Dear Client,

Warmly reminds you that the component stocks in the stock index spot generate dividends. When dividends are distributed, VT Markets will make dividends and deductions for the clients who hold the trading products after the close of the day before the ex-dividend date.

Indices dividends will not be paid/charged as an inclusion along with the swap component. It will be executed separately through a balance statement directly to your trading account, the comment for which will be in the following format “Div & Product Name & Net Volume ” .

Please note the specific adjustments as follows:

Note: The above data is for reference only, the actual execution data may be changed, please refer to the MT4/MT5 software for details.

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Market Focus

Equities retreated on concern that inflation could weigh on the global economic rebound, pushing central banks to raise interest rates sooner than expected.

Traders took some risk off the table as data signaled house builders are struggling to break ground on projects amid high materials prices and ongoing labor shortages. Target Corp. sank after warning that cost pressures are creeping up, stoking fears they will dent profits at retailers. In late trading, Cisco Systems Inc., the biggest maker of computer networking equipment, slumped on a lackluster revenue forecast, hurt by a shortage of components that’s making it difficult to keep up with demand.

(The data mentioned below is provided by Bloomberg)

Private equity firms are pulling money out of their companies at a breakneck pace, thanks to investors that are pouring money into loan funds to get protection from inflation.

Companies this year have borrowed or are planning to borrow more than $88 billion in the U.S. leveraged loan market to fund dividend payments to their private equity owners. That’s the most for a year since at least 2013 when Bloomberg began compiling the data, which includes loans whose proceeds are in part for dividend payments but also go toward uses like refinancing debt.

Private equity firms are reaping the benefits, using the intense demand for loans to pile even more borrowings onto the heavily-indebted companies they own. KKR & Co.’s Internet Brands, whose assets include the WebMD medical advice website, is borrowing $4.8 billion to refinance debt and to pay a dividend of around $1 billion, according to a report by Moody’s Investors Service.

Main Pairs Movement:

The greenback’s recent hike seemed to run out of gas on Wednesday, with the dollar index falling back to the 95.80s by the end of the New York session having printed fresh 16-month highs at 96.26 in early Asia trade. The White House said a final decision on the Fed chair nominee would be made before Thanksgiving (11/25).

Mixed US housing data failed to spur the greenback higher as positive retail sales, regional Fed manufacturing survey and Consumer Price inflation data did in recent sessions. US yields pulled back a little, with the 10-year benchmark dropping 2bps back to 1.60%, somewhat eroding dollar’s rate advantage.

Most of the major currencies added value against the US dollar. Among all, the JPY was the best performer, as USD/JPY rallied 0.6% amid the US/Japan rate differentials tightened. On the flip side, the AUD/USD down 0.5%. RBA’s dovish stance starts to cap the Australian dollar as the inflationary pressure drives most major central banks to a tighter monetary policy.

Gold closed in green for another day after the two-day correction at the start of the week. Refreshed inflation fears help boost the yellow metal and analysts set up goal up to $1910/ounce. Crude oil prices, however, were smashed on Wednesday, with WTI dropped 3% to $78.20, and Brent declined 2.6% to $80.20.

Technical Analysis:

EURUSD (4- Hour Chart)

Following yesterday’s slide to 1.132 area, the pair EUR/USD continued to stay in negative territory on Wednesday. The pair tumbled further and touched new 2021 lows near 1.126 level in mid-Asian session, but then rebounded back above 1.132 to pared its intraday losses. The previous sharp pullback in the pair was mainly due to US dollar strength, as the upbeat Retail Sales data and rising US Treasury bond yields on inflation fears both acted as a tailwind for the greenback. In Eurozone, CPI report showed that inflation arrives at 4.1% YoY in October, which is the same as market expectations. Earlier in the day, ECB president Christine Lagarde said that tightening monetary policy to ease inflation could suppress the eurozone’s recovery, and the dovish comments dragged the pair lower.

For technical aspect, RSI indicator 23 figures as of writing, suggesting that the pair is in oversold zone, a trend reversal could be possible. For the MACD indicator, the MACD is now sitting below the signal line, which also indicates a possible downward trend for the pair. Looking at the Bollinger Bands, the price moves alongside the lower band, therefore the bearish momentum is likely to persist. In conclusion, we think market will be bearish as the pair still remain under pressure, and a test of the 1.1168 support is likely.

