On Monday, the EURUSD currency pair received a strong growth momentum.
Two factors played against the dollar: Trump and weak US data.
Trump: The US president publicly demanded that the Fed should lower the rate and weaken the US dollar. On Monday, Trump said that he would raise duties against steel from Argentina and Brazil, accusing those countries of deliberately undervaluing their currencies to win over American rivals. Further, Trump demanded again a new easing of policy from the Fed - let me remind you that the Fed is meeting on December 10-11.
US data: New data showed a more noticeable weakening of the US industry than expected - the ISM industrial index came out for November at 48.1, which is below forecast; construction spending fell by -0.8% instead of growth as forecasted.
As a result, the dollar fell significantly against the euro, franc, and yen.
EURUSD: we keep purchases from 1.1035 and expect growth to continue.
Possible purchases with a rollback at 1.1050 and lower.
