(Ipek Ozkardeskaya – Swissquote Bank Ltd)
The new week, the new month and the new quarter kicked off on a volatile, but a positive note. Credit Suisse closed a very ugly session with 0.90% loss only.
European indices gained, while the US indices rallied as softer-than-expected US ISM manufacturing index gave a positive spin to the market.
The Dow Jones jumped the most on Monday, as oil stocks literally roared on the back of firmer oil prices. Oil bulls are betting that OPEC will announce an output cut of around a million barrels per day to ‘stabilize’ oil prices.
the FX, the US dollar retreat almost 3% since its September peak. The dollar lost more than 4.50% against the Brazilian real, as Cable rallied past the 1.13 level, after Liz Truss government took a ‘mini’ step back from their terribly unpopular fiscal spending plan, and said that they will not reduce taxes on big salaries.
Elsewhere, the Reserve Bank of Australia lifted its interest rates by 25bp only, versus 50bp expected by analysts.
Today, we will be watching the job openings data in the US, and hope to see a smaller number, as the Fed sees the job openings as a factor that could ease the pressure in the US jobs market.
Then, will follow the ADP report on Wednesday, and the NFP, unemployment rate and the wages growth on Friday. Investors are praying for softish numbers this week to continue the rally.
Gold analysis: Strong reversal back above 1676 monthly support [Video]
(Duncan Cooper – ACY Securities)
Price has strongly reversed moving back above the 1676 monthly support level. Will price now pull back to the 1676 monthly support level and hold for a further advance targeting the 1786 weekly resistance level?