Oil in no rush to decline, despite lower demand for risks
Despite the lower demand for risk assets this week, oil was able to gain support from the inventory report yesterday. Buyer support came in handy, allowing oil to stay above significant technical levels. The ability of the Brent and WTI futures to perform "above the market" is an important bullish sign about its near-term prospects.
New weekly data showed a 3.8-million-barrel decrease in inventories last week. Inventory growth by the same week decreased to 12.5% from 15.8% a week earlier and from over 20% in early September and July.
The current inventory level is 10% below its peak in June, clearly reflecting the recovery in demand for oil. On the other hand, there has been no actual production growth in recent weeks due to the long hurricane season.
https://fxpro.news/daily-forex-outlook/oil-in-no-rush-to-decline-despite-lower-demand-for-risks-20201016/
Despite the lower demand for risk assets this week, oil was able to gain support from the inventory report yesterday. Buyer support came in handy, allowing oil to stay above significant technical levels. The ability of the Brent and WTI futures to perform "above the market" is an important bullish sign about its near-term prospects.
New weekly data showed a 3.8-million-barrel decrease in inventories last week. Inventory growth by the same week decreased to 12.5% from 15.8% a week earlier and from over 20% in early September and July.
The current inventory level is 10% below its peak in June, clearly reflecting the recovery in demand for oil. On the other hand, there has been no actual production growth in recent weeks due to the long hurricane season.
https://fxpro.news/daily-forex-outlook/oil-in-no-rush-to-decline-despite-lower-demand-for-risks-20201016/
#WaveAnalysis
#EURO50 falling inside impulse waves (iii) and 3
• Likely to reach 3100.00
https://fxpro.news/market-snapshots/euro50-wave-analysis-15-october-2020-20201015/
#EURO50 falling inside impulse waves (iii) and 3
• Likely to reach 3100.00
https://fxpro.news/market-snapshots/euro50-wave-analysis-15-october-2020-20201015/
#WaveAnalysis
#Ferrari opened with the upward gap
• Likely to rise to 193.75
https://fxpro.news/market-snapshots/ferrari-wave-analysis-16-october-2020-20201016/
#Ferrari opened with the upward gap
• Likely to rise to 193.75
https://fxpro.news/market-snapshots/ferrari-wave-analysis-16-october-2020-20201016/
#WaveAnalysis
#Corn broke multi-month resistance level 400.00
• Likely to rise to 415.00
https://fxpro.news/market-snapshots/corn-wave-analysis-16-october-2020-20201016/
#Corn broke multi-month resistance level 400.00
• Likely to rise to 415.00
https://fxpro.news/market-snapshots/corn-wave-analysis-16-october-2020-20201016/
What is stopping markets from growing?
Asian markets opened trading on Monday with a jump in trading, adding 0.6% to the MSCI Asia Pacific Index.
The positive trend in Asia’s indexes does not seem sustainable due to several weak data reports published amid trading.
GDP figures seriously failed to meet expectations. Third-quarter growth was 2.7% after a jump of 11.5%. Year-over-year growth rate was 4.9%, which was noticeably weaker than the 5.5% expected. This suggesting a marked weakening of the recovery momentum.
All this makes us look cautiously at the figures for the fourth quarter as more countries announce new infection records and partially regain coronavirus restrictions. As a global factory, China runs the risk of facing demand shocks and economic pressure, even with relatively strong domestic demand.
https://fxpro.news/daily-forex-outlook/the-inevitable-turnaround-what-is-stopping-markets-from-growing-20201019/
Asian markets opened trading on Monday with a jump in trading, adding 0.6% to the MSCI Asia Pacific Index.
The positive trend in Asia’s indexes does not seem sustainable due to several weak data reports published amid trading.
GDP figures seriously failed to meet expectations. Third-quarter growth was 2.7% after a jump of 11.5%. Year-over-year growth rate was 4.9%, which was noticeably weaker than the 5.5% expected. This suggesting a marked weakening of the recovery momentum.
