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Euro Continues To Trade Lower Amid Possible Downgrade In Growth Outlook Across Euro Zone After Second Lockdown

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Euro continues to remains lower after fresh lockdowns announced across Europe in recent days to contain the resurgence of the corona virus pandemic have triggered a series of downgrades to economic growth forecasts as restrictions on activity threaten the continent’s recovery as mentioned in FT. We will remain bearish in euro; however after US election we may see some pull-back in euro due to broad dollar sell-off.

Meanwhile pound remains steady despite UK announces four week nationwide lockdown. Sterling gradually holding its ground after Bloomberg reported that Brexit negotiators move close to breaking deadlock on fisheries issues. Additionally Reuters mentioned that EU, UK negotiators will continue trade talks from Monday until mid-week. We will remain neutral to bullish in GBPpairs ahead of US election results

US Consumer Sentiment Improves In October

US consumer sentiment improved slightly more than initially estimated in the month of October, according to revised data released by the University of Michigan on Friday. The report showed the consumer sentiment index for October was upwardly revised to 81.8 from the preliminary reading of 81.2. With upward revision, the consumer sentiment index is a bit further above the final September reading of 80.4. The uptick by the headline index came as the index of consumer expectations climbed to 79.2 in October from 75.6 in September. On the other hand, the current economic conditions index fell to 85.9 in October from 87.8 in the previous month. The report said one-year inflation expectations were unchanged at 2.6 percent, while five-year inflation expectations fell to 2.4 percent in October from 2.7 percent in September.

TREND : WEAK BEARISH

Time                                      :           02/11/2020

Pivot                                     :          1.1636

Technical View                     :           LONG ABOVE 1.1656

Target                                   :           1.1666, 1.1676, 1.1697

Technical View                      :           SHORT BELOW 1.1616

Target                                   :          1.1607, 1.1596, 1.1567

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