Here are the market highlights for the week ahead, according to Trade360’s analysts, the world’s first and only online trading platform to employ the principle of CrowdTrading – round-the-clock insights on majority and minority positions of traders who make up “The Crowd”.
The U.S. rate rise saga continues, even as the Federal Reserve maintained its dovish stance this past week. The hints that a hike is just around the corner are now coming thick and fast. Janet Yellen will speak on 15.00 GMT Wednesday, and her every word is sure to be forensically examined.
Aside from that, the major US market mover this week will be the NFP jobs report, released on Friday at 13.30 GMT. The forecast is for 179K new jobs, compared to last month’s measly figure of 142K.
Last week was pretty bleak for the Euro, and particularly for Germany. The prospect of negative interest, very low consumer confidence in the face of the migrant crisis, the ongoing VW scandal, plus record losses from Deutsche Bank are all contributing to the gloom.
At the end of the week, the Euro was down against most other top currencies. EUR/USD finished at 1.1006, recovering slightly from a low of 1.0994. Overall, the EUR fell 1.6% against the USD throughout October, despite the best efforts of the European Central Bank.
ECB President Mario Draghi will speak on Thursday at 11.45 GMT. Analysts are praying for some crumbs of comfort, but preparing for more bad news.
Outside the Eurozone, the GBP was up slightly by week’s end, with GBP/USD higher by 0.78% to close at 1.5428.
With the UK housing bubble now widely recognized, more analysts are of the opinion that BoE Governor Mark Carney is getting ready for a long-awaited rate hike in the near future – especially if and when the US Fed takes the lead.
The AUD/USD pair closed the week up 0.9%, at 0.7138 but remains in a long-term downward trend, heading towards the 0.6008 support level.
Keep an eye on the following fundamentals:
– Australian rate decision on Monday 15.30 GMT
– Employment data from New Zealand on Tuesday 21.45 GMT
– Employment data from Canada on Friday 13.30
Also be aware that China’s abandonment of its one-child policy will have a major ripple effect, affecting agricultural prices in the short-term and a wide range of indicators over the coming days and weeks.
Gold was in the doldrums over the last week, riding the bear down to the $1140 per ounce range. COMEX Gold finished down 0.51% at $1,141.40 per ounce, while SPOT Gold dipped 0.34%, to close at $1,142.11 per ounce.
This three-week low is mainly due to hawkish hints from the people at the Federal Reserve.
Crude Oil fared better, although production has now reached record highs and the re-entry of Iranian oil to the markets can only worsen the global glut. Brent Crude closed the week up by 1.56% at $49.56 per barrel and WTI Crude closed at $46.59, a gain of 1.15%. Cheap oil is now hurting the Saudis badly, and the situation could yet prove precarious.
All major US indices closed down, on the back of mixed Q3 earnings reports. The Dow Jones and S&P 500 indices both shed 0.5%, to close at 17,663.54 and 2,079.36 respectively. The NASDAQ also finished down, at 5,053.75.
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