Dear Clients,

Please note change of the following products when Europe will enter Standard time that begins in October 30th, 2021.

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

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

Market Focus

All three major U.S. stock indices recorded weekly gains on the back of better than expected 3^rd quarter earnings results from major companies. The Dow notched another record close on Friday to close at 35677.02. The S&P 500 lost 0.1% to close at 4544.9, while the Nasdaq lost 0.8% to close at 15090.2. The U.S. 10 year Treasury yield trended higher to close at 1.638%.

Major companies including Procter & Gamble and Netflix both reported their 3^rd quarter earning results during this week. Procter & Gamble reported Q3 earnings that beat Wall Street’s estimate as consumers continue to demand cleaning supplies and beauty products. Netflix also posted better than expected earnings as the company was able to add 4.4 million subscribers over the quarter. Facebook, AMD, Alphabet Inc, Amazon Inc, and Berkshire Hathaway are among the major companies that will report their Q3 earnings for this week.

Cryptocurrencies enjoyed a healthy rise over the past week as Bitcoin rallied past $60,000 and reached historical heights. Ethereum and other alternative coins also experienced healthy gains. As of writing, Bitcoin is trading at $61,071, Ethereum is trading at $4088, and XRP os tradomg at $1.0803.

This week’s economic docket is highlighted by the Australian CPI, U.S. GDP for Q3, U.S. initial jobless claims and the European Union CPI.

Main Pairs Movement:

The Greenback rose on Friday as Fed Chair Jerome Powell’s speech, once again, affirms the Fed’s previously adopted hawkish stance. In his speech, Fed Chair Jerome Powell, reiterates the urgency to begin tapering, while at the same time stating that it is not time for a rate hike, yet. Chairman Powell also provided a positive outlook on the recent supply chain crunch as he expects constraints to ease as expected and it is “very possible” that the Fed’s full employment goal would be met by next year.

Most currency pairs against the dollar struggled as the Greenback gained steam. USDJPY, however, experienced a 0.44% daily slide as the pair could have already reached some investors profit taking level. GBPUSD saw a 0.3% intraday decline. The Pound struggled due to weaker than expected September retail sales. USDCAD gained 0.03% as the Dollar strengthens to help the pair extend yesterday’s winning session.

Technical Analysis:

USDJPY (Daily Chart)

The USD/JPY pair dived deeper on Friday, extending its southern corrections from muti-year highs at 114.70 to session lows right above 113.40. The pair started its intraday slide since the early European session, rebounded slightly as the Powell’s speech talking about an upcoming taper from the Fed, and then resumed its downside sloping afterward.

On Friday’s speech, Fed Chair Jerome Powell said that he thinks it is the time to start reducing asset purchases, which reaffirmed the investors’ anticipation of November tapering and rose a sudden panic throughout the market. The dollar has surged for a bit, though, it did not stop the selling stream of the USD/JPY. A possibility for that may be profit-taking, as some investors might have closed their long positions after the prolonged USD/JPY uptrend.

On the technical front, both the daily MACD histogram and the RSI indicator are still at the bullish side. The price actions have been away from the top of the Bollinger band, sparing some rooms for further rally.

Resistance: 113.75, 114.70

Support: 112.65, 110.97, 109.17

GBPUSD (Daily Chart)

Cable continue its yesterday’s decline, edging lower to end the week at 1.3755. The pair climbed higher to a daily top in early European session but failed to preserve its bullish momentum afterward, as the Fed’s Chair Powell popped up taper issues in his speech during the American trading hours, which led the pair plummeted over 40 pips in a sudden.

Sterling’s weakness may derive from the dismal retail sales data. The UK retail sales released Friday showed a -0.2% reading in September, a big miss to market’s expectation of 0.5%. The downbeat macros also revived the Covid concerns as UK policymakers rejected restrictions, further weighing on the British Pound.

On the technical aspect, both the MACD histogram and RSI indicator remain in the bullish territory, suggesting the demand for the Quid is still robust. Considering the looming UK rates hike plan, it is reasonable to expect the pair to get back to its upward track.

