Forexlive Latest News

2

Forex news for North American trading on October 22, 2021

Fed chair Powell speaking on a panel at a BIS conference, tilted his inflation fear little more in the direction of "inflation will last longer than expected" and "the Fed has the tools" to combat a higher inflation rate.   

It just seemed that there was a little less "inflation will be transitory and will be coming back down in 2022".  He has dug himself in that hole and may be forced to find a way to get out sooner rather than later 

Now, it still  was a Friday choppy session, but the comments helped to push the JPY higher  (lower USDJPY and JPY crosses), and Nasdaq stocks lower (the Nasdaq fell -0.82% and is still below its all-time high despite the S&P and Dow reaching new highs this week.   

Despite the inflation concerns, the Dow did close at new record high today (the first since August 16th), and the S&P closed marginally lower (-0.11%). However, the S&P index DID snap a 7-day win streak.  

Next week will be KEY for US equities as all the BIG names will be out with their earnings (Facebook, Amazon, Apple, Microsoft, Alphabet all report).  You can never tell, but with indices near highs, supply constraints kicking in, inflation/costs higher, if there are surprises or talks of a ratcheting down of expectations,  and more concerns about the Fed moving rates sooner rather than later in the back of traders minds, it could make the market vulnerable to a sharp decline.  Just saying. 

Below is a summary of the highs and lows and changes and closes for the Dow, S&P and Nasdaq today.

Overall in the forex, the JPY was the strongest of the majors, followed by the CHF (safe haven currencies). The GBP and NZD were the weakest.  PS The GBP saw a move down soon after the London close after the EU threatened to rip up Brexit if the UK rift on the Irish border deepens.  The USD was down and up and down in trading today. 

The currency winners and losers

In other markets today:

  • Spot gold was as high as $1815.50 before moving back below the $1800 level (it is trading near $1793 near the close
  • Spot Silver traded as high as $24.92 before moving back to the downside. It is trading at $24.38.
  • WTI crude is closing near the highest level in 7 years going into the weekend at $84.00
  • Bitcoin which traded to a new all time record of over $67000, is trying to cling to $60000 heading into weekend trading 
Wishing you all a happy and healthy weekend. Thank you for your support.  

View More

Fri 22 Oct 2021 20:11:31 GMT

S&P index snaps a seven day winning streak

NASDAQ index lower for the second time in three trading days Next week is the granddaddy of all the earnings release weeks with Facebook, Amazon, Apple, Alphabet, Starbucks, Boeing, Caterpillar, etc. all on the schedule. 

View More

S&P index snaps a seven day winning streak


Greg Michalowski
Fri 22 Oct 2021 20:11:31 GMT
Category: Technical Analysis
0


NASDAQ index lower for the second time in three trading days Next week is the granddaddy of all the earnings release weeks with Facebook, Amazon, Apple, Alphabet, Starbucks, Boeing, Caterpillar, etc. all on the schedule. 

Asset 24 View More
Fri 22 Oct 2021 20:05:17 GMT

What key technical levels are play (and why) in the new trading week for the USDJPY?

The USDJPY stalled near the swing high from November 2017 and rotated lower The USDJPY is closing the trading week at/near the week lows. That breaks a string of 5 straight higher weeks for the pair which saw the price move from 109.10 to the high this week at 114.69 (559 pips). 

View More

What key technical levels are play (and why) in the new trading week for the USDJPY?


//az705044.vo.msecnd.net/20211022/2021-10-22_12-48-02.jpg Greg Michalowski
Fri 22 Oct 2021 20:05:17 GMT
Category: Technical Analysis
0
The USDJPY stalled near the swing high from November 2017 and rotated lower The USDJPY is closing the trading week at/near the week lows. That breaks a string of 5 straight higher weeks for the pair which saw the price move from 109.10 to the high this week at 114.69 (559 pips). 

Asset 24 View More
Fri 22 Oct 2021 19:38:40 GMT

What key technical levels are play (and why) in the new trading week for the EURUSD?

What are the charts saying for the EURUSD  in the new trading week.  The EURUSD traded below the 200 week moving average over the prior 3 trading weeks.  Each of those weeks could not close below that MA level. In fact, the last 3 weeks closed between the 100 week MA above (blue line in the chart above) and the 200 week MA below (see  green line in the chart above).   

