Speculators estimate that the Japanese authorities plan to spend around 1 trillion yen to support the currency in a stealth move as USD/JPY at 150 is seen as an important psychological level to defend. On the other hand, the BoE will start its bond sales early next month as part of its QT monetary policy to fight inflation. Additionally, Biden’s administration plans to release 15 million barrels of oil from the US emergency oil reserves to ease the oil price.
Look Out For
Current rate hike bets on 2nd November Fed interest rate decision:
75bps (98.5%) VS 50bps (1.5%)
The precious metal has underperformed against risk-aware currencies amid more robust yields and hovering around $1650.
Besides, the RSI ranges between 40 and 50, indicating the potential trigger’s unavailability.
BTC has been trading sideways between 18470 to 20380 since it plunged from 22800 last month.
Neither the MACD nor the RSI has any indication of a BTC direction coming up next.
1st resistance : 20438
2nd resistance: 22467
Support : 18470
A positive market sentiment boosted the euro and pushed the price to a session high of nearly 0.9880.
The ZEW report was mixed but did not dampen the euro’s recovery.
Resistance : 1.0000
Support : 0.9706
DJI closed with a gain of 1.12% last night along with other U.S. market indices due to a strong bank’s earning report amid rate hikes concern.
DJI has broken through its downtrend psychological resistance line at 30000 and the MACD has also crossed the zero line; this suggests the index might perform better in this earning season.
The sterling continues to struggle as the market is concerned about the UK’s bond market.
From a technical view, the currency pair’s key resistance would be 1.1460. Suggest that if it breaks through the resistance, an uptrend for the pairs might happen.
Yen has been a weaker party toward the USD ever since the FED implemented hawkish monetary policy; the Yen is even weaker after it broke its previous resistance and now support line at 144.9.
The market believes that the Japanese authorities will try to defend the Yen to trade above 150 against the USD; the MACD line at the same time has crossed the signal line on the above and the RSI is above 70 indicating an overbought signal.
Resistance : 150.00
Support : 148.00
Biden’s government will release more crude from the U.S. reserves to ease the oil price further to counter the OPEC+ oil production cuts act.
China, the world’s top oil importer, has also slowed in oil demand, which will stop the oil price from increasing anytime soon.
Ethereum fell a bit as we continue to see that the market has little interest in the crypto markets.
The pair’s trend remains narrow as markets are waiting for the Fed’s monetary policy.
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