On Monday the 6th of November, the euro/dollar pair closed just 2 pips away from Friday’s closing price, leaving a long tail on the daily candlestick that reaches down to 1.1580. During the European session, the euro dropped to 1.1580. The main forces behind this were BoE governor Mark Carney’s speech and a drop for US bond yields and crosses involving the euro.
In the US session, the pair recovered from 1.1580 to 1.1616 (+36 pips) in the space of 3 hours. This rebound may have been caused by New York Fed chief William Dudley’s announcement that he will step down from his post in mid-2018. CME Group’s FedWatch tool puts the likelihood of an interest rate hike in December at 97%.