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Several macroeconomic reports are scheduled for Tuesday, but they are not generating much interest at the moment. The market continues to show minimal volatility and no clear direction. The U.S. dollar continues to weaken very little, without sufficient grounds for it. However, the market is still not in a hurry to sell the U.S. currency. Today in Germany, the third estimate of GDP for the third quarter will be released, and in the U.S., the weekly ADP employment report, the Producer Price Index, and retail sales data will be released. These are interesting reports, but the market is expecting others. Traders are looking for Non-Farm Payrolls, the unemployment rate, and the Consumer Price Index for October and November, while the remaining data are of only secondary interest to them at this time.
On the second trading day of the week, both currency pairs may show some movement, as the macroeconomic backdrop today will be quite weak and the market is not keen on trading anyway. The euro has a good trading range at 1.1527-1.1531. The British pound is trading in a range of 1.3096-1.3107 and is flat. Volatility in the market is currently low, despite the significance and volume of macroeconomic data, which is something to keep in mind.
Important announcements and reports (always available in the news calendar) can significantly impact the movement of the currency pair. Therefore, during their release, it is recommended to trade with maximum caution or to exit the market to avoid sharp reversals against the preceding movement.
Beginners trading on the Forex market should remember that not every trade can be profitable. Developing a clear strategy and money management is key to long-term success in trading.
*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.
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