(Last Updated November 26, 2021 23:24 GMT)
The chart below summarizes the price news by currency, showing which currency strengthened vs which weakened when equally averaged against other currencies. Of note is that USD was the outperformer for the day, changing by 0.54%. On the flip side, TRY fared the worst, changing by -1.72%.
As for who is on a hot streak, USDTRY, EURTRY, USDSEK, GBPNZD and USDNOK have experienced upwards move in 9, 8, 9, 8 and 9 of the prior ten trading days.
Finally, instruments in the Forex asset class that are near their 200 day moving average are AUDJPY, EURSEK, USDHKD, CADCHF, NZDCAD, NZDCHF and GBPAUD.
The Bank of International Settlements helps central banks coordinate their policies. As such, it can be an important institution for forex traders to monitor. Here is the latest from them:
| Link | Publication Date | Summary |
|---|---|---|
| Losing traction? The real effects of monetary policy when interest rates are low | 2021-11-25 | Interest rates in many countries have been exceptionally and persistently low for over a decade now.Based on a panel of 18 advanced economies starting in 1985, we examine whether aggregate demand becomes less responsive to changes in the monetary policy stance (“shocks”) when interest rates are low and whether its response weakens over time when they stay low. |
| Navigating by r*: safe or hazardous? | 2021-11-25 | The concept of the natural rate of interest, or r-star (r*), has risen to prominence in monetary policy following the Great Financial Crisis.The concept of the natural rate of interest, or r*, has risen to prominence in monetary policy following the Great Financial Crisis. |
| Back to the future: intellectual challenges for monetary policy | 2021-11-25 | The central banking community faces daunting challenges, which may well define the future of the central bank as an institution for years to come.These entwined challenges are economic, intellectual and institutional. |
As for the alignment of the moving averages, well, it’s a bit mixed up; the 20, 50, 100, and 200 do not progress from largest to smallest, or vice versa.
Bulls may note that this suggests a buy/sell ratio that is infinite.
Or to simplify this another way, note that out of the past 30 days nzdchf’s price has gone down 17 them.
As for the alignment of the moving averages, well, it’s a bit mixed up; the 20, 50, 100, and 200 do not progress from largest to smallest, or vice versa.
This move is a reversal from the hour prior, which saw price move down.
Given that we see an uptrend on the 20 and 10 hourly candle timeframe, and that such candlestick patterns often denote reversals, this may be worth noting.
Volatility for gbpjpy has been contracting over the past two weeks relative to volatility over the past month.
For additional context, note that price has gone up 6 out of the past 10 days.
Relative to other instruments in the forex asset class, gbpcad ranked 20th yesterday in terms of percentage price change.
Price action traders may also wish to note that we see some doji and pin bar candlestick patterns on gbpaud.