Forex Top Team

This week, the dominant theme has been the weakening of the US dollar following the release of the US Consumer Price Index (CPI) on Tuesday.

Subsequent US economic indicators have shown mixed strength, leading to frequent changes in market direction. However, it is clear that the November non-farm payrolls and the CPI have pushed down the overall level of the US dollar.

Today, the major US economic indicator to be released is Housing Starts (October). If Housing Starts and Building Permits move in the same direction, it could trigger a reaction in the US dollar market. Nevertheless, even after going through a series of key indicators on Wednesday and Thursday, there hasn’t been enough price movement to overturn the dollar-selling trend caused by the US employment data and CPI.

Amidst all this, USD/JPY is holding above the 150 yen level and doesn’t seem to be heavily influenced by dollar selling. The Bank of Japan’s commitment to continued easing is creating downward pressure on the yen, leading to a rebound even after a surge in dollar selling. Cross-yen pairs are showing nervous fluctuations, making it an interesting short-term trading environment, but one that requires careful position management.

Looking ahead, economic indicators from foreign markets include the US Housing Starts (October) as a point of interest. Additionally, London time will see the release of UK Retail Sales (October), Eurozone Current Account (September), Eurozone Consumer Price Index (final reading for October), and North American time will bring the release of Canada’s Industrial Product Price Index (October) and International Securities Transactions (September), among others.

The bias remains in favor of USD selling. The buy position in SOLUSD from yesterday has already been stopped out, and I currently have no position.

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