Resistance: 1.3830, 1.4000, 1.4220

Support: 1.3720, 1.3580, 1.3410

USDCAD (Daily Chart)

Loonie defended its gains on Thursday and successfully closed in the green amid the broader greenback strength. The pair once climbed to daily high at 1.2383, which matched Thursday’s high, and consolidates near the high afterward, with a strong bullish impulse. A break higher would clear the way for a test of 1.2400.

A stronger US dollar across the board has been the critical driver in the Loonie pair. Fed Chair Powell mentioned that high inflation will likely last well into next year. He affirmed that it is the time to taper QE but not to raise rates. Commodities including crude oils reversed sharply after Powell’s speech.

On the technical front, both the daily MACD histogram and the RSI indicator are still deeply under the bearish territory. The price actions lingered around the 61.8% Fibonacci throughout the day, some catalysts may be required to breakthrough this awkward situation.

Resistance: 1.2478, 1.2727, 1.2949

Support: 1.2229, 1.2007

Economic Data

Dear Clients,

Along with the gradual recovery of International financial markets, the trading environment for major indices becomes more stable. Therefore, it’s VT Markets’s pleasure to announce that there’ll be relaxation, which is stated below, on the requirements of trading indices contracts.

1. The stops-levels of all indices contract will be reduced to 0.
VT Markets will enforce this new policy at 00:00 on Oct. 30th, 2021 (GMT+3).

2. The leverage of indices contracts will be between 100:1 and 500:1 (It’s subject to your account leverage) instead of being fixed at 333:1.
VT Markets will enforce this new policy at 00:00 on Nov. 1st, 2021 (GMT+3).

Notes: The figures above are only for reference. The actual execution data should be subject to the numbers on MT4/MT5.

Friendly reminders:
1. All contract specifications of Indices stay the same except the stops-levels and leverages.
2. If there’s any Indices position in your trading account and your account leverage is between 100:1 and 300:1, there might be liquidations due to increasing margin requirements after the leverage modification. Therefore, VT Markets recommends that you retain sufficient funds in your trading account before this modification to keep those positions.

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

Market Focus

US markets were mixed amid strong earning reports from companies and upcoming Fed’s tapering move. The S&P 500 continued to notch a new record, and the tech- heavy weighted Nasdaq Composite rose 0.6% on Thursday. The Dow Jones Industrial Averages closed a bit lower after reaching a all- time high on Wednesday, dropping 6 points.

Bloomberg

US Treasury yields rise as markets await on Fed’s next move on the timing of lifting interest rates after it finished tapering. US inflation expectation, which is measured by the 10- year breakeven inflation jumps to the highest since 2012. The US dollar might witness a rally when the 10- year yield crosses 1.70% mark.

Fred

Responding to a growing controversy over investing practices, the Fed has announced new rules to ban policymakers from investing individual stocks. In the meantime, they will be restricted to buy and sell mutual funds, needing permissions to buy and sell. The purpose of the change is to rephrase Fed’s ethical conduct and wipe out the controversy.

Main Pairs Movement:

The US dollar trades at the familiar levels throughout the day as the light macro calendar provides no news to impact the market. The dollar index consolidated within a tight range between 93.550 to 93.800. Further instructions may be given after the Markit PMIs revealed on Friday.

However, most major pair performs badly against the greenback. The EUR/USD pair trades around 1.1625, while GBP/USD dropped below the 1.3800 level, hovering around 1.3785. The commodity-linked currencies failed to maintain their previous momentum, with AUD/USD dropped over 0.5% to 0.7465, NZD/USD retreated to 0.7150, and USD/CAD surged over 70 pips to 1.2375. JPY is the best performer of the day. USD/JPY once dived to 113.65, and settled at 114.00 at the time of writing.

Gold seesawed around $1,780 a troy ounce during the day, while crude oil encountered some corrective selling pressures, with WTI slip to $82.60 a barrel, and Brent at $84.70. The US benchmark 10-year Treasury yield resumed its 5-day winning streak and reached a 5-month high at 1.690%.

Digital assets plunged on Thursday right after Bitcoin hit an all time high yesterday. Bitcoin has lost over 7% of its total value from its peak, while Ethereum declined a modest 1.90%, still standing above the $4,000 threshold.

