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 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.
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?