THE EURO CURRENCY OUTPERFORMS AS THE GERMAN GROWTH STORY CONTINUES
The euro currency outperformed all of its G-7 counterparts this week, as German third quarter GDP growth came in much better than expected. Official data on Tuesday showed that the German economy grew 0.8 percent in the third fiscal quarter, while year-on-year GDP accelerated by 2.3 percent.
Investors cheered the continued growth story in the German manufacturing sector, buying the single currency against a broad-basket of currency pairs. The EURUSD pair soared towards the 1.1860 level, while the EURGBP pair briefly traded above the 0.9000 mark.
The EURUSD pair remains bullish while trading above the 1.1760 level. Further upside towards the 1.1910 and 1.1980 levels seems likely.
A technical breach of the 1.1760 level should support further euro selling towards the 1.1710 and 1.1680 levels.
BITCOIN BUYERS RETURN
The price of Bitcoin moved sharply higher this week, recovering all of the previous week's heavy trading losses. After briefly dipping toward the $5,800 level in early week trading, the price of Bitcoin began to recover well above the $6,000 mark as bargain hunters stepped in from lower levels.
Towards the end of the week, the price of Bitcoin traded to a new record high, hitting $7,988, as reports surfaced that the company Square, owned by Jack Dorsey, is testing support for Bitcoin through its payments app Cash.
COMMODITY CURRENCIES GROUNDED
Commodity currencies continued to slip lower against the U.S dollar this week, as softer macroeconomic data from the Chinese economy and overall selling in the commodities market sector put the Australian, Canadian and New Zealand dollar under selling pressure.
The AUDUSD pair traded at levels not seen since July this week, falling well below the 0.7600 level by early Thursday trading. The U.S dollar also gained ground against the Canadian dollar, as oil prices slipped lower, prompting the USDCAD pair to press towards the 1.2800 handle.
The AUDUSD pair remains strongly bearish while trading below the 0.7610 level. Further declines towards the 0.7510 and 0.7460 remain possible.
A move above the 0.7610 may prompt an advance back towards the 0.7650 and 0.7715 level.
U.S INFLATION IMPROVES
Global investors remained unimpressed with a string of positive economic data points from the U.S economy this week. The U.S dollar index fell below the 94 level, marking a new-monthly price-low, despite the U.S Senate passing a bill to approve the Trump administrations tax reforms.
Official data also showed U.S CORE CPI and PPI inflation data rising more than analysts had expected in October. U.S Retail Sales for the month of October also beat forecasts, climbing 0.3 percent, while weekly U.S jobs data also outperformed.