EURUSD

Strong volatility gained momentum today before the final results of the US presidential elections where EURUSD fell sharply by more than 1.3 to 1.0788, the lowest in two weeks. The drop in EURUSD was mainly due to USD index strength that gained by more than 1.2, traded at 104.65 the highest since last July after the first numbers showed that Trump took the lead over Harris. PMI numbers in services from EZ, Germany, Spain, Italy France will be due later today. 

Last major support was executed. After being oversold, the speculators jumped in again started buying, targeting 1.0825 then 1.0840.

USDJPY

Rally in USD index continued this morning, USDJPY rallied by more than 1.3 to 153.50, the highest in four months after the US bond yields increased above 4.4 on 10Y bonds. While it is still early to judge the final results of the US election, if the US bond yields remain elevated then USDJPY could maintain the gains. Japans household spending will be due later today. 

After hitting an overbought level, correction started from 154, targeting 152.90 then 152.20. Momentum remained bullish but price action may support such a correction.

GBPUSD

Following the same markets sentiments this morning, GBPUSD fell by almost 1 to 1.2917 as USD index maintained its bullish bets. Traders are likely to start shifting the attention later today from America to BoE rate decision on Thursday, where it is likely to cut the rates by 0.25. Keep an eye on the USD performance as…