Resistance: 1.1464, 1.1608, 1.1692

Support: 1.1168, 1.0871

GBPUSD (4- Hour Chart)

The pair GBP/USD advanced on Wednesday, continuing to recover from yearly lows that touched last week. The pair preserved its bullish momentum and reached a fresh daily top near 1.349 area in early American session. The cable was last seen trading at 1.3485, rising 0.42% on a daily basis. Recent buying witnessed in GBP/USD pair arise from hotter-than-expected UK CPI report, which showed that consumer prices surged to 4.2% in October with the fastest pace since December 2011. The stronger data underpinned the GBP/USD pair and enhanced expectations for an early rate hike by BoE. However, the prospects for an early policy tightening by the Fed might cap the upside for the pair.

For technical aspect, RSI indicator 59 figures as of writing, suggesting bull movement ahead. Looking at the MACD indicator, the increasing positive histogram also indicates a possible upward trend for the pair. As for the Bollinger Bands, the price is moving out of the upper band, therefore a strong trend continuation could be expected. In conclusion, we think market will be bullish as the pair is heading to re-test the 1.3607 resistance. The bullish tone could be intensified if the pair break above that resistance.

Resistance: 1.3607, 1.3698, 1.3830

Support: 1.3353

USDCAD (4- Hour Chart)

Following previous day’s rebound from 1.250 area, the pair USD/CAD continued to climb further on Wednesday. The pair edged lower and touched a daily low in early European session, but started to see heavy buying entering American trading hours. Now USD/CAD pair is flirting with 1.260 level, currently rising 0.32% on a daily basis. Falling crude oil prices weighed heavily on the commodity-linked loonie and acted as a tailwind for the pair, as WTI dropped to fresh daily lows despite a positive inventory report. The surging oil demand might encourage the Biden administration to release crude oil reserves.

For technical aspect, RSI indicator 71 figures as of writing, suggesting that the pair is in overbought zone, a trend reversal could be possible. Looking at the MACD indicator, the MACD is now sitting above the signal line, which also indicates a possible upward trend for the pair. As for the Bollinger Bands, the price is moving out of the upper band, therefore a strong trend continuation could be expected. In conclusion, we think market will be bullish since the pair has rose above the previous 1.2605 support..

Resistance: 1.2648, 1.2775, 1.2849

Support: 1.2493, 1.2387, 1.2288

Economic Data

Dear Client,

As part of our commitment to providing the best reliability and service to our client, we are planning an upgrade in our MT4/MT5 server and Client Portal on this weekend.

As a result, we will keep the maintenance according to the following schedule and will reopen for trading at 00:00 (GMT+2, system time) on Monday, November 22, 2021.

Kindly be reminded that the following things might be affected during this maintenance period:

1. The login and operation of the client portal

2. The login of the trading account

3. Demo accounts will be temporarily unavailable for opening/logging/trading.

4. The quotations on MT5 server will be paused. Clients might not be able to open new positions or close the held positions.

5. There might be a gap between the original price and the price after maintenance. Pending orders, Stop Loss, and Take Profit settings within the gap will be filled at the market price after maintenance ends.

After the upgrade, clients can login to trading account using the server which is shown in the account activation mail.

No action is required by our client. Your service will be back online after the maintenance is completed.

Thank you for your patience and understanding with regard to this important initiative.

If you’d like more information, please don’t hesitate to contact [email protected].

Market Focus

Eqiuities climbed after the largest increase in U.S. Retail Sales since March, with reports from industry leaders Walmart Inc. and Home Depot Inc. showing strong demand even as inflation pares down purchasing power.

The robust retail figures along with better-than-anticipated Industrial Production and Housing Market index helped lift the US stocks, overshadowing words from St. Louis Fed’s head James Bullard that the central bank should accelerate its cut on monetary stimulus to ease inflation. All major equity benchmarks advanced, with the S&P 500 extending its November uptrend, Nasdaq surging 0.76% to 15973.86, and Dow Jones up a modest 0.15%, closing the day at 36142.22.

China is speeding up plans to replace American and foreign technology, quietly empowering a secretive government-backed organization to vet and approve local suppliers in sensitive areas from cloud to semiconductors, people familiar with the matter said.

Formed in 2016 to advise the government, the Information Technology Application Innovation Working Committee has now been entrusted by Beijing to help set industry standards and train personnel to operate trusted software. The quasi-government body will devise and execute the so-called “IT Application Innovation” plan, better known as Xinchuang (新創) in Chinese. It will choose from a basket of suppliers vetted under the plan to provide technology for sensitive sectors from banking to data centers storing government data, a market that could be worth $125 billion by 2025.

The existence of the Xinchuang white-list, whose members and over-arching goals haven’t been previously reported, is likely to inflame tensions just as Presidents Joe Biden and Xi Jinping wrapped up their first face-to-face virtual summit. It gives Beijing more leverage to replace foreign tech firms in sensitive sectors and quickens a push to help local champions achieve tech self-sufficiency and overcome sanctions first imposed by the Trump administration in fields like networking and chips.

