Weekly Market Report – 15.10.2018
CurrenciesEUR/USD – is trading back above the 1.10 level after having reached a 3 month low yesterday. There is quite a few data coming out of the US this week, but for the EUR it will be very important what the ECB decides to do on Thursday, and especially with regards to QE, as we have heard some different signals over the last few weeks.
USD/JPY – has been moving down as it is still unable to remain trading above the 104 level. This is not so surprising as we have seen a large move and we are also trading near the resistance, so it could be just a small correction before resuming the upwards move and an attempt to break through the resistance.
GBP/USD – is moving up although it is still trading at quite low levels. We can see some short-term resistance around the 1.227 level which we will have to deal with first, before we can start thinking about higher levels.
AUD/USD – after having reached the support last week, we have moved up and are extending this move, as the RBA meeting minutes showed that the RBA is getting more positive on the economic outlook and with it, the likelihood for a further rate cut have decreased.
NZD/USD – has moved higher as the inflation data out of New Zealand was better than expected, moving further away from its 3 month low reached last week.
IndicesS&P 500 – remains trading near the support around the 2122 level as oil was dragging the index down, but as oil prices recovered, so did the equity market. With earning season now started, a lot will also depend on the earnings, so we will have to start to pay attention to that as well.
CommoditiesGold – is moving higher and will be trying to trade above the 1260 level again, as we see the USD weaken over the last few days, due to some more dovish comments and also US data which wasn’t convincing, although not that bad either. Perhaps the inflation data today will be able to cause some more volatility.
Oil – was trading down for most of the day, especially due to reports that Iran is looking to increase production to 5 mbpd while 4 mbpd was expected, and also increased production from Libya. However, over the last few hours oil has been moving back up again and also trades above the 50 level as we can see the USD weaken as well.