USD Rallies as the Pound and Euro Face Uncertainty
Published on: 10/25/19 12:52 PM
The USD is performing better than other currencies as October comes to a close. The Euro and Pound, on the other hand, face uncertainty in the wake of the uneventful ECB monetary policy announcement and a chaotic fight for Brexit. Here is an insight into the biggest Forex developments of the week with FXBrokerFeed.
Great Markit PMI (Purchasing Managers’ Index) Data for the USD
The Markit PMI data was better than expected, which gave the USD a better competitive edge over most other major currencies. The EUR/USD
traded at its lowest point of the week following this announcement. It is expected to hit the 200 hour MA support soon. The GBP/USD is moving in the same direction and currently playing at the 200 hour MA support. And, true to the market forces, the USD/CHF is moving upwards and shows the potential to break the 200 hour MA.
Interestingly, the USD/JPY
is falling in spite of USD’s rally. In fact, the pair reached a new low this week with prices falling below the 100 and 200 hour MA supports. This, however, may change next week if the USD keeps up its momentum – it may be more likely than not considering that China is coming to the discussion table following months of a complicated trade war.
A Non-Starter ECB Monetary Policy Announcement
As Draghi prepares to leave the Governing Council of the European Central Bank, traders will not see much of a difference as the latest monetary policy
announcement didn’t yield anything new. There was no change to the deposit rate facility, which currently stands at -0.50%. The marginal lending facility rate stands at 0.25% while the main refinancing rate is at 0.00%. As it turns out, there is almost nothing to add to the previous month’s stimulus package.
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