Main Pairs Movement:

The greenback beat most of its major rivals amid the dollar index reaching fresh 2021 highs. The dollar was partially underpinned by a sour market mood, later by upbeat US Retail Sales.

Many fresh macro events were due on Tuesday. The upbeat UK labor market figures helped Cable to climb amid the robust USD, while the Euro pair continued its downtrend the previous day, as there was no surprise in the European GDP. Commodity-linked currencies were all shattered by the soaring dollar and the weakness of the oil prices, AUD/USD down 0.6% to 0.7300, and USD/CAD climbed 0.35% to 1.2550. The Japanese Yen was the worst performer, with USD/JPY surging 0.61% to a fresh yearly high at 114.85.

Gold reached a fresh multi-month high of $1,877.15 but pulled back to close in the red for a second consecutive day in the 1,850 price zone. Crude oil prices were mixed, with WTI down to $79.70 a barrel, and Brent posted a modest gain to $82.35. EU gas prices were up over 12%, as Germany suspended Nord Stream 2 certification. Geopolitical tensions escalated in Europe, along with the higher gas prices, would add pressure to current inflationary situations.

Technical Analysis:

EURUSD (4- Hour Chart)

The pair EUR/USD continued to fall on Tuesday, touching the lowest level since July 2020 and remains under heavy pressure. The pair was flirting with 1.137 area during Asian and early European session, but then dropped towards a fresh yearly low amid renewed US dollar strength. The pair is currently losing 0.20% on a daily basis. Furthermore, the US Retail Sales released today showed an expansion of 1.7% in October, while Industrial Production expanded 1.6%. The upbeat data underpinned the greenback and pushed the DXY index higher to 95.74 at the time of writing. Investors now awaits ECB President Lagarde’s speech, as a different tone might change the outlook on the EUR/USD.

For technical aspect, RSI indicator 18 figures as of writing, suggesting that the pair is in oversold zone, a trend reversal could be possible. For the MACD indicator, the MACD is now sitting below the signal line, which also indicates a possible downward trend for the pair. Looking at the Bollinger Bands, the price moves alongside the lower band, therefore the bearish momentum is likely to persist. In conclusion, we think market will be bearish as the continuation of the downtrend could drag the pair lower, a drop below 1.1168 opens the door to a deeper pullback.

Resistance: 1.1464, 1.1608, 1.3834

Support: 1.1168, 1.0871

USDCAD (4- Hour Chart)

The pair USD/CAD advanced on Tuesday, ending its previous two-day slide amid resurging US dollar. The pair followed yesterday’s bear movement and dropped to a four-day low in early Asian session, but then rebound back above 1.254 level during American session. The pair is currently rising 0.28% on a daily basis. In addition to the surprising US Retail Sales report, the cautious market sentiment and hawkish Fed expectations also supported the safe-haven US dollar, which caused the USD/CAD pair to see fresh buying. But the pull back witnessed in US Treasury bond yields might cap the upside for the pair. On top of that, falling crude oil prices also weighed on the commodity-linked loonie.

For technical aspect, RSI indicator 58 figures as of writing, suggesting bull movement ahead. Looking at the MACD indicator, the diminishing negative histogram also indicates a possible upward trend for the pair. As for the Bollinger Bands, the price crossed above the moving average after touching the lower band, therefore the upper band becomes the profit target. In conclusion, we think market will be bullish as the pair is heading to re-test the 1.2605 resistance. The bullish tone could be intensified if the pair break above that resistance.

Resistance: 1.2605, 1.2775, 1.2896

Support: 1.2387, 1.2288

AUDUSD (4- Hour Chart)

The pair AUD/USD tumbled on Tuesday, retreating from daily highs above 0.7365 level due to stronger US dollar across the board. The pair is surrounded by heavy selling pressure, losing 0.47% on a daily basis. Upbeat US Retail Sales data lend some support to the US dollar and dragged the AUD/USD pair lower. Moreover, the Reserve Bank of Australia announced its monetary policy minutes today, as the bank insisted on its previous standpoint that the cash rate will stay unchanged until 2024 unless wage growth and inflation targets are met. RBA Governor Philip Lowe also said that recent data would not support a rate hike in 2022.

For technical aspect, RSI indicator 38 figures as of writing, suggesting bear movement ahead. Looking at the MACD indicator, a death cross is forming on the histogram, which also indicates a bear market. As for the Bollinger Bands, the price crossed below the moving average after touching the upper band, therefore the lower band becomes the loss target. In conclusion, we think market will be bearish as the pair is eyeing a test of the 0.7277 support.

