European and US indices test important technical resistances this week. The DAX is preparing to clear the major 38.2% Fibonacci resistance while the S&P500 challenged its 200-DMA yesterday, boosted by better-than-expected Walmart earnings.

Earnings and the FOMC minutes will be decisive for the short-term direction. The minutes, due today, will likely sound more hawkish than expected, as the Federal Reserve (Fed) rate expectations softened probably too much after last week’s CPI report in the US surprised with a softer-than-expected 8.5% print.

Elsewhere, US housing starts fell almost 10% last month, but a better-than-expected industrial production maintained the investor mood optimistic into the Fed minutes.

Inflation in Canada eased to 7.6% as expected in July, down from the 8.1% printed a month earlier. But Britain was not that lucky. July inflation in the UK came above the 10% mark, versus 9.8% expected by analysts.

The barrel of US crude rebounded from $85 level, as the API data showed a 448’000 barrel decline in the US oil inventories last week versus 117’000 decline expected by analysts. The more official EIA is due today and is expected to print a 300’000 rise in inventories.

Gold, on the other hand, is moving lower, under the pressure of a stronger US dollar into the Fed minutes. 

This report has been prepared by Swissquote Bank Ltd and is solely been published for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any currency or any other financial instrument. Views expressed in this report may be subject to change without prior notice and may differ or be contrary to opinions expressed by Swissquote Bank Ltd personnel at any given time. Swissquote Bank Ltd is under no obligation to update or keep current the information herein, the report should not be regarded by recipients as a substitute for the exercise of their own judgment.

Feed news Join Telegram

Recommended Content


Recommended Content

Editors’ Picks

EUR/USD stays below 0.9800 after US inflation data

EUR/USD stays below 0.9800 after US inflation data

EUR/USD continues to trade in negative territory below 0.9800 in the American session on Friday. The data from the US showed that the annual PCE inflation declined to 6.2% in August but the stronger-than-expected core reading didn't allow the pair to gain traction.

EUR/USD News

GBP/USD rebounds from daily lows, reclaims 1.1100

GBP/USD rebounds from daily lows, reclaims 1.1100

GBP/USD fell to a fresh daily low below 1.1030 but managed to reverse its direction and climbed above 1.1100 during the American trading hours on Friday. The pair remains on track to snap a two-week losing streak despite having suffered heavy losses earlier in the week.

GBP/USD News

Gold extends daily rally beyond $1,670

Gold extends daily rally beyond $1,670

Gold preserved its bullish momentum and rose above $1,670 after the mixed inflation data from the US on Friday. The benchmark 10-year yield is down more than 2% as markets look to wrap up the third quarter, fueling XAU/USD's daily rally. 

Gold News

Shiba Eternity download day the biggest bullish catalyst in SHIB history?

Shiba Eternity download day the biggest bullish catalyst in SHIB history?

Shytoshi Kusama, the project lead for Shiba Inu, has dropped a teaser about Shiba Eternity games for the SHIB community. Proponents expect the launch of the collectible card game to be a bullish catalyst for Shiba Inu price. 

Read more

SPDR S&P 500 ETF Trust (SPY) Forecast: We are teetering on the brink

SPDR S&P 500 ETF Trust (SPY) Forecast: We are teetering on the brink

Equity markets remain at the precipice of a technical collapse, which we examine in the weekly long-term chart below. The overall picture remains one of nervousness ahead of the upcoming Q3 earnings season.

Read more

Majors

Cryptocurrencies

Signatures