If you want to trade on the forex market, you need a platform you can trust — this is where you will find all the tools and features you need to analyse market movements and open and close positions on forex pairs. Many platforms are available, but VT Markets seeks to help our users narrow their choices and connect with some of the most intuitively designed and powerful tools available.

We offer MetaTrader 4 here on the VT Markets site. Once you have set up your VT Markets account, you’ll be able to download the MT4 platform and get started immediately. From here, you can begin to grow your experience and make trades either on the demo or the live version of the platform. We recommend using the demo MT4 account first to build your confidence and understanding before you start to make trades for real.

So what are the first steps? To begin, you’ll need to choose which version of MetaTrader 4 to download. This will depend upon what device you are using. Take a look at our guide below to find out more about how to download the platform.

Downloading MetaTrader 4 — A straightforward guide to help you get started

You can download and use MT4 across various devices and operating systems, providing traders with a more flexible and capable set of options. These include most desktop devices and operating systems and mobile and tablet devices.

Downloading the MT4 platform for desktop and laptop

Desktop and laptop devices tend to be more powerful than your smartphone or tablet, offering more storage capability and scoring higher on other key metrics. The extra capacity and power of the device enable you to get the most out of the software, as this was the operating environment it was originally designed for. Many users prefer to download MT4 on a PC or laptop device.

• Download MetaTrader 4 for Microsoft Windows — Most laptop and desktop devices still use the Microsoft Windows operating system, and MT4 is designed for use on this OS.

• Download MetaTrader 4 for Apple Mac OS — Many users prefer Apple’s Mac OS, and all Macs and computers developed by Apple will run this OS. You can download MT4 to your Mac if required.

• Download MetaTrader 4 for Linux — Linux is not as widely used as Windows and Mac OS. Still, developers have used the open-source system to create many operating systems, many of which have become popular. The Linux OS does support the MetaTrader 4 platform.

Downloading the MT4 platform for smartphones and tablets

While MT4 was initially developed with the power and function of desktop devices in mind, it is now available in smartphone and tablet versions. These versions help traders enjoy a far more convenient experience, with market data and trading tools right in the palm of their hand, even when they are out and about.

• Download MetaTrader 4 for Apple iOS Devices — Like with the Mac OS, many users are experts in using Apple products and prefer to utilise Apple OS versions of software and apps. To support this, MT4 is available for download on Apple’s iPhone and iPad products. While the tablet version provides more detailed views, traders can still utilise all the required features on the mobile version. 

• Download MetaTrader 4 for Android Devices — Android devices are becoming increasingly popular among smartphone and mobile users, and various Android operating systems power various products in the market. If you have one of these devices, you’ll be able to have MT4 downloaded on your smartphone or tablet.

Your guide to a successful MetaTrader 4 download

It’s easy to download the MT4 platform you need when you use VT Markets. With a handy wizard feature, downloading and setup is largely automated. Follow these handy steps to complete your installation.

• Step One — Create your VT Markets account here on the website. Add your personal information, confirm your identification, and then add funds to your account.

• Step Two — Log into your VT Markets account and head to the top banner menu on any page on the VT Markets site. Select MetaTrader 4 in the drop-down menu and open this page. From here, select the link to begin to download for the operating system and device you are using.

• Step Three — Open the .exe file and follow the wizard to complete the laptop and desktop devices setup. Move through the different screens of the wizard, select a download file folder and configure your options. The platform will be saved in your default download file if you don’t do this. Select Finish once you reach the end of the wizard. If you are using a mobile or tablet device, it will be saved to your app folder, and the installation will take place automatically.

• Step Four — Log into the MT4 platform and use the features. You can grow your experience over time, utilising features such as MT4 indicators to execute more advanced trading and predictive functions.

Understanding the different MT4 trading accounts

You will want to take some time to develop your experience and gain confidence using the platform. While there are never any guarantees with forex trading — and even more experienced traders can find that their positions are not always successful — learning how to trade forex carefully will help you make future strategic decisions. With this in mind, we offer two versions of the MT4 platform for download. Learn more about these below.

Downloading and using the demo version of MT4

The demo version of MT4 is the same as the full version. You’ll still be able to take advantage of all of the different features and tools built into the platform, and you’ll have the opportunity to grow your skills and experience in a meaningful way. The only major difference is that there is no real money changing hands. As this is just a demo account, you won’t be executing trades for real. Of course, this means there’s no potential for profit, but there’s no risk either.

We highly recommend you use the demo account for a while when you first download MetaTrader 4. Even if you already have some experience with trading forex, you’ll need time to learn how to use MT4 and to grow acquainted with the specific features of the platform. The risk-free environment of the demo account is perfect for achieving this. 

Downloading and using the live version of MT4

When you download the live version of MetaTrader 4, you gain access to all of the platform’s features, from indicators and other predictive tools to those used in active trading. In this sense, it’s almost the same as the demo version, only this version of MT4 supports live trades.

This means you can make money when you open and close positions on the live version of the platform, but there’s also the potential to lose money. Bear this risk in mind, and trade conservatively. If you decide to maximise your exposure in the market with margin trading or leverage trading on forex pairs, you will increase the risk level. 

