Last week was full of surprises! Stock indices have shown significant growth…
What will move the market on October 4-8?
This week is going to be interesting for traders as some high-impact events will happen! Of course, the main event is Non-farm payrolls on Friday, which is likely to set a new track for the US dollar and thus almost the entire Forex market. Besides, OPEC+ will meet on Monday, which will add volatility to the rallying oil market.
At the start of the week, the focus will be on the Australian and New Zealand dollars as their central banks will make rate statements. Reserve Banks of these countries can’t become more dovish than they are now, that’s why we don’t expect the AUD and NZD to fall after the releases. On the contrary, if the RBA or RBNZ gives an optimistic outlook or hints at soon tapering, it may push NZD/USD up to 0.7000 and AUD/USD – to 0.7300. However, the major attention will be on the USD and NFP on Friday. The USD has hit a one-year high recently and if NFP numbers beat forecasts, USD/JPY can rocket to 112.00.
Time flies! The earnings season is about to start again! Companies will unveil their financial results for the third quarter. Among the first will be PepsiCo already on October 5 at 13:00 GMT+3. If the Q3 results are better than expected, the stock of PepsiCo will surge back to $155.00. Meanwhile, China’s assets are trying to recover after the massive sell-off. Hong Kong’s Hang Seng Index (HK 50) is trading sideways near a one-year low of 24,000.
Oil & metals
Gold tried to recover the losses, but the long-term forecast remains bearish as the strong USD after the encouraging NFP may pull the metal lower to the support of $1730. As for oil, the previous week was great for bulls as oil skyrocketed to the 2018 highs: XBR/USD (Brent oil) to $80.00, XTI/USD (WTI oil) to $76.50. After touching the highs, oil prices pulled back, but they may reverse up again as the demand is rising. Besides, the OPEC+ meeting may impact the oil market.
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.
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 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.
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…