EURUSD – Euro Forecast to Decline Further Against US Dollar on Forex Positioning USDJPY – Japanese Yen Likely to Continue Higher Through Short-Term Trading USDCHF – US Dollar/Swiss Franc Positioning Forecasts Further Strength GBPUSD – British Pound Forecast Unclear Against US Dollar USDCAD – Canadian Dollar Forecast to Fall Further versus US Dollar
The Euro rallied more than 200 bps from yesterday’s lows despite a record low PMI reading, as a return of risk appetite sparked bullish price action. The Euro-Zone Purchases Manger’s composite index fell to 39.7 for November from 43.6 the month prior.
The New Zealand dollar fell to a six-year low against the U.S. dollar over the last 24 hours of trading, and may continue to move lower over the remainder of the trading session as risk aversion continues to drive price action in the forex market.
The Bank of Japan kept interest rates at 0.30% as expected. The US Dollar gave back ground against the Euro and the British Pound reflecting an overnight recovery in risk appetite. The economic calendar offers few surprises in European trading hours, suggesting forex markets will continue to look to stock markets to set direction.