28 October 2021 Morning Session Analysis
Pound slumped amid inflation fears persisted.
Pound Sterling slumped amid the inflation risks loom over the financial markets following the British Finance Minister Rishi Sunak announced its latest multi-billion budget statement yesterday. According to CNBC, Sunak had announced total departmental spending would increase by $207 billion, representing the largest increase in the century. Besides, he confirmed a rise in U.K.’s national living wage from £8.91 per hour to £9.50. Economist expected that such aggressive budget plan would prompt many of these businesses to raise prices to cover the wage increase, which could further push up the inflation rate. Up to this point, economist expects the U.K.’s consumer price index would increase to average 4% over the next year. Meanwhile, high inflation rate is more likely to have a significant negative effect toward the value of the currency. Nonetheless, investors would continue to scrutinize the latest updates with regards of future monetary policy from Bank of England to gauge the likelihood movement for the Pound Sterling. As of writing, GBP/USD depreciated by 0.08% to 1.3735.
In the commodities market, the crude oil price depreciated by 0.10% to $82.50 per barrel as of writing. The oil market edged lower over the backdrop of bearish inventory data yesterday. According to Energy Information Administration (EIA), U.S. Crude Oil Inventories came in at 4.267M, higher than the market forecast at 1.914M. On the other hand, the gold price surged 0.02% to $1797.15 per troy ounces as of writing amid market participants shifted their portfolio toward safe-haven gold in order to hedge against the high inflation risk in future.
Today’s Holiday Market Close
Time Market Event
N/A
Today’s Highlight Events
Time Market Event
Tentative JPY BoJ Monetary Policy Statement
Tentative JPY BoJ Outlook Report (YoY)
19:45 EUR ECB Interest Rate Decision (Oct)
20:30 EUR ECB Press Conference
Today’s Highlight Economic Data
| Time | Nation & Data | Previous | Forecast | Actual |
| 15:55 | EUR – German Unemployment Change (Oct) | -30K | -20K | – |
| 19:45 | EUR – ECB Interest Rate Decision (Oct) | – | – | – |
| 20:30 | USD – GDP (QoQ) (Q3) | 6.70% | 2.80% | – |
| 20:30 | USD – Initial Jobless Claims | 290K | 292K | – |
| 22:00 | USD – Pending Home Sales (MoM) (Sep) | 8.10% | 0.50% | – |
Technical Analysis
DOLLAR_INDX, H4: Dollar index was traded higher following prior rebound from the support level at 93.50. However, MACD which illustrated diminishing bullish momentum suggest the index to be traded lower in short-term as technical correction.
Resistance level: 94.05, 94.50
Support level: 93.50, 93.05
GBPUSD, H4: GBPUSD was traded lower while currently testing the support level at 1.3730. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 1.3825, 1.3880
Support level: 1.3730, 1.3665
EURUSD, Daily: EURUSD was traded lower following prior retracement from the resistance level at 1.1680. MACD which illustrated diminishing bullish momentum suggest the pair to extend its losses toward support level at 1.1530.
Resistance level: 1.1680, 1.1875
Support level: 1.1530, 1.1370
USDJPY, H4: USDJPY was traded lower while currently testing the support level at 113.45. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 114.55, 115.40
Support level: 113.45, 112.05
AUDUSD, H4: AUDUSD was traded higher while currently testing the resistance level at 0.7530. MACD which illustrated increasing bullish momentum suggest the pair to extend its gains after it successfully breakout above the resistance level.
Resistance level: 0.7530, 0.7595
Support level: 0.7435, 0.7380
NZDUSD, H4: NZDUSD was traded lower while currently testing the support level at 0.7155. However, MACD which illustrated diminishing bearish momentum suggest the pair to be traded higher in short-term as technical correction.
Resistance level: 0.7240, 0.7300
Support level: 0.7155, 0.7110
USDCAD, H4: USDCAD was traded higher following prior rebound from the support level at 1.2295. However, MACD which illustrated increasing bearish momentum suggest the pair to be traded lower in short-term as technical correction.
Resistance level: 1.2440, 1.2525
Support level: 1.2295, 1.2170
USDCHF, H4: USDCHF was traded lower while currently testing the support level at 0.9155. MACD which illustrated increasing bearish momentum suggest the pair to extend its losses after it successfully breakout below the support level.
Resistance level: 0.9225, 0.9305
Support level: 0.9155, 0.9075
CrudeOIL, H4: Crude oil price was traded lower while currently near the support level at 81.50. MACD which illustrated increasing bearish momentum suggest the commodity to extend its losses after it successfully breakout below the support level.
Resistance level: 83.30, 85.85
Support level: 81.50, 78.90
GOLD_, H4: Gold price was traded higher while currently testing the resistance level at 1799.55. MACD which illustrated diminishing bearish momentum suggest the commodity to extend its gains after it successfully breakout above the resistance level.
Resistance level: 1799.55, 1808.90
Support level: 1787.55, 1778.15