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In first of yesterday's trading session the exchange rate made left the junior ascending triangle pattern in southern direction amid strong pressure from the 55- and 200-hour SMAs. However, after making a rebound from the bottom boundary of a large ascending channel it resumed the surge and by the end of the day returned to the pre-fall 1,283.00 level. Generally, appreciation of the gold is expected to continue not only because of the abovementioned rebound but also because of additional support provided by multiple MAs as well as the monthly PP. From fundamental side, an increasing political uncertainty in the UK is likely to support demand for safe haven assets as well. However, this assumption might be easily altered if the released American data will beat experts' expectations.

As it was expected, the currency exchange rate failed to climb above combined resistance formed by the 200-hour SMA and the weekly PP at 113.80. This rebound as well as release of positive Japan’s quarterly GDP data led to a breakout from recently formed ascending channel. As the currency rate crossed not only the 55- and 100-hour SMAs but also the monthly PP at 113.25, the pair is expected to continue heading to the bottom towards an alleged support zone near the 112.98 mark. The fact that the rate is also fluctuating in a general downtrend suggests that it should succeed to sneak below the 113.00 level. However, whether this assumption materializes will heavily depend on release of the American retail sales and inflation data

A release of latest update on the British inflation sent the cable to test support zone near the weekly S1 at 1.3090. However, by the end of the day the Pound managed to recover and returned back to the 50% Fibonacci retracement level at 1.3180.

Due to support formed by a combination of the 55-, 100- and 200-hour SMAs the pair is expected to spend first half of this trading session between the 1.3180 and 1.3125 marks. These barriers have a good chance to withhold the rate even during release of the UK earnings data.

However, the further movement of the cable is difficult to project, as it will heavily depend on release of the US inflation and retail sales data.

Due to release of much better than expected German GDP data the currency exchange rate not only left the junior rising wedge formation but also managed to break through the upper resistance line of a three-month long dominant descending channel. Generally, the pair is expected to spend some time moving horizontally and then make a turnaround, as the further path to the north is obstructed by combined resistance formed by the 50% Fibonacci retracement level, the monthly R1 and the weekly R3. This assumption is also supported on daily timeframe, as an area near the 1.1796 mark contains the 50-day SMA. However, the surge might continue if release of the American inflation and retail sales data will not justify expectations.

The US Dollar is trading in a symmetrical triangle against the Mexican Peso for the last month. The rate tested an eight-month high of 19.2824 on two separate occasions during this time and has been subsequently moving away from this mark . From technical point of view, the triangle should be breached to the upside. However, given the aforementioned high, this upward movement might prove to be limited. Technical indicators suggest that the rate is unlikely to move dramatically during the following day or even a week. However, it is still expected that the flat down-trend could be preserved. A possible downside target that the pair might approach during the following two weeks is the monthly PP circa 18.90.

The Turkish Lira has been stranded in two major patterns against the Japanese Yen. The dominant one is a descending triangle which was formed as early as mid-2016. Meanwhile, a more recent one is a falling wedge. It has constrained the rate in a downward-sloping movement for the last three months as a result of which the Lira moved slightly below its 2017 low of 29.11 early in this session. The rate might still edge lower down to the 28.80 area where the bottom wedge boundary and the weekly S2 are located. In the unlikely event of a strong downside momentum, the rate might also fall until the monthly S2 and the weekly S3 at 28.40 are reached. By and large, the wedge should be breached to the upside during the following trading sessions, as it points to soon maturity. The scope of a subsequent surge is not yet clear. The monthly PP is located at the relatively distant 30.45 mark, while there are various weekly pivot points along the way.

The Greenback rose slightly against the Canadian Dollar on the release showing higher-than-projected growth in the US producer prices. The USD/CAD exchange rate rose 10 base points to continue appreciation to touch daily high in the 1.2770 area.

The Labour Department revealed that the US Producer Price Index increased 0.4% over the month of October, surprising expectations for a weaker gain of 0.1%. The surge was driven by a rise in the cost of services. In addition, data showed steady acceleration in underlying produced prices, which encouraged projections for a gradual inflation growth and kept the Fed on track to make the interest rate hike in December.

The Sterling fell against the US Dollar on disappoint UK consumer inflation report. The GBP/USD currency pair dropped 32 base points or 0.24% to make a double touch of the intraday low close to the 1.3090 mark. On Wednesday motning the pair was seen trading in the 1.3140 area, awaiting the other closely watched report on average earnings.

Britain's consumer price growth held steady at 3.0% in October, while analysts' forecasted it to expand 3.1% in the reported month. An unexpectedly steady inflation raised questions on how fast the Bank of England is likely to raise key interest rates. Meanwhile, the Bank argued that Brexit would damage the UK ability to expand as fast as previously without bearing excess inflation.

The Euro jumped against the US Dollar on surprisingly strong German GDP data. However, the trend was reversed as the next data showed 0.6% growth pace in the EU. The EUR/USD currency pair added 21 base points or 0.18% to appreciate further to the 1.1720 mark. Destatis reported that German economy expanded at a better-than-anticipated pace of 0.8% in the third quarter, fuelled by higher capital investment and exports. The Euro zone’s GDP growth was stable at 0.6%, pointing to smaller differences in growth figures between the member states. In this regard, the 19-country monetary region is expected to grow at the strongest pace in a decade this year, which would bolster the case for the ECB to start monetary policy tighthening.

Spot Gold extended advance of past two days and cracked strong resistance provided by daily Kijun-sen line at $1284.

Fresh weakness of the US dollar keeps gold price inflated for further advance. Bulls focus barriers at $1288/90 (09 Nov recovery peak / Fibo 61.8% of $1306/$1263 downleg), break of which would open key resistance at $1293 (base of thickening daily Ichimoku cloud, reinforced by falling 55SMA).

Daily techs are firming with double bull-cross (10/20 and 10/100 SMA's) underpinning the advance.

US inflation and retail sales data are closely watched for fresh signal with weaker than expected figures expected to further boost yellow metal's price.

Res: 1288, 1290, 1293, 1296
Sup: 1283, 1278, 1273, 1270