What will move the market on October 25-29?

FBS Team FBS

Information is not investment advice

Last week was full of surprises! Stock indices have shown significant growth. US500 raised by more than 1.5%, NASDAQ gained 2.2% and Chinese Hang Seng surged by 2.5%. Investors were full of confidence about the stocks, as earnings season is gaining momentum. Tesla reported record earnings and reached $900, while other technology companies such as Facebook and Microsoft dropped after worse-than-expected Snapchat report. Bitcoin broke through its previous all-time high of $64 000 and reached $67 000. The US dollar lost 0.3%.

Trade ideas

Forex

The Bank of Canada and the European Central bank will present their rate statements on Wednesday and Thursday respectively. The Bank of Canada was the first institute that tapered the pandemic stimulus, that’s why investors keep waiting for the hawkish statements. Last time the BOC decided to keep the key rate and monetary policy stimulus at the same level. As the result, CAD/JPY dropped by 1%. EUR has shown some gains against USD and JPY in the last week. Traders expect to hear some hawkish statements from the ECB. If so, the long consolidation above 0,842 on EUR/GBP currency pair might turn into a pump and EUR/USD might return to 1.168.

Stocks

Next week will be full of releases in the stock market as earnings season continues. Facebook, Google, Microsoft, Visa, eBay, Ford, General Motors, Coca-Cola, McDonald's, Apple, Amazon, MasterCard are among the companies reporting. Wall Street will closely watch this week's reports as 4 of 5 FAANG companies will release their financial statements. FAANG companies have been the main moving power of the US stock market indices during the past year. If their releases will be better than expected, US500 and US100 might break through 4450 and 15700 respectively, and keep moving further.

Oil, gas & metals

During the past week, Brent has been consolidating in the $83 - $85.4 channel. Several banks predicted that oil might reach $100 or even $200 by the end of 2021, but the current situation is way too far from these numbers. As new virus strains spread across the globe, and the numbers of deaths increase Brent will stay under pressure. Traders might use an opportunity to trade inside the channel or wait for a breakout of any side and follow the trend after.

Author

FBS Team

FBS

FBS team is a group of professional analysts focused on Forex, stock, and commodity markets. Each expert possesses a years-long experience in fundamental and technical analysis.

EUR/USD flirts with daily highs, retargets 1.1900

EUR/USD regains upside traction, returning to the 1.1880 zone and refocusing its attention to the key 1.1900 barrier. The pair’s slight gains comes against the backdrop of a humble decline in the US Dollar as investors continue to assess the latest US CPI readings and the potential Fed’s rate path.

GBP/USD remains well bid around 1.3650

GBP/USD maintains its upside momentum in place, hovering around daily highs near 1.3650 and setting aside part of the recent three-day drop. Cable’s improved sentiment comes on the back of the Greenback’s irresolute price action, while recent hawkish comments from the BoE’s Pill also collaborate with the uptick.

Gold clings to gains just above $5,000/oz

Gold is reclaiming part of the ground lost on Wednesday’s marked decline, as bargain-hunters keep piling up and lifting prices past the key $5,000 per troy ounce. The precious metal’s move higher is also underpinned by the slight pullback in the US Dollar and declining US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP in choppy price action, weighed down by falling institutional interest

Bitcoin's upside remains largely constrained amid weak technicals and declining institutional interest. Ethereum trades sideways above $1,900 support with the upside capped below $2,000 amid ETF outflows.

Week ahead – Data blitz, Fed Minutes and RBNZ decision in the spotlight

US GDP and PCE inflation are main highlights, plus the Fed minutes. UK and Japan have busy calendars too with focus on CPI. Flash PMIs for February will also be doing the rounds. RBNZ meets, is unlikely to follow RBA’s hawkish path.

Ripple Price Forecast: XRP potential bottom could be in sight

Ripple edges up above the intraday low of $1.35 at the time of writing on Friday amid mixed price actions across the crypto market. The remittance token failed to hold support at $1.40 the previous day, reflecting risk-off sentiment amid a decline in retail and institutional sentiment.