Daily Forex Analysis - 13 November 2020

USD Overview (13 November 2020)

Yesterday, USD strengthened against most major currencies except EUR, JPY and CHF.

During his speech yesterday, Fed Chairman Powell expressed optimism in the U.S. economy, saying that the recovery has been faster than expected. He also highlighted that the coming months will be challenging with the spread of COVID-19.

The CPI m/m data released yesterday indicated no change in inflation in October.

- CPI m/m (Actual: 0.0%, Forecast: 0.1%, Previous: 0.2%)

- Core CPI m/m (Actual: 0.0%, Forecast: 0.2%, Previous: 0.2%)

The PPI m/m data will be released later at 2130 (SGT).

- Core PPI m/m (Forecast: 0.2%, Previous: 0.4%)

- PPI m/m (Forecast: 0.2%, Previous: 0.4%)

Also, the Preliminary UoM Consumer Sentiment data (Forecast: 82.1, Previous: 81.8 revised from 81.2) will be released later at 2300 (SGT).

NZD/USD Outlook (13 November 2020)

Overall, NZD/USD is trending upwards. Recently, NZD/USD bounced down from the key level of 0.69.

Currently, NZD/USD is moving towards the support zone of 0.67900 and the next resistance zone is at 0.70000.

Look for buying opportunities of NZD/USD if it bounces off the support zone of 0.67900.

AUD/USD Outlook (13 November 2020)

Overall, AUD/USD is trending upwards. Recently, AUD/USD moved into the support zone of 0.72200.

Currently, AUD/USD is testing the support zone of 0.72200 and the next resistance zone is at 0.73900.

Look for buying opportunities of AUD/USD if it bounces off the support zone of 0.72200.

USD/JPY Outlook (13 November 2020)

Overall, USD/JPY is ranging across.

The Japanese Preliminary GDP q/q data (Forecast: TBA, Previous: -7.9% revised from -7.8%) will be released next Monday at 0750 (SGT).

Currently, USD/JPY is testing to break below the key level of 105. Its next support zone is at 104.200 and the next resistance zone is at 106.300.

Look for buying opportunities of USD/JPY if it bounces up from the key level of 105.

EUR/USD Outlook (13 November 2020)

Overall, EUR/USD is ranging across. Recently, EUR/USD trended into the resistance zone of 1.17900.

During her speech yesterday, European Central Bank President Lagarde expressed optimism in the COVID-19 pandemic, saying that the progress of the vaccine has reduced uncertainty.

The eurozone flash employment change and GDP data will be released later at 1800 (SGT).

- Flash Employment Change q/q (Forecast: 0.7%, Previous: -2.9% revised from -2.8%)

- Flash GDP q/q (Forecast: 12.7%, Previous: 12.7%)

Currently, EUR/USD is testing the resistance zone of 1.17900 and the next support zone is at 1.16500.

Look for selling opportunities of EUR/USD if it bounces off the resistance zone of 1.17900.

GBP/USD Outlook (13 November 2020)

Overall, GBP/USD is trending upwards. Recently, GBP/USD broke the support zone of 1.32200.

The UK quarterly GDP data released yesterday indicated a strong recovery in the UK economy from negative growth during the third quarter with the easing of lockdown measures, thus ending the technical recession.

- Preliminary GDP q/q (Actual: 15.5%, Forecast: 15.8%, Previous: -19.8 revised from -20.4%)

- GDP m/m (Actual: 1.1%, Forecast: 1.5%, Previous: 2.2% revised from 2.1%)

In his speech yesterday, Bank of England Governor Bailey mentioned that although the GDP data indicates a strong recovery, a huge gap remains.

Governor Bailey will be speaking at a UBS online conference tomorrow at 0000 (SGT). During this time, there may be volatility in GBP.

Currently, GBP/USD is moving towards the key level of 1.31. Its next support zone is at 1.30400 and the next resistance zone is at 1.32200.

Look for selling opportunities of GBP/USD if it breaks below the key level of 1.31.

USD/CAD Outlook (13 November 2020)

Overall, USD/CAD is trending downwards. Recently, USD/CAD trended upwards and broke above the key level of 1.31.

USD/CADs next support zone is at 1.30300 and the next resistance zone is at 1.32200.

Look for buying opportunities of USD/CAD.

GBP/JPY Outlook (13 November 2020)

Overall, GBP/JPY is trending upwards. Recently, GBP/JPY trended downwards, breaking below the key level of 139 and 138.

The UK quarterly GDP data released yesterday indicated a strong recovery in the UK economy from negative growth during the third quarter with the easing of lockdown measures, thus ending the technical recession.

- Preliminary GDP q/q (Actual: 15.5%, Forecast: 15.8%, Previous: -19.8 revised from -20.4%)

- GDP m/m (Actual: 1.1%, Forecast: 1.5%, Previous: 2.2% revised from 2.1%)

In his speech yesterday, Bank of England Governor Bailey mentioned that although the GDP data indicates a strong recovery, a huge gap remains.

Governor Bailey will be speaking at a UBS online conference tomorrow at 0000 (SGT). During this time, there may be volatility in GBP.

Currently, GBP/JPY is testing the support zone of 137.500 and the next resistance zone is at 140.000.

Look for short-term selling opportunities of GBP/JPY if it breaks the support zone of 137.500.

EUR/JPY Outlook (13 November 2020)

Overall, EUR/JPY is ranging across.

During her speech yesterday, European Central Bank President Lagarde expressed optimism in the COVID-19 pandemic, saying that the progress of the vaccine has reduced uncertainty.

The eurozone flash employment change and GDP data will be released later at 1800 (SGT).

- Flash Employment Change q/q (Forecast: 0.7%, Previous: -2.9% revised from -2.8%)

- Flash GDP q/q (Forecast: 12.7%, Previous: 12.7%)

EUR/JPYs next support zone is at 122.600 and the next resistance zone is at 124.750.

Look for selling opportunities of EUR/JPY.