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Market Review October 27th, 2014

October 27th, 2014
 

On the final day of trading last week the U.S. dollar depreciated against the main currencies. The U.S. index finished the session at 85.71. The EURUSD was at moderate demand during the day against the background of closing “shorts” before the weekend. Traders ignored positive data on sales of new real estate in the States in September. It suggests that the market is looking forward to an ascent in the EURUSD pair. Commodities on Friday dropped again, but it didn’t support demand for the U.S. currency. By the end of the day the pair closed at 1.2670.

The GDP release for the 3rd quarter in Britain came out at the expected level of 0.7%. Short positions in the pair were justified by negative data already embedded in the rate. During the last three days we saw sales of the Pound. The British currency had reached 1.6098 after some technical bounce. By the end of the day the pair added 0.35% and ended trading at 1.6087.

 

The USDJPY was under pressure on Friday. Nevertheless, it managed to end the week with positive sentiment. After the bullish rally, which we witnessed on Thursday, market players on Friday partially fixed revenue on the “longs”. Nevertheless, bulls’ positions are quite strong: leading world stock exchanges have finished the trading week with stable growth rates, as well as positive macro statistics from the USA. This will support demand for the dollar in coming days. By results of the day the pair lost symbolic 0.1% eventually ending at 108.14.

 

TECHNICAL ANALYSIS

 

EURUSD

The Euro has bounced up from the support and is slowly getting back on track. The challenge on the upside remains at 1.2840. This is the target to test for the coming week.

 

USDJPY

The asset has encountered an upward resistance at 108.37. Most likely it won’t be crossed, so the bias in the midterm is bearish. The downward trend extends to as far as 106.5

 

GBPUSD

The Pound’s pattern is quite indistinct, and analysts’ forecasts diverge from one another. Nevertheless the inclination is more bearish than bullish. Thus, 1.6000 is a support for the asset on the downside.

ECONOMIC CALENDAR

 

Monday, October 27

All Day Holiday         New Zealand – Labour Day

09:00  EUR German Ifo Business Climate Index (Oct)  

14:00  USD Pending Home Sales (MoM) (Sep)    

 

Tuesday, October 28

12:30  USD Core Durable Goods Orders (MoM) (Sep)  

14:00  USD CB Consumer Confidence (Oct)    

 

Wednesday, October 29

18:00  USD FOMC Statement          

20:00  NZD Interest Rate Decision    

20:00  NZD RBNZ Rate Statement          

20:15  CAD BoC Gov Poloz Speaks          

 

Thursday, October 30

08:55  EUR German Unemployment Change (Oct)  

12:30  USD GDP (QoQ) (Q3)      

13:00  USD Fed Chair Yellen Speaks        


Friday, October 31

Tentative  JPY BoJ Press Conference        

10:00  EUR CPI (YoY) (Oct)      

12:30  CAD GDP (MoM) (Aug)