This is what you need to know to trade today Wednesday, October 27:
The dollar gained strength against its rivals for the second day in a row on Tuesday, but action in major currency pairs remains subdued as investors prepare for key events. Today, Wednesday, data on the trade balance and durable goods orders for September will be released. The Bank of Canada (BoC) will announce its monetary policy decisions at 14:00 GMT.
US Durable Goods Order Preview: Five Scenarios to Trade the EUR / USD Event
Mood: The S&P 500 and the Dow Jones Industrial Average reached new all-time highs on Tuesday, but erased a large chunk of daily gains before closing modestly higher. The Shanghai Composite is down nearly 1% on Wednesday and the Nikkei 225 is down 0.25%. Futures on the US stock index are trading flat at the beginning of the European session. After the closing bell, Google Alphabet posted better-than-expected earnings for the third quarter.
Meanwhile, the 10-year US Treasury yield fell on Tuesday and appears to have entered a consolidation phase between 1.6% and 1.65%.
Macro data: On Tuesday, US data showed that new home sales rose 14% in September, compared to the market’s expectation of 1.5%. Additionally, the Conference Board consumer confidence improved to 113.8 in October from 108.3 in September.
On Wednesday, the Reserve Bank of Australia (RBA) reported that the cut average CPI rose to 2.1% annually in the third quarter from 1.6% in the second quarter. This reading beat analysts’ estimate of 1.8%.
Lastly, GfK’s Consumer Confidence Index in Germany rose to 0.9 in November from 0.4 in October and beat the market consensus of -0.5 by a wide margin.
The EUR/USD it is still trading in a very narrow band around the 1.1600 zone ahead of the expected monetary policy meeting of the European Central Bank.
GBP/USD managed to gain traction supported by upbeat CBI retail figures on Tuesday, but returned below 1.3800, with the dollar preserving its strength.
USD / CAD it remains relatively quiet around 1.2400. The BoC is widely expected to leave its monetary policy rate unchanged at 0.25%, but a reduction in asset purchases could help the CAD remain resilient against its US counterpart.
AUD/USD it advanced past 0.7500 after quarterly inflation data and close to the multi-month highs it set at 0.7548 last week.
The bulls of oro They failed to defend $ 1,800 on Tuesday and the XAU / USD lost almost 1%. The pair is ranging around $ 1,790 on Wednesday as it awaits the next catalyst.
cryptocurrencies: The Bitcoin It encountered resistance near $ 64,000 on Tuesday and lost more than 4%. Currently, BTC is trading close to $ 60,000 and additional losses could be witnessed if this support fails. The Ethereum it preserves its bullish momentum with its sights set on the new all-time highs near $ 4,400.
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