High Volatility on USD expected with GDP and Inflation date release

October 27, 2017

Risk Appetite Returns in the Markets.

High Volatility on USD expected with GDP and Inflation date release

This article is originally referred from FXPrimus News

Last day of the week! FXPrimus has summarized the important market indicators of the day.

Today’s Important Indicators

Friday’s session starts with Praet’s speech at 07:15 and at 12:30 the 3rd quarter GDP figures figures and Core PCE data will be released which are likely to cause volatility for the US Dollar.

The session is also expected to be volatile at 14:00, where the Revised UoM Inflation Expectations are published; the effect of this release could be limited compared to the GDP.

Near the London close, the US is scheduled to announce Baker Hughes US Oil Rig Count.

Today’s Forecast for Important Trading Indicators

Market Movers

  • EURUSDEuro plummets on dovish Draghi despite a reduction in the asset purchase programme. Euro sunk nearly 200 pips against Dollar on Draghi’s “open ended” comments around the current accommodative monetary policy, signaling that a rate hike in the EU could be long-waited. Despite a reduction in ECB’s monthly bond purchases to 30 Bn Euros pcm, ultra-low interest rates are likely to run at least to Q3 2018. EURUSD currently trades near $1.16, a 2-Month low, and below the 23.60% FR at 1.6670.

EURUSD 1-HOUR CHART

  • GBPUSDCable slumps as Retail Sales fall below March 2009 low, CBI reported. The British Pound plunged nearly by 1.0% against Dollar, as Retail sector saw a significant decline in activity. The CBI Realised Sales survey came out at -36, while expectations where in for a figure of 14, indicating that orders to suppliers declined at the fastest rate in 8 years. The pair dropped nearly 170 pips and currently trades around 1.3120, back below the strong support at 1.3250.
  • USDJPYDollar appreciates on increased US Tax Cut hopes, Fed Chair anticipation. Dollar-Yen moved back to the recent high of 114.24, reached on Wednesday, in anticipation of better prospects for tax cuts as the US House of Representatives passed a Senate Budget. In addition, market’s expectations for the new Fed Chair nominee helped to boost Dollar, as Yellen is likely to be replaced; Yellen has been known to taking a slow path towards rate hikes. Investors’ eye today’s Q3 GDP figures.
  • USOILOil hits a fresh high to the 100% FE at 52.73 as OPEC likely to extend output cut. Crude Oil rose to the 100% extension from the recent swing low of $49.30, as OPEC is expected to extend cut output. Oil was under pressure this morning on reports that Venezuela missed payments to the state oil company while investors look forward to the oil Rig Count at 17:00 GMT.

CRUDE OIL 4-HOUR CHART

  • XAUUSDGold slumps along with Euro on ECB, USD strengthens, as risk appetite returns. Spot Gold moved to a 3-Week low around 1264.00 per ounce as Euro and Dollar reflected through Euro sellers and Dollar buyers. Price could be heading lower to the low of 1260, where price was rejected in October 6. Today’s Q3 GDP releases could increase the appetite for risk-on assets.
  • In U.S Indexes, both S&P 500 and DJ rose 0.31% and 0.13% respectively.
  • In Europe, UK 100 trades 0.21% higher while DE30 started stronger by 2.03%.
  • In Asia, ASX 200 depreciated 0.22%, Hang Seng climber 0.63% higher and Nikkei upsurged 1.24%.
  • In stocks, Tesla saw a massive upsurge of 18.49%, with Apple following by a marginal 0.64%

Original Source: FXPrimus News

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