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.
Microsoft rocketed, markets calmed down
- Bitcoin is recovering after reaching the one-month low of $28,800.
- The currencies of Australia and New Zealand may drop as the countries imposed tighter coronavirus restrictions.
- Yesterday, Fed Chair Jerome Powell proved his view that the inflation pressures would be temporary. He claimed that the Fed would start tightening the policy only when employment and inflation reach target levels.
- Oil is edging higher after a report showing another decline in US crude stockpiles.
- Microsoft joined Apple in the $2 trillion dollar club! Yesterday, the stock hit a record high of $265.50 as investors await Microsoft’s Windows 11 event.
- Follow PMI reports from the US, UK, and EU throughout the day. The better-than-expected results will lift the currency, while the worse-than-expected numbers will push it down.
EUR/USD has bounced off the lower trend line. It has even managed to break the psychological mark of 1.1900 but stopped ahead of the next round number of 1.1950. If it crosses it finally, the way up to the 200-day moving average of 1.2000 will be open. Support levels are Monday’s low of 1.1840 and early April low of 1.1750.
XAU/USD has reversed up from the 61.8% Fibonacci retracement level of $1770. If it manages to break the resistance level of $1800 at the 50% Fibo level and the 100-day MA, gold may surge to $1825. On the flip side, the move below the $1770 support will press the metal down to early April lows of $1735.
XBR/USD (Brent oil) is rallying up. If the bullish momentum sustains, crude oil may reach the psychological mark of $75. Support levels are at the recent lows of $72.00 and $71.00.
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?