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.
News to trade on December 11
- During the Asian session, Chinese Vice President Liu, US trade secretary and trade representative exchanged their opinions on trade. However, it did not result in the increased risk-on sentiment due to the French and UK political uncertainties. As a result, on the daily chart of NZD/USD, the Doji candlestick was formed. Today, New Zealand anticipates the speech by the Reserve bank of New Zealand Governor is scheduled at 21:15 MT time. If the speech by the RBNZ governor is hawkish, the NZD will stick above the resistance at 0.6890. In case of the dovish comments or strong USD, it will fall towards the support at 0.6811.
- As for AUD/USD, on the daily chart, the "inverted hammer" candlestick was formed yesterday. It can mean a possible reversal for the pair. If the risk aversion decreases, the pair can rise towards the resistance at 0.7260. Otherwise, the strong USD will pull the pair below the support at 0.7182 (50-day MA). The next support is placed at 0.7126.
- Today we anticipate the release of US PPI and core PPI at 15:30 MT time. According to analysts, the headline PPI will remain at the same level. As for the core PPI, it is expected to increase by 0.1%. Yesterday, strong US Dollar pulled EUR/USD below the central pivot at 1.1374. The form of the candlestick shows an uncertainty among traders, as the pair even tested the level at 1.1437.
If the USD is supported by the PPI release, the pair will fall towards the support at 1.1323. Otherwise, it will stick above 1.1374.
- Today, the British Prime Minister Theresa May is due to meet with the European Commission president Jean-Claude Juncker at 20:15 MT time, the European commission president Donald Tusk at 18:00 MT time and German Chancellor Angela Merkel to discuss the Brexit deal. Earlier, the president of the European Council Donald Tusk tweeted that the EU would not renegotiate Brexit deal. In addition, Mr. Junckler commented that the current Brexit deal was the only deal possible. If the negotiations bring more certainty, the GBP will rise towards the resistance at 1.2642. If Theresa May fails to bring positivity to the market, or the USD is strong, it will break the support at 1.2560 and target the next support at 1.2462.
- It is not enough just to reach an agreement. OPEC+ brings new challenges to the market with uncertainties over how the coalition will implement its output cuts. As a result, the price for the crude oil fell yesterday.
If positive news about an oil cut is released, the price for WTI will stick above $52.23. More uncertainties will pull the crude’s price towards the support at $49.93.
- As for Brent, the bearish pressure will make its price fall towards the support at $58.60. If the crude’s price is supported, the first resistance lies at $61.15.
US Retail Sales will be out on October 15 at 15:30 MetaTrader time (GMT+3).
Australia will release employment change and an unemployment rate on Thursday, October 14, at 03:30 MT (GMT+3).
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?