Forex news for North American trading on October 22, 2021

• S&P index snaps a seven day winning streak
• What key technical levels are play (and why) in the new trading week for the USDJPY?
• What key technical levels are play (and why) in the new trading week for the EURUSD?
• WTI crude futures are settling at $83.76
• US Federal budget deficit for September $-62 billion versus $-60 billion estimate
• Key week for earnings with many of the top companies reporting
• Gundlach: The dollar has peak and going to go down
• Baker Hughes US oil rig count 443 vs 445 prior
• Bitcoin buyers try to make a stand at $60,000 after fall to the lows of the week
• EU tough talk on Brexit weighs on the pound
  
• European major indices closed mostly higher with the Spain's Ibex the exception
• Fed's Powell: High inflation is likely to abate but will last well into next year
• US posts $2.77 trillion budget deficit for FY 2021
• Fed's Daly: Inflation numbers are higher and have lasted longer than expected
• Pelosi: A spending deal is within reach, though the timing is uncertain
• Bitcoin spills through yesterday's low as ETF enthusiasm fades
• Markit US October services flash PMI 58.2 vs 55.1 expected
• Fed's Barkin: Steps to lift labor supply are helpful
• Canada August retail sales +2.1% vs +2.0% expected
• The AUD is the strongest and the GBP is the weakest as NA traders enter for the day
• ForexLive European FX news wrap: Dollar slightly softer, equities keep steady

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. 

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