Resistance: 0.7371, 0.7431, 0.7471

Support: 0.7277, 0.7227, 0.7170

Economic Data

Market Focus

After closing down 0.3% to 0.7% last week, the three major US stock indices opened higher this week. As optimistic Chinese economic data eased concerns about the slowdown in the world’s second largest economy, world stock markets are optimistic after recent record highs.

Five minutes after the market opened, the three indexes opened higher, the Dow Jones Industrial Average rose by 0.32%, the S&P500 Index rose by 0.23%, and the Nasdaq Index rose by 0.26%. However, as US Treasury yields reversed and climbed, these three indices became weaker. In the end, the S&P 500 Index closed flat at 0.0%, the Dow Jones Industrial Average fell 0.04%, and the Nasdaq Index fell 0.07%.

Utilities, energy and consumer staples-the defensive sector of the market-led the gains, indicating that investor sentiment remains unstable. In the utility index, Entergy Corp outperformed the market on a strong trading day, rising 3.39% to $105.04. Tyson Foods has become the largest increase in consumer staples after announcing that its fourth-quarter earnings and profits exceeded expectations. Kinder Morgan, Phillips 66 and Chevron led gains in the energy sector, thanks to UBS’s upgrade to a neutral buy rating based on higher oil price expectations. On the other hand, the rise in U.S. Treasury yields is reflected in Tesla, dragging down consumer discretionary stocks. The company’s stock price fell 1.9% and continued to fall since last week, when CEO Elon Musk sold Tesla stock worth nearly $7 billion.

Main Pairs Movement:

After the optimistic Chinese data, market sentiment was positive at the opening of the market, but subsided after the opening of Wall Street. U.S. Treasury yields rose without a clear catalyst. The reversal of Treasury yield gave the greenback strong momentum, pushing the US dollar index above the level of 95, which is a new high since July 2020. As the US dollar climbed, the euro performed the worst, falling to a new low of 1.1381 against the dollar in 2021.On the other hand, as inflation hit a new high in the United States, the price of gold has climbed to its highest level in nearly three months. The gold after breaking through the pivot resistance level of $1,834, gold has set a five-month high of $1,870.The next important resistance level is $1,878, then $1,900.

On Tuesday, the Bank of Australia will release the latest meeting minutes, while the US will release October retail sales data. In addition, the UK will release employment data for October.

Technical Analysis:

GBPUSD (4- Hour Chart)

Following last Friday’s recovery move from yearly lows, the pair GBP/USD continued to rebound on Monday. The pair dropped to a daily low in early European session, but then started to see some fresh buying and climbed above 1.342 level amid US dollar’s weakness. The cable now stays in positive territory while rising 0.09% on a daily basis. The downbeat US consumer sentiment data and risk-on market sentiment undermined the safe-haven greenback and pushed the GBP/USD pair higher. However, concerns about that UK will trigger Article 16 of the Northern Ireland Protocol might cap the upside for the pair. The good news is, UK Prime Minister’s spokesman said their aim to reach a consensual solution on to the protocol remains.

For technical aspect, RSI indicator 46 figures as of writing, suggesting tepid bear movement ahead. But for the MACD indicator, the MACD is now sitting above the signal line, which also indicates a possible upward trend for the pair. Looking at the Bollinger Bands, the price rose from the lower band and crossed above the moving average, a bull market could be expected. In conclusion, we think market will be bullish as long as the 1.3353 support line holds, which is a yearly low that touched last week.

Resistance: 1.3607, 1.3698, 1.3834

Support: 1.3353

USDJPY (4- Hour Chart)

The pair USD/JPY stayed in positive territory on the first day of a new trading week, trading in a range below 114.00 level. The pair took a roller coaster ride most of the day without a specific direction, currently rising 0.20% on a daily basis. The risk-on sentiment around the equity markets and resurging US dollar strength both extended some support to the USD/JPY pair. Furthermore, the downbeat Japan Q3 GDP report which showed that the economy contracted more than expected by 0.8%, undermining the safe-haven Japanese Yen. The dovish comments by Bank of Japan Governor also kept a lid on any meaningful gains for the Yen.

For technical aspect, RSI indicator 58 figures as of writing, suggesting tepid bull movement ahead. But looking at the MACD indicator, the MACD is now sitting below the signal line, which indicates a possible downward trend for the pair. In conclusion, we think market will be bullish as the pair is heading to re-test the 114.3 resistance. If the pair break above that resistance line, a test of the monthly high at 114.70 seems likely.

