Another weak inflation data in Germany confirmed the existence of problems due to which the European Central Bank has to keep rates at zero and negative levels. According to the report, consumer prices in Germany in November this year declined more significantly than expected. Thus, inflation in the country has moved further away from the target level of the European Central Bank.

EUR/USD

A report by the German Federal Bureau of Statistics indicates that the consumer price index in November declined immediately by 0.8% compared with the previous month. Harmonized by the standards of the EU, the index also fell. Despite that, economists had expected a decline, but only by 0.5%. The fall of the Germanized index was predicted at 0.7%. The main pressure on inflation was due to lower energy prices, which fell immediately by 3.7% in November compared to the same period in 2018. In general, the CPI index grew by only 1.1% compared to 2018, while economists predicted growth of 1.3%, which clearly does not reach the target level of the ECB at about 2.0%.

As for the technical picture of the EUR/USD pair, it remained unchanged. The market continues to be in a "suspended" state. If the bears miss the resistance 1.1015, the demand for the euro may return, which will quickly lead to the renewal of highs 1.1040 and 1.1060. At the same time, an unsuccessful attempt to return to resistance 1.1015 can maintain negative views on the purchase of the euro, which will push the pair to a minimum of 1.0993 and lead to its breakdown, allowing the bears to reach support 1.0970.

USD/CAD

Yesterday, data on Canada did not significantly affect the USD/CAD pair. Canada's current account deficit in the balance of payments increased in the 3rd quarter, and the labor market created fewer jobs than projected.

According to a report by the Bureau of Statistics Canada, the current account deficit in the balance of payments amounted to 9.86 billion Canadian dollars during the 3rd quarter, while economists expected the deficit to amount to 10.6 billion Canadian dollars. A deficit means that the economy imports more capital, goods, and services than it exports.

Moreover, a report by the National Bureau of Statistics Canada also indicated that the number of non-farm jobs in September fell by 27,600 compared with the previous month. At the same time, the unemployment rate fell to 5.5% and most of the jobs lost are in retail and construction. Compared to the same period of the previous year, the number of jobs outside Canada's agriculture in September grew by 1.8%, which is to 303,700.

In addition, a 4% increase in average earnings in Canada compared to the same period of the previous year also helped partially offset the negative effect of the report.

As for the technical picture of the USD/CAD pair , the pair is currently locked in a wide side channel 1.3260-1.3320. The middle of the channel is area 1.3295, from which the further direction of the trading instrument will depend. An unsuccessful attempt to grow above this resistance may return the Canadian dollar to the market, which will lead to a decrease in the pair to the support area of 1.3260, beyond which it will provide a bearish impulse to a minimum of 1.3230. If the bulls catch on the middle of the channel, we can expect a smooth growth of the trading instrument to the resistance 1.3320.

GBP/USD

The British pound remains under slight pressure against the US dollar. While all the discussion is about the confident victory of the Conservative Party in the elections, the British pound is still gradually decreasing, and the reason for this is the uncertainty with the future of the UK. Thus, even if Boris Johnson and removes the country from the EU, the problems from this will be no less, but certainly even more. Due to this, concluding new trade agreements and agreements with partners in the EU will take a long time before the UK economy begins to show healthy and sustainable growth.

As for the short-term technical picture of the GBP/USD pair , a lot will depend on how buyers will show themselves in the 1.2880 support area. If the bulls manage to maintain this level, we can talk about the continuation of growth to a maximum of 1.2970 and updating it with a resistance test of 1.3020. A larger downward correction below 1.2880, in turn, will lead to an update of the low of 1.2825.