Euro caught on 90 degrees

On Tuesday, November 30, by the end of the day, the euro rose in price against the dollar by 0.42%, to 1.1338. The euro / dollar pair started to rise since the Asian session.

The single currency received support as a funding currency after the statements of the head of the company Moderna Stefan Bansel. After his interview with the Financial Times, a flight from risky assets began. He stated that existing COVID-19 vaccines are likely to be less effective against the new strain. It will take pharmaceutical companies months to modify vaccines. His comments hit the oil market hard, as well as the Australian dollar and New Zealand dollar.

From the reached maximum of 1.1382 the euro fell by 147 points to 1.1235. This was a reaction to the speech of the head of the US Federal Reserve J. Powell before the Senate Banking Committee. Powell signaled that the central bank may consider speeding up the completion of asset purchases due to rising inflationary risks, putting pressure on markets already wary of news of a new COVID-19 variant.

The price recovered from 1.1235 by 110 points to 1.1345. The Australian and the New Zealander won back all the losses. Their growth amounted to 110 points and 89 points, respectively, including trading on Wednesday.

Scheduled statistics (GMT +3):

At 10:00 Germany will publish a report with data on retail sales for October.
At 10:00 am in the UK will be released house price index from Nationwide for November.
At 11:15 am Spain is to publish a manufacturing PMI for November.
At 11:30 Switzerland is to publish an index of business activity in the manufacturing sector for November.
At 11:45, Italy is to publish a manufacturing PMI for November.
At 11:50 am, France is to publish a manufacturing PMI for November.
At 11:55, Germany is to publish a manufacturing PMI for November.
At 12:00 the Eurozone is to publish an index of business activity in the manufacturing sector for November.
At 12:30 the UK is to publish an index of business activity in the manufacturing sector for November.
At 16:15 in the US, there are data on changes in the number of employees (excluding agriculture) according to the ADP November.
Bank of England Governor Andrew Bailey will deliver a speech at 17:00.
At 17:30 in Canada will be released the index of business activity in the manufacturing sector in November.
At 17:45, the US is to publish a manufacturing PMI for November.
US Federal Reserve Chairman Jerome Powell and Treasury Secretary Janet Yellen will deliver speeches at 18:00.
At 18:00 the US is to publish the ISM Manufacturing PMI for November.
At 18:30, the US Department of Energy will provide data on changes in oil reserves.
The Fed's Beige Book will be released at 10:00 pm.

Current situation:

On Wednesday, J. Powell and J. Yellen will speak again, but one should no longer expect sharp price fluctuations of 110-150 points. Market participants are preparing for Friday's Non-Farm Payrolls report, as well as waiting for new news about Omicron. From the statistics for today it is worth highlighting the report on the labor market in the private sector from ADP.

Technical analysis:

Risky assets are trading in positive territory. The euro / dollar pair has found an equilibrium point between supply and demand at about 90 grams. - 1.1341. Support is at 1.1289 and resistance is at 1.1386. Considering that the NFP is coming out on Friday, there is a high probability of movement in the range of 1.1235-1.1382 until Friday. Any negative news about Omicron will have a positive impact on the single currency.

Summary:

Despite the high volatility after the speech of the head of the US Federal Reserve Powell, the single currency closed with growth against the dollar. Market participants are preparing for Friday's Non-Farm Payrolls report. Considering that the NFP is coming out on Friday, there is a high probability of movement in the range of 1.1235-1.1382 until Friday.