- US500 focuses on tech earnings, midterm elections, and upcoming labor market data.
- Bitcoin absorbs liquidity shocks from exchange attacks and high leverage liquidations.
- EURUSD reacts to US inflation data, political shifts, and dollar strength.
- US500 focuses on tech earnings, midterm elections, and upcoming labor market data.
- Bitcoin absorbs liquidity shocks from exchange attacks and high leverage liquidations.
- EURUSD reacts to US inflation data, political shifts, and dollar strength.
Three Markets to Watch
Friday trading brings heightened risk aversion after the ending week was dominated by Wall Street sell-offs and reports of a cyberattack on Binance. The upcoming week will test investors' resilience: Tuesday's US midterm elections, the next earnings reports from Big Tech giants (Apple, AMD, Qualcomm), and Friday's NFP report will prove crucial. Focus is centered on US500 (S&P 500 futures), BITCOIN, and EURUSD.
US500
Wall Street's main index concludes October after a heavy sell-off related to tech giant earnings releases. Although companies are mostly posting strong results, investors are currently reluctant to allocate more capital toward artificial intelligence development without signs of a clear turnaround. Attention next week will focus on the US elections and financial reports from Apple (Monday), AMD (Tuesday), and Qualcomm (Wednesday), which will shape sentiment ahead of Friday's labor market reading. Historical experience from the 2018 and 2022 midterm elections shows that a reduction in political uncertainty after voting favors a dynamic rebound. If tech earnings turn out better this time, the US500 will gain momentum for a rally.
BITCOIN
The cryptocurrency market at the end of the week is absorbing a liquidity shock caused by the attack on Binance and a series of forced liquidations of leveraged positions. This mechanism resembles the crises around Mt. Gox in 2014 and the collapse of FTX in 2022. The immediate infrastructure shock drains liquidity, and a stable floor is established only after the market is completely cleared of excess leverage. Additional volatility will be introduced next week by the outcome of the US elections, which will determine the future regulatory environment for the digital asset industry. Until the exchange confirms full reserve stabilization, Bitcoin's price may remain on the defensive.
EURUSD
In times of seeking liquidity, cash remains the only safe asset, as confirmed by the dollar's strong stance at the end of the week. Next week, quotes for the main currency pair will be verified by the Eurozone CPI inflation reading (Wednesday) and a series of US data: ISM indices, the ADP report, and Friday's NFP, supplemented by the post-election balance of power in Washington. Reactions from earlier election cycles prove that initial post-election chaos in the currency market quickly gives way to interest rate fundamentals. A potentially weaker NFP report combined with a political stalemate in Congress would open the door to a corrective strengthening of the euro, whereas solid US macro data would reinforce dollar strength.
US OPEN: Bloody end to the quarter. Intel loses nearly 1/3 of its value, and the crypto market shakes off a hack on the largest exchange.
Amazon: Record-breaking operating margin outshined by capex growth
ServiceNow Earnings: What Went Wrong?
There is no good scenario for the euro today
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.