Market Appetite Softens Somewhat, GBP Stays Brexit Driven

Risk Appetite Softens as Vaccine Optimism Fades

The US dollar traded higher against all but one of the other G10 currencies on Wednesday and during the Asian session Thursday. It gained the most versus NOK, SEK, AUD, EUR, and GBP in that order, while it was found virtually unchanged against JPY.

Nikkei 225 — Technical Outlook

After a successful rally from the beginning of November, Nikkei 225 finally slowed down a bit, finding good resistance near the 25700 and 25900 levels. The current price structure on our 4-hour chart shows that the index is stuck in a triangle pattern. Although there is a possibility to see a further move higher, given that the prevailing trend is to the upside, still, we will take a neutral stance and wait for a violation of one of the sides of the formation.

British Pound to Stay Driven by Brexit Headlines

Back to the currencies, the British pound was found lower against its US counterpart this morning, although it was among the gainers on Tuesday. Today, we already got the preliminary UK GDP for Q3, and the nation’s industrial and manufacturing production rates for September. All releases missed their estimates, but the pound did not react at all.

GBP/CAD — Technical Outlook

GBP/CAD had a great run to the upside in the first half of this week, moving further away from its short-term upside support line taken from the low of November 4th. However, yesterday, the pair found good resistance near the 1.7350 barrier, which is also the highest point of October. For now, we will take a neutral stance and wait for a violation of one of our levels first, before examining the next short-term directional move.

As for the Rest of Today’s Events

During the European session, we get Eurozone’s industrial production for September.

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