does not constitute advice, or a solicitation, or a recommendation to a transaction in any financial instrument. ADSS accepts no responsibility for any use of the content presented and any consequences of that use. No representation or warranty is given as to the completeness of this information. Anyone acting on the information provided does so at their own risk.
