The market sentiment is mixed, but there are still interesting movements on the market.
Market updates on October 1
Key events ahead:
Canadian GDP – 15:30 MT (12:30 GMT) time
Speech by the FOMC member Clarida – 15:30 MT (12:30 GMT) time
Speech by the FOMC member Bullard – 16:15 MT (13:15 GMT) time
US ISM Manufacturing PMI – 17:00 MT (14:00 GMT) time
- Earlier today the Reserve bank of Australia cut its interest rate by 25 basis points to a record low 0.75%. Also, the RBA statement hinted on further easing amid the worsening economic outlook. The meeting weakened the AUD and pulled AUD/USD towards the support at 0.6689. If the Australian dollar strengthens, it will rise towards the resistance at 0.6735. The next key level will lie at 0.6748. RSI is moving within the oversold zone.
- GBP/USD is consolidating as the market is awaiting a new Brexit plan by the British Prime Minister Boris Johnson today. The pair has been trading close to the 200-period SMA on H4. If the new plans provide a solution to the backstop, the British pound will break the resistance at 1.2306. The next key level will be placed at 1.2329. In case of an alternative scenario, we will see a slide below the 1.2281 level. In this case, bears will target the next support at 1.2233.
- Will the euro slide below the 1.0890 level? The answer depends on today’s events for the USD. If they support the USD, EUR/USD will fall below the support at 1.0890. In this case, the next support will lie at 1.0858. If the USD is weak, the pair will rise to the 1.0912 level. The next resistance will be placed at 1.0947.
US Core monthly retails sales will be announced on Friday at 15:30 MT time.
Stock significantly surged: S&P 500 and Nasdaq reached 6-week highs. The market sentiment may deteriorate today as Johnson & Johnson’s Covid-19 vaccine trails have been stopped because of the unexplained illness.
Canada’s retail sales will be out on October 21 at 15:30 MT time. Get ready with us for this event!
The market is resilient ahead of the speeches of Fed’s Powell and ECB President Lagarde, but there are still interesting movements.
The uncertainty over US fiscal stimulus and Brexit, and also rising new virus cases deteriorated the market mood. That’s why we can expect the further rally of the US dollar and the fall of riskier assets today.