Tuesday (8/11), EUR/USD fluctuates with a range of 1.10291 and 1.10666, after a relatively big move yesterday.
At 10:00 (GMT), the currency pair trades at 1.10484, 87 points higher than the open price.
Fig. EUR/USD D1 Technical Chart
Factors affecting on USD:
After FBI announced that there was no criminal charge on her email practices, the prospect of a victory for Hillary Clinton is growing. According to the final Reuters/Ipsos States of the Nation project, Democratic candidate has roughly 90% of winning against Mr. Donald Trump. If Hillary Clinton becomes President, that will be a good signal for U.S economy. Therefore, before official result of election, the dollar may remain steady.
- In China, the trade balance for October came in a surplus of $49.6 billion, lower than expected at $51.07 billion. China exports yoy also missed expectation when decreasing 7% while the expectation was a decline of 6%. China import in October was disappointed as well while falling 1.4%. Before that, this figure is forecast as 1% decrease. The negative outlook for China economy may affect the value of USD and the oil demand may decrease as Chinese economy, which is one of the economies that have largest oil demand in the world, is now stagnant.
- On Tuesday, oil price is quite stable after a strong gain yesterday. In physical oil market, after a 5-magnitude earthquake in Oklahoma, U.S pipeline companies at Cushing has restarted on Monday. However, the market is still skeptical about the possibility of reaching an agreement of curbing production by OPEC. The chief executive of U.S. oil giantExxon Mobil, Rex Tillerson said on Monday that global oil supplies have exceeded demand by 1 to 1 million barrels per day since the start of 2015. A steady oil price likely to contribute the value of the greenback as US drillers find supported with reasonable prices.
Factors affect on EUR:
- German Factory Orders, an indicator of production, in October decreased 0.6% compared to September, disappointing the expectation of increasing 0.2%. This data in September is 1%, and in August is 0.9%.
- Euro retail PMI in October is just 48.6, which is lower than that in September 49.6.
The pair EURUSD is supposed to dance uncertainly for the rest of today this day, until the final result of US Election 2016 be out. Who be the next president of the United States of America are to be the key point directing the market sentiment, also burden on prices.
Download PFMTools here and check out your trading skill level