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Dow spikes 500 points on strong earnings

“Imagination is everything. It is the preview of life’s coming attractions.” – Albert Einstein

 

 

HEADLINES

 

 

  • Dollar pressured by weaker yields
  • AUD/USD trades at fresh-monthly highs above 0.7400
  • WTI oil consolidates at seven-year highs above $80.00
  • Gold hits one-month peak as dollar, yields slip
  • Dow spikes 534 points as earnings season opens with a series of strong performances
  • FTSE 100 Gains As Commodity Stocks Rally
  • EUR/USD: Scope for a deeper rebound, but strength still viewed as corrective – Credit Suisse
  • CHART: EUR/USD

 

 

FOREX

 

 

Dollar pressured by weaker yields

 

As Treasury yields held at the lower end of the weekly range, the dollar remained weak. The yield on the 10-year US Treasury note bottomed at 1.507%, ending the day nearby. As for the greenback, it managed to post a modest intraday advance against the EUR and the CHF.

Wall Street rallied on the back of better than expected earnings reports from big names, including banks such as Morgan Stanley, Bank of America and Citigroup.

 

AUD/USD trades at fresh-monthly highs above 0.7400

 

The Australian dollar climbed during the New York session. The market sentiment is upbeat, portrayed by European and US equity indexes in the green. Positive US macroeconomic data concerning the labor market and prices paid for US producers boost the investors’ risk appetite.

 

 

COMMODITIES

 

 

WTI oil consolidates at seven-year highs above $80.00

 

The rally of the West Texas Intermediate was paused on Wednesday, after climbing above $80. The US Energy Information Administration (EIA) has reported on Thursday a much higher than expected increment on oil stocks, weighing prices further. Commercial crude oil inventories increased by 6 million barrels in the week of October 8 in the US, according to the EIA, well beyond the 0.7 million build-up anticipated by the market.

 

Gold hits one-month peak as dollar, yields slip

 

Gold prices hit a one-month high on Thursday, as the dollar and U.S. bond yields eased while investors assessed how strong inflation data could shape monetary policy. The dollar and benchmark U.S. 10-year Treasury yields slipped. A weaker dollar makes gold cheaper for buyers in other currencies.

 

 

STOCKS

 

 

Dow spikes 534 points as earnings season opens with a series of strong performances

 

US stocks jumped nearly 2% on Thursday as investors reacted positively to strong third-quarter earnings beats from banks including Bank of America, Morgan Stanley, and Citigroup. The bank stocks soared as much a 4% as a continued drop in provisions for credit losses and strength in the investment banking and wealth management sectors drove growth.

 

FTSE 100 Gains As Commodity Stocks Rally

 

U.K. stocks rose on Thursday to hit a two-month high, with heavyweight mining and energy stocks leading the surge on optimism about a steady economic recovery from the pandemic-induced slowdown. The gains came despite the pound hitting a two-week high on expectations the Bank of England will increase rates this year. The benchmark FTSE 100 climbed 49 points, or 0.7 percent, to 7,191 after closing 0.2 percent higher on Wednesday.

 

 

ANALYSIS

 

 

EUR/USD: Scope for a deeper rebound, but strength still viewed as corrective – Credit Suisse

 

“The strong rebound has seen a minor base complete and with a bullish RSI momentum divergence also in place we see scope for a corrective move higher. Saying this, a close above the 13-day exponential average and price resistance at 1.1602/14 is needed to add weight to this view with resistance then seen at 1.1641 ahead of the 38.2% retracement of the September/October fall and price resistance at 1.1663/71.”

 

 

CHART

 

 

Euro / US dollar – Daily Candlesticks

Source: GKFX Prime Metatrader 4

EUR/USD has broken above a downtrend line that has been in place for over a month. - Prepared by Trading Writers*

 

 

CALENDAR

 

 

*Times in GMT

Source: FX Street Economic Calendar

 

 

SOURCE

 

 

https://www.fxstreet.com/economic-calendar
https://markets.businessinsider.com/news/stocks/ftse-100-gains-as-commodity-stocks-rally-1030865812
https://www.fxstreet.com/news/wti-oil-consolidates-at-seven-year-highs-above-8000-202110141719
https://www.fxstreet.com/news/eur-usd-scope-for-a-deeper-rebound-but-strength-still-viewed-as-corrective-credit-suisse-202110141123
https://markets.businessinsider.com/news/stocks/stock-market-news-today-dow-q3-earnings-ms-bac-citi-2021-10
https://www.reuters.com/article/global-precious/precious-gold-hits-one-month-peak-as-dollar-yields-slip-idUSL4N2RA2ES
https://www.fxstreet.com/news/forex-today-dollar-pressured-by-weaker-yields-202110141943

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