News & Analysis

US snaps 6 day streak; Gold pares loses after 2 week lows; USDJPY backs off

Oct 23, 2017 | Daily Market Outlook

Key data and releases coming up:

  Data picks up from Wednesday to Thursday

Monday, US shares took a breather. The Dow Jones -54.67, S&P500 -10.23. General Electric disappointed in earnings, its shares suffered a 6.3% fall. Analysts panicked GE may cut its dividend. This week is viewed as the busiest week of earnings as a third of the S&P500 stocks will release data this week. Earnings season has been positive so far, 17% of SP500 stocks have reported, 73% of these have beaten both top and bottom lines.

The USD had a funny session yesterday and overnight, making gains to risk but unable to hold. By the end of the session, the EUR and AUD finished off lows but still in negative. GBPUSD finished higher. The main move was a pull back to the JPY. The USDJPY finished 44 pips lower. Oil a bit of the same, moves lower and higher. Sellers settled 29 cent’s lower. Support seen at $51.58. Gold the other mover to the USD pared a $7.80 loss to finish $3.75 higher.

Europe mainly higher, FTSE +1.22 DAX +11.86 in choppy trade. Earnings the main driver in Germany. Quiet on the Catalonian front for now with no new major developments. Brexit still on the agenda as Juncker said U.K. must agree on divorce bill before trade talks.

The ASX200 has ignored a negative lead to open higher this morning.

Gold Daily Chart: sellers drove price lower breaking lows. Buyers came in from 1271 to complete a turn. Price has formed a higher low.

USDJPY Daily Chart: after flirting with 114.00 seller took hold. Price closed 44 pips lower after hitting a high of 114.10. Currently, sellers are moving price lower this morning. Potential support may appear at 113.25 level.

Good trading from Eightcap.

Sources Reuters, CNBC
All times are AEDST

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