Tue. Oct 19th, 2021

Per Orbex

USD

EURUSD struggles as the US Fed remains impassive

EURUSD

The U.S. dollar picks up on the uptrend while the Fed maintains its optimism about the economic recovery. Recent market nerves are a sign of indecision as traders navigate amid mixed data and statements.

As the spread of the Delta variant still reaches the headlines, the last thing the dollars want to hear is that the Fed will postpone the reduced schedule, just as the RBNZ did.

That said, the bad news from non-farm payrolls would be more shocking than the good ones, as the Fed could call for more patience at the expense of the greenback.

The couple is gliding underneath 1.1800. A break below the November minimum a 1.1600 could trigger a new wave of sales.

XAUUSD weighed in on the rise in yields

NOTE

Gold continues to be pressured as the prospect of a monetary tightening continues. Because it is a fairly common antipode to the U.S. dollar move, the precious metal has a lot to lose if the Fed goes missing.



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A growing number of Fed officials have already been considering rolling out massive QE. This would alleviate fears of inflation and the deterioration of the dollar, which in turn would eliminate the raison d’être of gold.

Also, if investors can get higher interest rates on bonds, why would they run out of metal without yields? If the price does not remove the key hurdle 1830, can review critical support at 1680.

The NAS 100 exceeds the key NFP

US 100

The Nasdaq 100 holds the ground high in hopes that the liquidity faucet will not close soon.

The market’s new all-time high is another reminder that the pandemic threat is also an opportunity for cloud- and digital-focused companies. As counter-intuitive as it may seem, the macroenvironment will remain friendly to the oxen as long as labor data instill the right uncertainty.

The day the Fed drops the word “transient” is probably the day the music stops. The technology index continues to grow along a growing trend line as of March 2020.

15800 would be the next stop, with 14800 as new support.

USOIL recovers as demand stabilizes

USOIL

Oil prices rose as demand has so far proved resilient.

An increase in fuel demand in the US suggests that the recovery is still well under way. In fact, the pandemic situation is noticeably better than last summer.

In China (the world’s largest oil importer) low official figures for new infections illuminate the mood. Concerns about a peak in demand may be an exaggeration. On the supply side, the fall in U.S. crude inventories for the third week in a row will keep bones under control.

Downward technical purchase around May 62.00 has put a word to price action. A closure above 69.50 could raise bids to 74.00, a prerequisite for the continuation of the trend.

Per Orbex

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