Resistance: 114.30, 114.70

Support: 113.26, 112.73

AUDUSD (4- Hour Chart)

The pair AUD/USD advanced on Monday, gaining some bullish momentum for the second day amid the underlying bullish sentiment in the financial markets. The pair touched a three-day top near 0.737 level in mid-European session, now retreated slightly and pared some of its intraday gains. The recent buying witnessed in AUD/USD pair is mainly due to stronger Chinese macro data today. As the Chinese Industrial Production rose 3.5% in October, while Retail Sales rose 4.9%, both above economist’s forecasts. In addition to that, the risk-on market mood also acted as a tailwind for the riskier Aussie. Investors now await the RBA meeting minutes and RBA Governor’s speech tomorrow for trading impetus.

For technical aspect, RSI indicator 57 figures as of writing, suggesting bull movement ahead. Looking at the MACD indicator, the positive histogram shows big distance between the MACD and its signal line, which means bullish momentum is high. As for the Bollinger Bands, the price crossed above the moving average and ready to touch the upper band, which could be a buying signal for the pair. In conclusion, we think market will be bullish as the pair is eyeing a test of the 0.7432 resistance.

Resistance: 0.7432, 0.7471, 0.7556

Support: 0.7277, 0.7227, 0.7170

Economic Data

Market Focus

US equities advanced on Friday after a mixed session in the markets, with both earnings and inflation data remaining at the investor’s focus. The S&P 500 posted gains, and both the Dow and Nasdaq also closed out Friday’s session in the green after a volatile trading week. Johnson & Johnson (JNJ) rose after the company said it was planning to split into two separate companies focused on consumer health products and pharmaceuticals, respectively, in a move echoing a similar breakup announcement by General Electric (GE) earlier this week.

Federal Reserve Bank of Minneapolis President Neel Kashkari said the U.S. central bank shouldn’t overreact to elevated inflation even as it causes pain for Americans, because it is likely to prove temporary.

“The high prices that families are paying, those are real and people are experiencing that pain right now,” Kashkari said Sunday on CBS’ “Face the Nation.”

“We need to take it very seriously, but my view is we also need to not overreact to some of these temporary factors even though the pain is real,” he said.

The consumer price index increased 6.2% in the 12 months through October, the fastest annual pace since 1990, according to Labor Department data released last week. That has increased the pressure on the Fed from some economists to accelerate its withdrawal of support for the U.S. economy.

Former Treasury Secretary Lawrence Summers, speaking Sunday on CNN’s “Fareed Zakaria GPS,” said inflation’s momentum has built up to a point where “it’s going to take some significant policy adjustment or some unfortunate accident that slows the economy before inflation gets back to the 2% range.”

Fed policy makers announced November 3^rd that they had agreed to begin reducing monthly bond purchases designed to boost the economy by suppressing borrowing costs. They left their benchmark interest rate in a range between zero and 0.25%.

Main Pairs Movement:

The US dollar lost its strength against most of its major rivals during Friday’s trading hours. The dollar index hovered around a tight range just above 95.00, with losers on Thursday taking back their lost lands, and the shared currency being the worst performer as the selling pressure are still strong amid a dovish ECB.

The Euro pair continues to drill to its yearly low, pinned 1.1433 and ending the day 10 pips above it. Cable recovered all of its losses on Thursday after a 50-pip surge, closing the week at 1.3412. Loonie bounced off 1.2600 at the early London hours, but then failed to fuel the uptrend and fell to 1.2550 at the end of the day. Aussie, however, posted gains against the greenback, up 0.6% and now trades at 0.7330, while Ninja lost ground on Friday, closing the day at 113.85.

Gold’s demand remains robust amid a weeklong gaining streak. Spot trades above $1,867 a troy ounce, a price last seen in June. Crude oil prices underwent a mild loss, with WTI ending the day red at $80.80 a barrel, and Brent down to $81.95.

Technical Analysis:

GBPUSD (4- Hour Chart)

Following previous two-day slide to a yearly low, the pair GBP/USD rebounded moderately on Friday. The pair was pushed higher to daily top in early European session, then started to see some selling and pared part of its intraday gains. However, the pair still stays in positive territory amid US dollar weakness, rising 0.36% on a daily basis. British Pound is the best performing G10 currency so far today, as news reported that the UK wants to de-escalate Brexit-related tensions with the EU and they don’t want to trigger Article 16 of the Northern Ireland Protocol. But the Bank of England’s dovish decision last week might continue to cap the upside for the cable.

For technical aspect, RSI indicator 40 figures as of writing, suggesting bear movement ahead. But for the MACD indicator, a golden cross is forming on the histogram, which indicates an upward trend for the pair. Looking at the Bollinger Bands, the price rose from the lower band and now it’s moving towards the moving average. Therefore the pair will experience some bullish momentum since prices have a tendency to bounce within the bands’ envelope. In conclusion, we think market will be bullish as long as the 1.3355 support line holds.

