U.S. Review
Staying the Course
- The FOMC announced an end to its most recent round of asset purchases this week. The move comes as economic growth remained strong in the third quarter, advancing at a 3.5 percent annualized rate.
- Consumer confidence rose 5.5 points to the highest level in seven years in October, but households remain cautious in spending. Consumer spending fell 0.2 percent in September, while incomes registered the smallest monthly gain in nearly a year.
- Durable goods orders unexpectedly fell in September, but purchasing managers’ indices remain at fairly high levels.
Global Review
BoJ Eases Again Despite Positive Growth in Q3
- Monthly economic data through September indicate that real GDP growth in Japan rebounded into positive territory in the third quarter following its tax-hike-induced swoon in Q2. The Japanese economy should continue to grow in coming quarters.
- The Bank of Japan agrees with this assessment, but it surprised market participants this week by announcing an increase in the size of its qualitative and quantitative easing (QQE) program. The BoJ is effectively taking out “insurance” that deflationary expectations do not set in again.
General Risk Warning for stocks, cryptocurrencies, ETP, FX & CFD Trading. Investment assets are leveraged products. Trading related to foreign exchange, commodities, financial indices, stocks, ETP, cryptocurrencies, and other underlying variables carry a high level of risk and can result in the loss of all of your investment. As such, variable investments may not be appropriate for all investors. You should not invest money that you cannot afford to lose. Before deciding to trade, you should become aware of all the risks associated with trading, and seek advice from an independent and suitably licensed financial advisor. Under no circumstances shall Witbrew LLC and associates have any liability to any person or entity for (a) any loss or damage in whole or part caused by, resulting from, or relating to any transactions related to investment trading or (b) any direct, indirect, special, consequential or incidental damages whatsoever.
Recommended Content
Editors’ Picks
AUD/USD remains firm above 0.6600 ahead of RBA
AUD/USD maintains its bullish bias well and sound on Monday, extending the multi-session recovery past the 0.6600 barrier ahead of the key interest rate decision by the RBA.
EUR/USD keeps the constructive tone near 1.0800
EUR/USD started the week in a positive note amidst the Dollar’s inconclusive price action, altogether motivating the pair to attempt a move to the proximity of the 1.0800 region, where the 200-day SMA also converges.
Gold holds on to modest gains around $2,320
Gold trades decisively higher on the day above $2,320 in the American session. Retreating US Treasury bond yields after weaker-than-expected US employment data and escalating geopolitical tensions help XAU/USD stretch higher.
Bitcoin price holds above $63K as MicroStrategy tops BTC ownership list
Bitcoin (BTC) price recorded a rather bold two days this past weekend in a surge that saw millions in positions liquidated. However, the week is off to a calm start with altcoins sucking liquidity from the BTC market.
Stagflation warning: Service economy contracts as prices rise
In another stagflation warning sign, the U.S. service sector contracted in April even as service prices rose. The Institute for Supply Management's non-manufacturing PMI dropped to 49.4 in April, dipping from 51.4 in March.