The last day of the week! Here is the summary of important market indicators provided by FXPrimus.

Today’s Important Indicators

After a relatively active day yesterday due to the NZ coalition government and Catalonia’s autonomy suspension from Spain, today’s session is expected to be softer, despite the volatile start.

During the European session volatility may come around the release of the UK’s Public-Sector Net Borrowing at 08:30.

This will be followed by Canada’s CPI and Core Retail Sales reports at 12:30, where volatility is expected to be higher.

The session will close at 22:00 before Yellen’s speech at the Herbert Stein Memorial Lecture, and therefore bullish and bearish investors may battle in ranging markets ahead of the Fed Chair’s speech on monetary policy.

However, due to the Japanese elections over the weekend, some activity on Yen related pairs may be seen.

Today’s Forecast for Important Trading Indicators

Market Movers

• USD/JPY – Dollar falls on anticipated Fed Chair replacement, recovers on Yen and US tax reform. Dollar-Yen price was rejected at the 161.80% FE yesterday as rumours have Trump saying that Fed Governor Powell is likely to replace Fed Chair Yellen, taking the pair to the 61.80% FE correction. Dollar strengthened this morning to a 2-Week high near 113.30 around progress towards Trump’s tax reform as an approved budget blueprint for the fiscal year 2018 was approved. Yen was widely weaker on the recent increased demand in emerging Japanese stocks ahead of the Japanese elections.

• EUR/USD – Euro dives on Catalonia’s suspension, turns around and hits a 1-Week high before correction. Euro plummeted 500bp vesrus the Dollar as the Catalonian deadline went past leading Spain to initiate the first steps into suspending Catalonia’s autonomy. The price recovered fully as investors later anticipated the step as a strong move against anti-Euro fanatics. In addition, positive US data didn’t seem to have any impact on either Euro’s or Dollar’s price. EUR/USD price was rejected at the descending trendline started on September 8, where bears took over amid a bullish Dollar.

• GBP/USD – Sterling breaks strong support on Brexit turbulence despite holding firm on record low Retail Sales. The British Pound slid below the strong support of 1.3150 this morning as Brexit talks appear back in the wires and also on a strong Dollar. Retails Sales did slump yesterday to a lowest level not seen since 2013, however, the pair maintained a firm position above the support until day’s end. Pound may be heading towards the bottom line of the ascending channel near 1.30 – 1.305.
• USOIL – Oil mixed on oversupply concerns, OPEC/Non-OPEC production cut deal. Crude Oil fell yesterday on increasing concerns on oversupply despite production-cut consensus is in talks as worries over gasoline stockpiles weighed in. In addition, EIA’s drilling activity report hinted a possible increase in Oil production for the month of November, adding more pressure on the black gold. Oil moved below the $51.81 level and outside the ascending channel, however, it still remains firm around $51.70.
• XAU/USD – Gold recovers some losses on Black Monday Stock Market Crash Anniversary, weakens on strong Dollar. Spot Gold tilted above $1290 per ounce from a low level of 1276.65 during yesterday’s session as demand for the safe-haven raised amid October 19th Stock Market Crash. Gold price was rejected at the 38.20% FR that started on the swing low of $1260.5 and could be currently correcting at the 61.80% FR that started from the most recent low of $1282.20.
• In U.S Indexes S&P500 started the day +0.03% and DJ 500 followed with a +0.02%.
• In Europe UK 100 climbed 0.43 % while DE30 tilted higher a marginal 0.06%.
• In Asia ASX 200 appreciated 0.15%, Nikkei only by +0.04% and Hang Seng surged 1.01%.
• In stocks Tesla plummeted 2.18% while Apple plunged 2.37%.