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Market Review October 7, 2014

October 7th, 2014
 
 

Today the EUR/USD pair recovered the fall after Friday’s Non-farm payrolls and climbed back to the 1.2650 area. However, this short-term increase is not likely to last long. The Euro is expected to weaken more while the U.S. dollar is contrarily expected to strengthen. Morgan Stanley has downgraded the forecast for the pair to 1.24 by the end of 2014 and 1.12 by the end of 2015. Today, pay attention to the JOLTS Job Openings. They will be released at 2:00 PM (GMT). Later on today, make sure to watch the speeches of FOMC members Narayana Kocherlakota and William Dudley. The movement is slightly bullish but might change soon. The support is found at 1.2500 and the resistance at 1.2700.

 

Gold spent yesterday rising above $1,200/ounce. The price was reacting to a weaker U.S. dollar. It managed to climb to $1,209/ounce, although it then reversed back down. The price is not expected to appreciate above $1,220/ounce based on the Fed’s outlook for 2015. Today keep an eye on the two speeches of FOMC members, which may hint some further information when Fed will increase the interest rates, or what are the thresholds. The trend is slightly upwards. The support is found at 1,180 and the resistance at 1,208.