-
The end of the week brings an extension of the better sentiment in the stock market. The US500 is up 1.30%, while the US100 is noted at a solid 1.70% gain.
-
In the markets, we observe a significant weakening of the dollar and a drop in the yield of 10-year US bonds, which have fallen from levels close to 5.0% recently to almost 4.50% currently.
-
The dollar is the weakest currency against the majority of the global currencies. On many currency pairs, declines reach over 1.0%. EURUSD gains 1.10% and is quoted around 1.0733.
-
GBPUSD gains over 1.50%, breaking out from a key consolidation area. The currency pair has seen the most gains on the daily interval in many months.
-
October labor market data reinforce investors' belief that the Fed has already ended the cycle of interest rate hikes. October NFP data:
- NFP total: currently: 150k. Expected: 180k. Previously: 336k.
- Unemployment rate. Currently: 3.9%. Expected: 3.8%. Previous: 3.8%
-
October ISM index for services: currently: 51.8. expected: 53.0. previously: 53.6. The data is mixed, and individual sub-indexes deviate strongly from the median expectations.
-
After today's NFP data from the USA, Fed Chairman from Richmond Tom Barkin commented on the labor market situation. The banker believes that the labor market is returning to balance. Barkin also sees evidence that price pressure in the market is somewhat decreasing.
-
In the energy commodities market, we observe declines, with oil losing nearly 2.5% and quoted around USD 80.5 per barrel.
-
Precious metals gained due to the weaker dollar, with Silver adding over 2%, and gold's gains limited to 0.5%.
-
In the cryptocurrency market, we observe slight declines. Bitcoin loses 1.30% but still maintains around USD 34,500, Ethereum gains 0.50%. After recent stronger increases in BTC, we can observe a slight flow of capital towards smaller projects.
The dollar index (USDIDX) breaks down from local consolidation, which may lead to a test of support at 104.50, resulting from the 100 EMA and earlier price reactions. Source: xStation5
Start investing today or test a free demo
Create account Try a demo Download mobile app Download mobile appThe content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
