XAU/USD — Gold
Source: Bloomberg
Gold fluctuated throughout last week but closed on the higher side at the end of it. The ISM Manufacturing data released on Monday, 1 Nov 2021, was revealed at 60.8 (vs forecast of 60.5), compared to 61.1 in September. However, gold ended up on the positive side ahead of the FOMC meeting as no interest rate hike was expected.
The federal funds remained unchanged at 0%-25% and, in a unanimous decision, the federal reserve decided to taper asset purchases by around $15 billion a month. Following this announcement, the 10-year Treasury yield soared up, leading to a fall in gold, settling at around $1,763.90. On Thursday, 4 Nov 2021, gold managed to pull back amidst the fall in Treasury yields. The 2-year yield dropped by 6 points to 0.48%, and the 10-year yield dropped by 8 points to 1.52%. On Friday, 5 Nov 2021, the Non-farm Payrolls report was way above the forecast (531k actual vs 450k forecast), the 10-year yield went below 1.5%, with gold having an upward momentum at the end of the day ($1,818.36). Investors will keep an eye on the Treasury yields, and if it stays the same or goes down even further, gold would continue its upward momentum until and unless the yields rebound. In terms of economic events, the Consumer Price Index data is scheduled for the week (0.5% forecast vs 0.4% previous), along with the Producer Price Index (0.6% forecast vs 0.5% previous) and Initial Jobless claims (266k forecast vs 269k previous).
Trade Gold options on DTrader and CFDs on Deriv MT5 Financial account.
GBP/USD
Source: Bloomberg
It was a rough week for the British Pound. The market reacted negatively to the Bank of England’s decision to keep the interest rate unchanged. On the other hand, the Federal Reserve decided to taper asset purchases by around $15 billion a month. However, FOMC Chairman Jerome Powell emphasized that the rates would not be hiked immediately once the tapering is concluded. In addition to the above, the economic indicators for the US were mostly positive – ISM Manufacturing Data 60.8 actual vs 60.5 forecast, Non-farm Payroll 531k actual vs 450k forecast. This week’s main economic events for USD are the Producer Price Index (0.6% forecast vs 0.5% previous), Consumer Price Index (0.5% forecast vs 0.4% previous), and Initial Job Claims (266k forecast vs 269k previous). For GBP, the main focus would be the GDP figures on Thursday, 11 Nov 2021, and whether these figures justify the reason behind the unchanged interest rates by the Bank of England.
Trade GBP/USD options on DTrader and CFDs on Deriv MT5 Financial and Financial STP accounts.
BTC/USD
Source: Bloomberg
Bitcoin has been moving range-bound ever since it made a lifetime high near the $66,980 level 3 weeks ago. Last week, it managed to close just above $62,000. While the momentum is bullish, bulls are unable to cross the lifetime high. Technically, it has support near the 78.6% retracement level, which is approximately $57,200, followed by a 61.8% retracement level of roughly $51,000. At the same time, on the higher side, if the prices manage to cross the lifetime high, the next target would be the 127.2% retracement level of around $75,000.
Trade BTC/USD options on DTrader and CFDs on Deriv MT5 Financial and Financial STP accounts.
US indices
|
Name of the index |
Friday’s close |
Net change |
Net change (%) |
|---|---|---|---|
|
Dow Jones Industrial (US 30) |
36327.95 |
+414.11 |
+1.15 |
|
Nasdaq (US Tech 100) |
16359.38 |
+454.10 |
+2.86 |
|
S&P 500 (US 500) |
4697.53 |
+83.86 |
+1.82 |
Source: Bloomberg
The Dow Jones Industrial Average, the S&P 500 Index, and the Nasdaq Composite all reached record highs as stocks posted impressive weekly gains. The Federal Reserve policy meeting, favourable October job reports, and strong earnings contributed majorly towards the rise in equities. The US economy created 531k jobs in October, which beat the expected mark of 450k. The actual jobs created have been beating estimates for the last 3 months, with the unemployment rate at another low of 4.6%. Investors’ sentiments are heading in a positive direction for equities, and economic recovery as the wave of the delta variant has eased with Pfizer releasing a study of its COVID-19 antiviral drug, and suggesting it is successful in combating the illness. This week’s focus is more on the inflation data (Producer Price Index (0.6% forecast vs 0.5% previous), Consumer Price Index (0.5% forecast vs 0.4% previous)). Strong economic data will continue the upward trend for this week.
Trade US indices on DTrader and CFDs on Deriv MT5 Financial and Financial STP accounts.
Disclaimer:
Options trading on stock indices, commodities, cryptocurrencies, and forex on DTrader are not available for clients residing within the European Union or the United Kingdom.
CFD trading on cryptocurrencies on the Deriv MT5 platform is not available for clients residing within the UK.