Weekly Market Commentary | 17-23.10

Want to know what’s happening in the markets this week? Take a quick tour of the latest news, economic updates, and trading setups that’ll keep you up to date and in the know.

Monday>

– The New York Empire State Manufacturing Index for October, expected to decline further

– The Bank of Canada Business Outlook Survey, likely influencing the USDCAD pair

Tuesday>

– A batch of Chinese macro data, including GDP, fixed asset investment, retail sales, and trade balance

– German (and EU) ZEW surveys for October, seen dropping hard again

– US industrial production and capacity utilisation for September

Wednesday>

– UK inflation indices, with the headline CPI index projected to increase to double digits, while the core inflation should advance further as well

– Canadian inflation data, possibly causing volatility in the USDCAD pair

– US building permits and housing starts data

Thursday>

– Australian labor market data, moving the Aussie-dollar pair

– PBoC interest rate decision – probably the headline event of Thursday’s Asian session

– The usual Thursday’s US jobless claims, along with existing home sales

Friday>

– Retail sales from the UK and Canada

– EU consumer confidence for October, seen dropping further amid soaring inflation and the energy crisis

Setups for This Week:

Gold

Primary View:

Gold still not backing up the claim that it’s a great hedge against rising and high inflation

The price is still below two crucial resistances, the first one being the mid-term down trendline and the second one being the 1680 USD/oz

As long as we stay below, the sentiment is definitely negative

Alternative View:

If the price breaks above the two resistances mentioned above a buy signal will be triggered

FTSE

Primary View:

FTSE starts a new week with a defense of an absolutely crucial long-term horizontal support on the 6800 points

As long as we stay above, buyers can have hope for a bigger reversal

Alternative View:

The price closing a day below the orange area (6800) will mean a breakout and a proper, long-term sell signal

GBPJPY

Primary View:

GBPJPY was recently hit by two important factors, the first one being the extraordinary weakness of the Pound and also the intervention from the Bank of Japan.

Both factors are already erased from the chart and the price managed to climb to long-term highs

Currently, we are on a key, horizontal resistance which may be a good occasion to go short, in line with the short-term profit capturing move.

Alternative View:

If the price closes a day above the horizontal resistance on the (168.2), we will get a new buy signal