View More

What key technical levels are play (and why) in the new trading week for the EURUSD?


//az705044.vo.msecnd.net/20211022/2021-10-22_12-16-30.jpg Greg Michalowski
Fri 22 Oct 2021 19:38:40 GMT
Category: Technical Analysis
0
What are the charts saying for the EURUSD  in the new trading week.  The EURUSD traded below the 200 week moving average over the prior 3 trading weeks.  Each of those weeks could not close below that MA level. In fact, the last 3 weeks closed between the 100 week MA above (blue line in the chart above) and the 200 week MA below (see  green line in the chart above).   

Asset 24 View More
Fri 22 Oct 2021 18:33:30 GMT

3

WTI crude futures are settling at $83.76

Crude oil futures up $1.26 or 1.53% The high for the day reached $83.80. The low extended to $81.76. A week ago, the price closed at $82.47. The gain of $1.29 represents a gain of 1.564% for the week.  The close is the highest in seven years.  Since August 20, the price of crude oil is up close to 36%.

View More

WTI crude futures are settling at $83.76


//az705044.vo.msecnd.net/20211022/2021-10-22_11-37-56.jpg Greg Michalowski
Fri 22 Oct 2021 18:33:30 GMT
Category: Technical Analysis
3
Crude oil futures up $1.26 or 1.53% The high for the day reached $83.80. The low extended to $81.76. A week ago, the price closed at $82.47. The gain of $1.29 represents a gain of 1.564% for the week.  The close is the highest in seven years.  Since August 20, the price of crude oil is up close to 36%.

Asset 24 View More
Fri 22 Oct 2021 18:06:26 GMT

US Federal budget deficit for September $-62 billion versus $-60 billion estimate

Versus $-171 billion last month - The US federal deficit for September came in at $-62 billion versus $-60 billion estimate.  - Last month it was $-171 billion.  The deficit was the lowest monthly deficit since January 2020 and much lower than the September 2020 deficit of $-125 billion.  .

View More

US Federal budget deficit for September $-62 billion versus $-60 billion estimate


Greg Michalowski
Fri 22 Oct 2021 18:06:26 GMT
Category: News
0
Versus $-171 billion last month - The US federal deficit for September came in at $-62 billion versus $-60 billion estimate.  - Last month it was $-171 billion.  The deficit was the lowest monthly deficit since January 2020 and much lower than the September 2020 deficit of $-125 billion.  .

Asset 24 View More
Fri 22 Oct 2021 17:53:39 GMT

Key week for earnings with many of the top companies reporting

Facebook, Apple, Alphabet (Google), Amazon, Microsoft, Boeing, McDonald's, Starbucks, Exxon Mobil all scheduled to report  Monday, October 25: Tuesday, October 26:

View More

Key week for earnings with many of the top companies reporting


Greg Michalowski
Fri 22 Oct 2021 17:53:39 GMT
Category: News
0
Facebook, Apple, Alphabet (Google), Amazon, Microsoft, Boeing, McDonald's, Starbucks, Exxon Mobil all scheduled to report  Monday, October 25: Tuesday, October 26:

Asset 24 View More
Fri 22 Oct 2021 17:03:05 GMT

Baker Hughes US oil rig count 443 vs 445 prior

Weekly US oil rig count There was a jump last week and some of it has come back down.

View More

Baker Hughes US oil rig count 443 vs 445 prior


Adam Button
Fri 22 Oct 2021 17:03:05 GMT
Author: Adam Button
Category: News
0
Weekly US oil rig count There was a jump last week and some of it has come back down.

Asset 24 View More
Fri 22 Oct 2021 16:39:23 GMT

GBPUSD falls and tests 200 hour MA/38.2% of the last run higher.

200 hour MA and 38.2% tested The GBPUSD fell on the back of the tough talk from the EU on Brexit. Adam is not too concerned about it (), but its Friday. European traders are either out the door or near gone which decreases the liquidity. Finally, there was some technical reasons to sell.  So although it may be much ado about nothing, there is some concern technically. Let me explain.

View More

GBPUSD falls and tests 200 hour MA/38.2% of the last run higher.


