US, CANADA AND MEXICO SIGN USMCA DEAL IN ARGENTINA

After two days of gains, the price of Bitcoin resumed falling below the important support level of $4000. The decline happened in the entire cryptocurrencies industry, with the market valuation declining by more than $5 billion. The decline was a continuation of the trend that was started two weeks ago after the forking of Bitcoin Cash. This month, the total value of cryptocurrencies tracked by Coin Market Cap has dropped by almost $100 billion.

In the UK, data from the Nationwide Building Society showed that the house price index rose by 1.9% in October. This was higher than the forecasted 1.7% and the previous growth of 1.6%. This number is designed to reflect the average house prices across the country and is done by the second largest mortgage provider. The number has been falling after peaking at 11% in 2014. On a MoM basis, the HPI rose by 0.3%, which was higher than the expected 0.1%.

The euro was little moved today after a stream of mixed economic data. In Germany, retail sales rose by an annualized rate of 5.0% in October. This was almost double than the 2.7% that traders were expecting. The import price rose by 4.8%, which was higher than the 4.2% that traders were expecting. Across the EU, consumer prices eased by 2.0%, which was lower than the expected 2.1%. This decline was mostly associated with the lower oil prices. The unemployment rate remained unchanged at 8.1%, which was worse than the 8.0% traders were expecting.

Other important data released today were from Japan and China. In Japan, Tokyo’s CPI rose by 0.8%, which was lower than the consensus estimates of 1.1%. The unemployment rate for the country rose to 2.4%. This was higher than the 2.3% that traders were expecting. On a positive side, industrial production rose by an annualized rate of 2.9%, which was almost double what traders were expecting. In China, the manufacturing PMI for November was 50. This was lower than the consensus estimates of 50.2. A drop below the 50 level will mean a contraction in the sector. The non-manufacturing PMI was at 53.4, which was lower than the 53.8 that traders were expecting.

In Argentina, the leaders of Mexico, United States, and Canada signed the USMA agreement to replace NAFTA. As this happened Canada released the GDP numbers for the third quarter. The numbers showed that the economy expanded by 2.0%, which was lower than the previously-released 2.5%. On a QoQ basis, the economy expanded by 0.3%. In September, the economy contracted by minus 0.1%.

BTC/USD

The BTC/USD pair dropped by more than 10% today. With no major market news on Bitcoin during the day, the drop was likely because of the negative sentiment that traders have about the cryptocurrency industry. The pair is now trading at 3909 as it tries to move below the YTD low of 3500. On the four-hour chart, the pair is currently below all the important moving average data. The RSI, which was previously rising has turned downwards and is currently at 40. There is a likelihood that the pair will continue to move down.

EUR/USD

The EUR/USD pair was little moved today after mixed data from the European Union. It is now trading at 1.1368, which is close to where the pair has been throughout the week. On the eight-hour chart below, it shows that there has been a lot of indecision on the direction of the pair in the past few days. The attempts to move up have been met with equal resistance. An evidence of this is the 25-day and 50-day EMA and the RSI. The two moving averages are so close to one another in a horizontal trend while the RSI is at 50.

GBP/USD

The GBP/USD pair declined to an intraday low of 1.2746. This week, the pair has been volatile as traders wait for an indication of how the Brexit vote will look like. On the four-hour chart, the pair is trading below the 50-day and 25-day moving average. Therefore, there is a likelihood that the pair will continue being volatile until or slightly before the Brexit vote is made in parliament.