Weekly Market Commentary | 14.10 – 18.10

Curious to know what’s happening on the markets this week? Take a quick tour of the latest news, economic updates, and trading setups that will keep you up-to-date and in the know!

Monday:

• As usual, Monday is quiet with no Tier 1 data scheduled.
• Japanese, Canadian, and American markets are closed today, which means lower liquidity and likely subdued volatility.

Tuesday:

• The day starts with Claimant Count Change from the UK, expected at 20.2K.
• Later, we’ll have inflation data from Canada, which is expected to stay the same as last month.
• The day wraps up with inflation from New Zealand, which is forecasted to rise to 0.7%.

Wednesday:

• Inflation from the UK will be the highlight, expected to drop to 1.9%.
• This will be an important indicator for the British Pound as it impacts potential future monetary policy decisions.

Thursday:

• The busiest day of the week starts with job data from Australia, giving insight into the strength of the Australian economy.
• Followed by the ECB interest rate decision in the Eurozone, where a 25 basis points cut is expected. This will be accompanied by the ECB policy statement and press conference.
• To finish the day, we will have retail sales data from the US, which is expected to increase by 0.3%.

Friday:

• The week concludes with two key pieces of data:
  • GDP from China, which will give a snapshot of how the Chinese economy is performing.
  • Retail sales from the UK, expected to decline to -0.3%, which could potentially affect the British Pound.

Setups for This Week:

USD/PLN
Primary View:

• The price is moving sideways above key horizontal support and below key dynamic resistance, signaling consolidation.
• A breakout to the upside will give us a signal to buy, supported by the double bottom formation.

Alternative View:

• Price breaking below the yellow horizontal support will be a signal to sell.

GBP/USD
Primary View:

• The price is bouncing off key horizontal support marked with green color, showing resilience.
• A breakout of the black downtrend line will give us a signal to buy, indicating potential bullish momentum.

Alternative View:

• Price dropping below the green support will be a signal to sell.

GBP/CHF
Primary View:

• The price is moving sideways inside of the triangle pattern, consolidating within narrowing boundaries.
• A breakout to the upside will give us a signal to buy, signaling potential bullish strength.

Alternative View:

• Price breaking the lower line of the triangle will give us a signal to sell.