Technical Analysis:

USDCAD (Daily Chart)

Loonie has finally got a decent hike on Thursday after losing for almost 3 weeks. The pair posted a lowest daily close since early July at 1.2288 on Asian hours, and then bounced to the upside. During the American session, it printed a fresh daily high at 1.2383 and was last seen at 1.2370.

The dollar index swung higher at the close of the Wall Street, ending its six-day downtrend. Higher US Treasury yields and deteriorating market mood underpinned the greenback. Moreover, the correction moves in oil prices also weighed on the CAD demand, further pushing the USD/CAD price level upward. The main trend in USD/CAD should still be downside, as long as the worldwide recovery from the pandemic continues, and the demand for energy remains robust.

On the technical front, both the daily MACD histogram and the RSI indicator suggested a strong bearish sentiment. The price actions have been away from the bottom of the Bollinger band, sparing some rooms for further southern extension.

Resistance: 1.2480 (50% Fibonacci), 1.2750 (78.6% Fibonacci), 1.29490 (yearly high)

Support: 1.2232 (23.6% Fibonacci), 1.2010 (yearly low)

EURUSD (4-hour Chart)

The euro has consecutive its reversal from week-highs at 1.1665 to hit fresh session lows at 1.16 during Thursday’s late U.S. session. The pair is giving away gains. After a three-day rally, weighed by higher demand for greenback amid a sourer market sentiment. Quarterly earning has failed to lift spirits and concerns about the surging inflation and supply chain collapse have turned to the hotline, bolster demand for safe assets against riskier currencies as euro fiber. On macroeconomic side, U.S. data gas been mixed. Weekly jobless claims have dropped to their lowest levels in 19 months and existing home sales increased 7.0%, the highest reading since January. On the other hands, the Philadelphia Fed Manufacturing survey dropped to 23.8 from 30.7 in the previous month. On technical side, the RSI moved down under 50 threshold to 48.6 figures in day market, suggesting a slightly bearish movement in short term. On moving average aspect, 15- long indicator has reversed it way to downward with exceedingly rapid momentum and 60-long indicator is turning it head to slightly upward momentum.

In lights of the backdrop to mixed suggestion from indicators, we deem euro fiber will continue afloat in a consolidation range between 1.161 and 1.1675. Moreover, it should hovered perfectly upside momentum as it breakthrough a W patter by price action suggestion. However, market still linger in a choppy box pattern.

Resistance: 1165, 1.1675, 1.171

Support: 1.153, 1.161

USDJPY (4 Hour Chart)

Japan yen edged lower for the second successive day after hitting the highest level in years amid reviving safe-haven demand. Renewed worries about China’s property sector extended support to the safe-haven JPY. Recently, it dropped below 114 level to 113.63, the lowest point in the week. Furthermore, U.S. 10-year Treasuries bond yield hitting 4-month peak at 1.68%. The market is anticipating that the persistently high inflation and global supply chain congestion will force the Fed to accelerate its tapering of their monetary policy, which has provided additional support to the dollar as well.

From a technical perspective, RSI indicator retreat under natural level at 48, suggesting slightly bearish momentum in short term. On moving average indicator, 15-long indicator has turned it way to subtle downside and 60-long indicator retaining upward movement.

Since yen sipped under 114 level as a neckline of double head, it seems lost bullish momentum under currently circumstance according price action. Therefore, we deem strong resistance has turn to 114 and 115 next. On slip way, we expect next immediately support will be psychological level at 113.5

Resistance: 114, 115

Support: 113.5, 112.57, 112

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 server on October 23th 2021.

As a result, we will be conduct maintenance according to the schedule below.
Start date and time: 2021-10-23 16:00 GMT+3(Server time)
End date and time: 2021-10-23 19:00 GMT+3(Server time)

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. The quotations of products will be paused. Clients might not be able to open new positions or close the held positions.

4. 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 services will come back online at the end of the maintenance.

