Weekly Market Report – 15.10.2018
Today we have the GDP data out of the UK and later in the day the FOMC statement, which will be the main events that will drive the markets.
CurrenciesEUR/USD – is trading slightly up after being unable to hold on to its gains yesterday after the stronger housing data and consumer confidence data out of the US. The focus will be on the FOMC statement later today, as that has the potential to have a large impact on the USD.
USD/JPY – is seeing a lot of volatility in recent days as different news, comments and expectations are circulating regarding the stimulus by the Japanese government and the monetary policy by the BOJ. This morning is was reported that that Japan is planning to announce stimulus measures of well over $250 billion next week. This has caused the JPY to weaken and once again breach the resistance around the 106.3 level, although only for a short while and subsequently corrected a lot of the upwards move.
GBP/USD – was able to turn around during the day as also the USD weakened a bit. As mentioned, we see an ever smaller range in which we are trading, which can also be seen by the coming together of the Bollinger bands. This is likely to change today however with the GDP data out of the UK today and later on the FOMC statement.
IndicesAEX – has risen over 13% in a month, since reaching the lowest point right after the Brexit vote. It is currently trading near the resistance around the 452 level.
S&P 500 – remains trading near the resistance as it is trying to mark a new record high. We can expect some moves in response to the FOMC statement later today.
CommoditiesGold – is in a holding pattern and is awaiting the FOMC statement later today to give it a new direction.
Oil – firmly dropped below the 43 level in trading yesterday, and while there were attempt to base itself above this level again, it was unable to do so. The crude stock also showed a smaller decline than expected. We will look forward to the inventories and production data this afternoon.
StocksApple – sold less iPhones for the second consecutive quarter, although the drop was less than expected. The main area where Apple is struggling is China, which was a great source of growth recently. The reason the drop in iPhone sales was less than expected is because the sale of the iPhone SE, the cheaper version, proved to be doing very well, although the cheaper version is cutting into its profit margins. The earnings were received positively, as worse was expected, and Apple is up well over 5% in afterhours trading.
Boeing –will be releasing its earnings today.
Facebook – will also be releasing its earnings today.
McDonald’s – dropped over 4% as the earnings were disappointing, especially sales growth.
Twitter – reported earnings that were more or less in line with the expectations, but its forward guidance for next quarter is much lower than was expected with an expected revenue of $590-$610 million, while $680 million was expected. As a result it is dropping around 10% in afterhours trading.