Of all the market moves yesterday, the drop in gold was most noticeable, considering that the yellow metal had a strong breakout. On today’s list of daily Forex news and trade opportunities, we consider other potential big market movers for the day including crude oil and USD.
5th October, AtoZForex – We also have news from the UK and Canada as we consider other potential big market movers for the day.
#1 Australia Retail Sales rebounds
Considering the falling rate of retail sales in recent months, the latest data showed a 0.4% rise in the total value of sales at the retail level is impressive. This marks the best reading for the retail sales numbers this year so far. The Australian dollar rallied on the back of the positive report.
Opportunity: Buy AUDNZD on dips
#2 UK Services PMI due
Both the construction and manufacturing PMI data released earlier in the week have been positive. Yet, the sterling has been falling, as the upbeat data has been overshadowed by the Brexit news. The services PMI is forecast to show a 52.1 reading, lower than last month’s figures. A weak reading could help weaken the sterling further.
Opportunity: Sell GBPUSD on disappointing data
#3 Fed Loretta Mester arguments for November Fed rate hike
Federal reserve member Loretta Mester argues that a rate hike next month is required to keep up with the US economy, as the economy is not overheating yet. Loretta clearly hinted her support for a policy tightening at the next Fed meeting, despite the US elections:
“I don’t think we’re behind the curve. But, we’ve learned over history that the Fed should be looking ahead and not just waiting.”
#4 ADP Non-Farm Employment Change
The latest figure is forecast to show an estimated change of 166k in the number of employed people during the previous month, excluding the farming industry and government. The ISM Non-Manufacturing PMI also due today is forecast to show a 53.1 reading. These positive data could help push the dollar higher.
#5 Crude oil inventories report
Oil has been rallying strongly ever since the OPEC decision to reach an output freeze in the November meeting. The latest piece of news affecting the commodity is today’s crude oil inventories report forecast to show a 1.1m rise in stockpiles over the last week. This could prompt a halt in the oil rally.
Opportunity: Buy Brent on falling stockpiles
#6 Deutsche Bank “too big to fail"?
According to Raoul Pal, the founder of The Global macro Investor, he opines that Deutsche Bank is simply “too big to bail in” and this leaves German Chancellor Angela Merkel in a tough place ahead of the state’s 2017 election. However, as Europe is already headed towards a crisis, according to Mr. Pal, the Deutsche Bank’s case is not considered as a trigger for that.
#7 Pence wins vice presidential debate
Concluding today's daily Forex news, Donald Trump’s running mate, Mike Pence won the vice presidential debate, according to most polls. He is seen to have done better than Hillary Clinton’s vice, Sen. Tim Kaine. Does this make the race to the white house even again?
Think we missed something? Let us know down in the comments section.