Watch Out For FOMC Meeting Minutes And US GDP Number
Risk appetite has improved on the back of coronavirus vaccine development news. However, German Chancellor Merkel said she is optimistic that next we can find a way out of coronavirus but at the moment the coronavirus situation remains very serious.
Last week, US Treasury Secretary Steve Mnuchin has requested that the Federal Reserve return unused funds allocated for enhancing the Fed’s coronavirus pandemic lending facilities. Some market observers suggest that this is an effort to impede what has already been a tense transition.
In the upcoming week, the minutes of the FOMC meeting due Thursday is expected to provide investors with an insight into the Fed’s thinking on monetary policy.
FOMC left the policy interest rate and pace of asset purchases unchanged in the last meeting. This was widely expected with the US central bank likely opting to stay sidelined this meeting in light of the November 2020 election. Fed Chair Powell said we are strongly committed to use our tools and more can be done if needed.
In addition to that, this week's calendar also features U.S. data on Gross Domestic Product, PCE Price Index, Durable Goods Orders, CB Consumer Confidence as well as New Home Sales
Keep your eye on the US GDP Growth on Wednesday. The US third-quarter gross domestic product is expected to come to 33.1%.
The Fed’s preferred measure of inflation, the core PCE index, which calculates spending minus volatile food and energy costs, arrives along with personal spending and income numbers from the Commerce Department Wednesday. The October core PCE is expected to come out at 1.7%, year on year basis.
The EURUSD pair stayed above the 1.1819 daily support level last week. If the rise continues above 1.1819 on a daily basis, we will see the resistance levels at 1.2046 and 1.2214. On the other hand, if the price drops below 1.1819, the next support level will be at 1.1744.
Support : 1.1819 - 1.1744 - 1.1658
Resistance : 1.2046 - 1.2214 - 1.2391
The GBPUSD pair closed last week below the daily level of 1.3313. As long as the price stays below 1.3313, on a daily basis, we will follow 1.3231 and 1.3136 as support levels. On the other hand, if the pair goes beyond 1.3313, the next resistance level is holding at 1.3392.
Support: 1.3231 - 1.3136 - 1.3046
Resistance: 1.3313 - 1.3392 - 1.3517
The EURJPY pair dropped below the main level of 123.14. If the pair stays below 123.14 on a four hourly basis, the selling pressure may continue and we will see the key support level at 122.37. On the other hand, if the currency goes beyond 123.14, the next resistance level is holding 124.24.
Support: 122.37 - 121.59 - 120.75
Resistance: 123.14 - 124.24 - 125.07
Gold price closed last week below the 1873 major resistance level. If the price stays below 1873, on a four hourly basis, we will follow 1854 as a daily support level. Otherwise, if the price rises above 1873, the next resistance level can be found at 1904.
Support: 1854 - 1829 - 1805
Resistance: 1873 - 1904 - 1932
22 Nov 20 (Sun)
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