The margin in FX refers to the amount of money you will need to put forward to control a position. Trading on the margin means you are essentially borrowing capital from the broker, which will need to be paid back. Leverage works similarly, maximising the stake you control and involves borrowing capital directly from the broker.

Only adopt these forms of trading if you are confident with using the MetaTrader 4 version you downloaded and after you have spent time learning forex and practising on the demo version of the platform.

Download MT4 and start growing your trading experience

We want to ensure that our users have access to all the tools and platforms they need to develop their experience as they trade forex. This is why we provide a roster of industry-leading software pieces designed to help traders open and close positions according to their unique strategies. 

There are always risks involved with this kind of trading, which is why it’s a good idea to practise using the features of MT4 after you download it. To do this, simply use the demo account, and enjoy all the features in a risk-free environment. When you feel ready, you can graduate to the live trading account and open positions for real. Want to learn more about our platform? Reach out to our team today.

When you trade on the MetaTrader 4 platform, you have many different features and tools at your disposal. As well as simply opening and closing positions in the market, you’ll be able to access all the data you need to make predictions on future movements.

The MT4 platform supports traders adopting a more sophisticated, data-focused approach to the foreign exchange market. This is where indicators come in. MetaTrader 4 indicators can help traders make educated estimations as to which way the market is heading. While it’s important to remember there are no guarantees, indicators can still prove useful to traders. Read on to learn more about this in our guide.

Understanding indicators for MT4

MT4 indicators are tools built into the platform, allowing users to analyse market data across several factors. These factors include movements of the price of a currency pair over a set time and trading volume, among other elements.

It’s important to remember that MetaTrader 4 indicators do not guarantee market changes. Instead, they represent sets of market conditions that typically suggest future movements. For instance, an indicator that looks at the average value parameters for a currency pair over a particular time will suggest which way this price will move on average in the future, as well as predict the support and resistance rates — i.e., the lowest and highest points that the price will reach within this period. It will not guarantee these values; it will simply suggest them.

As long as traders bear this in mind, indicators are useful tools to deploy while trading. When you download MetaTrader 4, you’ll gain access to various indicators to use in your own trading strategy. These tools will help you develop a more sophisticated set of trading practices.

While you learn how to use MT4, it is recommended that you use a demo account. You’ll still gain access to indicators for the MetaTrader 4 platform, but no risk will be involved. Once more comfortable, you can trade on the live account and receive market exposure by trading on the margin. Trading on the margin in FX essentially means borrowing capital from the broker and controlling a position worth far more than you would otherwise have been able to afford. Indicators can help you open these positions with more confidence, but there is always a risk that you’ll need to keep in mind.

Downloading and using indicators for MetaTrader 4

To download and use indicators for MetaTrader 4, you’ll first need to open an account with VT Markets and download MT4 for PC or another device. Next, open the platform and sign in.

From here, head to the Navigator window on the left side of the MT4 screen. Open this window.

Within the Navigator window, select Indicators to open the menu. This menu displays all the available indicators arranged according to their type.

Browse through the available indicators until you find the one you want. Select this and drag it to the Price Chart on the MT4 screen. This will apply the indicator to the chosen chart.

You will now be prompted to configure the indicator, adjusting its parameters. Complete this in the dialogue box and finish the process. The indicator is now applied to the Price Chart you want to analyse.

The most common MetaTrader 4 indicators

There are many different indicators available for the MetaTrader 4 platform. You might only use one or two of these as you begin learning forex. But if you are a more experienced trader, you may wish to explore the potential of indicators further, adding more options to your trading strategy. This will help you gain insight into your trades and understand which moves you to make in the future.

Take a look at some of the most popular MetaTrader 4 indicators and use this list to discover more about which indicators you want to add to your strategy.

Relative strength index (RSI)

This is an oscillator indicator that measures the momentum of a specific market. The indicator examines changes in the historical price of the market, analysing the differences between days of appreciation and days of depreciation. With this indicator, traders can identify potential candidates for investment and trading and determine the best time to invest or open a position.

Average true range (ATR)

The ATR indicator analyses market volatility, looking at the average range for a market — i.e., the maximum and minimum levels it hits during the examination period. This is very useful, as it identifies normal ranges for the market you are looking at, allowing you to place stop loss and take profit measures in the right positions to avoid trades that stray outside your strategic parameters.

Moving averages

Moving averages look at the prevailing price movement for a particular market by analysing past data. This indicator will suggest whether the market is currently moving up or down based on its past performance over a defined period. As mentioned above, you will see the market’s support and resistance levels. While past performance does not guarantee future success, this is still a useful metric for traders.

On-balance volume (OBV)

The on-balance volume indicator works on a cumulative basis, adding the total volumes of up days and then subtracting the total volumes of down days across the defined period. The aim is to provide a more reliable picture of the market direction based on this cumulative analysis. Movements on the OBV can suggest which way the market’s price will move when you trade. 

Money flow index (MFI)

Like the relative strength index, this is an oscillator that provides an analysis of the direction of the market movement, as well as the volume of this movement. With the MFI, you can identify times at which certain markets are overbought or oversold, which can be useful in deciding on your next trading move.

