Dollar stumbles after weak US GDP & ECB

“If you can learn to create a state of mind that is not affected by the market’s behaviour, the struggle will cease to exist.” – Mark Douglas

 

 

HEADLINES

 

 

• Dollar holds losses to euro after ECB comments, economic data
• ECB's Lagarde seeks to cool rate hike predictions for next year
• Oil settles down but off 2-week low; supply concerns in focus
• Gold rises as dollar tumbles, slowing U.S. growth boosts appeal
• Nasdaq scales record peak ahead of Apple, Amazon results
• Apple Misses Revenue in Q4 as Chip Shortage Dents iPhone Sales
• ECB says inflation surge is transitory, but markets doubt it – Danske Bank

 

 

FOREX

 

 

Dollar holds losses to euro after ECB comments, economic data

 

The dollar held losses to the euro and British pound late on Thursday as currency traders digested moves in interest rate markets, comments by the European Central Bank President Christine Lagarde and a weaker-than-expected U.S. economic report. The euro rose nearly 0.7% against the dollar and was headed for its biggest daily gain since May. It traded at $1.1681 in the late afternoon in New York.

 

ECB's Lagarde seeks to cool rate hike predictions for next year

 

European Central Bank President Christine Lagarde on Thursday tried to play down the chances of a rate hike for 2022, hinting that market players might be getting ahead of themselves with their predictions. The euro zone's central bank decided to keep interest rates and its monetary policy stance unchanged despite ongoing inflationary pressures.

 

 

COMMODITIES

 

 

Oil settles down but off 2-week low; supply concerns in focus

 

Oil prices dipped on Thursday but settled off two-week lows as concerns about U.S. supply growth vied with speculation that Iran's supply could come online following nuclear talks with global powers. U.S. West Texas Intermediate (WTI) crude rose 15 cents, or 0.2%, to settle at $82.81. During the session the contract touched a two-week low of $80.58.

 

Gold rises as dollar tumbles, slowing U.S. growth boosts appeal

 

Gold prices rose on Thursday, as demand for the safe-haven asset was lifted by a softer dollar and data showing the U.S. economy grew at its slowest pace in more than a year.

 

 

STOCKS

 

 

Nasdaq scales record peak ahead of Apple, Amazon results

 

The Nasdaq hit a record high on Thursday, led by mega-cap companies Apple, Amazon.com and Tesla, while solid results from Caterpillar and Merck helped investors shrug off signs of slowing economic growth.

 

Apple Misses Revenue in Q4 as Chip Shortage Dents iPhone Sales

 

Apple reported mixed fiscal fourth-quarter results as revenue fell short of Wall Street expectations as the ongoing chip shortage weighed on iPhone sales. Apple Inc shares lost 4.26% in after-hours trade following the report. iPhone revenue, which makes up about half of total revenue, rose to $38.98 billion from $26.44 billion a year earlier, missing estimates of $41.60 billion, driven by strong demand from the latest slate of iPhones.

 

 

ANALYSIS

 

 

ECB says inflation surge is transitory, but markets doubt it – Danske Bank

 

“Despite Lagarde’s very dovish signals and overall appearance, EUR/USD followed the rates market higher. In our view, this is likely a temporary correlation and likely to soon be replaced by more downside risk as the European economy underwhelms amid inflation surprises. We do not generally see much of a link between spot EUR/USD and rising expectations towards euro area interest rates.”

 

 

CHART

 

 

Euro / US dollar – 4-Hour Candlesticks

Source: GKFX Prime Metatrader 4

EUR/USD has broken above resistance at 1.167 and looks set to continue higher towards the September 21 peak at 1.175 . - Prepared by Trading Writers*

 

 

CALENDAR

 

 

*Times in GMT

Source: FX Street Economic Calendar

 

 

SOURCE

 

 

https://www.fxstreet.com/economic-calendar
https://www.fxstreet.com/news/ecb-says-inflation-surge-is-transitory-but-markets-doubt-it-danske-bank-202110281557
https://www.reuters.com/business/futures-rise-positive-earnings-gdp-data-awaited-2021-10-28/
https://www.msn.com/en-us/money/markets/ecbs-lagarde-seeks-to-cool-rate-hike-predictions-for-next-year/ar-AAQ3kEu
https://www.investing.com/news/stock-market-news/apple-misses-revenue-in-q4-as-chip-shortage-dents-iphone-sales-2659905
https://www.cnbc.com/2021/10/28/gold-firms-as-us-bond-yields-weaken-focus-on-ecb-boj-meetings.html