Forex Signals Brief November 9: Eyes on Powell and Unemployment Claims Today
Yesterday markets remained quiet due to a lack of economic data releases or other events, although the USD crawled higher against commodity dollars, while Gold reversed lower. Today FED’s Powell will hold a speech but he might avoid talking about the policy, while the unemployment claims will show how the jobs market is doing.
The only economic report released was wholesale sales for September, which came at 0.2% MoM and 2.2% YoY, which was higher than predicted at 0.8%. That could help an already excellent third quarter. There was some expectation that Fed Chair Powell and Fed Governor Williams might act as a trigger for the market, but both decided not to discuss the economy or policy during their separate speaking engagements today. Views have a better chance at that moment.
Today’s Market Expectations
The Chinese CPI inflation data comesfirst today and it will help to diagnose the state of China’s economy. According to the Caixin announcement, it stated that in October, “cost pressures remained muted, with composite input prices rising only modestly.” Despite this, businesses continued to boost their own selling prices. Despite being moderate, the pace of charge inflation was only marginally slower than September’s 18-month high, according to Caixin. Furthermore, “the gauge for input costs remained in expansionary territory for 40 months in a row, with the October reading being the lowest since June 2022, as increases in labor, raw materials, and transportation costs were limited.” A portion of the increase in input costs was passed on to customers.
The US unemployment claims that will be released in the US session are expected to remain unchanged. Last week’s jobless claims fell short of forecasts once again, with Continuing Claims climbing at a rapid rate. Furthermore, the NFP data last Friday missed projections virtually everywhere, indicating that the labor market is actually declining. Initial Claims are expected to be 215K this week, up from 217K the previous week, while Continuing Claims are expected to be 1815K, up from 1818K the previous week. Jerome Powell is slated to appear on a panel discussion titled “Monetary Challenges in a Global Economy” today and he might touch on the policy this time.
Yesterday markets were quiet, although there was enough action, particularly in safe havens such as Gold and the Yen. The USD continued to recuperate last week’s losses , mostly against risk currencies such as commodity dollars. We had three signals closing in profit, all of them long term, which brought us a lot of profit.
GOLD Starting to Reverse Higher After the Doji
Since early October, Gold has been rising as sentiment has shifted negative and safe haven assets such as XAU have benefited from the Gaza conflict. Moving averages served as good support indications when gold broke past $2,000 per ounce. However, the price has dropped since the Middle Eastern unrest has not spread any further. The price fell to $1957, but the H4 chart created a doji candlestick, which is a positive reversal signal, and we chose to open a buy Gold signal, which closed in profit yesterday and we reversed trade, selling Gold, which also closed in profit as the price slipped below the 20 SMA gray on the daily chart.
XAU/USD – Daily chart
USD/CAD Falling Below the 200 SMA
USD/CAD broke through the resistance zone at 1.38 and was trading toward the next resistance zone, close to 1.39, on the daily chart. The price breached slightly over 1.3903, but crude oil continued to slide and Canada’s October employment data was disappointing. However, the USD began to fall following the FED meeting last week and a batch of bad economic data from the US.
USD/CAD – 240 minute chart
Cryptocurrency Update
BITCOIN Making Higher Lows
Bitcoin has also benefited from improving mood, particularly in the cryptocurrency business since the Securities and Exchange Commission authorized a Bitcoin spot ETF. As a result, this cryptocurrency rocketed further late last month, surpassing $35,000 before failing to maintain gains and falling. Despite not losing much ground, buyers took control and drove the price up to almost $36,000. BTC is presently settling around $35,000 in value, although we saw another bounce off the 50 SMA yesterday as the 50 SMA (yellow) pushes the hlows higher, with buyers stopping around last month’s high just below $36,000.
BTC/USD – 240 minute chart
ETHEREUM Remains Close to $1,900
After the SEC approved Bitcoin spot ETFs last month, Ethereum benefited from the good attitude in the crypto market and soared beyond $1,800, gaining more than $300. The zone around $1,700 became support, and it now seems that the 50 SMA (yellow) has also become support, which is fantastic. ETH/USD reached a high of $1,900 over the weekend, indicating that the price is approaching our objective.
Ethereum – 240 minute Chart
- ETH Buy Signal
- Entry Price: $1,671.79
- Stop Loss: $1,371
- Take Profit: $1,971
ABOUT THE AUTHOR
See More
Sidebar rates
Related Posts
SaveAdd 3440
Join 350 000+ traders receiving Free Trading Signals
Alerts
Rates
Calendar
Signals