The US dollar is close to the end of the week at its highest level in 8 weeks near the levels of 94, following the positive data coming from the US economy, which ended with employment data where unemployment rates have fallen to its lowest levels since the levels since 2001 as well as rising wages to its highest level since January 2016, But the economy lost 33,000 jobs in September as a result of hurricanes in the United States, which policymakers described it as temporary.
The start of the week was dramatic for the euro after Catalonia announced a 90% vote in Sunday's referendum on independence from Spain, which the Spanish government and the European Commission called it illegal. The Commission called on all parties to resort to dialogue instead of violence. Mariano Rajoy, Spanish Prime Minister called Catalonia province leader to give up the idea of independence. The EURUSD pair continued to fall in line with the scenario we mentioned earlier after the head and shoulders pattern completed to its lowest level since August 17 at 1.1668.
The pressures of political uncertainty continued to weigh on sterling, which hit its lowest level against the US dollar for almost a month at 1.3026. The British high Court has asked Parliament for further clarification on the law of separation from the European Union.
In Australia, the Reserve Bank of Australia kept its policy unchanged at its last meeting and held interest rates at 1.50%, warning of the Australian dollar rising and its negative impact on the economy. On the other hand, retail sales recorded its worst performance since March 2013, returning the Australian dollar from its weekly high to the lowest level against the US dollar two months ago at 0.7732 and is currently testing the broken upper line (support level) of the rising triangle pattern on the weekly chart.
Oil prices fell sharply from daily highs of $50.79 to reach their lowest level since September 13 at $49.07 a barrel, following a strong rally yesterday after positive comments from Russia and Saudi Arabia. Saudi Arabia hopes to reach an agreement with Russia and major oil producers on the future of oil and reduce production before the OPEC meeting next month in Vienna.