//az705044.vo.msecnd.net/20211022/2021-10-22_9-32-24.jpg Greg Michalowski
Fri 22 Oct 2021 16:39:23 GMT
Category: Technical Analysis
0
200 hour MA and 38.2% tested The GBPUSD fell on the back of the tough talk from the EU on Brexit. Adam is not too concerned about it (), but its Friday. European traders are either out the door or near gone which decreases the liquidity. Finally, there was some technical reasons to sell.  So although it may be much ado about nothing, there is some concern technically. Let me explain.

Asset 24 View More
Fri 22 Oct 2021 16:18:50 GMT

2

Bitcoin buyers try to make a stand at $60,000 after fall to the lows of the week

The ETF mania is looking like a bust Bitcoin is having a rough day, down 4% and briefly touching $60,000. It's been a case of easy-come, easy-go on the US bitcoin ETF. The launch has been a success by any measure but all the owners of it are underwater now and that's more likely to create selling pressure than buying.

View More

Bitcoin buyers try to make a stand at $60,000 after fall to the lows of the week


//az705044.vo.msecnd.net/20211022/2021-10-22_12-17-54.png Adam Button
Fri 22 Oct 2021 16:18:50 GMT
Author: Adam Button
Category: Cryptocurrency
2
The ETF mania is looking like a bust Bitcoin is having a rough day, down 4% and briefly touching $60,000. It's been a case of easy-come, easy-go on the US bitcoin ETF. The launch has been a success by any measure but all the owners of it are underwater now and that's more likely to create selling pressure than buying.

Asset 24 View More
Fri 22 Oct 2021 16:04:02 GMT

1

EU tough talk on Brexit weighs on the pound

GBP to the lows of the day Cable broke lower after a news wire headline saying the EU is considering terminating the Brexit trade deal if the UK rift on the Irish border deepens. Another says they're preparing a response if the UK violates Article 16 of the Northern Ireland protocol.

View More

EU tough talk on Brexit weighs on the pound


//az705044.vo.msecnd.net/20211022/cable.png Adam Button
Fri 22 Oct 2021 16:04:02 GMT
Author: Adam Button
Category: News
1
GBP to the lows of the day Cable broke lower after a news wire headline saying the EU is considering terminating the Brexit trade deal if the UK rift on the Irish border deepens. Another says they're preparing a response if the UK violates Article 16 of the Northern Ireland protocol.

Asset 24 View More
Fri 22 Oct 2021 15:55:10 GMT

European major indices closed mostly higher with the Spain's Ibex the exception

European indices close mixed for the week For the week, the indices were mixed with the UK's FTSE, German DAX, Spain's Ibex closing lower. In the forex market, the USD has erased earlier declines and trades more mixed in volatile trading.  The JPY is the strongest of the majors, while the GBP is the weakest. 

View More

European major indices closed mostly higher with the Spain's Ibex the exception


//az705044.vo.msecnd.net/20211022/2021-10-22_8-56-52.jpg Greg Michalowski
Fri 22 Oct 2021 15:55:10 GMT
Category: Technical Analysis
0
European indices close mixed for the week For the week, the indices were mixed with the UK's FTSE, German DAX, Spain's Ibex closing lower. In the forex market, the USD has erased earlier declines and trades more mixed in volatile trading.  The JPY is the strongest of the majors, while the GBP is the weakest. 

Asset 24 View More
Fri 22 Oct 2021 15:47:07 GMT

5

US dollar climbs after Powell as risk tone reverses

Stocks fall, bond yields turn Today would have been the first eight day rally in the S&P 500 since March/April 2019 so maybe these moves are more about positioning than Powell.

View More

US dollar climbs after Powell as risk tone reverses


//az705044.vo.msecnd.net/20211022/usdcad-10-dd.png Adam Button
Fri 22 Oct 2021 15:47:07 GMT
Author: Adam Button
Category: News
5
Stocks fall, bond yields turn Today would have been the first eight day rally in the S&P 500 since March/April 2019 so maybe these moves are more about positioning than Powell.

Asset 24 View More
Fri 22 Oct 2021 15:33:59 GMT

EURUSD moves to a new high and then cracks lower in volatile trade

US yields move higher in the short end The EURUSD moved to a new high shortly after the the 11 AM fixing, but the pair has  moved back down sharply as Powell helps to send the shorter end of the yield curve higher.  Powell speaks on risks to inflation and how it should last longer than expected.  