Resistance: 1.3607, 1.3698, 1.3835

Support: 1.3355, 1.3188

USDJPY (4- Hour Chart)

The pair USD/JPY declined on Friday, pulling back from a two-week high above 114.25 level. The pair supported by US dollar strength in early Asian session, but failed to keep its bullish traction and dropped further during American trading hours. USD/JPY has slightly rebounded from a daily low, currently losing 0.14% on a daily basis. The risk-off sentiment around the equity markets and lower US Treasury bond yields both underpinned the safe-haven Japanese yen, but expectations about an early policy tightening by the Fed after an upbeat US CPI reports should lend some support to the greenback and limit the losses for USD/JPY pair.

For technical aspect, RSI indicator 54 figures as of writing, suggesting tepid bull movement ahead. But looking at the MACD indicator, the positive histogram starts to diminish which indicates a possible downward trend for the pair. As for the Bollinger Bands, the negative tone should be intensified if the pair drop below the moving average. In conclusion, we think market will be bearish as long as the 114.30 resistance line holds, and if the pair slip below the 113.26 support, a test of the monthly lows seems likely.

Resistance: 114.30, 114.70

Support: 113.26, 112.73

AUDUSD (4- Hour Chart)

The pair AUD/USD rebounded on Friday, ending its three-day slide amid weaker US dollar across the board. The pair saw some selling in early Asian session but then was able to find demand later, posting a 0.55% gain for the day. The University of Michigan Consumer Sentiment Index for November declined to 66.8, marking the lowest reading since November 2011. Concerns about surging inflation resulted in the dismal data, which dragged the greenback under 95.1 area. On top of that, downbeat Australian jobs report and rising unemployment rate might limit any meaningful gains for the AUD/USD pair.

For technical aspect, RSI indicator 45 figures as of writing, suggesting tepid bear movement ahead. But looking at the MACD indicator, a golden cross is shown on the histogram, which indicates a upward trend for the pair. As for the Bollinger Bands, the price moved alongside the lower band first and then rebounded toward the moving average, which could be a buying signal for the pair. In conclusion, we think market will be bullish as the pair is eyeing a test of the 0.7432 resistance.

Resistance: 0.7432, 0.7471, 0.7536

Support: 0.7277, 0.7227, 0.7170

Economic Data

Market Focus

U.S. equities pared back a rebound Thursday after a selloff in the previous session due to fears that high inflation could spur more hawkish monetary policies. The Nasdaq Composite climbed 0.52% after plummeted 1.66% on Wednesday, while the Dow Jones slip 0.44%, following the 0.66% slump in the previous day.

The S&P 500 gained less than 0.1% — led by gains in materials and technology — after falling 0.8% Wednesday in its worst slump in more than a month. Tesla Inc. fluctuated after filings showed CEO Elon Musk unloaded $5 billion of stock. Meanwhile, Walt Disney Co. slid and Beyond Meat Inc. plunged after disappointing quarterly figures.

Top White House officials don’t believe that Fed Chair Jerome Powell’s sale of shares in a stock index fund last year disqualify him from being appointed to a second term, according to people familiar with the matter.

Back to last October, Powell sold a stock index fund worth between $1 million and $5 million. The transaction was outside the Fed’s blackout period and months after the Fed had set its pandemic monetary policy. However, as the Fed chair nomination looms, even the tiniest move will come under close scrutiny.

President Joe Biden has said he will decide “fairly quickly” on his Fed chair pick, since Powell’s term as chair expires in February. According to Bloomberg news, the president has met last week with both Powell and Fed Governor Lael Brainard at the White House. Indications of the White House thinking on the trading situation don’t mean Powell will get the nomination. But they do suggest that area of contention over the current chair has receded. Some within the administration who support Brainard for chair are still concerned about the trades, the people said.

Main Pairs Movement:

The US dollar continues its uptrend amid the skyrocketing inflation that drove the investors to risk-off mode. The dollar index climbed to a fresh 2021 high of 95.15, and the greenback posted gains against all its major rivals, with the Australian dollar being the worst performer as the commodity market is experiencing a price correction.

The EUR/USD pair fell to its lowest for this year, hitting 1.1445 and ending the day a handful of pips above it. The selling pressure for the shared currency comes from central banks imbalances, as while the Fed has already kick-started tightening and may have to accelerate its pace, the ECB maintains a conservative stance.

