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.
Market updates on October 24
Key events ahead
ECB monetary policy statement – 14:45 MT (12:45 GMT)
ECB press conference – 15:30 MT (12:30 GMT)
Core durable goods orders - 15:30 MT (12:30 GMT)
- The start of the European trading session has been volatile for the euro. After the releases of French flash services and flash manufacturing PMIs, where the actual figures came out higher than the forecasts, EUR/USD tested the 1.1160 resistance level, but inched lower on the disappointing German PMIs and flash manufacturing PMI for the Eurozone. Further attention of traders will be on the ECB meeting at 14:45 MT. If the ECB is hawkish, the pair will rise above the 1.1137 and 1.1151 levels, where it may retest the 1.1160 resistance level. If this level is broken, the next key resistance for bulls will be placed at 1.1172. On the other hand, if the ECB is dovish, EUR/USD will slide below the 1.1130 level. After that, reaching the support level at 1.1120 seems possible. The next key level from the downside will be placed at 1.11.
- USD/JPY has moved lower to the support at 108.59. If bears break this level, their next target will be at 108.45. After that, the next support in focus will lie at 108.36. If buyers continue to dominate in the market, the 108.7 level will be broken. A further rise will be limited by the 108.77 and 108.85.
- Gold has tested the support at $1,489 (50-day SMA). If the price for the yellow metal continues to fall, this level will be broken and the next support will lie at $1,486. After that, the $1,483 level will be important. Buyers will be looking for the retest of the $1,493.2 level. Further resistance levels will be placed at $1,495, $1,497 and $1,500.
US Retail Sales will be out on October 15 at 15:30 MetaTrader time (GMT+3).
The crypto market keeps recovering. Bitcoin has broken above $57,000. The way up to $60,000 is open now!
The United States will release the weekly Unemployment Claims on October 21, at 15:30 MT time (GMT+3).
Great Britain will publish the Inflation Rate on October 20, at 09:00 MT time (GMT+3).
The bullish movement in the stock market is gaining speed, and Bitcoin ETFs are closer than they might seem. What do we need to know for the next trading week?