View More

EURUSD moves to a new high and then cracks lower in volatile trade


//az705044.vo.msecnd.net/20211022/2021-10-22_8-31-24.jpg Greg Michalowski
Fri 22 Oct 2021 15:33:59 GMT
Category: Technical Analysis
0
US yields move higher in the short end The EURUSD moved to a new high shortly after the the 11 AM fixing, but the pair has  moved back down sharply as Powell helps to send the shorter end of the yield curve higher.  Powell speaks on risks to inflation and how it should last longer than expected.  

Asset 24 View More
Fri 22 Oct 2021 15:09:46 GMT

20

Fed's Powell: High inflation is likely to abate but will last well into next year

Powell speaks on a BIS panel Powell is going to run the taper through Q1 and then make a call on rate hikes. The dollar is higher as he has begun speaking, perhaps the market was looking for a stronger pushback on inflation. These comments are similar to what he's said before, though the market might be focused on the comment that "high inflation will likely last well into next year."

View More

Fed's Powell: High inflation is likely to abate but will last well into next year


//az705044.vo.msecnd.net/20210827/powell-jackson-hole-2021.jpg Adam Button
Fri 22 Oct 2021 15:09:46 GMT
Author: Adam Button
Category: Central Banks
20
Powell speaks on a BIS panel Powell is going to run the taper through Q1 and then make a call on rate hikes. The dollar is higher as he has begun speaking, perhaps the market was looking for a stronger pushback on inflation. These comments are similar to what he's said before, though the market might be focused on the comment that "high inflation will likely last well into next year."

Asset 24 View More
Fri 22 Oct 2021 15:05:12 GMT

9

US posts $2.77 trillion budget deficit for FY 2021

Not a small number That's an unbelievably large number but it's below the 2020 number of $3.1 trillion so I guess that's progress.

View More

US posts $2.77 trillion budget deficit for FY 2021


Adam Button
Fri 22 Oct 2021 15:05:12 GMT
Author: Adam Button
Category: News
9
Not a small number That's an unbelievably large number but it's below the 2020 number of $3.1 trillion so I guess that's progress.

Asset 24 View More
Fri 22 Oct 2021 14:59:30 GMT

Cable falls to session low ahead of the London fix

Cable down 28 pips There's a broad bid for the yen going through at the London fix and, to a lesser extent, the dollar. That's weighed on cable ahead of the fix. Watch out for a reversal afterwards.

View More

Cable falls to session low ahead of the London fix


Adam Button
Fri 22 Oct 2021 14:59:30 GMT
Author: Adam Button
Category: News
0
Cable down 28 pips There's a broad bid for the yen going through at the London fix and, to a lesser extent, the dollar. That's weighed on cable ahead of the fix. Watch out for a reversal afterwards.

Asset 24 View More
Fri 22 Oct 2021 14:50:59 GMT

1

Fed's Daly: Inflation numbers are higher and have lasted longer than expected

That's a big statement Daly is a dove and this comment sounds like she's throwing in the towel on transitory inflation, or thinking about it. The doves are on the run right now, which is something you can see in breakevens.

View More

Fed's Daly: Inflation numbers are higher and have lasted longer than expected


//az705044.vo.msecnd.net/20211022/daly-fed.png Adam Button
Fri 22 Oct 2021 14:50:59 GMT
Author: Adam Button
Category: Central Banks
1
That's a big statement Daly is a dove and this comment sounds like she's throwing in the towel on transitory inflation, or thinking about it. The doves are on the run right now, which is something you can see in breakevens.

Asset 24 View More
Fri 22 Oct 2021 14:43:07 GMT

4

Pelosi: A spending deal is within reach, though the timing is uncertain

Today was supposed to be deal day The timeline for a reconciliation deal has been pushed back but Pelosi shared some optimism today after a breakfast with Biden. They're now hoping for a deal by Sunday night, though Pelosi said the timing is uncertain.

View More

Pelosi: A spending deal is within reach, though the timing is uncertain


//az705044.vo.msecnd.net/20210310/biden-and-pelosi.png Adam Button
Fri 22 Oct 2021 14:43:07 GMT
Author: Adam Button
Category: News
4
Today was supposed to be deal day The timeline for a reconciliation deal has been pushed back but Pelosi shared some optimism today after a breakfast with Biden. They're now hoping for a deal by Sunday night, though Pelosi said the timing is uncertain.