The benefits of MetaTrader 4 indicators

As we’ve discussed already, MetaTrader 4 indicators do not guarantee or give traders any certainty. With this in mind, what benefit do they provide? Why should you incorporate these tools into your own strategy? Take a look at some of the key advantages of MT4 indicators.

Indicators provide data-backed analysis

While indicators do not offer guarantees to traders, they are based on technical data analysis. This means they can be used reliably by traders who know what to look for, making it easier to develop an effective strategy.

There are so many different indicators out there, each providing its own insight and analysis. While this can prove a little confusing initially, it quickly becomes an asset once you get used to deploying these indicators. The subtle differences between each indicator make it possible to build a strong strategy based on a diverse set of analytics.

Indicators simplify stop loss and take profit placement

Stop loss measures will automatically close trades if the value falls below a certain level, while take profit will do the same when the value becomes too high. These measures help you keep your trades within your strategic parameters, but you must ensure you set these tools correctly. Indicators will help you make an informed choice regarding stop loss and take profit.

Indicators help traders increase their market exposure 

In the forex market, small price movements are measured in pips. Generally, the price of a certain currency pair or commodity will not move much over a trading day, so the profit potential is low. The potential losses are also low. To increase exposure, traders must make many small trades or open more advantageous positions. Margin and leverage trading can help traders command these more valuable positions.

Of course, as the potential for profit rises, so does the potential for loss. With this in mind, traders need to act confidently, executing positions according to the latest market data. This is where indicators can play a major role. While there are no guarantees, even with indicators, they can help experienced traders make data-backed moves.

Trade with MetaTrader 4 indicators at VT Markets

Start exploring MetaTrader 4 indicators today. Download the platform from VT Markets and start using these helpful tools and features. We recommend you set up a demo account first and start trading for real with a live trading account after you feel more confident using the tools. 

Want to learn more about MT4 indicators and other features on the platform? Reach out to our team today.

What is MT4? Also known as MetaTrader 4, this is the name given to a trading platform originally developed by MetaQuotes. While other options are available to traders in the market, the MT4 platform has proved very popular among traders thanks to various features and tools. 

These features help traders open positions, invest, and execute trades. However, there is more to MT4 than this. Traders can also use several features to conduct technical analyses and market examinations. Tools such as indicators can help traders gain insight into the past performance of the market they are working with and other important pieces of information. While these tools do not provide a guarantee, they are useful in helping traders make careful and considered decisions in the market, trading with strategic care.

What is MT4 trading? This refers to any trade conducted via the MT4 platform. While the platform is usually viewed as a forex trading platform, you can use it to execute other trades using derivative contracts, such as indices and commodities.

How to use MT4

Now that you know a little bit more about what MetaTrader 4 is, it’s time to discover how to trade on MetaTrader 4 and carry out other actions. Take a look at our step-by-step guide below.

Step 1 — Use VT Markets to create your account

We make it easy to access and download MetaTrader 4 on whichever device you wish to use. First, you’ll need to create an account. Head to the VT Markets website to create your account, fill out the required information and confirm your ID credentials.

Step 2 —Download the MetaTrader 4 platform to your device

After you have set up and logged into your VT Markets account, use the header menu to find and download the MetaTrader4 platform. You can download MT4 for PC, Mac, smartphone or tablet device. After you have saved the application file and completed the setup — an almost automatic process on a mobile device or via an easy wizard feature on a laptop or desktop — you’ll be ready to start. Use your VT Markets login information to access your account on the MetaTrader 4 platform.

Step 3 — Beginning the trading process

To start trading on the platform and to open a position, you’ll need to go to the Tools menu. In this menu, select New Order. On Windows PC and laptop devices, you should be able to open this by simply pressing the F9 shortcut.

This will open the order window, where you can analyse and configure various data points. These include:

You may decide to trade on the margin or trade on leverage, increasing the volume of your trade and your exposure to the market. Trading on the margin in fx and other markets means putting forward a percentage of the total position value from your capital while borrowing the rest from the broker. 

Leverage works similarly and involves multiplying your stake with borrowed capital. In both instances, the risk is greatly increased, and traders must act in a careful and considered manner when using the following techniques: 

Step 4 — Assess the progress of your position

With the position now open, you’ll need to keep on top of its progress. So, how do you trade on MetaTrader 4 and monitor them accordingly? To do this, you’ll need to view the Terminal window. Find the Terminal option under the View menu in the toolbar, or hit Ctrl + T if you use a Windows laptop or desktop device. 

In the Terminal window, you’ll be able to view all of the information you have added when you opened the position. On the far right-hand side of the entry, you’ll see the Profit value, which will tell you whether your trade is currently successful or unsuccessful. It’s important to keep track of this to know whether your strategy is working as planned.

Next to the Price value, you will see a small X symbol. If you want to close your position — either because you have achieved a profit or because you want to limit your losses — click or tap this X. You can also use the X symbol to cancel any pending positions that have not yet been opened.

Step Five — Make changes to your stop loss and take profit tools

You may decide to make changes to your stop loss and take profit limits, altering the potential parameters of your trade. To do this, return to the Terminal menu mentioned above. 

