Today the focus is on the Johnson & Johnson report, the decline in the PMI in Germany, as well as negative statistics from the UK.
September US PPI will be released. An increase of 0.2% is expected. Exceeding the forecast will help the USD to strengthen.
Assets to trade: EUR/USD, USD/JPY
Johnson & Johnson has released a positive quarterly report, but trials of a COVID-19 vaccine have been suspended. Affects Johnson & Johnson
In Germany, the PMI fell sharply. Affects EUR
The EU’s chief Brexit negotiator, Michel Barnier, said the negotiation of the trade deal between the European Union and Great Britain would continue. Affects GBP
The IMF is revising its forecast for the growth rate of the world economy upwards. Affects the S&P 500
The UK unemployment rate rose to 4.5%. Affects GBP
The unemployment rate in the UK rose to 4.5% against the forecast of 4.3%. Thus, over the past two months, the indicator has grown by 0.4%. We also draw your attention to the fact that quarantine measures are being tightened in the UK. Together, these factors have a negative impact on the country’s currency.
The GBP/USD chart has formed a Head and Shoulders reversal pattern. And the fact that the asset returned to it after breaking through the resistance level of 1.30000 indicates a likely continuation of the bullish trend. However, this plan may be hampered by the return of quotes to the price zone below it.
On the gold chart, you can see the technical analysis “flag” pattern, which signals the continuation of the trend.
The asset may continue to decline. The nearest support level is located at around 1.30000.
USD/CAD on this day in history
- Since 2000, October 14th has been a trading day 13 times.
- On 61% of those days, the asset finished trading with growth.
- The maximum strengthening range was 1.34%.
- The downward trend was limited to 0.29%.