All this makes us look cautiously at the figures for the fourth quarter as more countries announce new infection records and partially regain coronavirus restrictions. As a global factory, China runs the risk of facing demand shocks and economic pressure, even with relatively strong domestic demand.
https://fxpro.news/daily-forex-outlook/the-inevitable-turnaround-what-is-stopping-markets-from-growing-20201019/
#WaveAnalysis
#USDCHF reversed from resistance area
• Likely to fall to 0.9080
https://fxpro.news/market-snapshots/usdchf-wave-analysis-19-october-2020-20201019/
#USDCHF reversed from resistance area
• Likely to fall to 0.9080
https://fxpro.news/market-snapshots/usdchf-wave-analysis-19-october-2020-20201019/
#WaveAnalysis
#Exxon Mobil falling inside impulse wave (3)
• Likely to fall to 33.20
https://fxpro.news/market-snapshots/exxon-mobil-wave-analysis-19-october-2020-20201019/
#Exxon Mobil falling inside impulse wave (3)
• Likely to fall to 33.20
https://fxpro.news/market-snapshots/exxon-mobil-wave-analysis-19-october-2020-20201019/
Elections and coronavirus fears are driving away investors from the US
Markets continue to pull into safety assets after the S&P500 fell 1.6% on Monday. Futures on the S&P500 declined further in the last five trading sessions.
It seems that investors are already beginning to prepare for market volatility before the elections, trying to move into protective financial instruments. These same forces are supporting the weakening of the dollar.
Meantime, the USDCNH continues to look to the bottom. Earlier this morning, the dollar was down to 6,665, its lowest value since July 2018, developing a five-month RMB rally. It does not harm the Chinese stock market, where the China A50 blue-chip index rose 25% in addition to the 7% increase in the renminbi. Hence, in USD terms, it is more than 32% over this period.
https://fxpro.news/daily-forex-outlook/elections-and-coronavirus-fears-are-driving-away-investors-from-the-us-20201020/
Markets continue to pull into safety assets after the S&P500 fell 1.6% on Monday. Futures on the S&P500 declined further in the last five trading sessions.
It seems that investors are already beginning to prepare for market volatility before the elections, trying to move into protective financial instruments. These same forces are supporting the weakening of the dollar.
Meantime, the USDCNH continues to look to the bottom. Earlier this morning, the dollar was down to 6,665, its lowest value since July 2018, developing a five-month RMB rally. It does not harm the Chinese stock market, where the China A50 blue-chip index rose 25% in addition to the 7% increase in the renminbi. Hence, in USD terms, it is more than 32% over this period.
https://fxpro.news/daily-forex-outlook/elections-and-coronavirus-fears-are-driving-away-investors-from-the-us-20201020/
Shares of US Tech giants stagnate and risk pulling markets down
Since the September correction, capitalisation leaders – Apple, Alphabet, Microsoft and Amazon – now stand 7-11% below their early September levels amid a 4% decline of S&P500 from its historical peak.
Still, these companies have grown substantially so far this year: from +14% for Google and +70% for Amazon compared with a 5.5% increase in the S&P500. This strength seems to have attracted increased attention from the authorities which is increasingly playing against them.
The US antitrust authorities have announced that they are launching an investigation against Google and its position among search engines. The authorities say that others (such as Facebook and Amazon) are also under scrutiny. Previously, Apple was hit by Apple Store commissions.
https://fxpro.news/daily-forex-outlook/shares-of-us-tech-giants-stagnate-and-risk-pulling-markets-down-20201021/
Since the September correction, capitalisation leaders – Apple, Alphabet, Microsoft and Amazon – now stand 7-11% below their early September levels amid a 4% decline of S&P500 from its historical peak.
Still, these companies have grown substantially so far this year: from +14% for Google and +70% for Amazon compared with a 5.5% increase in the S&P500. This strength seems to have attracted increased attention from the authorities which is increasingly playing against them.
The US antitrust authorities have announced that they are launching an investigation against Google and its position among search engines. The authorities say that others (such as Facebook and Amazon) are also under scrutiny. Previously, Apple was hit by Apple Store commissions.
https://fxpro.news/daily-forex-outlook/shares-of-us-tech-giants-stagnate-and-risk-pulling-markets-down-20201021/
Trading time changes
On October 25, 2020, European countries shift from Daylight Saving Time.
In this regard, from 26 to 30 October trading time schedule of several financial classes will be temporarily changed.
You could find all the details in our Market Holidays calendar: https://www.fxpro.com/trading-tools/market-holidays
If you have any questions, feel free to contact the FxPro Customer support team via email support@fxpro.com.
On October 25, 2020, European countries shift from Daylight Saving Time.
In this regard, from 26 to 30 October trading time schedule of several financial classes will be temporarily changed.
You could find all the details in our Market Holidays calendar: https://www.fxpro.com/trading-tools/market-holidays
If you have any questions, feel free to contact the FxPro Customer support team via email support@fxpro.com.
