Wed. Oct 27th, 2021

key data release

USDJPY bounces as covid cases in Japan increase

USDJPY

The Japanese yen had risen thanks to improved economic fundamentals and the weak US dollar.

However, it would be too early to call for a full-fledged investment in favor of the yen bulls.

The Olympic bubble, which helps prevent the spread, reflects the situation facing the Japanese authorities. In fact, officials need to keep the economy running while emergency limits are expanded amid historic cases.

Even if this week’s GDP shows an encouraging reading, traders are worried about the post-Olympic hangover.

110.50 it is the first resistance, as the greenback stops the losses. 108.60 it is a key support to safeguard concentration in the medium term.

EURUSD is struggling as it impresses U.S. jobs

EURUSD

The US dollar strengthened with the best non-farm payrolls and average incomes. The latest consolidation reflects mixed signals from Fed officials.

While the formal stance is to wait and see, some policymakers have expressed that the economy is on track to meet the requirements of the rise.

Expectations have been exceeded, while the reality on the ground is that cases of American covides have reached a maximum of six months. The central bank cannot afford to withdraw its support as long as the sky remains cloudy.

1.1720 it is a critical support to keep the euro afloat. A break above 1.1970 could trigger a recovery towards the peak at 1.2200.

The SPX 500 increases as QE continues to live

SPX 500

U.S. stock markets rose as investors maintained their bets on sustained stimulus.

The Fed has stressed that job data would play a key role in decision-making. Recently giving divergent signals from civil servants, a steady improvement in the labor market could help tilt the balance towards a more hawkish stance.

One might think that the July figures would once again take the fear out of inflation, but the market has its own motives and sees the recovery as a confirmation of the bullish market.

The S&P 500 is up to a lot 4500 as the next goal. On the downside, the above minimum a 4250 is the first support.

UKOIL sinks down

REGIAL OILS

Oil markets have suffered a sharp slowdown in supply and demand. With the resurgence of covids in the United States, China and Japan, the world’s major oil consumers may extend travel restrictions.

The merchandise is definitely not out of the woods yet, as demand struggles to offset production. Meanwhile, analysts expect supply to rise after OPEC + agreed to increase its production quota.

To add fuel to the fire, growing U.S. reserves can only put the bulls in a hot seat.

The fact that Brent crude has not eliminated resistance 76.50 it is a sign of market hesitation. A setback a 68.00 it would lead to a new critical test of buyers ’resolution.

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