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.
JPMorgan finances Super League, Apple unveils new devices
- The market sentiment is risk-on. EUR/USD, AUD/USD, GBP/USD surged! Treasury yields are at 1.61%, which is well below recent highs, and the US dollar is trading at the local levels.
- Tesla slumped after its electric car crashed, which appeared to have no driver. Elon Musk defended his company by saying that Tesla cars with Autopilot have 10 times fewer accidents than the average car.
- JPMorgan agreed to sponsor a group of the world’s richest soccer clubs to create a Super League. Among them are well-known Barcelona, Real Madrid, Liverpool, Manchester City, Juventus, etc. The investment will reach $4.8 billion. The new league was created to challenge the prestigious UEFA Champions League.
- Today, Apple will unveil its first new products this year, while Netflix will report earnings after the market closes at 1:00 MT.
EUR/USD has broken through the upper trend line of 1.2000 and even reach the 100-day moving average of 1.2050, but has failed to close above it yet! If bulls keep momentum, the pair may rally up to the early March highs of 1.2100. Support levels are at 1.2000 and the 50-day moving average of 1.1960.
AUD/USD has approached the 0.7800 resistance, which it has failed to cross several times this year. Besides, the price crossed the upper line of Bollinger Bands, signaling the asset is overbought. Therefore, it’s likely to reverse down rather than breaking out. Support levels are at the recent lows of 0.7730 and 0.7650.
Gold is falling to Friday’s low of $1760, which it shouldn’t cross as there is the trend line. If it manages to cross it, the next support will be at $1750 near the 50-day moving average. If gold stays inside the channel and keeps rising, it may hit yesterday’s high of $1790.
USD/JPY has reversed from local dips. If it breaks the 108.50 resistance, the way up to the key psychological mark of 109.00 will be open. Support levels are 108.00 and 107.85.
US Retail Sales will be out on October 15 at 15:30 MetaTrader time (GMT+3).
Australia will release employment change and an unemployment rate on Thursday, October 14, at 03:30 MT (GMT+3).
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).
The United States will release the weekly Unemployment Claims on October 21, at 15:30 MT time (GMT+3).