The British Pound had a significant surge and refreshed the monthly highs at the beginning of last week thanks to the speech signalled the agreement was within reach by EU negotiators. However, there was no any breakthrough by the soft deadline (last Wednesday) set by UK Prime Minister, the GBP then retreated about 185 pips within three days. The market is currently calming down as the trade deal talks have resumed and extended to mid-November. The market is waiting for the outcome of major contention like fishing between UK and EU. GBP is highly possible to remain volatile until some progress can be shown.
The crude oil was definitely the worst performer last week and it is mainly caused by the worsened pandemic across the globe, lowering the demand for oil. The number of infections in many countries, such as German, France and Spain have jumped to a record high. The oil dropped for the whole week amid the pessimism on a tighter oil market in the near future attributed to the second-round of lockdowns and travel curbs in Europe.
Market Change Last Week
ECB is going to hold an interest rate decision meeting on coming Thursday. After a strong rebound in the third quarter, the pace of economic recovery is slowing down due to the resurgence of COVID 19 across the Europe in October. Nonetheless, the market consensus on the meeting is remaining the interest unchanged. Many investors believe that ECB would wait until the next meeting for taking other actions and it also prefers quantitative easing to rate cut.
Furthermore, the ECB is going to use a new strategy on inflation target, by which it is no longer ceiled at 2%. The ECB will move only if it is deviate from 2% too far, signalling the central bank is welcome to a quicker increase in inflation rate.
CPI (year on year) and GDP (quarter on quarter) released on next Friday are two important indicators measuring the economic performance of the third quarter. They are expected to be 0.2% and 9.2% respectively.
Nasdaq failed to break out the psychological resistance at 12000.00 and thus pulled back quickly from high. Last week, it was hovering near 11500.00 interval and the death cross of MAs marked the end of its uptrend. Today, it broke the support at 11500.00 and is currently trading around 11350.00. The main driver is probably the dampening hope of the economic stimulus package. Given that RSI is below the 50-threshold, we expect the bearish momentums could be continued and the bears are eyeing for 11000.00.
Support: 11000.00, 10500.00
Resistance: 11500.00, 12000.00
Crude oil retreated from near 42.00 last week, but its price was still confined in the consolidation zone ranged between 39.00 and 42.00. After the price penetrated the lower bound of the zone yesterday, it keeps struggling to climb up to the zone again. We expect it will continue to test the resistance in coming few days. If the RSI goes back to above 50 and the oil can successfully stand above the lower bound of zone, it is likely to repeat the fluctuations as before. Conversely, it might plummet to test the support at 36.50, a price level not seenGB since October.
Support: 37.00, 36.50
Resistance: 39.00, 42.00
The sterling declined for several successive days last week after fail to bridge the gaps with EU before the soft deadline of Brexit talks. According to chart, RSI is approaching the 50-threshold, and the fast and slow MA lines are getting closer, so GBP might find the support level and halt any further declines soon. However, the movements later are still unforeseeable.
Support: 1.3000, 1.2850
Resistance: 1.3180, 1.3260
The views or opinions as expressed in the above article represent the personal views or opinions of the author and do not represent those of Gemini Capital LLC (“GC”). GC has no obligation to independently check or verify the author of the article and the information provided in the article. Accordingly, GC does not take responsibility for such article.
This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. GC is not authorized to provide investment advice. No opinion given in the material constitutes a recommendation by GC or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.
Trading with GC can result in losses that exceed your deposits. Consumers should ensure they understand the risk and seek independent financial advice if necessary.
Gemini Capital LLC is a company duly incorporated in Saint Vincent & The Grenadines and registered by the Financial Services Authority (‘FSA’) under Number 228 LLC 2019. Our registered address is located at Hinds Building, Kingstown, Saint Vincent and the Grenadines.
All investments entail risks and may result in both profits and losses. In particular, trading leveraged derivative products such as Foreign Exchange (Forex) and Contracts for Difference (CFDs) carries a high level of risk to your capital. All these derivative products, many of which are leveraged, may not be appropriate for all investors. The effect of leverage is that both gains and losses are magnified. The prices of leveraged derivative products may change to your disadvantage very quickly, it is possible for you to lose more than your invested capital and you may be required to make further payments. It is important that you understand that with investments, your capital is at risk. Past performance is not a guide to future performance. It is your responsibility to ensure that you make an informed decision about whether or not to invest with us. Before deciding to invest in any financial product, you should carefully consider your investment objectives, trading knowledge and experience and affordability. You should seek independent professional financial advice if you do not understand the risks involved. You should only trade in Forex and CFDs if you have sufficient knowledge and experience of the risks involved in trading such products and if you are dealing with money that you can afford to lose. GC assumes no liability for any loss sustained from trading in accordance with a recommendation. This website, including the information and materials contained in it, are not directed at, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in the United States or any other jurisdiction where such distribution, publication, availability or use would be contrary to applicable law or regulation.
GC Markets is the trading name of Gemini Capital LLC. Gemini Capital LLC (“GC”) is a company duly incorporated in Saint Vincent & The Grenadines and registered by the Financial Services Authority (‘FSA’) under Number 228 LLC 2019. GC is also registered as a Money Services Business (“MSB”) with the Financial Transactions and Reports Analysis Centre of Canada (“FINTRAC”) under Number M20513484 and registered with National Futures Association (“NFA”) of United States of America under Number 0533039. Our registered address is located at Hinds Building, Kingstown, Saint Vincent and the Grenadines.
Kindly click the button below to register via Facebook Messenger