Market Movers of the Day
Asia-Pacific
*Japanese Retail Trade in September better than expected at -1.4% on an annualized basis
Europe
*UK CBI Distributive Trades Survey better than estimated at 8 in October
Americas
*US Consumer Confidence worse than expected at 47.7 for October
*US S&P/Case-Shiller Home Price Index for August better than forecasted at -11.3%
The Overall Sentiment
Forex
A surprising drop in US Consumer Confidence spurred risk aversion sending investors to play it safe pushing the Dollar higher against riskier currencies as the Aussie and New Zealand dollars. The Dollar continued to advance against the Euro driving the EUR/USD below 1.48. The Yen also beneficiated from the negative sentiment for higher-yielding currencies and with better-than-expected Japanese Retail Trade data climbed against most of its peers. The Pound strengthened against most majors and rose against the Euro for a second day after UK CBI Distributive Trades Survey positive figures. EUR/GBP broke below 0.9050 aiming for the 0.90 level.
Equities
Sentiment continued to be bearish for US stock markets after US Consumer Confidence surprised for the worst with an unexpected drop in October showing consumer worries about job losses and future earnings could have an impact on spending in the upcoming holiday season. The S&P lost 0.3%. UK equities managed to climb in spite of the negative sentiment coming from the US led by Europe’s second largest oil company, BP Plc, whose Q3 earnings reports surprised for the better beating market forecasts. The FTSE gained 0.2%. Japan’s equities dropped driven by losses coming from technology companies after disappointing earnings reports. Honda Motor was the best performer after tripling its profit forecast. Overall, Japanese Nikkei 225 fell 0.7%.
Commodities
The strengthening Dollar pushed Gold below $1035 in a four-day straight decline. Silver followed to trade below $17. Oil recovered from yesterday’s drop but remained under the $80 mark.
The Day Ahead
The day will start with Australian Consumer Price Index shedding light on the country’s inflation. German CPI will follow in a day with a thin stream of data coming from Europe. Moving to the US session, Durable Goods Orders report is expected to show that orders rose 1.0% in September and a gain of 2.6% is expected for New Home Sales. It will be a big day for New Zealand with the release of its Trade Balance for September and the RBNZ Interest Rate decision where no change is expected for the record-low 2.5% official rate.
Technical Analysis
USD/CAD DAILY
After sharply falling more than 700 pips to bottom at 1.02 USD/CAD recuperated regaining lost ground to reach the 1.07 mark. The pair currently trades at a very interesting spot where a daily closing above 1.07 will confirm its bullish momentum with more territory to advance but it also could be a good opportunity now to enter a Short position to take advantage of a correction after such a steep gain.
Market Analysis provided by eToro
Disclaimer: Trading in the Foreign Exchange market might carry potential rewards, but also potential risks. You must be aware of the risks and are willing to accept them in order to trade in the foreign exchange market. Don’t trade with money you can’t afford to lose.
