The United States will release the weekly Unemployment Claims on October 21, at 15:30 MT time (GMT+3).
Biden's stimulus is unveiled
- “Help is here,” Biden tweeted as the House passed the much-awaited $1.9 trillion COVID-19 relief bill, one of the largest stimulus packages in US history.
- US Core Consumer Price Index came out worse than expected and calmed down the markets about the US economy overheating and eased inflation fears.
- The Dow Jones surged to a record high of 32,420.
- Investors are still cautious about high-priced growth stocks (Amazon, Netflix, Facebook), which dropped on rising yields. Whereas, cyclical stocks such as airlines, hotels, automakers, and banks (General Motors, Booking, JPMorgan) keep rising on optimism over the global recovery.
- Crude Oil Inventories fell short of analysts’ expectations. 13.8M barrels were held in inventories in the last week, while the forecast was 3.0M. However, oil prices are rising due to the US stimulus package.
EUR/USD has approached the key level of 1.1.1950, which was acting as resistance in 2020 and as support in 2021. Thus, it’s likely to bounce off 1.1950 rather than break out. Support levels are at the 200-day moving average of 1.1815 and 1.1775.
GBP/USD has gotten closer to the resistance at the high of March 3 at 1.3950. If it manages to break it, the way up to the next round number of 1.4000 will be open. Support levels are at Monday’s low of 1.3800 and 1.3750.
Gold is climbing. If it manages to break through the high of March 2 at $1740, doors will be open to the 100-period moving average of $1750. Support levels are the intraday low of $1725 and the 50-period MA of $1715.
Follow ECB meeting at 14:45 MT time and ECB press conference at 15:30 MT time!
The Fed is ready to start tapering in November. Since the markets were expecting this and it wasn’t a surprise, the USD slumped allowing risk-on currencies and gold to rally up.
US Retail Sales will be out on October 15 at 15:30 MetaTrader time (GMT+3).
Last week was full of surprises! Stock indices have shown significant growth…
The US dollar is heading to close the seventh day in the red as it remains under selling pressure. The US data at 15:30 GMT+3 (jobless claims and Philly Fed Manufacturing Index) may support the greenback if it's strong.
Canada will publish the Retail Sales and Core Retail Sales on October 22, at 15:30 MT time (GMT+3).