The US dollar continues to strengthen its position against the euro and the pound. A breakthrough of the important support level located in the region of the minimum of last month may lead to the formation of a new and stronger downward trend in the EUR/USD pair trading instrument.

The data that came out on Friday afternoon inspired investors and traders.

Fundamental Statistics

Thus, the producer price index in the United States in October of this year has grown very much, according to a report by the US Department of Labor. This suggests that the acceleration of inflation will affect the plans of the Federal Reserve System, which will continue to raise interest rates.

According to the data, the final demand of the PPI index, the so-called indicator of producer prices of goods and services, rose immediately by 0.6% in October of this year compared with September. As for the baseline, excluding prices for food and energy, the index increased by 0.5% compared with the previous month. Economists had expected a rise in producer prices by 0.3% and 0.2%, respectively.

Data on US inventories in wholesale supported the dollar. Growth stocks will positively affect the 3rd quarter of this year.

According to the Ministry of Commerce of the country, inventories in the US wholesale trade increased by 0.4% in September 2018 compared with August, while economists had forecast growth of 0.3%. Sales in the United States wholesale trade increased by 7.8% in September over the same period last year.

The slight decline in US household confidence in the country's economic outlook did not have a significant impact on the US dollar on Friday afternoon. According to preliminary data from the University of Michigan, the consumer sentiment index fell to 98.3 points in November of this year from 98.6 points in October. Economists had expected the figure to reach the level of 97.0 points. Despite a slight decrease in the index, it is worth noting that consumers continue to have a positive attitude towards the economy and assess its future growth prospects in a good way.

On Friday, several speeches by representatives of the Federal Reserve System took place. For example, the president of the Federal Reserve Bank of New York, John Williams, said that strong economic growth is closely linked to the situation on the labor market. However, during the presentation, the representative of the Fed did not comment on the prospects for the monetary policy of the Central Bank.

As for the technical picture of the EUR/USD pair, the eurobucks have only one hope for the support level of 1.1300, which is the low of last month. The breakthrough of this range opens up real prospects for a further reduction of the trading instrument in the area of 1.1250 and 1.1180.

Despite good data on the UK economy as it grew slightly in the 3rd quarter of this year, the British pound fell against the US dollar. Quite likely, Brexit once again puts pressure on investors without reaching an agreement.

According to the report, she received a total of 1.5%. These data are fully consistent with the economists. A good increase in consumer spending and foreign trade supported the economy but the growth of investment companies in comparison with the previous quarter has declined.

As I noted above, the main problem for the pound remains the risk of the UK leaving the European Union in March 2019 without concluding an agreement with the EU on the conditions of a "divorce".