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

US markets were mixed on Wednesday with the major indices hovering slightly below all time highs. The Dow Jones jumped 0.4% to a new high whilst the S&P 500 rose for 6^th straight- day as a parade of strong earnings results boosted the equities; the Nasdaq dropped 0.05%. Recent rallies of US markets have essentially shown that the markets are in the process of climbing a wall of worries over the last two months, including fears over the pandemic resurgence, Chinese property crisis, and the Federal Reserve’s hawkish tone.

After the first Bitcoin ETF debuted in New York on Tuesday, Bitcoin investors cheered and push Bitcoin price to notch a fresh all- time high on Wednesday. Bitcoin climbed 3.9% to $66,398 while Ethereum also rallied 7.4% to $4,000 level.

China’s Evergrande scenario has signaled and warned Chinese real estate sector that has to be substantially smaller the keep the overall Chinese economy stable and healthy. According to an economic professor at Texas A&M University, China has “too big of risk in the sector.” The sector can potentially slowdown China’s economic growth, reported a disappointing 4.9% Q3 GDP.

Main Pairs Movement:

The greenback again closed in the red against most of its major rivals on Wednesday. The dollar index climbed to the intraday high around 93.870 in the early European session, but plunged after the American trading hours. The inflation data from the EU and Canada appeared positive, while the UK one missed the anticipations, adding pressures on the Bank of England to accelerate its monetary normalization plan.

The EUR/USD pair trades around 1.1650, while GBP/USD sticks firmly above the 1.3800 threshold. The commodity-linked currencies resume their yesterday’s strength, with AUD/USD breached the 0.7500 level, NZD/USD bounced off 0.7200, and USDCAD retreated toward the 1.2300 support. USD/JPY hovers around the familiar levels, trading at 114.28 at the moment.

Gold surged nearly 1% to $1,785 a troy ounce during the day. Crude oil prices continued the upward tractions, with WTI went up to $83.30 a barrel, and Brent at $85.70. The US benchmark 10-year Treasury yield posted a fresh monthly high at 1.673% and was last seen trading at 1.650%.

Cryptos got nuts as the trading in the first Bitcoin ETF kicked off on Tuesday. Bitcoin marked an all-time high at $67,000, and Ethereum breached the strong $4,000 resistance and awaits to beat its previous high.

Technical Analysis:

USDCAD (Daily Chart)

Loonie consolidated at the start of the day, but soon plummeted after the Wall Street opening, losing near 0.4%, approaching the key 1.2300 level at the time of writing. The recent dive may derive from the sharp rise in energy prices, as the price actions of the pair has been in tandem with other commodity-linked currencies.

Domestic factors have also contributed to the move of Loonie lately. The Bank of Canada (BoC) is set to taper bond purchases further to $1 billion Canadian dollars per week, and the whole QE program is anticipated to end in December as investors bet the BoC announces a rate hike in 2022. The tighter job market and rising inflation appear supportive to this kind of perspectives.

On the technical front, the daily RSI has just breached the oversold territory, and the price actions have been one step ahead of the bottom of the bollinger band, suggesting a short-term correction may come before further decline.

Resistance: 1.2480 (50% Fibonacci), 1.2750 (78.6% Fibonacci), 1.29490 (yearly high)

Support: 1.2273 (Bottom of Bollinger Band), 1.2232 (23.6% Fibonacci), 1.2010 (yearly low)

EURUSD (4-hour Chart)

The euro keeps crawling higher against a somewhat softer U.S. dollar on Wednesday, on track to complete a three-day recovery. The pair has confirmed above 1.16 earlier today to ease negative pressure, before hitting resistance right below October’s peak, at 1.167. In the background, the U.S. dollar index has retreated further from the one-year high at 94.5 hit last week, reaching session lows at 93.5 area, 1% below last week’s top. The positive market sentiment has been reflected on moderate advances in Wall Street.

On technical side, the RSI solely moved whereabout 60.2 figures, a slightly changed compare yesterday, suggesting a slightly bullish movement in short term. On moving average aspect, 15- long indicator has expedited it up side traction and 60-long indicator is turning it head to slightly upward momentum.

