Positive risk sentiment, USD weaker

Frank Walbaum

lmportant news this week:

Thu, 16th, 08:00 CET UK Gross Domestic Product.

Sterling outperforms as markets shift focus to earnings

The British Pound is one of the strongest major currencies today, benefiting from continued US Dollar weakness and resilient UK economic expectations. The Canadian Dollar remains broadly unchanged after the Bank of Canada's latest policy decision, as the central bank delivered few surprises and offered limited new guidance. With no major economic releases scheduled today, FX markets are likely to remain driven by technical factors and corporate earnings.
Precious metals remain under pressure despite the weaker US Dollar. Silver is approaching a key technical support level, and a confirmed break could accelerate selling momentum. Gold is also trading softer, although it continues to outperform Silver on a relative basis. In cryptocurrencies, Bitcoin remains capped by its 50-day moving average on the daily chart, limiting upside momentum for now. Ethereum continues to outperform and shows stronger technical momentum, while XRP remains well supported as investors maintain selective exposure to larger altcoins.

Market talk

With the economic calendar relatively quiet, attention shifts to the start of the corporate earnings season. Results from major US companies will provide fresh insight into consumer demand, business investment, and the outlook for corporate profits. Strong earnings could help equities extend their recent gains despite mixed macroeconomic signals, while disappointing results may trigger profit-taking after the strong rally seen in recent months. For now, markets remain broadly constructive, but technical levels across FX, equities, metals, and crypto continue to dominate short-term trading.

Tendencies in the markets

Equities at resistance, USD weak, BTC positive, oil rising, Silver weak, Gold weak.

Author

Frank Walbaum

AUD/USD rises to 0.6950 as USD slips on Fed's Warsh

AUD/USD regains traction and extends the bounce toward 0.6950 in the Asian session on Friday. Fed Chair Warsh's comments reinforce the selling pressure on the US Dollar, allowing the pair to stretch higher. Warsh said that he remains committed to delivering price stability without giving away anything on future interest rate path.

USD/JPY falls in symc with USD, gives up 158.00 after Warsh's speech

USD/JPY has come under fresh selling pressure and gives up 158.00 in the Asian session on Friday amid the emergence of fresh US Dollar selling. Fed Chair Warsh's non-committal commentary on the future tightening path, weighs on the US Dollar and the pair.

Gold looks vacillating above $4,150

Gold alternates gains with losses below the key $4,200 mark per troy ounce on Friday. The yellow metal’s irresolute price action comes in response to a modest pullback in the US Dollar and a tepid recovery in US Treasury yields across the board.

Bitcoin steadies at $82,000: The five forces crushing the Uptober rally

Crypto markets have remained under pressure so far in October, with Bitcoin (BTC) sliding below $80,000 earlier this week before recovering to around $82,000 on Friday, as macroeconomic headwinds and cooling demand weigh on the market.

The Fed just got a second hot inflation number. Here's what the diesel signal is really saying

The Federal Reserve (Fed) faces a renewed inflation challenge after two consecutive reports showed price pressure intensifying across the US economy. September's Consumer Price Index (CPI) confirmed accelerating consumer inflation, while the Producer Price Index (PPI) revealed an even sharper rise in business costs. Behind both reports lies a common factor: energy prices.

Everyone's dumping Gold after hot US inflation. Here's why $4,100 could be a floor, not a cliff

Gold (XAU/USD) is recovering from a sharp sell-off triggered by hotter-than-expected United States (US) inflation data released on Wednesday. The precious metal briefly plunged toward $4,073 as investors increased their bets on further Federal Reserve (Fed) interest rate hikes before recovering as US Treasury yields and the US Dollar (USD) reversed their initial gains.