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Federal Reserve Chairman Jerome Powell, in his testimony to the Congressional Joint Economic Committee, largely stuck to the script – policy on hold unless there is a meaningful change in the outlook.

Despite kicking off the week strongly, GBP/USD movement entered a reasonably narrow consolidation Tuesday, between 1.2873/1.2815. On the data front, unemployment in the UK ticked lower by 3.8% vs. 3.9%, while average earnings reported a 3.6% decline vs. 3.7%, revised from 3.8%.

Key risk events today: UK Average Earnings Index 3m/y; UK Claimant Count Change; UK Unemployment Rate; German ZEW Economic Sentiment; FOMC Member Clarida Speaks. EUR/USD: EUR/USD movement opened the new week a shade higher, consequently snapping a five-day bearish phase from 1.1175. The dollar index, or DXY, receded from highs of 98.40, poised to revisit … Continue reading Tuesday 12th November: Dollar snaps five-day winning streak; a retest of 98.00 likely in store.

Five successive days of selling, primarily opening by way of a clear-cut bearish engulfing candlestick formation, witnessed the EUR/USD tunnel through prominent support at 1.1072.

The European shared currency traded lower against the buck Thursday, erasing more than 0.15% and recording its fourth successive losing session. The dollar index firmed yesterday, breaching 98.00 to the upside as US Treasury yields rose sharply – 10-year note trades at 1.919% – amid positive US/China trade headlines that triggered safe-haven outflows.