Then, navigate to the Trade tab and select S/L to modify the value of the Stop Loss tool. Selecting the Modify button will confirm these changes.

You can do the same thing with the T/P value to alter the Take Profit level.

Using MT4 indicators

As you learn how to use MetaTrader 4 for trading and analysis in the market, you will encounter other features along the way. These add-ons and additional features are designed to make your life easier as a trader, helping you to develop a more sophisticated set of strategies. They do not guarantee success, but they provide additional confidence thanks to a data-backed approach.

MT4 Indicators are among the most commonly used of the platform’s additional features. MT4 indicators are technical analysis tools that enable traders to understand trends and movements in the market. For example, an indicator may accumulate volume data from the recent up days for a particular market and subtract the cumulation of all the recent down days from this total to arrive at a more accurate and reliable estimation of market direction. This particular indicator, the OBV, or On Balance Volume indicator, is one of many available options on the MT4 platform.

These indicators do not provide any guarantees for traders. Instead, they are designed to be used for developing an increasingly sophisticated trading strategy, relying on data to make careful, considered and responsible choices. As there is always a risk involved when trading — and as this risk is amplified when margin trading or leverage is involved — you must trade conservatively on the MetaTrader 4 platform.

Download MT4 today and start building your trading strategy

Here at VT Markets, we want to ensure that traders just like you have all the tools and platforms you need as you gain experience in the market. Whether you are trading forex, commodities, or another asset, you will find something suitable in the roster of software products we provide, including the ever-popular MetaTrader 4 platform. 

Risk is always involved when trading on the market, so we highly recommend that you practice trading with a demo account to understand the platform’s features. After you become accustomed to these features, start using the live trading account and open positions for real. Want to learn more about how to use the MT4 platform? Reach out to our team today.

US stocks rallied higher on Monday, preserving their upside traction for the second day and extending their previous rally ahead of midterm elections and inflation data later this week. The renewed speculation that the US Federal Reserve will ease the pace of quantitative tightening regardless of Chair Jerome Powell´s hawkish comments and easing restrictive measures in China has underpinned the market sentiment. Therefore, the risk-on mood acted as a tailwind for the equity markets on the first day of the week.

Markets focus now shifts to the release of the US Consumer Price Index (CPI) report for October, which will be closely watched after the core consumer price index rose more than forecast to a 40-year high in September. In the Eurozone, the upbeat EU data and hawkish comments from the European Central Bank (ECB) officials have provided support to the shared currency, as they said that the central bank shouldn’t stop rate hikes as long as underlying inflation has not peaked.

The benchmarks, S&P 500 and Dow Jones Industrial Average both climbed higher on Monday as the S&P 500 gained for a second day ahead of US midterms and closed near session highs with the US dollar falling with Treasuries. The S&P 500 was up 1.0% daily and the Dow Jones Industrial Average also advanced higher with a 1.3% gain for the day. Eight out of eleven sectors in the S&P 500 stayed in positive territory as the Communication Services and Energy sectors are the best performing among all groups, rising 1.82% and 1.73%, respectively. The Nasdaq 100 meanwhile climbed higher with a 1.1% gain on Monday and the MSCI World index was up 1.1% for the day.

Main Pairs Movement

The US dollar declined lower on Monday, extending its previous slide and refreshed daily lows below the 110.10 mark during the US trading session as Wall Street picked up momentum ahead of the close. Market participants believe that a slowdown in the pace of rate hikes by the Federal Reserve (Fed) is certain, making the American currency end up losing further ground against its major rivals. The upbeat market mood spurred by a seasonal US mid-term elections rally has also undermined the greenback.

GBP/USD outperformed on Monday with a 1.19% gain after the cable touched a daily high near the 1.1540 mark amid renewed US dollar weakness. On the UK front, uncertainty in the US political scenario ahead of US midterm elections and the US Consumer Price Index (CPI) report looming both helped the British pound to find demand. Meanwhile, EUR/USD preserved its upside momentum and climbed above the 1.0000 mark ahead of Eurozone Retail Sales and US inflation data. The pair was up almost 0.60% for the day.

Gold declined with a 0.37% loss for the day after failing to edge higher and retreated to the $1,675 mark during the late US trading session, as the positive market mood is weighing on the safe-haven metal despite the US dollar’s weakness. Meanwhile, WTI Oil dropped with a 0.89% loss for the day as China stays committed to zero covid policy. Crude oil prices have retreated to the $91.00 area.

Technical Analysis

EURUSD (4-Hour Chart)

The EURUSD advances for the second session in a row and gains more than two cents since last week’s lows around 0.9730, always against the backdrop of the persistent sell-off in the greenback. The pair was priced at 0.9990 level and aiming to 1.0000 psychological level. Indeed, the dollar remains offered as market participants continue to gauge the mixed results from Friday’s Payrolls and recent Fedspeak leaning towards an impasse in the Fed’s normalization process. The persistence of the positive traction in the pair so far comes in line with the mixed performance in US yields and some loss of momentum in the German 10-year bond yields after two daily advances in a row. On the other side, tepid Chinese data weighed on market sentiment and drew support for the safe-haven greenback, but the US dollar quickly resumed its decline tendency. Despite the number of new coronavirus cases on the rise, investors are once again pricing in easing restrictive measures.

