Market Brief
It has been a day of consolidation for most asset classes as risk appetite has lacked new stimulus to propel it higher, and the meagre few risk events on the calendar have had very little directional influence on FX. The morning schedule included Swedish Industrial Production which was slightly lower than anticipated (0.2% MoM vs. 0.5% expected ) and Norwegian CPI which also missed estimates at -0.2% MoM (vs. 0.0% expected, 0.8% last) - but EURNOK is virtually flat on the day and EURSEK modestly lower.

The main item on the agenda was the ZEW survey out of Europe which showed economic sentiment in both Germany and the Eurozone was far less than estimates, and both readings were lower than in the prior month. EURUSD slipped from 1.5000 down to 1.4980 levels after the news, but the effect was extremely short-lived and the pair soon regained territory back above 1.5000.

Since then the main focus has been on the lacklustre performance of European and US equity markets, and a slew of speakers from the US and Europe. On the whole the oratory has been rather dovish from both camps, with the Fed's Lockhart stating the economy was being 'supported' by government programmes, and that it was 'important' that 'extended period' language was kept - referring to the timeline of the exceptionally low levels of the Fed Funds rate. San Francisco Fed President Janet Yellen echoed his sentiments, saying there is still 'enormous slack' in the US economy pushing inflation down, and that both this slack and elevated unemployment levels could persist 'for years to come'. The balance of rhetoric seems to support the idea that accommodative policy will remain in place for the long-run (to the benefit of risky assets), but with equities looking flat or lower in the afternoon session, we saw profit-taking drag EURUSD down to 1.4939 lows and gold dip below $1100 briefly.

With the Veteran's Day holiday in the US tomorrow, it seems most currencies and gold are likely to be range-bound. The only events on the data calendar will be Swedish AMV Unemployment, and UK ILO Unemployment.


Currency Tech
EURUSD
R 2: 1.5100
R 1: 1.5063
CURRENT: 1.4955
S 1: 1.4810
S 2: 1.4700

GBPUSD
R 2: 1.7041
R 1: 1.6843
CURRENT: 1.6680
S 1: 1.6405
S 2: 1.6240

USDJPY
R 2: 92.50
R 1: 90.75
CURRENT: 89.85
S 1: 89.60
S 2: 89.20

AUDUSD
R 2: 0.9475
R 1: 0.9330
CURRENT: 0.9270
S 1: 0.9090
S 2: 0.9025

USDCAD
R 2: 1.0870
R 1: 1.0800
CURRENT: 1.0525
S 1: 1.0500
S 2: 1.0380

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