FxPro
FxPro Group | 27+ Years in Financial Technology
Discover the technology, products and innovation behind FxPro - financial services provider and market maker with 27+ years experience.
A broader dollar decline alerts investors
The dollar index fell to its lowest level since September 2nd, almost completely recouping the correction rollback of the previous month.
Previously, we saw increased demand for the renminbi, which was rising to more than 2-year highs after the 7% rally. Yesterday, the pound jumped more than 1.5% on Wednesday alone.
There were no significant drivers for the yen. Very often its declines go hand in hand with or precede downward impulses for stocks. The pair fell to local lows near 104.5, where it has not once reversed to growth in the last four years.
The movement of the Japanese yen against the dollar is so strongly linked to the market sentiment that its weakening may become a self-fulfilling prophecy.
A rapid rebound will help to shake off fears and set the mood for further optimism recovery in the markets. If USDJPY continues its decline, the stock market may follow.
https://fxpro.news/daily-forex-outlook/a-broader-dollar-alerts-investors-20201022/
The dollar index fell to its lowest level since September 2nd, almost completely recouping the correction rollback of the previous month.
Previously, we saw increased demand for the renminbi, which was rising to more than 2-year highs after the 7% rally. Yesterday, the pound jumped more than 1.5% on Wednesday alone.
There were no significant drivers for the yen. Very often its declines go hand in hand with or precede downward impulses for stocks. The pair fell to local lows near 104.5, where it has not once reversed to growth in the last four years.
The movement of the Japanese yen against the dollar is so strongly linked to the market sentiment that its weakening may become a self-fulfilling prophecy.
A rapid rebound will help to shake off fears and set the mood for further optimism recovery in the markets. If USDJPY continues its decline, the stock market may follow.
https://fxpro.news/daily-forex-outlook/a-broader-dollar-alerts-investors-20201022/
Weekly claims for unemployment benefits in the USA resume its decline. Last week, the number dropped from 842K to 787K. The new figures are still higher than two weeks ago, reflecting the negative impact of the jump in new coronavirus cases.
However, continued claims are falling with an accelerating pace, indicating that the labour market is continuing to create new jobs. The overall number fell to 8.37M for the week ending October 10th compared to 9.40M the week before with expected growth of 9.5 million.
This is positive news for US markets, including the US dollar and equities, as it reduces the degree of concern around the worst-case scenario. On the back of this report, the dollar may get a break after four trading sessions of decline, as well as containing the pressure on S&P500 since the beginning of last week.
However, continued claims are falling with an accelerating pace, indicating that the labour market is continuing to create new jobs. The overall number fell to 8.37M for the week ending October 10th compared to 9.40M the week before with expected growth of 9.5 million.
This is positive news for US markets, including the US dollar and equities, as it reduces the degree of concern around the worst-case scenario. On the back of this report, the dollar may get a break after four trading sessions of decline, as well as containing the pressure on S&P500 since the beginning of last week.
Investors are unsure of US election outcome
Global markets remain in narrow ranges at the end of the week, balancing hopes for a new economic stimulus package with election uncertainty. The final debate that took place last night between Trump and Biden did not provide much clarity. However, surveys continue to point to the lead of the Democratic Party nominee.
Fooled four years ago by false predictions about Donald’s chances of winning and his impact on the economy, investors now seem to be avoiding explicit bets on one outcome or another. As a result, there is moderate pressure on the US markets, where stock indices have been on a downward trend for the past two weeks and the dollar for the last four weeks. It is to be expected that these trends may intensify just before the elections.
https://fxpro.news/daily-forex-outlook/investors-are-unsure-of-us-election-outcome-20201023/
Global markets remain in narrow ranges at the end of the week, balancing hopes for a new economic stimulus package with election uncertainty. The final debate that took place last night between Trump and Biden did not provide much clarity. However, surveys continue to point to the lead of the Democratic Party nominee.
Fooled four years ago by false predictions about Donald’s chances of winning and his impact on the economy, investors now seem to be avoiding explicit bets on one outcome or another. As a result, there is moderate pressure on the US markets, where stock indices have been on a downward trend for the past two weeks and the dollar for the last four weeks. It is to be expected that these trends may intensify just before the elections.
https://fxpro.news/daily-forex-outlook/investors-are-unsure-of-us-election-outcome-20201023/
The euro has added against the dollar and pound on Friday thanks to the strong PMI for October. Preliminary estimates noted a further recovery in the manufacturing sector of major eurozone countries. Germany sees further acceleration, following an increase in Manufacturing PMI to 58.0, an almost ten-year peak, against expectations of decline from 56.4 to 55, which would mean a slower rebound.
