The market sentiment deteriorated amid fresh US-China tensions. Investors remain cautious as increasing virus cases may damage economic activity again.
Market updates on October 9
Key events ahead:
- Meetings of the Eurogroup
- Speech by the Fed Chair Jerome Powell – 18:00 MT (15:00 GMT) time
- Speech by the FOMC member George – 18:00 MT (15:00 GMT) time
- FOMC meeting minutes – 21:00 MT (18:00 GMT) time
- Several events may determine the direction of EUR/USD today. Bulls will be awaiting the updates from the Eurogroup meetings, while bears will pay attention to the events with an impact on the USD. If the euro is supported, the break of the 1.0963 level will happen and the pair will rise towards the next resistance at 1.0973. On the other hand, a strong USD may pull the pair below the 1.0955 level to the next support at 1.0944. After that, bears will target the 1.0936
- USD/JPY pair is consolidating under the 200-period SMA on H4 ahead of the US-China trade talks scheduled for tomorrow. That is why any fresh updates on the main trade issues may affect the risk sentiment in the market and move the pair. In case of risk-off sentiment, the pair will fall towards the 106.95 level. The next support in the focus of bears will be placed at 106.76. If the risk sentiment is on, USD/JPY will try to break the 107.19 level. The next resistance level will be at 107.41 (50-period SMA).
- USD/CHF has been trading within an ascending trading channel on H4. Yesterday, the pair has tested the resistance at 0.9939, which lies close to the 100-period SMA. The next resistance lies at 0.9949. If it is broken, reaching the 0.9960 level will be possible. From the downside, key levels are, as follows: 0.9925, 0.9907 (lower border of the ascending trading channel) and 0.9897.
Risk-on is back on the market. Riskier currencies and stocks are in favor. Gold is rising too as investors try to hedge.
Riskier currencies and stocks are in favor of investors. Surprisingly, gold rallies too. Let’s have a closer look.
The European central bank will publish the main refinancing rate and make a statement on Thursday, July 16, at 14:45 MT time. Also, the ECB’s press conference will be later at 15:30 MT time.
Optimism about the Moderna vaccine improved the market sentiment. Let’s have a closer look, what’s happening today.
The Canadian central bank will announce interest rates and make a speech on Wednesday, July 15, at 17:00 MT time. Also, the BOC press conference will be later at 18:15 MT time.