Nov. 12: MARKET OVERVIEW
EUR/USD trades in a narrow 1.2490/50 range; awaits Industrial production data at 10:00 GMT (forecast – upbeat).
AUD/USD consolidates slightly below 0.8700 following the yesterday’s recovery. Australia wage price index came out in line with forecast (+0.6%).
NZD/USD pushed higher, reaching 0.7850. RBNZ Financial Stability report reminded the market that the central bank is still in a tightening cycle, and will continue to lift interest rates when necessary.
The bears are trying to pull USD/JPY to 115.00 in a correction after it reached 116.10 on Tuesday. The pair’s overbought, so it diverged a little from the soaring stocks: Japanese stocks rose to 7-year highs on the expectations Prime Minister Shinzo Abe will postpone a planned sales tax hike in order not to damage a fragile economic recovery.
GBP/USD rose above 1.5920 ahead of the release of the UK unemployment data (09:30 GMT) and the Bank of England’s Inflation Report (10:30 GMT). It will be very important to see how the BoE explains slowing inflation: the reasoning will determine the prospects on the rate increases in the UK.