US Retail Sales will be out on October 15 at 15:30 MetaTrader time (GMT+3).
Stocks up, USD down
- S&P 500 skyrocketed to the all-time high on optimism that Biden’s fiscal stimulus will support economic growth and boost corporate earnings. Interesting fact: it was the best S&P 500 reaction to a presidential inauguration since at least 1937.
- Crude oil dropped on worries over weakened consumption amid the continuing Covid-19 pandemic. Elsewhere, Biden announced its intentions to develop green energy and lower the oil dependency.
- The JPY surged after the Bank of Japan kept its main policy settings unchanged.
- The Australian dollar rose as the country’s unemployment rate plunged. In addition, the overall risk-in sentiment helped the aussie to gain.
- A little about sad things, Germany reported record daily deaths. A study by South African scientists raised concerns over the vaccine efficacy against the new virus variant.
- All eyes today on the ECB report at 14:45 MT time. It will be the main euro driver today as the ECB may try to talk down the EUR as the EU economy is suffering from the recession.
EUR/USD bounced off the 50-period moving average. If it drops below yesterday’s low of 1.2100, the way down to the low of January 18 at 1.2050 will be clear. On the flip side, the breakout above will drive the pair to the next resistance of 1.2170.
The British pound tries to break through the key resistance of 1.3700. Once it manages to do it, the way up to 1.3750 will be clear. Support levels are at the 100-period moving average of 1.3600 and the low of January 18 at 1.3530.
XAU/USD surged! If it jumps above the 100-period moving average of $1 885, the way up to the key psychological mark of $1 900 will be clear. Support levels are $1 825 and $1 800.
USD/CAD dipped to the level of 1.2610, unseen since April 2018. Today the pair tries to rebound its losses. The move above yesterday’s intraday high of 1.2650 will press the pair up to the next resistance of 1.2665. Support levels are 1.2610 and 1.2550.
- The ECB report will be at 14:45 MT time.
- US unemployment claims will be out at 15:30 MT time.
The crypto market keeps recovering. Bitcoin has broken above $57,000. The way up to $60,000 is open now!
The US Inflation Rate (CPI) will be announced on Wednesday, October 13, at 15:30 MT (GMT+3). Traders eagerly await this event as it will impact the USD and thus the vast majority of currency pairs in the Forex market.
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?
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.