Daily Market Insight

The EURUSD was one of the pairs that reached a new multi month low before finding some key support at 1.1710. The pair managed to reach the 100 hour MA at 1.1794 where the sellers started getting back into the market, this will be a key level to watch this morning as it could dictate the momentum for today – until buyers are able to close above this level, the sellers will still hold the advantage.
The Canadian inflation data was the only economic data read on the calendar on Friday, and it was a hot one – it come in at 3.0% versus 2.5%, and it didn’t all come from energy. This led the USDCAD to trade to as low as 1.3075 immediately after the number, the pair did find some support but it eventually closed to a low of 1.3050. News of a summit between Trump and Xi as both China and the US look to resolve their differences in November led to a slightly better tone and this allowed the major pairs to make some inroads against the USD. The EURUSD used the headlines to lift themselves off the floor to trade as high as 1.1435, the 1.1500 handle will be a tough level to break this coming week.
The USDCAD was also affected by headlines – these around NAFTA – and the pair moved towards 1.3025 before it trended lower throughout the day to trade at 1.2915. The news around NAFTA seems to be optimistic and so I would expect so sort of deal to be passed, the problem is that there is always the chance that we see some “twitter action” from you know who.