Home Forex News Euro Uptrend Will Continue Amid Uprevision In Euro zone Growth Outlook

Euro Uptrend Will Continue Amid Uprevision In Euro zone Growth Outlook

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Euro continues to trade higher in early Asian trade after upbeat assessment of growth outlook by pool of global economists. Accordingly the bloc likely to contract by 7.3% in 2020, expand by 4.7% in 2021 and 3.6% in 2022. Additionally strong dollar sell-off intensified the euro upward momentum. In near term we will remain bullish in every euro pairs.

Pound remains choppy as Brexit a talk continues in between the UK and EU negotiators. Market consensus remains that trade deal likely to be done before 31st December which is highly supportive for GBPpairs. However last minutes surprises remains in Brexit negotiations since previous several round of talks. We will remain cautiously bullish in pound in coming days.

US Market climbs to new record on positive vaccine data

The US stock market surged to a new record on Monday, 16 November 2020, as investors risk sentiments underpinned after a second set of upbeat results from a potential Covid-19 vaccine.The strength on Wall Street came following more upbeat news on the coronavirus vaccine front, with Moderna (MRNA) reporting positive results from a trial of its vaccine candidate. Moderna said in a statement that the first interim analysis of Phase 3 trial results showed its vaccine candidate was 94.5% effective against coronavirus. Last week, Pfizer said that a vaccine it developed with German drugmaker BioNTech was more than 90% effective against Covid-19. There are dozens more potential vaccines in development, and the promising test results from Moderna and Pfizer suggest that vaccines may be an effective way to fight the coronavirus. Both vaccines require two doses to be administered.

Moderna said Monday that it expects to have roughly 20 million doses of its vaccine ready to ship in the United States by the end of this year. The company is on track to manufacture 500 million to 1 billion doses globally in 2021. Pfizer told last week that it expects to have 50 million vaccine doses globally this year, and 1.3 billion in 2021.

Positive data from a late-stage vaccine development lifted demand for sectors that usually benefit from an upswing in the economy. Energy stocks turned in some of the market’s best performances on the day, benefiting from a sharp increase by the price of crude oil. Reflecting the strength in the energy sector, the Philadelphia Oil Service Index skyrocketed by 8.9% and the NYSE Arca Oil Index soared by 6.6%. Steel stocks also showed a substantial move to the upside on the day, driving the NYSE Arca Steel Index up by 4%. Considerable strength was also visible among airline stocks, as reflected by the 5.7% spike by the NYSE Arca Airline Index. Banking, computer hardware and transportation stocks also saw significant strength on the day, moving higher along with most of the other major sectors.

On the U.S. economic front, a report released by the Federal Reserve Bank of New York showed New York manufacturing activity unexpectedly expanded at a slower rate in the month of November. The New York Fed said its general business conditions index fell to 6.3 in November from 10.5 in October. While a positive reading still indicates growth in regional manufacturing activity, economists had expected the index to rise to 13.5. Looking ahead, the index for future business conditions held steady at 33.9, suggesting that firms remained optimistic about future conditions.

TREND : WEAK BULLISH

Time                                      :        17/11/2020

Pivot                                     :        1.1846

Technical View                     :        LONG ABOVE 1.1866

Target                                   :        1.1886, 1.1894, 1.1906, 1939

Technical View                      :       SHORT BELOW 1.1826

Target                                   :        1.1806, 1.1786, 1.1764, 1.1741

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