Market Update – 25-10-2016

Currencies

EUR/USD – the strong European data yesterday was able to lift the EUR a little bit, but when the US data was also strong, it wasn’t able to hold onto its gains.

eurusd

USD/JPY – has been able to close above the 104 level as the USD keeps on strengthening and we are currently trading at the resistance.

usdjpy

GBP/USD – remains under tremendous pressure as we have little incentive to move up, especially in light that the FED is very likely to raise the interest rate, and there is also the possibility that the BOE will cut the interest further. There is some sort of support around the 1.22 level.

USD/CAD – broke firmly through the resistance just below the 1.33 level on Friday due to a big miss on the Canadian data. Subsequently we continued to move higher, but we saw a test of the now turned support. We are moving further down as BOC Poloz said that cutting the interest rate further is not something that should be done lightly.

usdcad

Indices

S&P 500 – has been moving up as the earnings so far have been good overall and will be waiting for the earnings this week, as a lot of large companies are due to report their earnings this week.

Commodities

Gold – has been trying to change direction, but is unable to do so as the USD remains strong and is also hampered by the resistance.

Oil – dropped yesterday as there is more uncertainty on the OPEC agreement with Iraq now also wanting to be exempt from reducing production. In addition, there is still no accord with Russia, and without that, there is no way that OPEC will freeze or reduce output. In addition we saw yet another increase in the number of active rigs in the US. That, in combination of a higher production, could also make OPEC think twice, as higher oil prices is only likely to increase the pace of US production.

Stocks

Apple (NASDAQ:AAPL) – will be releasing its earnings today after the close.

AT&T (NYSE:T) – after announcing that it reached a deal with Time Warner for $85 billion, the stock has been going down. AT&T will remain in the spotlight, as it will be releasing its earnings today.

att

Twitter –announced that it will be firing hundreds of employees, as it not able to find a buyer as of yet and will announce its earnings on Thursday.

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