In lights of current price has penetrated 1.165 level which we expected as a critical resistance for up traction before, it seems could continue the bullish movement if it could hold above the threshold. On up side, we expect the immediately resistance will be psychological level at 1.1675 which is a 2-month-long resistance for current price action.

Resistance: 1.1675, 1.171

Support: 1.153, 1.161, 1.165

USDJPY (4 Hour Chart)

The U.S. dollar has pulled pack after hitting fresh five-year highs at 114.7 on Wednesday, to consolidate in lower range of 114. The pair has turned negative on daily charts, although the near-term trend remains positive, after have rallied nearly 5% over the last four weeks. Investors’ optimism and the pause on U.S. bond yields’ rally have dented demand for the dollar, allowing most majors to post moderate recoveries. Meanwhile, a consecutive widening gap of U.S. and Japan has squeezed the yen’s attractiveness for the investors.

From a technical perspective, RSI indicator rebound reversed from over bought sentiment at 56.6, suggesting bullsish momentum in short term. On moving average indicator, 15- and 60-long indicator still retaining upside traction.

Since yen stand above 114 level solidly for days, it seems lost driving momentum or further trigger foundamental news currently. Therefore, 114 level still a important support level for buy side investor.

Resistance: 115

Support: 114.02, 112.57, 112

Economic Data

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.

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

Market Focus

US markets headed to north on Tuesday as major companies continued to report their strong Q3 earnings, easing concerns of persistent pandemic cases and inflations. The Dow Jones Industrial Averages climbed 0.6%; the S&P 500 rose 0.7% whilist the Nasdaq Composite advanced 0.7%. Notably, the S&P 500 is back in the rally mode, sitting less than 1% from its all- time highs, mainly driven by the impact of supply- chain snarls and higher commodity prices.

The world’s largest cryptocurrency, Bitcoin rose back toward record, above $64,000, as first related US ETF debuted on Tuesday. It is the first Bitcoin ETF to trade in the US on a regulated exchange, which comes after many years of the cryptocurrency industry hoping to get one that provides traders to have a safe access to Bitcoin exposure.

The International Monetary Fund has downgraded its 2021 economic outlook for Asia. The outlook is down 1.1%, 6.5% vs. 7.6%, after the highly infectious pandemic cases continues to hurt some regions in Asia. “The global COVID-19 pandemic is still ravaging the region,” said in the report from CNBC.

Main Pairs Movement:

The greenback closed in the red against most of its major rivals on Tuesday, albeit a modest rebound after the Wall Street opening. Macro calendar is boring during the day, making traders to depend on the sentiment for direction. The dollar index dropped nearly 0.23% amid the broader risk-on market mood.

The EUR/USD pair trades around 1.1640, while GBP/USD hovers around the 1.3800 level. The antipodean pairs are the best performers, with AUD/USD surged 80 pips to 0.7475, and NZD/USD soared over 1% to 0.7170. USD/CAD settles around 1.2360, and USD/JPY was last seen at 114.300.

Gold climbed to $1,785 a troy ounce at the European session, but soon fell back after the New York trading hours, ending the day with modest gains at around $1,770.00. Crude oil failed to hit the fresh highs and fell back to the familiar levels. WTI settled at $82.80 a barrel, and Brent at $84.90.

Spotlights are now on the UK inflation data, as the Bank of England has hinted at a possible rate hike as the first move in the case inflation keeps rising above the desired levels.

Technical Analysis:

EURAUD (4-Hour Chart)

The EUR/AUD cross is plummeting during the New York session, losing over 0.6%, and trading at 1.5550 as of writing. Though the Reserve Bank of Australia (RBA) unveiled their unwillingness to raise rates in the near term, investors seemed to have increased the odds of a 2022 interest rate hike, as the Bank of England and other developed economies see their central banks switching towards a normal monetary policy.

Looking forward, the approach of the French Presidential election next year and the tensions regarding the rule of law between the EU and Poland and Hungary may weigh on the EUR, and the AUD may keep benefitting from the rises of the commodities, both of which could extend the pair further south.

On the technical front, the 4-hour RSI is one step ahead of the oversold territory, and the price actions have already breached the bottom of the Bollinger band, suggesting a short-term correction may come before further decline.