In contrast, the service sector has returned to contraction due to the second wave of the pandemic. However, the Composite indices for Germany and the entire eurozone went above expectations, creating positive momentum for the EUR, Euro50 and Dax30.
The US PMI prelim. estimates showed the opposite picture: the recovery in production is losing momentum, while services grow, exceeding expectations.
In both cases, this is good news for the markets, as the drivers of market movements in Germany are production and exports, while in the USA it is services and final consumption.
In contrast, the service sector has returned to contraction due to the second wave of the pandemic. However, the Composite indices for Germany and the entire eurozone went above expectations, creating positive momentum for the EUR, Euro50 and Dax30.
The US PMI prelim. estimates showed the opposite picture: the recovery in production is losing momentum, while services grow, exceeding expectations.
In both cases, this is good news for the markets, as the drivers of market movements in Germany are production and exports, while in the USA it is services and final consumption.
#WaveAnalysis
#EURGBP reversed from support level 0.9020
• Likely to rise to 0.9135
https://fxpro.news/market-snapshots/eurgbp-wave-analysis-23-october-2020-20201023/
#EURGBP reversed from support level 0.9020
• Likely to rise to 0.9135
https://fxpro.news/market-snapshots/eurgbp-wave-analysis-23-october-2020-20201023/
#WaveAnalysis
#Corn broke key resistance 415,00
• Likely to rise to 430,00
https://fxpro.news/market-snapshots/corn-wave-analysis-23-october-2020-20201023/
#Corn broke key resistance 415,00
• Likely to rise to 430,00
https://fxpro.news/market-snapshots/corn-wave-analysis-23-october-2020-20201023/
Oil prices tilt in favour of decline
Since Friday, however, Brent has fallen 4.2% to $41.1 from levels around $43. WTI has returned below $39 for the first time since the 5th of October. The technical picture and investor sentiment suggests that the negative momentum may continue in the coming days.
Libya could restore its production to 1 million barrels per day within a month after the industry had almost completely shut down in previous months.
Separately from this, US oil companies continue to recover drilling activity. The data released on Friday showed an increase in the number of oil drilling rigs to 211, the highest since May.
The last time we saw these lines converge in January, the price fell below them, after which quotations lost 70% over the next three months.
https://fxpro.news/daily-forex-outlook/oil-prices-tilt-in-favour-of-decline-20201026/
Since Friday, however, Brent has fallen 4.2% to $41.1 from levels around $43. WTI has returned below $39 for the first time since the 5th of October. The technical picture and investor sentiment suggests that the negative momentum may continue in the coming days.
Libya could restore its production to 1 million barrels per day within a month after the industry had almost completely shut down in previous months.
Separately from this, US oil companies continue to recover drilling activity. The data released on Friday showed an increase in the number of oil drilling rigs to 211, the highest since May.
The last time we saw these lines converge in January, the price fell below them, after which quotations lost 70% over the next three months.
https://fxpro.news/daily-forex-outlook/oil-prices-tilt-in-favour-of-decline-20201026/
#WaveAnalysis
#USDJPY reversed from support area
• Likely to rise to 105.50
https://fxpro.news/market-snapshots/usdjpy-wave-analysis-26-october-2020-20201026/
#USDJPY reversed from support area
• Likely to rise to 105.50
https://fxpro.news/market-snapshots/usdjpy-wave-analysis-26-october-2020-20201026/
#WaveAnalysis
#Platinum reversed from resistance area
• Likely to fall to 840
https://fxpro.news/market-snapshots/platinum-wave-analysis-26-october-2020-20201026/
#Platinum reversed from resistance area
• Likely to fall to 840
https://fxpro.news/market-snapshots/platinum-wave-analysis-26-october-2020-20201026/
As we can see, #Bitcoin is resisting the double-dip recession fears that appear to be weighing on markets.
What’s really taking place on the crypto market scene? Read the fresh Forbes article containing expert comments from the FxPro analyst team.
What’s really taking place on the crypto market scene? Read the fresh Forbes article containing expert comments from the FxPro analyst team.
Forbes
Coronavirus Is Again Tanking The Dow And Markets Around The World—Except One
As investors bailed out of equity markets, the digital currency bitcoin continued its recent rally, adding over 1% and finding support at over $13,000 per bitcoin—up almost 25% in the last 30 days...