Weekly Market Report – 15.10.2018
CurrenciesEUR/USD – moved further down as German Bunds yields went negative for the first time amid Brexit fears. We are able to see it was able to hold around the support near the 1.12 level for now. We will be looking at the FED rate decision and more importantly the language and guidance of the FOMC statements, as it is all but certain that the FED won’t change the interest rate now.
USD/JPY – was trading below the downwards trend line for most of the day yesterday, but in the end was able to move above this level again as the support was able to hold. We are currently moving up as the JPY is losing some strength and correcting a bit ahead of the FOMC statement and the interest rate decision by the FED and the BOJ.
GBP/USD – is able to find some support just below the 1.41 level which has been holding for the last 2 days. Another poll came out and also showed a lead for the pro Brexit camp. However, we are seeing a correction at the moment, also as some are doubting the reliability of the polls, as polling has been proven wrong in recent elections. In addition, a lot of betting sites think the likelihood of a Brexit is still pretty low. Today and tomorrow we also have important data coming out of the UK, so we can expect the volatility in the GBP to remain until after the Brexit vote.
IndicesDAX 30 – dropped below the downwards trend line, but was able to find support at this level and close above it.
CommoditiesGold – keeps on moving higher and could be reaching the 1300 level again if the FOMC statement is dovish.
Oil – is continuing its slide since last week, as the crude stock showed an increase instead of the expected decrease. We will be looking at today’s inventories to see if we can see also here a build in the inventories and also if US production continues to increase. As mentioned earlier this week, we are trading in an area of support which has proven itself over the last few weeks. In addition there are reports that there could be peace talks in Nigeria, which could put an end to the disruption of Nigerian oil production, which is one of the reasons oil rose over the last few weeks.
StocksBoeing – according to different reports, Boeing is close to reaching an agreement with Iran to supply is with new planes. This has become possible due to the nuclear accord that was reached which has lifted sanctions on Iran.