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09.11.202109:25 Forex Analysis & Reviews: Trading plan for EUR/USD and GBP/USD on November 9, 2021

The US dollar resumed losing its positions before the opening of the US trading session, thereby continuing the correction movement that began on Friday. In general, this is not surprising, as the market is preparing for the publication of US inflation data. And although they are coming out only tomorrow, the forecasts for them are extremely disappointing. Moreover, data on producer prices are being published today, the growth rate of which should accelerate from 8.6% to 8.7%. If so, inflation will continue to grow. And all this is against the background of already greatly increased concerns about the global growth of inflation.

It turns out that inflation is already quite high, which in itself carries huge risks, so it will continue to grow. Naturally, all this does not add optimism to the US dollar. Moreover, the Fed has begun to behave somewhat strangely, and instead of raising the refinancing rate as soon as possible, it declares that interest rates will only begin to rise in 2023. Based on all of the above, it is extremely likely that we will observe the continued weakening of the US dollar over the next couple of days.

Producer Price Index (United States):

Exchange Rates 09.11.2021 analysis

The EUR/USD pair quickly increased by more than 90 points during the correction from this year's local low. As a result, the quote approached the interaction area of trade forces 1.1600/1.1615, where there was a slight stagnation. It can be assumed that if the quote fails to stay above the level of 1.1625, a pullback may occur in the market.

Exchange Rates 09.11.2021 analysis

The GBP/USD pair has partially restored the exchange rate relative to the recent decline. Now, the resistance level of 1.3600 is in the way of buyers, which can negatively affect the volume of long positions. This will lead to a slowdown-pullback stage.

Exchange Rates 09.11.2021 analysis

*La presente analisi del mercato ha un carattere esclusivamente informativo e non rappresenta una guida per l`effettuazione di una transazione.

Mark Bom,
Analytical expert of InstaSpot
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