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.
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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...
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/
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/
The US housing market continues to benefit from coronavirus through an ultra-soft monetary policy and lower spending for Americans who are mostly avoiding a drop in income. The FHFA Housing Price Index added 1.5% in August to an annual rate of 8.1%, the highest since 2006.
Separately, more specific but timely data on the prices of new homes for September was released on Monday. The average price of a new house sold reached $405.4K for the first time in history compared to $382.7K (+5.9%) a month earlier and $372.1K (+9%) a year earlier.
Looking solely at the housing market as a leading indicator of confidence and expenditure among Americans, one can put aside fears of a repeat recession. Prices for new homes have been slipping at $400K in the last three years but the support measures gave new impulses and may potentially lead to a repeat of the boom of the 1990s, in which the price of new homes from 1992 to 2007 more than doubled.
Separately, more specific but timely data on the prices of new homes for September was released on Monday. The average price of a new house sold reached $405.4K for the first time in history compared to $382.7K (+5.9%) a month earlier and $372.1K (+9%) a year earlier.
Looking solely at the housing market as a leading indicator of confidence and expenditure among Americans, one can put aside fears of a repeat recession. Prices for new homes have been slipping at $400K in the last three years but the support measures gave new impulses and may potentially lead to a repeat of the boom of the 1990s, in which the price of new homes from 1992 to 2007 more than doubled.
#WaveAnalysis
#GBPNZD falling inside impulse wave 3
• Likely to reach 1.9350
https://fxpro.news/market-snapshots/gbpnzd-wave-analysis-27-october-2020-20201027/
#GBPNZD falling inside impulse wave 3
• Likely to reach 1.9350
https://fxpro.news/market-snapshots/gbpnzd-wave-analysis-27-october-2020-20201027/
#WaveAnalysis
#AUDNZD broke support area
• Likely to fall to 1.0550
https://fxpro.news/market-snapshots/audnzd-wave-analysis-27-october-2020-20201027/
#AUDNZD broke support area
• Likely to fall to 1.0550
https://fxpro.news/market-snapshots/audnzd-wave-analysis-27-october-2020-20201027/
Markets are more anxious, and it’s not just the US elections
Key US indices are developing a decline and Futures for S&P500 are losing 0.5% today after the main index fell by 0.3% on Tuesday. The latest round of pressure brought the index back to a three-week low and below the 50-day average, which is a short-term bearish signal.
On European markets, the DAX30 lost 10% from its October peaks, and 6% lost so far this week. The RSI index on the daily charts of the DAX30 fell into an oversold zone.
Additionally, market anxiety is heightened by the appreciation of the yen against the dollar. Exactly one week ago we noticed a sharp drop in the USDJPY, which often signals an increase in seller’s traction.
https://fxpro.news/daily-forex-outlook/markets-are-more-anxious-and-its-not-just-the-us-elections-20201028/
Key US indices are developing a decline and Futures for S&P500 are losing 0.5% today after the main index fell by 0.3% on Tuesday. The latest round of pressure brought the index back to a three-week low and below the 50-day average, which is a short-term bearish signal.
On European markets, the DAX30 lost 10% from its October peaks, and 6% lost so far this week. The RSI index on the daily charts of the DAX30 fell into an oversold zone.
Additionally, market anxiety is heightened by the appreciation of the yen against the dollar. Exactly one week ago we noticed a sharp drop in the USDJPY, which often signals an increase in seller’s traction.
https://fxpro.news/daily-forex-outlook/markets-are-more-anxious-and-its-not-just-the-us-elections-20201028/
#WaveAnalysis
#Silver reversed from resistance area
• Likely to fall to 21.60
https://fxpro.news/market-snapshots/silver-wave-analysis-28-october-2020-20201028/
#Silver reversed from resistance area
• Likely to fall to 21.60
https://fxpro.news/market-snapshots/silver-wave-analysis-28-october-2020-20201028/
#WaveAnalysis
#USDCHF reversed from support level 0.9050
• Likely to rise to 0.9150
https://fxpro.news/market-snapshots/usdchf-wave-analysis-28-october-2020-20201028/
#USDCHF reversed from support level 0.9050
• Likely to rise to 0.9150
https://fxpro.news/market-snapshots/usdchf-wave-analysis-28-october-2020-20201028/
Fragile calm after the storm, but ECB is yet to come
The markets on Thursday appear much calmer than on Wednesday, whilst the news background has not changed at all: COVID-19 statistics continue to break records, with more than 500K new cases reported over the past 24 hours. Germany and France have announced their ‘lockdown light’ in an attempt to battle the acceleration of coronavirus spreading. Across the pond, US legislators are still far from adopting the aid package.
The increasing covid cases and the delay in adopting new support packages are depriving markets of fundamental confidence that the situation is about to start improving. All of this makes the current trend somewhat shaky.
The USDJPY exchange rate remains above 104.30. Although we see a rebound in the pair, the rate has not yet crossed the line on the sand at 104.0, remaining at the bottom of the trading range for the last three months.
https://fxpro.news/daily-forex-outlook/fragile-calm-after-the-storm-but-ecb-is-yet-to-come-20201029/
The markets on Thursday appear much calmer than on Wednesday, whilst the news background has not changed at all: COVID-19 statistics continue to break records, with more than 500K new cases reported over the past 24 hours. Germany and France have announced their ‘lockdown light’ in an attempt to battle the acceleration of coronavirus spreading. Across the pond, US legislators are still far from adopting the aid package.
The increasing covid cases and the delay in adopting new support packages are depriving markets of fundamental confidence that the situation is about to start improving. All of this makes the current trend somewhat shaky.
The USDJPY exchange rate remains above 104.30. Although we see a rebound in the pair, the rate has not yet crossed the line on the sand at 104.0, remaining at the bottom of the trading range for the last three months.
https://fxpro.news/daily-forex-outlook/fragile-calm-after-the-storm-but-ecb-is-yet-to-come-20201029/
#WaveAnalysis
#USDJPY reversed from support area
• Likely to rise to 105.00
https://fxpro.news/market-snapshots/usdjpy-wave-analysis-29-october-2020-20201029/
#USDJPY reversed from support area
• Likely to rise to 105.00
https://fxpro.news/market-snapshots/usdjpy-wave-analysis-29-october-2020-20201029/