Cable also plummeted to fresh lows around 1.3360 during the day, as poor UK data dragged the price action down. Loonie flirts with the 1.2600 level, posting a fresh monthly high, while Ninga regains 114.00, last seen trading at 114.05.

Gold retained its strength, advancing for a sixth consecutive day. Spot trades above $1,860 a troy ounce and has room to extend its rally towards the 1,900 mark. Crude oil prices seesawed between gains and losses, with WTI ending the day little changed at $81.50 a barrel, and Brent remaining at $82.50.

Technical Analysis:

GBPUSD (4- Hour Chart)

The pair GBP/USD declined on Thursday, following yesterday’s sharp slide to two-month lows under 1.342 level. The pair was trading higher and touched a daily high in late Asian session, but then started to see fresh selling after the release of UK GDP report. The downbeat data showed that the UK economy expanded by 1.3% during the July-September period, which is less than expected of 1.5%, and meanwhile marked a sharp deceleration from 5.5% growth reported in the previous quarter. Manufacturing Production data also fell short of expectations. Moreover, a stronger US dollar across the board and concerns that the UK government will trigger Article 16 of the Northern Ireland Protocol both weighed on the cable.

For technical aspect, RSI indicator 30 figures as of writing, suggesting that the pair is in oversold zone and a trend reversal could be expected. For the MACD indicator, the MACD is now sitting below the signal line, which also indicates a possible downward trend for the pair. Looking at the Bollinger Bands, the price moved out of lower band first, and now it’s moving alongside the band, which indicates a bear market. In conclusion, we think market will be bearish as the pair might have a chance to test the 1.3214 support, which was last seen in December 2020.

Resistance: 1.3607, 1.3698, 1.3835

Support: 1.3214, 1.3135

AUDUSD (4- Hour Chart)

The pair AUD/USD is having a tough week, staying in the negative territory for three days. The pair extends its previous decline, touching the lowest level since October 8. It is hovering around 0.73 area, currently losing 0.44% on a daily basis. AUD/USD continue its bearish traction amid weaker Australian jobs report today, as the Australian Employment Change for October dropped 46.3K, which is sharply lower than the 50K rise expected by analysts. The Unemployment Rate, meanwhile, jumping from 4.7% to 5.2%. In addition to the economic data, the renewed US dollar strength also weighed on the pair.

For technical aspect, RSI indicator 28 figures as of writing, suggesting that the selling pressure is too high, and the pair could experience some trend reversals. Looking at the Bollinger Bands, the price moves alongside the lower band, therefore the bearish momentum is likely to persist. In conclusion, we think market will be bearish as the pair will likely extend the downward move and head to test the 0.7226 support. A break under that support exposes the September 29 low at 0.7170.

Resistance: 0.7393, 0.7432, 0.7471

Support: 0.7226, 0.7170

USDCAD (4- Hour Chart)

Following yesterday’s remarkable rally, the pair USD/CAD continued to advance on Wednesday amid surging US dollar. The pair climbed higher after breaking above the key resistance at 1.2480, now hoping to surpass the 1.260 level. The DXY index has gained bullish momentum since the release of Wednesday’s hot US CPI report. On top of that, oil prices dropped sharply amid fears that the Biden administration will release crude oil reserves to deal with high energy costs due to inflation pressures. The falling oil prices also dragged the commodity-linked loonie lower.

For technical aspect, RSI indicator 78 figures as of writing, suggesting that the pair is in overbought zone and a trend reversal could be expected. Looking at the MACD indicator, the MACD is now sitting above the signal line, which also indicates a upward trend for the pair. As for the Bollinger Bands, the price is moving out of the bands so a strong trend continuation can be expected. In conclusion, we think market will be bullish as the pair is eyeing a test of the 1.2648 resistance. A surge above that level should strengthen the positive tone.

Resistance: 1.2648, 1.2775, 1.2896

Support: 1.2387, 1.2288

Economic Data

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Market Focus

US stocks have continued to fall in the past trading day and have been weak since the market opened. After the US consumer price inflation report in October was much hotter than expected, inflation concerns led to massive sell-offs. The data shows that the overall CPI rose 6.2% YoY and 0.9% MoM, much higher than expected, while the core CPI rose 4.6% YoY and 0.6% MoM, which was also much higher than expected. The YoY growth rate of CPI was the highest since 1990, while the YoY growth rate of core CPI was the highest since the early 1990s. The worst inflation since 1990 has forced investors to believe more that the Fed will have to raise short-term interest rates faster from historical lows. This, in turn, made U.S. Treasury yields their biggest increase in months. Higher yields tend to hurt high-growth stocks, with the S&P 500, Dow Jones Industrial Average and Nasdaq all falling.

