Good data on the US and the nomination of a new candidate for the position of head of the Federal Reserve helped the US dollar to maintain its positions and prevent an upward correction of the European currency.
On Thursday, it was announced that labor productivity in the US in the third quarter of this year continued to grow. According to the report of the US Department of Labor, non-agricultural labor productivity in the third quarter of 2017 increased by 3.0% after rising by 1.5% in the second quarter. Economists expected growth in the third quarter to be at 2.8%.
Conditions for doing business in New York in October also improved. According to the Institute of Supply Management, the ISM index of current conditions for doing business in New York in October was at 51.6 points against 49.7 points in September. An indicator above 50 indicates an increase in activity, and lower - for its slowdown.
Important news came out on Thursday, aside from the Bank of England's move to increase the interest rate, which was the decision by US President Donald Trump to nominate Jerome Powell as Fed chairman. In the event of an approval of the Senate, Powell will replace Janet Yellen in February 2018 as head of the Federal Reserve.
In turn, the current head of the Fed, Janet Yellen, was quick to congratulate Powell on his nomination for the position of chief of the Fed, saying that she intends to work with him in order to ensure a successful transition period.
An important point is the market reaction, which was rather restrained, as many analysts expect the next head of the Fed to continue the same policy that was under Janet Yellen.
As for the technical picture of the EURUSD pair, it has not changed significantly. However, it remains a problem for buyers of risky assets to get beyond a level of 1.1665, as they failed the previous day. Only a breakthrough will allow them to count on updating 1.1705 and 1.1750. As long as the pressure on the euro remains, the breakthrough of the middle of the channel around 1.1640 could lead to a quick selling of the trading instrument with a return to weekly lows.
The Australian dollar collapsed against the US dollar following the release of data on retail sales in Australia.
According to the report, retail sales in September of this year did not change in comparison with August, thus disappointing economists, who expected an increase of 0.4%. In the third quarter, retail sales grew by 0.1% compared to the second quarter.