Resistance: 1.5616, 1.5719

Support: 1.542, 1.525

EURUSD (4-hour Chart)

The euro has extended it recovery on Tuesday, fueled by a positive market mood, to reach the upper range of 1.1600 for the first time since late September. The pair has pulled back afterwards, to consolidated well above 1.16, putting some distance from the 15-month low hit last week, at 1.152 area. Meanwhile, euro gains capped by dovish ECB’s Lane. On the macroeconomic front, U.S. building activity has shown a contraction in Sept, demonstrating that shortages in raw materials and labour are starting to squeeze the construction market that may have negative impact on third quarter’s economic growth.

On technical side, the RSI solely moved whereabout 58.7 figures, a slightly changed compare yesterday, suggesting a slightly bullish movement in short term. On moving average aspect, 15- long indicator has expedited it up side traction and 60-long indicator is turning it head to slightly upward momentum.

In lights of current price has penetrated 1.161 level which we expected as a critical resistance for up traction before, it seems could continue the bullish movement if it could hold above the threshold. On up side, we expect the immediately resistance will be psychological level at 1.165 and 1.1675 following

Resistance: 1.165, 1.1675, 1.171

Support: 1.153, 1.15, 1.161

USDJPY (4 Hour Chart)

The Japan yen retreated from the three-year high at 114.45 hit on Monday, to session lows at 113.85 before bouncing up and returning to the 114.3 area. The yen’s rebound, however, has been short-lived. The yen particularly sensitive to monetary policy differentials, remains heavy while the market positions for an imminent announcement that the Fed starts to taper its massive stimulus programs. These expectations have been widening the treasury yield gap between the U.S. and Japan whose central bank maintains the 10-year note near zero through a yield control curve which is crushing investor’s appeal for the yen.

From a technical perspective, RSI indicator rebound reversed from over bought sentiment at 62.8, suggesting bullsish momentum in short term. On moving average indicator, 15- and 60-long indicator still retaining upside traction.

Since yen stand above 114 level solidly for days, it seems lost driving momentum or further trigger foundamental news currently. Therefore, 114 level still a important support level for buy side investor.

Resistance: 115

Support: 114.02, 112.57, 112

Economic Data

Dear Clients,

After VT Markets’s sustained attention, we find that the International financial market is generally recovering. What’s more, the demands for Oil contracts are increasing as well.

To provide our clients with the most competitive trading environment, VT Markets is glad to announce that the margin request for the following products, including USOUSD, UKOUSD, and CL-OIL, will be reduced at 00:00 on Oct 25th, 2021 (GMT+3).

After the modification, the margin request for trading the Oil contracts will be reduced to two-thirds of its current amount. The leverage of Oil contracts will also be raised and fixed at 333:1 instead of floating between 50:1 and 250:1.

For instance, if the original margin request for keeping one lot Oil contract is 330 USD, the needed margin request for this position will be reduced to 250 USD after the modification, and so on. The table below is for reference.

Notes: The figures above are only for reference. The actual execution data should be subject to the numbers on MT4/MT5.

Friendly reminders:
1. All contract specifications of Oil stay the same except the margin percentage being changed from 200% to 0.3%.
2. The margin level will correspondingly increase while the margin request of Oil positions is modified as two-thirds of its original amount.

There will be more available funds in trading accounts after this modification.
Please assure that there are sufficient funds in trading accounts for holding positions.

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

Market Focus

US stocks were mixed amid inflation concerns on Monday; investors bet on a continuation of strong earning reports from major companies while concerned the prospect of a tightening monetary policy to restrain inflation. The Dow Jones Industrial Average declined 0.1% while the S&P 500 climbed 0.3%; at the same time, the Nasdaq rose 0.8% at the end of day.

The collapsing spread between 5- year and 30-year yields is raising the concern of a potential slowdown in economic growth. The shrank might be due to the consideration of the US Federal Reserve may lift the rates sooner than the expectation. Moreover, according to Bloomberg, the US inflation expectations are continuously rising to their peaks in nearly years.