Asset 24 View More
Fri 22 Oct 2021 14:41:51 GMT

USDCADs break above the 100 hour MA yesterday, fails today

Price trades above and below the 100 hour MA The USDCAD broke above its 100 hour moving average (blue line in the chart below) for the first time since October 6 in trading yesterday.  Buyers entered the market on the break, but still had the 200 hour moving average in its sites as a confirming technical clue. 

View More

USDCADs break above the 100 hour MA yesterday, fails today


//az705044.vo.msecnd.net/20211022/2021-10-22_7-39-17.jpg Greg Michalowski
Fri 22 Oct 2021 14:41:51 GMT
Category: Technical Analysis
0
Price trades above and below the 100 hour MA The USDCAD broke above its 100 hour moving average (blue line in the chart below) for the first time since October 6 in trading yesterday.  Buyers entered the market on the break, but still had the 200 hour moving average in its sites as a confirming technical clue. 

Asset 24 View More
Fri 22 Oct 2021 14:09:21 GMT

2

Bitcoin spills through yesterday's low as ETF enthusiasm fades

We might have to do this again with a physical ETF Bitcoin broke through the $62,000 level to the lowest since Tuesday as some stops were run. On Wednesday, it looked like the bitcoin futures ETF (BITO) would be the catalyst to push bitcoin through the April record highs near $64,800. That was briefly the case but it's looking like the weekly close will be well below that, pointing to the potential for a false breakout and double top.

View More

Bitcoin spills through yesterday's low as ETF enthusiasm fades


//az705044.vo.msecnd.net/20211022/bitcoin-10-min.png Adam Button
Fri 22 Oct 2021 14:09:21 GMT
Author: Adam Button
Category: Cryptocurrency
2
We might have to do this again with a physical ETF Bitcoin broke through the $62,000 level to the lowest since Tuesday as some stops were run. On Wednesday, it looked like the bitcoin futures ETF (BITO) would be the catalyst to push bitcoin through the April record highs near $64,800. That was briefly the case but it's looking like the weekly close will be well below that, pointing to the potential for a false breakout and double top.

Asset 24 View More
Fri 22 Oct 2021 14:09:12 GMT

USDCHF falls to lowest level since September 10

Pair approaches 100 day MA The USDCHF is trading to a new low for the day and in the process trades at the lowest level since September 15 when the price traded at 0.91496. The low price just reached 0.91519 just above that level.

View More

USDCHF falls to lowest level since September 10


//az705044.vo.msecnd.net/20211022/2021-10-22_7-01-56aaabbb.jpg Greg Michalowski
Fri 22 Oct 2021 14:09:12 GMT
Category: Technical Analysis
0
Pair approaches 100 day MA The USDCHF is trading to a new low for the day and in the process trades at the lowest level since September 15 when the price traded at 0.91496. The low price just reached 0.91519 just above that level.

Asset 24 View More
Fri 22 Oct 2021 13:45:06 GMT

1

Markit US October services flash PMI 58.2 vs 55.1 expected

October services PMI data These are good numbers. The whole report reads like an inflationary boom that should make the Fed worried that it's behind the curve.

View More

Markit US October services flash PMI 58.2 vs 55.1 expected


//az705044.vo.msecnd.net/20211022/markit-pmi-us.png Adam Button
Fri 22 Oct 2021 13:45:06 GMT
Author: Adam Button
Category: News
1
October services PMI data These are good numbers. The whole report reads like an inflationary boom that should make the Fed worried that it's behind the curve.

Asset 24 View More
Fri 22 Oct 2021 13:33:26 GMT

4

Major indices in the US open mixed. NASDAQ under pressure

Dow opened higher. S&P near unchanged a snapshot of the market currently shows: The strongest weakest shows the AUD of the major currencies while the NZD is the weakest. 

View More

Major indices in the US open mixed. NASDAQ under pressure


//az705044.vo.msecnd.net/20211022/snag_cb85ae4.png Greg Michalowski
Fri 22 Oct 2021 13:33:26 GMT
Category: Technical Analysis
4
Dow opened higher. S&P near unchanged a snapshot of the market currently shows: The strongest weakest shows the AUD of the major currencies while the NZD is the weakest. 

Asset 24 View More

More Headlines


By continuing to browse our site you agree to our use of cookies, revised Privacy Notice and Terms of Service. More information about cookiesClose