Four Banks Fight Against Inflation
It will be the hottest week of September, with four central banks’ meetings, five PMI releases, and a lot to trade.
What will move the market on October 11-15?
A lot of events were happening in the market last week. Oil prices jumped after the OPEC+ stuck to its goal of gradual supply increase, the USD and gold became volatile on the non-farm payrolls release and stocks strengthened after the US Senate voted to extend the US debt limit. The bullish movement in stocks was also supported by the start of the earnings season that will draw the traders’ attention in the upcoming days. What else do we need to follow as the new week begins?
Trade ideas
Forex
The USD traders will continue monitoring the updates in the US economy. The main focus will be on the US Inflation and the FOMC Meeting Minutes this Wednesday. The votes on the raise of the debt limit from the US House will be closely watched as well. For EUR/USD, the strength of the US dollar will indicate further falls to the levels of July 2020. If the Fed indicates uncertainty in stimulus reduction, stabilization above 1.17 will be possible for this pair. As for USD/JPY, the skyrocketing USD may help the pair to rise to 113. Otherwise, expect a retest of the 200-week MA near 109.
Stocks
Last week was marked with ups and downs in the stock market. After the vote on the raise of the US debt limit, stock indices strengthened. Another notable change happened in the behavior of the Asian indices. The Japanese index (JP225) strengthened to the upper border of the daily consolidation at 28 300 on Friday. The next resistance for it will lie at 28 700. The slide below 27 700 will pull the index lower to 27 300.
NASDAQ (US100) seems to join the recovery rally. The targets for buyers will lie at 15 000 and 15 400. For sellers, the fall below 14 500 may indicate a further slide to 14 000.
The stock of Alibaba started to be more attractive for bulls amid the overall market recovery. The first resistance for it lies at 168.5. The support level is located at 140.
Don’t forget about the earnings season! The biggest American banks are going to post their financial data this week. Don’t miss JP Morgan Chase on October 13 and Bank of America and Citigroup on October 14. If the actual data beats estimates, the stocks will strengthen. Also, this week we will see the financial update from Alcoa and General Electric.
Oil, gas & metals
Oil prices keep moving within an uptrend. The first target for WTI (XTI/USD) bulls lies at 80, while Brent (XBR/USD) buyers expect the test of 84. The unstoppable surge of gas (XNG/USD) paused last week after Russian President Vladimir Putin commented on the regulation of the price. The first support level for gas is located at 5.5, and the resistance lies at 6.45.
Risk warning
The following information is not investment advice. Remember that trading is risky. Manage your funds carefully and remember that you can use Take Profit and Stop Loss orders to maximize your gains and limit your losses.
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