After the market closed, the S&P 500 fell 0.8% to 4,646.71, the Dow Jones Industrial Average fell 0.7% to 36,079.94 and the Nasdaq fell 1.7% to 15,622.71. Energy stocks were one of the sectors with the largest decline in the S&P 500. Coterra Energy, Occidental Petroleum, Hess, Diamondback Energy and Halliburton all fell about 5%.

Main Pairs Movement:

The consumer price index surged to its highest level in 30 years in October, rising by 6.2% YoY, leading to soaring yields and falling stock markets, reflecting increased concerns about further tightening policies.

In such a state of high inflation, U.S. Treasury bond yields have soared, the U.S. dollar has risen, and gold has skyrocketed because of risk aversion. Hence, the market expects that the Fed will need to accelerate its bond scale reduction in the face of long-term inflation and currently market participants expect the Fed to raise interest rates in June 2022.

As the soaring of the greenback, most of the rival currencies fell against the U.S. dollar. At the time of writing, the EUR/USD settled below 1.1500, its lowest since July 2020, and stay around the level of 1.4864, and the GPB/USD near the level of 1.34178, which also below its support level.

XAU/USD hit a recent high of $1,868.61 and then retreated. It is currently at $1,852.33 per ounce, which is still on an upward trend.

Technical Analysis:

GBPUSD (4- Hour Chart)

The pair GBP/USD declined on Wednesday, surrounding by heavy selling amid stronger US dollar across the board. The pair was trading in consolidation in early Asian session, but bear started to take over during European session. The US CPI data showed that the headline CPI rose 0.9% MoM in October and the yearly rate accelerated to the most since 1990 at 6.2%. Therefore, the hotter-than-expected US CPI underpinned the greenback as it reinforced speculations about an early policy tightening by the Fed. In the UK, dovish BoE and Brexit concerns keep weighing on the GBP/USD pair.

For technical aspect, RSI indicator 34 figures as of writing, suggesting bear movement ahead. For the MACD indicator, a death cross showed on the histogram, indicating a possible downward trend for the pair. If we take a look at the Bollinger Bands, the price crossed above the moving average after touching the higher band, therefore the lower band becomes the loss target. In conclusion, we think market will be bearish as the pair is heading to test the 1.3424 support. If the support line doesn’t hold, additional losses could be expected.

Resistance: 1.3607, 1.3698, 1.3835

Support: 1.3424

AUDUSD (4- Hour Chart)

Following previous day’s heavy losses, the pair AUD/USD stay in the negative territory for the second day on Wednesday, currently losing 0.18% on a daily basis. The pair witnessed fresh buying after the releasing of the US CPI data, but then quickly reversed its intraday gains and dropped to monthly low. The hotter-than-expected US consumer report underpinned the US dollar and put some selling pressure on the pair, as the headline CPI rose 0.9% in October, which is the largest advance in four month. The data added to concerns about high inflation and acted as a tailwind for the US Treasury bond yields. Investors now await the release of the Australian jobs report tomorrow.

For technical aspect, RSI indicator 37 figures as of writing, suggesting bear movement ahead . As for the MACD indicator, The MACD is now sitting below the signal line, which also indicates a possible downward trend for the pair. Looking at the Bollinger Bands, the price moves alongside the lower band, therefore the bearish momentum is likely to persist. In conclusion, we think market will be bearish as the pair failed to break the 0.7433 resistance and now heading to test the 0.7324 support.

Resistance: 0.7433, 0.7474, 0.7555

Support: 0.7324, 0.7227, 0.7170

USDCAD (4- Hour Chart)

The pair USD/CAD advanced on Wednesday amid US dollar strength, touching a fresh daily top at the time of writing. Despite dropping to a six-day low after the US CPI report, the pair rebounded back above 1.245 level as the DXY index regain upside momentum. On top of that, falling crude oil prices weighed on the Loonie after the latest official weekly US crude oil inventory report released. The report showed that crude oil stocks had risen by just over 1M barrels last week. But crude oil’s near-term prospects should remain bullish given the fact that global oil demand is recovering to pre-pandemic levels.

For technical aspect, RSI indicator 60 figures as of writing, suggesting bull movement ahead. Looking at the MACD indicator, a golden cross is forming in the histogram, which indicates a bull market. As for the Bollinger Bands, the price is moving out of the bands so a strong trend continuation can be expected. In conclusion, we think market will be bullish as the pair may try to re-test the 1.2499 resistance, a recovery above 1.2499 should strengthen the positive tone.

Resistance: 1.2499, 1.2648, 1.2775

Support: 1.2378, 1.2326, 1.2288

Economic Data

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