{"id":117005,"date":"2017-11-23T07:03:48","date_gmt":"2017-11-23T12:03:48","guid":{"rendered":"http:\/\/countingpips.com\/?p=117005"},"modified":"2018-06-01T15:49:07","modified_gmt":"2018-06-01T15:49:07","slug":"eurusd-lower-liquidity-due-to-us-holidays","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2017\/11\/eurusd-lower-liquidity-due-to-us-holidays\/","title":{"rendered":"EURUSD: lower liquidity due to US holidays"},"content":{"rendered":"<div id=\"inves-1354447695\" class=\"inves-below-title-posts inves-entity-placement\"><div id =\"posts_date_custom\"><div align=\"left\">November 23, 2017<\/div><hr style=\"border: none; border-bottom: 3px solid black;\">\r\n<\/div><\/div><p><strong>By Gabriel Ojimadu, Alpari<\/strong><\/p>\n<div class=\"reviews-item__content\">\n<p>On Wednesday the 22<sup>nd<\/sup>\u00a0of November, trading on the euro\/dollar closed up by 81 pips at 1.18. This sharp increase was brought about by the decline in the dollar and US 10Y bond yields resulting from the publication of weak durable goods data and the FOMC minutes.<\/p>\n<p>Durable goods orders fell after three months of growth. US 10Y bond yields dropped from 2.376% to 2.340%.<\/p>\n<p>A lot of FOMC members support gradually increasing interest rates over the coming months so long as macroeconomic indicators stay in line with mid-term projections. On the other hand, some members are inclined to refrain from tightening monetary policy any further until they are sure that the recent growth in inflation is sustainable.<\/p>\n<p><strong>Day\u2019s news (GMT+3):<\/strong><\/p>\n<ul class=\"list list_type_disc\">\n<li>10:00 Germany: GDP (Q3).<\/li>\n<li>11:00 France: Markit manufacturing PMI (Nov), Markit services PMI (Nov).<\/li>\n<li>11:30 Germany: Markit manufacturing PMI (Nov), Markit services PMI (Nov).<\/li>\n<li>11:35 Eurozone: ECB\u2019s Praet speech.<\/li>\n<li>12:00 Eurozone: Markit manufacturing PMI (Nov), Markit services PMI (Nov).<\/li>\n<li>12:30 UK: GDP (Q3).<\/li>\n<li>14:00 UK: CBI distributive trades survey (Nov).<\/li>\n<li>16:30 Eurozone: ECB monetary policy meeting accounts.<\/li>\n<li>16:30 Canada: retail sales (Sep).<\/li>\n<li>19:30 Switzerland: SNB chairman Jordan\u2019s speech.<\/li>\n<li>21:15 Eurozone: ECB&#8217;s C\u0153ur\u00e9 Speech.<\/li>\n<\/ul>\n<p><img decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/alpari.com\/data\/media\/trunk\/images\/Analytics\/2017\/11\/eur_231117.png\" alt=\"\" \/><\/p>\n<p align=\"center\">Fig 1. EURUSD rate on the hourly. Source: TradingView<\/p>\n<p>Political uncertainty in Germany didn\u2019t cause the euro to drop as I expected. The US dollar\u2019s decline together with disappointing US data stopped sellers from making any inroads. Prospects of a decline for the euro were dashed when the price exited the A-A channel. From the 45<sup>th<\/sup>\u00a0degree, the price initially recovered to the 67<sup>th<\/sup>\u00a0degree, making it to the 90<sup>th<\/sup>\u00a0degree after the FOMC minutes were published.<\/p>\n<p>There was also another factor at play against the dollar. Traders needed some kind of driver to help them determine which currency would be better to hold over the long weekend. The data that came has created a negative outlook for the dollar and the FOMC minutes have strengthened this outlook.<\/p>\n<p>As today is the 4<sup>th<\/sup>\u00a0Thursday in November, the US is celebrating Thanksgiving Day. American exchanges are closed today and will close early on Friday. Volumes are thin on the market, so from our current price of 1.1829, we could move up to 50 pips in either direction. Considering that traders are buying euros on the crosses and that markets are paying less attention to the German coalition talks, I\u2019m predicting a test of the 112<sup>th<\/sup>\u00a0degree followed by a rebound towards the lower boundary of the B-B channel. When the crosses are rising, buyers don\u2019t give up so easily.<\/p>\n<p>If markets do decide to pay attention to Germany, I\u2019d like to see the price return to the LB balance line, which currently runs through 1.1763.<\/p>\n<\/div>\n<p>Source:\u00a0<a href=\"https:\/\/alpari.com\/en\/analytics\/reviews\/market_sessions\/23168_23112017\/\" target=\"_blank\" rel=\"noopener\">EURUSD: lower liquidity due to US holidays<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Gabriel Ojimadu, Alpari On Wednesday the 22nd\u00a0of November, trading on the euro\/dollar closed up by 81 pips at 1.18. This sharp increase was brought about by the decline in the dollar and US 10Y bond yields resulting from the publication of weak durable goods data and the FOMC minutes. Durable goods orders fell after [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-117005","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/117005","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=117005"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/117005\/revisions"}],"predecessor-version":[{"id":117006,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/117005\/revisions\/117006"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=117005"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=117005"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=117005"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}