Here is the digest with the most interesting news for today
The Spike is Almost There
Information is not investment advice
China delays GDP data because of potentially harmful numbers, but we will never delay our news because every release is an opportunity to trade on it! Also, Chinese officials debate cutting the quarantine for newcomers from ten days to seven. USDCNH is down 300 points. Moreover, analysts expect Chinese leader Xi Jinping to get a third term in the Chinese national congress. He may remain the President of China for another four years. which will make him rule for 12 years straight.
The Bank of Japan is afraid of doing anything
The USDJPY surged to the highest level since 1990, touching the critical resistance of 150. We expect sellers to step into the game on the current levels. Also, the Bank of Japan should intervene in the currency rate. Still, there’re no statements from the bank’s members. Meanwhile, BoJ holds an unscheduled bond-buying program for the first time since the plan for Q4 2022.
Sellers need to enter the game and push USDJPY below the rising channel. Double divergence on the RSI shows a lack of momentum, and we expect the pair to reach 148.10 in a couple of days.
What else you should know for today:
- Federal Reserve member Bullard said Fed needs to reach the highest rate level at which inflation starts to shrink before making other moves. Still, he expects to see a slowdown in rising prices over 2023.
- Monthly CPI in Canada surpassed expectations (0.1% actual vs. -0.1% forecast). However, USDCAD remained still because Median CPI (another inflation measure) was down by 0.1%. Economists expect the Bank of Canada to continue its aggressive rate hike campaign.
- An unusual transaction happened in the Ethereum network. Someone paid 121 ETH ($150 000) as a fee for a transfer from one address to another. It’s one of the biggest fees paid ever. There are rumors such actions is a fraud and may lead to an emergency upgrade of the blockchain.
- Liz Truss has fired a minister because of the security breach. Many lawmakers in the UK want her to resign immediately, after only six weeks in the post. GBPUSD is about to have another red week.
- Europe is buying cheaper Brazilian ethanol, tripling imports to cope with the energy crisis. Meanwhile, the gas price in the EU fell to $1170, the lowest since June.
Good luck in trading!
Markets never sleep! Let’s be prepared for a beautiful trading experience by looking at the most important news of Tuesday!
The first week of November promises to be eventful, as we have the Fed meeting, the BOE update, and the NFP release. Read more details here.
The most impactful releases of this week will fill the market with volatility and sharp movements.
Happy Tuesday, dear traders! Here’s what we follow:
Labor Market and Real Estate Market data was published yesterday. Markets are slowing down, so the economy is in recession. Today the traders should pay attention to the Retail sales in Canada.