Market Brief Series / EP. 423 / 12th Oct. 2018

Overall there is strength in the NZD, AUD and EUR.Weakness in the USD, CHF, JPY with minor weakness in CAD and GBP.

USD declined for the third day as inflation was lower than expected. And the currency was also impacted by US President Trump’s fresh criticism against the Federal Reserve. He said: “The fed is out of control. I think what they are doing is wrong.”

Oil prices rose on Friday slightly reversing two days of declines in the previous sessions driven by sharp falls in equity markets and indications that supply concerns have been overblown, but were still on track for a weekly fall.

Gold jumped more than 2.5%, its biggest one-day gain since June 2016, to reach the highest level since July 31. The commodity is now testing the 100-day moving average at 1,228.99, which has capped prices since April 30.

USD has fallen rather sharply against the Japanese yen over the last couple of days as Wall Street continues to get pummeled. However, the ¥112 level looks to be rather supportive.

AUD/USD continues to trade in a sideways manner around 0.7121, having turned a blind eye towards upbeat China data.

GBP continues to go back and forth during the trading session on Thursday, as the market has found a larger consolidation area to go back and forth with.

EUR/USD has established a bullish channel drawn from October 9. Major technical indicator are so well directed that strong intraday bullishness is maintained. Above 1.1600, an advance toward 1.1630 is expected. Only a break below the key support at 1.1565 would bring about a bearish reversal.

On the data slate there’s German CPI; Euro-Zone Industrial Production; Euro-Zone ECB’s Lautenschlager Speech; US Import and Export Price Indices; US fed’s Evans Speech; US Michigan Consumer Sentiment Index; US FOMC member Bostic Speech; US Baker Hughes US Oil Rig Count and US Monthly Budget Statement.