Bitcoin held steadily above $60,000 as the first Bitcoin future ETF is going to launch this Tuesday, which is essentially a milestone for the cryptocurrency industry.

Main Pairs Movement:

The greenback shed some ground on Monday, although it ended the day mixed across the FX board and within familiar levels. A light macroeconomic calendar keeps investors depending on the sentiment for direction, the latter following US government bond yields. Speaking of which, the yield on the 10-year US Treasury note peaked at 1.627% but finished the day at around 1.58%.

The dollar edged lower against most of its major rivals. The EUR/USD pair trades around 1.1610, while GBP/USD stands at 1.3730. The AUD/USD pair and USD/JPY finished the day unchanged while USD/CAD ticked lower, despite weakening crude oil prices.

Gold ended the day with modest losses at around $1,764.60 a troy ounce. rude oil prices hit fresh multi-year highs before retreating. WTI settled at $81.50 a barrel.

Attention shifts now to the UK inflation data, as the Bank of England has hinted at a possible rate hike as the first move in the case inflation keeps rising above the desired levels.

Technical Analysis:

USDCAD (4-Hour Chart)

The USD/CAD pair continued consolidating through the first half of the European session and once stepped on the 1.2400 level, but soon fell over 30 pips after the American opening. Loonie’s weakness results from the higher inflationary pressures and the looming tapering of major central banks. The pair was last seen at 1.2375.

However, falling crude oil prices, along with the robust US bond yields, may weign on the appreciating CAD . WTI has been losing over 0.5%, currently trading at $81.90; the benchmark 10-year U.S. Treasury yield still lingers above 1.55, proving demands for the greenback.

On the technical front, loonie has already been lost track of its 4-month-old uptrend at the start of October and fallen below all of its key moving averages. The downward traction is now attacking the robust 38.2% Fibonacci support. If breached, then there will be no practical support ahead of the 23.6% Fibonacci. On the flip side, to resume its previous uptrend, the pair should revisit the key 200-DMA, which should first regain the 50% and 61.8% Fibonacci.

Resistance: 1.2425, 1.25, 1.256

Support: 1.23

EURUSD (4-hour Chart)

The euro advances during the New York session, up 0.07%, trading at 1.161 at the time of writing. During the session, market sentiment conditions improved despite a weaker than expected third-quarter GDP print out of China, rising inflationary pressures, and central bank tightening monetary conditions expectations. On last Saturday, October 16 ECB’s President Lagarde said that the ECB is paying very close attention to wafe negotiations and other effects that could permanently drive prices higher, she added that inflation is largely transitory.

On technical side, the RSI solely moved whereabout 57.97 figures, a slightly changed compare yesterday, suggesting a slightly bullish movement in short term. On moving average aspect, 15- and 60-long indicator are both moving flatly while they have been golden cross in earlier days.

In lights of current price has penetrated 1.161 level which we expected as a critical resistance for up traction before, it seems could continue the bullish movement if it could hold above the threshold. On up side, we expect the immediately resistance will be psychological level at 1.165 and 1.1675 following

Resistance: 1.165, 1.1675, 1.171

Support: 1.153, 1.15, 1.161

USDJPY (4 Hour Chart)

The Japan yen barely moved advances during the U.S. session, up some 0.02%, trading at 114.22 at the time of writing. Despite slower than expected economic growth in China, expectations of higher inflation and market mood is in risk-on mode. The U.S. 10-year Treasury yield is flat at press time, clings to 1.581%, whereas the U.S dollar index, which tracks the greenback’s performance against a basket of rivals, slides 0.02%, sitting at 93.943. Meanwhile, the yen is close to four-year lows versus the greenback, as higher U.S. T-bond yields which have been rising lately, have a strong positive correlation with the pair.

From a technical perspective, RSI indicator rebound reversed from over bought sentiment at 67.7, suggesting bullish momentum in short term. On moving average indicator, 15- and 60-long indicator still retaining upside traction.

Since yen stand above 114 level solidly for days, it seems lost driving momentum or further trigger foundamental news currently. Therefore, 114 level still a important support level for buy side investor.

Resistance: 115

Support: 114.02, 112.57, 112

Economic Data