From the technical perspective, the four-hour scale RSI indicator extended its rally from last week figured 65 as of writing, suggesting the pair remained upbeat market mood and continued to move higher. As for the Bollinger Bands, the euro was pricing in the upper area and the size between upper and lower bands got larger, which is a signal that the pair was amid strong bullish momentum despite being capped by the psychological 1.0000 level at the time of writing.

Resistance: 1.0000, 1.0094

Support: 0.9813, 0.9730, 0.9636

GBPUSD (4-Hour Chart)

The GBPUSD extended its gains during the North American session due to upbeat market sentiment spurred by a seasonal US mid-term elections rally. At the same time, investors brace for the results of the latter and the October US Consumer Price Index. Even though the Bank of England (BoE), said that they would hike rates, but not at the level money market futures priced in, the pair was pricing at 1.15156 as of writing with 1.26% on daily basis. Furthermore, the Guardian reported that British Finance Minister Jeremy Hunt was planning to announce 60 billion Pounds of tax rises and at least 35 billion Pounds of spending cuts. The BoE said that they have not taken potential austerity measures or tax increases into account when deciding on the policy action. Hence, the BoE’s dovish stance could be reaffirmed in case the UK government decides to run a tighter fiscal policy. However, the US Dollar market demand is likely to continue to drive the pound’s movement in the near term.

From the technical perspective, the four-hour scale RSI indicator steadily climbed to 64 figures as of writing, suggesting that the pair was amid strong bullish momentum. As for the Bollinger Bands, the price was priced near the upper band. Hence, we think the pounds would confront some resistance around the upper band of 1.1550 and then challenge the 1.1645 level in the near term.

Resistance: 1.1645, 1.1738

Support: 1.1410, 1.1163, 1.0934

XAUUSD (4-Hour Chart)

Gold was put sideways and was priced at $1676.8 marks following touched the daily high of $1681.9 marks. The US dollar started the day on the back foot as the market mood improved at the beginning of the week and ahead of the release of US inflation figures. The US Consumer Price Index is expected to have eased in September from 8.2% YoY to 8% in October. The core reading, which excludes volatile food and energy prices, is foreseen at 6.5%, barely down from 6.6%. Furthermore, a combination of factors underpinned the market risk sentiment. The comments by the Chinese National Health Commission, which has reiterated the Government’s commitment to the Zero-COVID policy and warned about the possibility of severe restrictions ahead, as the winter flu season approaches. However, this has not altered the market mood, as in absence of first-tier macroeconomic releases, the positive Friday’s Non-Farm Payrolls report is still driving market sentiment on Monday.

From the technical perspective, the four-hour scale RSI indicator edged lower to 64 figures as of writing, suggesting that the positive traction has been lower. As for Bollinger Bands, the yellow metal was stability pricing in the upper area the following retreat back below the upper band, signalling that the pair witnessed some selling transactions around $1684 marks. Therefore, the bullish could persist to challenge the $1700 psychological level if breaking through the $1684 resistance with strong positive traction.

Resistance: 1684, 1701, 1729

Support: 1654, 1641, 1615

Dear Client,

To improve your trading experience, we are optimizing the specifications of UKOUSD (Brent Crude Oil Cash) on 8 November 2022 (Tuesday).

Please note that:

1. During the optimization period, if you are holding a position in UKOUSD, a debit or credit adjustment will be made to your account to reflect the price difference before and after the optimization.

2. In the event of a cash adjustment, a record labelled “Cash Adjustment-Rollover – UKOUSD” will be reflected in your account history.

3. This optimization is only applicable to UKOUSD. The corresponding futures contract for UKOUSDft will not be affected.

4. Your take-profit and stop-loss settings will not be automatically updated. Please adjust them accordingly.

5. All open positions will continue to be held. If you do not wish for your position to be affected by this optimization, you are recommended to close your position accordingly.

Rest assured that you will not experience any losses due to this update.

For more information, please contact [email protected]

VT Markets, a global multi-asset broker, has added a selection of 7 bond CFDs to its vast array of trade offerings and assets. This addition further enables traders to expand their portfolios and gain exposure to some of the most exciting markets in the world. 

Their new products feature bonds from countries such as the US and UK, among others. Some of the bonds being added to the award-winning trading platform include the US 10-year Treasury Bond Futures, UK Long Gilt Futures and Euro-Bund Futures. Clients of VT Markets will be able to trade these bond CFDs at competitive rates.

“This is an exciting opportunity for our clients. Bond CFDs are the perfect addition to any trader’s portfolio, as they can speculate the price movements and trade on margin without direct ownership of the instruments. This enables our clients to expand their trading options and get the most out of the markets. Bond CFDs are a welcome addition to our ever-growing range of products, which includes indices, stocks, commodities, and forex. We believe we are one of the most diverse brokers in today’s market,” said John Georgiou, Director of Business at VT Markets.

The new bond CFDs are now available for trading on the VT Markets mobile app and its robust trading platforms.

For more information, visit https://www.vtmarkets.com/. 

