Today the focus is on OPEC+’s latest decision, the US debt crisis, and German industrial output.
The US Unemployment Rate for September will be released. Forecast: 5.1%. If the data is lower than expected the USD could see a positive push.
Assets to trade: USD/MXN, EUR/USD, USD/JPY
The Canadian Employment Change data for September will be reported. Forecast: 65.0K. If the data is high than expected the CAD could receive positive pressure.
Assets to trade: USD/CAD, NZD/CAD, CAD/JPY
US Senate Democrats and Republicans sought to reach an agreement on Thursday to avert a debt crisis, after Democrats showed openness to a Republican offer to allow an extension of the federal debt ceiling into December. Affects USD
OPEC+’s decision on Monday to stick with a plan to raise oil output modestly and gradually, despite prices surging to multi-year highs, was partly driven by concern that demand and prices could weaken, sources close to the group told Reuters. Affects Brent
Japanese Finance Minister Shunichi Suzuki warned on Thursday against any sharp currency moves, saying he was closely watching the foreign exchange market as the yen hovered near 18-month lows against the dollar. Affects JPY
German industrial output suffered its steepest drop in August since April last year, due to supply chain disruptions that are holding back growth in Europe’s biggest economy and hitting the auto sector particularly hard, official data showed on Thursday. Affects EUR
The size and duration of a recent jump in inflation is proving greater than expected but interest rates are likely to remain relatively low in the coming years, new Bank of England Chief Economist Huw Pill said. Affects GBP
The slip in German industrial output shows the rest of the region may be taking the same turn which may be enough to continue to drop the currency.
The pair has shown a Bearish Engulfing pattern signalling the strength of the downtrend.
The precious metal has shown a Bullish Engulfing signal, indicating that the uptrend may still have strength.
The chart has shown a Three Outside Up pattern before the price gapped up. The trend may continue past the resistance level.