Last week strong US Dollar and strong US economic data like CPI, Core Retails Sales push Dollar index higher as in the anticipation of the fed rate hike in the coming policy meeting. On Friday US Dollar is on the back foot at the beginning, down 0.7% with bulls found napping by Fed Chair Powell’s fairly mindful position. While the Chair featured that the US economy is solid. Later tentative critique from Fed’s Clarida and Kaplan who the two sees some proof that the moderating of worldwide economy is turning into a headwind has seen US yields drop with the 10yr breaking underneath 3.1%, therefore fuelling USD misfortunes.

Also, developments related to Brexit weighs on Eurozone currency pairs like EUR/USD, GBP/USD and other cross currencies. While the Brexit deal which has been negotiated by the UK and the EU is expected to be agreed at a special EU summit on 25 November.

Key Points:

• Brexit will remain the key event week ahead
• Weak Dollar bullish for GBP/USD
• Prime Minister there is a May’s Cabinet saw a series of renunciations over a proposed Brexit Bargain content.

GBP/USD Forecast

After a minor bounce back on Friday, GBP/USD shut generally – 1.10% lower a week ago. The Brexit breakdown sent the combine close to the base of the Fibonacci grouping starting in April. Combined with the opposition slant line from July, the progressively lower lows in August, October and now November have started to shape a slipping triangle. Further drawback tests are expected to affirm its legitimacy as the unstable basic scene could break any minor to direct specialized levels.

Potential Idea Setup for GBPUSD

Bullish above 1.3000

Bearish below 1.2700

AUD/USD Forecast

The Australian Dollar crossed above downward week trendline, holding still above the long downtrend line that had held sway for much of this year, until November 1 indeed.

AUD/USD can manage to stay around the range for a few days, assuming the overall risk appetite that tends to favor the Aussie holds firm. Investors will be looking for RBA Minutes next week of Australian data to add to their current picture of an economy performing rather well overall.

The Official Cash Rate was left on hold at its record, 1.50% low back then. This surprised no one given inflation’s enduring weakness. It also meant that 1.50% tenure as the longest unchanged interest rate in Australian history stretched into the 28th month. It will probably stretch a lot longer too.

Potential Idea Setup for AUDUSD

Bullish Above 0.7300

Bearish Below 0.7200