About the Company:

VT Markets is a regulated multi-asset broker with a presence in over 160 countries. The broker has won many international accolades including Best Customer Service and Fastest Growing Broker. Their mission is to make trading an easy, accessible, and seamless experience for everyone.

Since the Federal Reserve announced its September rate decision, consumer price growth in the US has accelerated across a wide range of goods and services. This signifies that underlying inflationary pressures are growing stronger.

Fed officials will announce another rate hike in December, with analysts expecting the central bank to also increase interest rates further.

Here’s what to expect for the week ahead:

US Midterm Elections (November 8)

The US will hold its midterm elections on November 8.

Voters will go to the polls to decide who will hold key offices in their respective states and cities. The result of this election is expected to have a major impact on the US economy, and analysts are keeping close tabs on the situation.

US Consumer Price Index (November 10)

US CPI rose by 0.4% month-on-month in September, the highest reading in three months.

Analysts expect consumer prices to increase by a further 0.7%.

UK Gross Domestic Product (November 11)

UK economic growth slowed by 0.3% month-on-month in August after rising by 0.1% in July.

Analysts expect GDP growth to be 0.1% for September.

US Prelim UoM Consumer Sentiment (November 11)

The University of Michigan’s latest consumer sentiment survey in the US showed a reading of 59.9.

Economists forecast the index to come in at 60 for this month.

US stocks advanced higher on Friday, regaining upside momentum and ending their previous slide as investors weighed mixed jobs figures and awaited next week’s inflation data for more clues on when the Federal Reserve would be able to slow down its pace of rate hikes. The Nonfarm Payrolls in the US rose by 261,000 in October, which came in much higher than the market expectation of 200,000. However, further details revealed that the Unemployment Rate edged higher to 3.7% from 3.5%, signalling that the labour market is easing amid the most aggressive Federal Reserve tightening cycle.

Therefore, the theory of slower rate hikes in December has been brought back with signs of a potential easing in the labour market conditions, which further undermined the US dollar. Markets focus now shifts to the release of the US Consumer Price Index (CPI) report for October, which will be important to forecast market moves.

In the Eurozone, the European Central Bank (ECB) President Christine Lagarde said on Friday that they will not let high inflation become entrenched and have to raise rates to levels that will deliver the 2% medium-term inflation target.

The benchmarks, S&P 500 and Dow Jones Industrial Average both climbed higher on Friday as the S&P 500 regained positive traction and halted a four-day slide. The S&P 500 was up 1.4% daily and the Dow Jones Industrial Average also advanced higher with a 1.3% gain for the day. All of the eleven sectors in the S&P 500 stayed in positive territory as the Materials sector and the Financials sector are the best performing among all groups, rising 3.41% and 1.87%, respectively. The Nasdaq 100 meanwhile climbed the most with a 1.6% gain on Friday and the MSCI World index was up 1.9% for the day.

Main Pairs Movement

The US dollar tumbled on Friday, witnessing heavy downside momentum and has difficulty finding its feet near the 110.5 level during the US trading session despite the robust US Nonfarm Payrolls (NFP) data. The downbeat US unemployment rate report and wage inflation data have shown the first signs of easing in the US labour market, which has tamed expectations of further aggressive tightening by the Federal Reserve and exerted bearish pressure on the greenback.

GBP/USD surged higher on Friday with a 1.96% gain after the cable extended its rally to daily highs around the 1.1380 mark amid broad-based US dollar weakness. On the UK front, investors are awaiting more developments on tightening fiscal policy measures in Britain led by UK Prime Minister Rishi Sunak and Chancellor Jeremy Hunt. Meanwhile, EUR/USD staged a goodish rebound and refreshed its daily high above the 0.9960 mark amid a weaker US dollar and an improvement in market sentiment. The pair was up almost 2.10% for the day.

Gold advanced with a 3.21% gain for the day after soaring to a three-week high above the $1,680 mark during the late US trading session, as the speculations that the Fed would tighten in smaller rate increases have weighed on the US dollar and lifted the Gold higher. Meanwhile, WTI Oil surged with a 5.04% gain for the day as crude oil prices hit three-week highs above the $92.00 area.

Technical Analysis

EURUSD (4-Hour Chart)

The EURUSD has gathered bullish tractions and climbed above 0.9900 level as of writing, reaching fresh weekly highs, as US Dollar stays under strong selling pressure in the risk-positive market environment and fueled the pair’s rally although US Nonfarm Payrolls surprised to the upside in October. Earlier, the US Bureau of Labor Statistics released the October jobs report. Nonfarm Payrolls rose by 261K, compared to the expected 200K. However, a strong NFP report failed to attract buying for the greenback, the DXY index tumbled with 1.75% daily losses and dropped to a level below 111.0, underpinning the pair. Further data saw the Unemployment Rate ticked higher to 3.7% (from 3.5%) and the key Average Hourly Earnings, a proxy for inflation via wages, increased by 0.4% MoM and 4.7% from a year earlier. Furthermore, the sharp upsurge witnessed in the EURGBP cross on Thursday showed that the Euro(EUR) managed to capture some of the capital outflows out of the British pound. The Bank of England (BOE) said the peak rate is likely to be lower than 5.2% priced into markets and investors assessed that comment as a sign of a less aggressive tightening stance.

