Last week was full of surprises! Stock indices have shown significant growth…
Oil Skyrockets, Gold Is Pressed
What drives the market today?
- Australia has revealed strong retail sales. They dropped less than expected: -1.7% vs the forecast of -2.5%. AUD/USD has jumped by nearly 380 points after the release but then paused.
- Hong Kong’s Hang Seng index (HK50) rocketed after China’s central bank said it will make all efforts to support the “healthy” development of the property market amid the China Evergrande Group crisis.
- The 10-year US yield reached 1.5%, the record high unseen since June, as traders priced in the soon Fed’s tapering. The US central bank is going to reduce monthly asset buys by $120 billion. The US dollar However, two regional Fed’s presidents resigned after revelations of embarrassing stock trading last year, they were the most hawkish Fed members.
- The oil keeps rallying as concerns of a global energy crunch strengthened. Brent has almost reached $80 a barrel – the level which has been unseen since 2018. WTI crude topped $76 a barrel. Goldman Sachs predicts Brent to reach $90 by the end of this year as the energy market is in a huge deficit.
- Bank of England Governor Andrew Bailey claimed that interest rates could rise as early as this year in the UK. It is a positive sign for the British pound.
EUR/USD has approached the low of August 19 at 1.1670. The euro looks weaker than the US dollar, that’s why the downtrend is likely to continue. If it manages to break through this support level, it will drop to November lows of 2020 at 1.1630. Resistance levels are 1.1700 and 1.1740.
Gold has formed the triangle pattern. If it drops below the lower line of the triangle and the candle closes below it, it will fall to the August low of $1730. After that, the metal may plunge to the psychological mark of $1700. Resistance levels are $1780 and $1800.
USD/JPY is rocketing like crazy. It has been making large green candles for 5 days in a row. The 111.50 should be a strong resistance level, which the pair may struggle to cross and pulled back to 111.00. The RSI is getting closer to the overbought zone, and the pair has already jumped above the upper line of Bollinger Bands. Be ready for reverse down.
The US dollar is heading to close the seventh day in the red as it remains under selling pressure. The US data at 15:30 GMT+3 (jobless claims and Philly Fed Manufacturing Index) may support the greenback if it's strong.
The United States will release the weekly Unemployment Claims on October 21, at 15:30 MT time (GMT+3).
S&P 500 and Nasdaq are still near all-time highs, supported by robust corporate earnings. Gold keeps moving inside the ascending channel.
What will happen? ECB will report its Monetary Policy statement at 14:45 MT (GMT+3) on Thursday, October 28…
What will happen? BOC will report its Monetary Policy statement at 17:00 MT (GMT+3) on Wednesday, October 27…