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Market Review 12-10-21

This post is also available in: German Dutch

Forex Today: Risk-off backs the greenback

What you need to know on Tuesday, October 12:

The week kick-started in slow motion with market participants looking for fresh catalysts. Generally speaking, concerns persisted as worrisome headlines came from China putting a cap to Friday stocks’ rally. Once again, Evergrande skipped a foreign dividend payment, while another local giant, developer Sinic Holdings, said it would likely default on its 2021 bonds, as it does not have enough financial resources to the make payments by their maturity date.

Wall Street seesawed between gains and losses, ending the day in the red. Earnings season kicked in with big banks reporting this week. The US bond market was closed, as the US celebrated Columbus Day.

The American dollar benefited from risk-off at the end of the day, although the AUD/USD pair retained its early gains, as higher copper prices underpinned the aussie. USD/CAD ended the day unchanged at around 1.2480, while the best performer was USD/JPY up to 113.40, its highest since 2018.

The EUR/USD pair ended the day with modest losses in the 1.1550 price zone, while GBP/USD finished the day just below the 1.3600 threshold.

Oil prices kept rallying to multi-year highs, with WTI settling at $ 80.50 a barrel. Gold ticked lower, closing the day at $1,754 a troy ounce.

Source: https://www.fxstreet.com/news/forex-today-risk-off-backs-the-greenback-202110112033




According to Dhwani Mehta (Analyst at FXStreet – 3rd party source) the CRUDE OIL is long positions above $80.44 with target at $81.15

Past performance is not a guarantee of future performance

Source: https://www.fxstreet.com/news/wti-price-analysis-drops-back-below-80-after-facing-rejection-at-key-trendline-hurdle-202110120314

Number of Lots: Required Margin: Risk Management (50%): Potential Profit/Loss 81.15
1 € 695.85 € 347.92 € 614.19
5 € 3,479.24 € 1,739.62 € 3,070.93
10 € 6,958.48 € 3,479.24 € 6,141.87
25 € 17,396.19 € 8,698.10 € 15,354.67
50 € 34,792.39 € 17,396.19 € 30,709.34

The above chart and any information provided therein are indicative and subjective to the technical analysis method or trading patterns used and the timing of their release. Those are provided as general market information and/or market commentary and/or the publication of market/factual data and should not be construed as containing personal and/or other investment recommendation, and/or to be Investment Advice or independent Investment Research. As such, the legal and regulatory requirements in relation to independent investment research do not apply to this material.

European markets are set to open sharply lower as global sentiment worsens

European stocks are expected to open in negative territory on Tuesday amid gloomy sentiment in global markets.

The U.K.’s FTSE index is seen opening 43 points lower at 7,094, Germany’s DAX 99 points lower at 15,085, France’s CAC 40 down 51 points at 6,514 and Italy’s FTSE MIB 203 points lower at 25,426, according to IG data.

The negative open expected for Europe on Tuesday comes after a choppy period for global markets.

On Monday, European stocks were muted during the trading session, searching for direction after a volatile week. Meanwhile, U.S. stocks fell on Monday as investors looked at surging oil prices, economic worries and major earnings results ahead.

The Dow Jones Industrial Average shed 250.19 points, or 0.7%, to close at 34,496.06. The S&P 500 ticked lower by 0.7% to 4,361.19. The Nasdaq Composite dipped 0.6% to 14,486.20.

U.S. stock futures declined in overnight trading on Monday.

Investors are bracing for a slew of U.S. earnings, with major banks revealing third-quarter results this week; JPMorgan Chase, Goldman Sachs, Bank of America, Morgan Stanley, Wells Fargo and Citigroup are all due to report, starting Wednesday.

Overnight, shares in Asia-Pacific tumbled on Tuesday, with major indexes from Japan to Hong Kong falling at least 1%.

Investors in the region were keeping a close eye on oil prices, which slipped in Asia trading hours, taking a pause following a recent surge above $80. International benchmark Brent crude futures dipped 0.55% to $83.19 per barrel, while U.S. crude futures shed 0.56% to $80.07 per barrel.

Earnings updates come on Tuesday from luxury goods giant LVMH and Swiss fragrance maker Givaudan. On the economic data front, releases include U.K. unemployment figures for August and Germany’s latest ZEW survey of economic sentiment.

Source: https://www.cnbc.com/2021/10/12/european-markets-trade-data-stocks-as-global-sentiment-sours.html

According to Rekha Chauhan (Analyst at FXStreet 3rd party source) the USDCHF is long positions above 0.9298 with target at 0.9318

Past performance is not a guarantee of future performance

Source: https://www.fxstreet.com/news/usd-chf-price-analysis-bulls-keep-eyes-on-09300-202110120106

Number of Lots: Required Margin: Risk Management (50%): Potential Profit/Loss 0.9318
1 € 2,883.51 € 1,441.75 € 215.75
5 € 14,417.53 € 7,208.77 € 1,078.75
10 € 28,835.06 € 14,417.53 € 2,157.50
25 € 72,087.66 € 36,043.83 € 5,393.74
50 € 144,175.32 € 72,087.66 € 10,787.49

The above chart and any information provided therein are indicative and subjective to the technical analysis method or trading patterns used and the timing of their release. Those are provided as general market information and/or market commentary and/or the publication of market/factual data and should not be construed as containing personal and/or other investment recommendation, and/or to be Investment Advice or independent Investment Research. As such, the legal and regulatory requirements in relation to independent investment research do not apply to this material.

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