From the technical perspective,  the four-hour scale RSI indicator surged to 58 figures as of writing, suggesting that the pair amid strong bullish momentum. As for Bollinger Bands, the pair broke through the 20-period moving average and was pricing in the upper area. Therefore, we think the positive traction would persist in the near term to challenge the 1.0000 psychological level.

Resistance:  1.0000, 1.0094

Support: 0.9736, 0.9668, 0.9551

GBPUSD (4-Hour Chart)

The GBPUSD managed to advance to the boundaries of 1.1300 the figure at the end of the week, as the market amid improved risk sentiment and further declined the demand for the safe-haven greenback, where the pair was pricing at 1.1285 level as of writing. The broad-based appetite for the risk-associated universe lent the Quid extra legs on Friday and helped the pounds recoup part of the BoE-induced sell-off recorded on Thursday. The US Dollar remains well on the defensive despite the US economy creating more jobs than expected in October (261K), while the Unemployment Rate edged higher to 3.7%. In the UK docket, the Construction PMI improved from 52.3 to 53.2 in October, while BoE Chief Economist H.Pill suggested earlier in the session that markets should “re-anchor” their expectations around the policy rate following the recent political and financial crisis.

From the technical perspective, the four-hour scale RSI indicator rebounded to 43 figures as of writing, suggesting that the cables attracted some buying during the RSI stay in the oversold zone. As for the Bollinger Bands, the price was still priced lower than the 20-period moving average, which is a signal that the strength of the rebound is weaker. As a result, we think the pair was more favoured to the downside path and there would be a pullback to test the 1.1163 support.

Resistance: 1.1417, 1.1623

Support: 1.1163, 1.0953, 1.0632

XAUUSD (4-Hour Chart)

Gold continues to extend its rally in the October US Nonfarm Payrolls report afterwards and was priced at $1673 marks, up by more than 2.60% daily, as growing speculations that an uptick in the rate of unemployment might deter the Federal Reserve from aggressive tightening. Following the release of the Nonfarm Payrolls, the US Dollar falls further. The US economy added 261K jobs, above estimates of 200K, but what probably rocked the boat was that the Unemployment Rate increased by 3.7% from 3.5% in the previous month, signalling that the labour market is easing amid the most aggressive Federal Reserve cycle. In the meantime, US Treasury bond yields, particularly the 10-year benchmark note rate, almost parked at 4.156%, unchanged. However, what’s worth noting is the inversion of the 2s-10s yield curve, which is used as a leading indicator of upcoming recessions.  

From the technical perspective, the four-hour scale RSI indicator rallied dramatically to 67 figures as of writing, suggesting that the pair amid an upbeat market mood with heavy upside pressure. As for the Bollinger Bands, the gold was pricing above the upper band and the size between upper and lower bands became larger, which is a signal that the bullish tendency would last. Hence, we think the gold would manage to stabilise above the $1675 mark and aim for a $1700 psychological level.

Resistance: 1675, 1700, 1725

Support: 1632, 1615, 1600

Economic Data

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US stocks declined lower on Thursday, remaining under pressure and extended their post-Fed slide amid concern that a deeper recession could be possible as the Federal Reserve expected to hold rates at a higher level for longer to tame inflation. The Soaring government bond yields and risk-off market mood has exerted bearish pressure on the equity markets, as the 10-year US Treasury yields accelerated to 4.15% after hawkish guidance from the Fed yesterday.

On the economic data side, the US ISM Services PMI declined to 54.4 in October, which came in below the market expectation of 55.5 but failed to drag down the US dollar. Markets focus now shifts to the release of the US Nonfarm Payrolls report in October, which will provide cues about the Fed’s intentions toward December’s monetary policy. In the Eurozone, the divergence between the Fed and the European Central Bank given the dovish stance of the ECB’s governor Christine Lagarde could keep weighing on the euro, as Lagarde emphasised the meeting-by-meeting approach last week.

The benchmarks, S&P 500 and Dow Jones Industrial Average both declined lower on Thursday as the S&P 500 saw its fourth straight decline and was dragged down by big tech companies as Treasury yields climbed. The S&P 500 was down 1.1% daily and the Dow Jones Industrial Average also dropped lower with a 0.5% loss for the day. Six out of eleven sectors in the S&P 500 stayed in negative territory as the Information Technology sector and the Communication Services sector are the worst performing among all groups, losing 3.00% and 2.83%, respectively. The Nasdaq 100 meanwhile dropped the most with a 2.0% loss on Thursday and the MSCI World index was down 1.3% for the day.

Main Pairs Movement

The US dollar advanced higher on Thursday, extending its post-Fed rally and reached fresh weekly highs against most of its major rivals during the US trading session amid souring market sentiment. The greenback remains underpinned by Fed Chair Jerome Powell’s hawkish commentary as he said that rates would be higher than September’s forecast. Meanwhile, the release of the US NFP data on Friday will provide some clarity for further Fed’s monetary policy action.

