Research & Education

Key economic events on Thursday and Friday, including Japan's BOJ Policy Rate, Canada's GDP data, and the US Core PCE Price Index and Unemployment Claims, are set to provide insights into economic health across regions.  Friday's Nonfarm Employment Change and ISM Manufacturing PMI in the US will be closely watched for further indications of labor market conditions and manufacturing strength.  The EURUSD remains in a downtrend in technical analysis, with potential support and resistance levels suggesting key price targets.  Fundamentals show a strengthening US dollar, influenced by political shifts and recent JOLTS data indicating a gradually cooling labor market, fueling speculation about a possible Federal Reserve rate cut in November.

This week brings several high-impact economic events, with Flash PMI reports from Europe, the UK, and the US, alongside Canada's retail sales data.  These reports come as the S&P 500 continues its upward momentum, recently reaching a new all-time high.  The rally has been supported by the Federal Reserve's rate cuts and a favorable technical setup, though some indicators signal the possibility of a short-term retracement.  As global economic conditions evolve, traders will keep a close eye on these data releases and their potential market impact.

As key economic events unfold, global markets brace for pivotal shifts. Central bank decisions and flash PMIs across major regions like Canada, Europe, the UK, and the US set the stage for economic sentiment in the near term. Gold continues to draw attention, fueled by geopolitical uncertainty and upcoming elections, with technical indicators suggesting both potential for further gains and caution for retracement. Amid this landscape, investors are keeping a close watch on gold’s performance, balancing its historic stability against the broader economic backdrop.

Since reaching a high of $77.913 per barrel in early July, crude oil prices have steadily declined, reflecting a combination of market dynamics and technical pressures.  The drop has been fueled by weaker demand forecasts, particularly from major global importers, and concerns over a potential oversupply in the coming months.  Geopolitical tensions have added further uncertainty, with traders watching closely for any disruptions to energy supplies.  While some support levels are in sight, the overall sentiment remains cautious as economic stimulus efforts in key economies struggle to gain clarity, keeping downward pressure on prices in the near term.

As key economic events unfold this Friday, including Canada's employment data and the US PPI, traders are watching closely for signals that could influence market dynamics, particularly in the USDCAD pair.  With the pair showing strong upward momentum since late September, breaking key resistance levels and supported by favorable technical indicators, the outlook remains bullish.
However, with significant data releases on the horizon and potential shifts in monetary policy, traders should be mindful of both upside potential and downside risks, as market sentiment could shift rapidly.

NZDUSD entered a significant downtrend after peaking at 0.63774 on September 30, driven by technical signals and fundamental factors.  The formation of a Shooting Star pattern confirmed the exhaustion of bullish momentum, leading to a decisive break below key technical levels, including the 50-period Exponential Moving Average.  With bearish candlesticks and momentum indicators signaling further downside potential, traders are closely monitoring key support levels.  Meanwhile, the Reserve Bank of New Zealand's recent rate cut to 4.75% has added further pressure as the market faces weakening domestic economic conditions and global uncertainties.

After peaking at 1.12016 in August, the EURUSD pair entered a distribution phase within a consolidation range, encountering significant resistance and support levels.  The US dollar's appeal as a safe-haven asset—bolstered by geopolitical unrest, strong US jobs, and reduced expectations for aggressive Federal Reserve rate cuts—has strengthened it against the Euro, leading to a downtrend.  Technical indicators signal sustained bearish momentum, with potential upside and downside targets identified.  Additionally, fundamental factors such as the US presidential election and its potential impact on dollar policies have increased market volatility.