The dollar's status as the world's reserve currency could only be recovered if the US controls its spending. The huge budget deficit and rising interest rates on the US national debt should scare every American, analysts say. Read the full report to learn more!
Experts are Waiting for US Stocks to Rise
Hello, guys! Welcome to Wednesday!
Let’s discuss the most exciting news for today.
American economy and the EU recession
According to JP Morgan, the number of managers planning to increase long stock positions shortly is growing significantly. By the way, the last three months of the year are historically some of the strongest for global equities.
Meanwhile, according to Goldman Sachs, about 20% of S&P 500 stocks are in the open window period (that is, they can already make share repurchases), and by the end of the week - about 40%. In other words, buybacks are expected shortly, which could support the stock market.
PMI indicates that the eurozone is getting closer to a recession. Composite PMI in October reached a three-year low at 46.5 - significantly below the waterline of 50. At the same time, economists’ estimate was 47.4 points: they expected at least some improvement, but it did not happen.
Oil price outlook
The International Energy Agency - essentially an antagonist of OPEC - is still trying to “persuade” oil to fall despite the events in the Middle East. However, the projected peak, which the agency also expects for coal and natural gas, does not mean that a rapid decline in fossil fuel consumption is inevitable. The IEA's forecasts largely rely on China's rush demand for electric vehicles. The agency somehow forgot to mention that in China, an impressive share of the electricity is generated at old-fashioned oil and coal-fired power plants.
BTCUSD and XAUUSD analysis
BTCUSD keeps beating its highest highs. Yesterday the price touched 35500. In the long-term Monthly timeframe, the price broke 23.6% and broke the resistance at 32150. The price is close to 35860. According to Elliott Wave theory, the price may be in the third impulse wave. It means BTCUSD may keep rising. If this scenario is correct, the target for the price is approximately at 41170.
The gold reserves of the BRICS countries and their friendly countries are now more significant than those of the United States.
XAUUSD is moving in the range of 1950 – 1990. Stochastic lines are leaving the overbought zone.
Chinese investors are selling the UST. Meanwhile, the earning season continues. What's going on in the markets?
The Japanese yen fell to its lowest level against the US dollar in 33 years. Read the full report to learn the next target for USDJPY!
BlackRock CEO forecasts the Fed may have to raise rates further. The US dollar index (DXY) gains 130 points today. Read the full report to get more fresh news and technical analysis!
Several largest American companies will publish their financial results this week. BTCUSD and XAUUSD are skyrocketing. What's going on in the markets?