Yesterday, the euro’s three-week rally fell six pips shy of the critical resistance 1.15 handle. Weakness may continue now as expectations grow for European policymakers to add further stimulus. The recent euro rally may be hurting economic growth and the inflation outlook. If we see the ECB cut the deposit rate, we may see a major selloff for the common currency.
The Australian dollar initially fell 43 pips to .7296 after the Australian Bureau of Statistics released an unexpected weak jobs report. The slide however was short-lived and the currency pair rallied to fresh session highs. Employment weakened 5,100 from August, significantly worse than expected gain 9,600.
Topics: RBA, AUDUSD, Reserve Bank of Australia, aud, Australian Dollar
Late in NY, Gold prices rallied $22.30 to $1,187.70, taking price to a three-month high. The rally was triggered after tame inflation in the U.S. supported the growing belief that the Federal Reserve is going to have a hard time agreeing to raise rates this year.
Topics: precious metals, gold, $GLD, Interest Rate, inflation
The British pound weakened significantly against its major trading partners after Britain’s inflation rate surprisingly turned back into negative territory in September. The Office for National Statistics announced CPI plummeted to -0.1, a record level low that was last seen in April. Price inflation was led lower by falling oil and clothing prices. This report is likely to push back expectations for the Bank of England to raise interest rates.
Topics: British pound, Bank of England, EURGBP, cpi
Early in NY, oil prices continued to fall during thin conditions on the Columbus holiday. After trading sideways for a month between the $44 and $50 range, price broke out higher and formed a bearish Butterfly pattern. Price is also to respecting both the 200- and 100-day Simple Moving Average(s).
Topics: US Crude oil, crude oil, USOIL, $OIL
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