This week isn’t expected to bring much in terms of important news. Since no significant financial stats are to be released, economic news will act as key behavioral drivers for traders. US companies’ good performance, a new interest rate reduction by the Fed, news on the successful conclusion of the first round of the US-China trade talks – all this pushing investors to take higher risks.
Dow Jones Industrial Average
Bitcoin, together with most other cryptocurrencies, hasn’t shown any major movement. Its price remained below $10k, having grown by about 1% on Monday. The daily trading volume of about $25 billion was within the average range, too. Major speculators will probably use this moment to manipulate the market and extract as much profit as possible. Rapid price fluctuations in both directions are possible.
On Monday, investors partially took their EUR/USD profits. A new attempt to break through the 1.1180 resistance line failed. German economy is putting pressure on the euro; it can’t seem to get out of the recession, with the business activity stats for October still at a 10-year low – though higher than predicted earlier.
Many investors are surprised that gold still hasn’t fallen below $1500 per ounce. Considering that the US stock market prices are at the all-time high, gold should have lost its attractiveness. Perhaps the reason is not that gold is strong but that the US dollar is weak. Since this week is devoid of important economic stats, investors’ attention will be focused on the global political news.
On Monday, tech stocks pushed the three key Wall Street indices to new highs. Secretary of Commerce Wilbur Ross stated that US companies will soon be able to obtain licenses to trade with Huawei. Investors are convinced that improved trade relations with China will spur the economy and help avoid a recession.
05.30 Reserve Bank of Australia’s decision on the interest rate
11.30 UK services business activity index for October
17.00 US non-manufacturing business activity index for October
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