As the final trading day of the week gets underway, the US dollar continues to perform well in what has been a strong start to November. The Federal Reserve announced its plans for tapering asset purchases last week, since then the greenback has notched up solid gains against its major peers. These advances have been bolstered by another impressive non-farm payrolls report released last Friday.
As European dealing begins the pound is trading around the mid-$1.33s while the EURUSD pair is treading water in the low $1.14s. Both levels are fresh 2021 lows which are showing no signs of reversing, yet. Looking at the fundamental pictures in the UK and eurozone, it could easily be argued that the pound is undervalued against the US dollar at this level. The same cannot be said for the euro.
Today’s economic calendar is light. Eurozone industrial production, US job openings data, and consumer sentiment numbers will be the highlights.
Have a good weekend.
Written by Viv Savani. 7:05am, November 12th 2021
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