What You Need to Know

UK’s new Chancellor of the Exchequer Jeremy Hunt has agreed with the BoE Governor on the importance of the UK’s fiscal sustainability, hoping to calm the market as Truss’s government has harmed investor confidence with her policies. On the other hand, the Fed’s Bullard mentioned that boosts to the dollar might ease once the U.S. central bank reaches the point of pausing the hikes once there is “meaningful” downward pressure on inflation. Asian stock markets dropped as investors are concerned about global financial conditions with all the uncertainty of recession. 

Look Out For

Current rate hike bets on 2nd November Fed interest rate decision: 

75bps (97.7%) VS 50bps (2.3%)

Market Overview

Market Movements

XAU/USD

• Gold price rebounded to an intraday high of around $1652, consolidating the losses for last week. A weak start of the DXY did help gold buyers to reduce the recent losses as well.  
• The chances of a 75 bps hike by the Fed is higher, as around 97.7% stand for it.

Resistance: 1681.49

Support: 1614.94

BTC/USD

• Moving in the sideway pattern consolidating around  20415 to 18780 in October
• Both MACD and RSI also depicted no significant signal for BTC movement as MACD moved near the zero line and the RSI also moved around 50. 

Resistance : 19800

Support : 18750

EUR/USD

• A high U.S. CPI report released last week does not allow the Fed to go at ease with their rate hike program and the Euro will remain under pressure. 
• No overbought or oversold signal shown with the RSI suggests that the pair might be consolidating for a while with no direction. 

Resistance : 0.995

Support : 0.9570

DJI30

• DJI gained a bit in overnight trading on Sunday as investors awaited significant earnings reports to be released. Furthermore, Investors re-adjusted their expectation of Fed rate hikes after releasing inflation data because it might push the U.S. economy into recession. 

Resistance : 30445

Support: 28679

GBP/USD

• BoE’s spokesperson has responded that a more substantial rate is required to fight inflation, allowing GBP to flick off some pressure from a strong USD. 
• The Cable is still trading under a downtrend resistance that was formed early in the year. 

Resistance 1.1779

Support 1.0802

USD/JPY

• The pair reached a 32-year high last week as the market is waiting for BoJ intervention. 
• At that time, the high was below 146, but now it is trading above 148 at the press time. The Finance Minister Shunichi Suzuki said that authorities would act decisively against the excessive currency fluctuations.

Resistance : 149.00

Support : 148.00

Crude oil

• Oil price will remain volatile due geopolitical issues between Russia and Euro and also production cuts by OPEC+ member countries. 
• The crude oil price has lost momentum after rebounding from its recent low at 76.25. The MACD has also crossed below the zero line and the RSI is going to near 30. 

Resistance: 93.70

Support: 86.33

ETHUSD

• The ETH has been consolidating in between 1399.5 to 1242 for nearly 30 trading days with a lower and lower trading volume. 
• MACD has been floating at near the zero line and the RSI floating at near 50 range; both indicators have not shown any further direction for ETH. 

2nd Resistance : 1648.5

1st resistance: 1399.5

1st support: 1242

2nd support: 1060.7

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