GBP/USD tumbled heavily on Thursday with a 2.04% loss after the cable extended its slide to two-week lows below the 1.1160 mark amid BoE’s dovish language. On the UK front, the Bank of England’s Governor Bailey said that rates would be lower than market expectations and expects a long-lasting recession will hit the UK. Meanwhile, EUR/USD continued to be controlled by the bears and sank into the 0.9740 area amid a stronger US dollar and the ECB/Fed divergence. The pair was down almost 0.70% for the day.

Gold retreated with a 0.35% loss for the day after recovering some of its daily losses towards the $1,630 area during the late US trading session, as the hawkish commentary by the Fed lifts the greenback and weighs on Gold prices. Meanwhile, WTI Oil declined lower with a 2.03% loss for the day as crude oil prices retreat from the $90.00 area to levels near the $88.00 area.

Technical Analysis

EURUSD (4-Hour Chart)

The EURUSD has managed to stage a rebound after having touched its lowest level in two weeks at 0.9730 earlier in the day, however, as the US dollar preserved its strength following the latest data releases, the pair stays in negative territory and was priced at 0.9775 as of writing.  The US central bank raised the interest rate as expected by 75 bps, while the accompanying statement signalled a potential pivot in the monetary policy. Nevertheless, Federal Reserve Chair Jerome Powell came out with relatively hawkish messages, which made investors change their minds and rush to price in another 75 bps coming in December. Moreover, Powell also implied that the ultimate level of rates would be higher than previously expected. Another side, the Bank of England also pulled the trigger for 75 bps as anticipated, but downwardly revised the growth forecast, expecting the recession will continue. Policymakers now expect the UK economy to contract by 1% in 2024, compared to 0.25% in the previous meeting. In domestic, ECB President Christine Lagarde was on the wires and noted that a recession would not be sufficient to tame runaway inflation.

From the technical perspective,  the four-hour scale RSI indicator slightly rebound from 30 to 32 figured as of writing, suggesting that the pair was surrounded by heavy bearish traction. As for Bollinger Bands, the EURUSD was wandering around the lower band and the gap between upper and lower bands get larger, which is a signal that the downward trend would persist in the near term. As a result, we think the pair would further decline and aim to monthly-low around 0.9664 level.

Resistance:  0.9861, 1.0000, 1.0094

Support: 0.9664, 0.9536

GBPUSD (4-Hour Chart)

The GBPUSD was pricing at the 1.1185 level as of writing and trying to stabilise above 1.1200 after having slumped to the 1.1150 area earlier in the day, with broad-based dollar strength continuing to weigh on the pair. FOMC Chair Jerome Powell’s hawkish remarks during the press conference provided a boost to the US dollar on Wednesday and forced GBPUSD to close in negative territory. Powell said that he expected the terminal rate to be revised higher than previously expected and noted that it was very premature to even think about pausing rate increases, which caused the surge of the US dollar index and dealt with negative traction on the cables. Apart from Fed, the Bank of England also raised its policy rate by 75bps as expected but noted that the peak rate was likely to be lower than 5.2% priced in markets, triggering a Sterling selloff. Moreover, BoE policymakers also downwardly revised the growth forecast, which the UK economy will contract by 1% in 2024, compared to 0.25% in the previous meeting. This indicated that the recession will last for a longer future and deepened investors’ fears about the UK economic situation.

From the technical perspective, the four-hour scale RSI indicator fell sharply below 30 figures as of writing, suggesting the strong negative traction further deepen, but a rebound could be expected due to RSI having entered the oversold zone. As for Bollinger Bands, the pounds were pricing below the lower band and the size between upper and lower bands became larger, signalling the overall downside tendency would continue for a while. Therefore, we think the downside path was more favoured after a slight rebound in the near term.

Resistance: 1.1432, 1.1629

Support: 1.0953, 1.0632, 1.0392

XAUUSD (4-Hour Chart)

Gold managed to regather some strength and was priced at $1632 at the moment after having touched the 2022 low of $1614 during the European session, as the US demand was affected by post-Fed strength and mixed US data.  XAUUSD declined following the hawkish commentary of Federal Reserve Chairman Jerome Powell, saying that the “ultimate level of rates would be higher than previously expected,” spurring a jump in US Treasury bond yields. The yield on the 2-year Treasury note peaked at 4.745%, its highest since 2007, while that on the 10-year note hit an intraday high of 4.22% after Powell noted any discussion on rate hike pausing would be premature, which underpinned the safe-haven greenback and undermined the non-yielding yellow metal. However, data from the United States flashed that business activity continues to expand while the labour market remains tight. The Institute for Supply Management (ISM) reported its Service PMI, which decelerated to 54.4 from 56.7 in September, below estimates of 55.5. Even though the index remained in expansion territory, it’s decelerating, signal Fed officials are looking for.

From the technical perspective, the four-hour scale RSI indicator rebounded from the critical oversold level of 30 to 41 figured as of writing, suggesting the strong downside momentum slowdown. As for Bollinger Bands, the gold was pricing back to the lower area and the size between upper and lower bands became larger, which is a signal the pair would move with relatively large volatility. Hence, we think the yellow metal will hover in a wide range from the $1615 mark to $1660 in the near term.

Resistance: 1675, 1700, 1725

Support: 1632, 1615, 1600

Economic Data