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Market Review October 23rd, 2014

October 23rd, 2014
 

Yesterday’s trading saw the continuation of this week’s trend, with the EURO losing ground against its primary peers and the USD gaining strength. This was fueled by positive reports of a rise in applications for home mortgages in the U.S. and the CPI rising by 0.1%. The EURO/USD closed at a daily low of 1.2649, marking a .0.5% decline for the day.

 

The US market saw the NASDAQ (-0.83%) and the DOW (-0.92%) pulling back after a short rally over the last few days. It seems like this is a mild correction after its recent increase. The expected positive quarterly reports could pull the U.S. market up further.   

 

The VXX closed at 18.35, near its daily high. This marks a rise of over 1 point, and suggests that the market is still highly volatile.  

 

The uncertainty surrounding the ECB measures, and the positive outlook in the US, suggest that the USD could continue to rise against the EURO in the short term.  

FairmontFX could finish trades with 5.2% for October.

 

 

Key Market data today:

 

07:30 – Germany: Markit Manufacturing & Services PMI

08:00 – EUR: Markit Manufacturing & Services PMI

08:30 – UK: Retail sales

12:30 – US: Initial Jobless claims report 

12:30 – US: Continuing Jobless claims report 

13:45 – US: Markit Manufacturing PMI

14:30 – CAD: BoC Governor Speech

21:45 – NZ: Trade Balance

Technical analysis:
 

   – Short term resistance at around 1.283
   – Short term support at 1.260