Janet Yellen in­spires USD profit-tak­ing

Financial Mirror (Cyprus) - - FRONT PAGE -

This pair is more vul­ner­a­ble to pulling back to 113 than it is in ap­pre­ci­at­ing back to 115. Although the US out­look con­tin­ues to be bright, in­vestors have once again been tempted into pric­ing in a sooner-than-ex­pected US in­ter­est rate rise. The US econ­omy adding less jobs in Oc­to­ber is only go­ing to reaf­firm to the Fed that the econ­omy is pro­gress­ing mod­er­ately with rates need­ing to re­main low for some time. More­over, the US Trade Deficit un­ex­pect­edly widen­ing sug­gests the higher val­ued USD is now weak­en­ing ex­port com­petive­ness. Although the US econ­omy is do­mes­ti­cally fo­cused, ex­ports de­clin­ing will lower eco­nomic growth forecasts – pro­vid­ing the Fed with a valid rea­son to keep rates low.

Both the Stochas­tic Os­cil­la­tor and RSI are each point­ing sharply down­wards after ap­proach­ing the over­bought bound­aries, pro­vid­ing fur­ther in­di­ca­tions this pair is look­ing to pull­back. Any up­side moves can find re­sis­tance around 114.480, while support can be found at 113.957, 113.510 and 113.230.

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