The pound was pressured by the UK labor market report.
Asian and European trading sessions:
Euro: The Euro fell against major currencies as well as showed a high volatility against the US dollar on Wednesday. The pressure on the single currency was a result of the speech of the European Commission President Jose Manuel Barroso, who noted that the region was facing a truly systemic crises.
Later the Euro was supported by information that the new prime minister of Italy, Mario Monti presented the new government. As we stated earlier, the Euro showed high volatility to US dollar; its trading range during the European session was about 120 points and laid between $1.3425 to $1.3548 levels.
US Dollar: The dollar rose against 15 of the 16 major currencies against the search for safe assets by investors.
British Pound: The pound dropped after the released statistics which showed unemployment rate growth in Great Britain. In particular, in October the number increased by 5.3 thousands when the forecast was at 21.0. The GBP/USD pair traded in the $1.5742 – $1.5814 range during the European trading session.
Australian Dollar: The Australian dollar was negatively affected by the report, that showed the reduced growth wages during the 3rd quarter, which was much more dramatic than economists expected.
American trading session:
The British pound weakened against the dollar after the Bank of England lowered forecasts for economic growth and inflation, as expected, signaling the introduction of a new fiscal stimulus in the coming months.
Oil: The WTI oil futures prices increased by 3.3%, to 102.87 dollars, to its highest level since May 2011.The closing price for the day was $101.73 per barrel.
Technical analysis for 17/11
EURUSD
The pair has broken Fibonacci 50% and aiming to 1.33143.
Resistance: 1.34882, 1.35984, 1.37486
Support: 1.33143, 1.31674, 1.30277
GBPUSD
The pair has reached support level at 1.56722.
Resistance: 1.58543, 1.60322, 1.62050
Support: 1.56722, 1.54842, 1.53482
USDCHF
The pair has reached 0.92026. The pair’s aim is to test Moving Average (500) at 0.93069.
Resistance: 0.92026, 0.93069, 0.93949
Support: 0.91079, 0.89635, 0.88418
USDJPY
The pair has broken 77.539 and aiming to 76.463.
Resistance: 77.539, 78.345, 79.070
Support: 76.463, 75.425, 74.414
AUDUSD
The pair has reached support 1.00067 and may roll back to 1.00907. If the pair breaks 1.00907 the pair will rise to 1.01744.
Resistance: 1.00907, 1.01744, 1.02558
Support: 1.00067, 0.99207, 0.98436