#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/

#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/

#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/

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/

#WaveAnalysis

#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/

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/

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/

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.

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/

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.

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/

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.

#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/

#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/

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/

#WaveAnalysis

#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/

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.

Has the U.S. stock market bubble started to blow?

U.S. indices were down by more than 3% during Monday. Although they were able to find buyer’s demand by the end of the session, the trend of slow decline has been in place for the past two weeks. At the same time, the U.S. broad market index, the S&P 500, is above its early year levels and even above its pre-pandemic peaks.

Right now, the S&P 500 is testing support at a 50-day average at 3400. Short-term buyers are still able to keep the index from sinking deeper. In the event of a failure, we will have to see another test in the form of a 200-day average, which is now passing through 3130. It only makes sense to sound the alarm if this line of defence fails, indicating the sentiment of longer-term investors.

https://fxpro.news/daily-forex-outlook/has-the-u-s-stock-market-bubble-started-to-blow-20201027/