Nikkei jumps after Kishida’s party election victory

“Don’t work for money, make it work for you.’’ — Robert Kiyosaki

 

 

HEADLINES

 

 

• Pre-Fed caution keeps EUR/USD well away from October lows
• GBP/AUD Slides On AU Rate Hike Optimism
• Oil Continues Its Upward March to OPEC Drumbeat
• Gold firms on dip in dollar, upcoming Fed meet in focus
• Wall Street Closes at Record Highs as Energy, Consumer Shine
• Stocks hit new peaks before central bank meetings

 

 

FOREX

 

 

Pre-Fed caution keeps EUR/USD well away from October lows

 

 

The dollar index fell on Monday, surrendering part of Friday's sharp rebound as traders postponed attempts to surpass October's highs before a potentially momentous Fed meeting on Wednesday and Friday's U.S. jobs report. It followed data on Friday showing the highest quarterly increase in U.S. wages and salaries since 1984 while core PCE inflation gauge remained nearly double the Fed's 2% target.

 

GBP/AUD Slides On AU Rate Hike Optimism

 

The Australian Dollar (AUD) rose against the majority of its peers this past week, as risk appetite buoyed AUD sentiment and greater-than-expected inflation data fanned bets of an early rate hike.

Economists are concluding that the yield curve control (YCC) program is soon to be axed, as the central bank bows to market pressure: despite comments that [Australian] interest rates will not be increased until 2024, major banks now expect a rate lift as early as 2022.

 

 

COMMODITIES

 

 

Oil Continues Its Upward March to OPEC Drumbeat

 

Oil prices continued their upward march on Monday to the drumbeat of OPEC and its allies, who indicated they were in no mood to let the market slide by adding any more barrels than the 400,000 per day they had agreed to in the near future. OPEC+ holds its regular monthly meeting on Thursday.

 

Gold firms on dip in dollar, upcoming Fed meet in focus

 

Gold prices rose on Monday as the dollar eased and equities pared gains, with the focus now on the U.S. Federal Reserve timetable for a rollback in stimulus measures at a key meeting this week. Reduced stimulus and interest rate hikes tend to push government bond yields up, raising the opportunity cost of holding non-interest bearing gold.

 

 

STOCKS

 

 

Wall Street Closes at Record Highs as Energy, Consumer Shine

 

The major averages closed in record territory Monday, led by energy and consumer discretionary stocks ahead of data-laden week including a monetary policy update from the Federal Reserve.

Dow Jones Industrial Average Dow Jones ended up 2.26%, or 94 points to close at an all-time high of 35,913.

 

Stocks hit new peaks before central bank meetings

 

Global equity markets rose on Monday at the start of a big week for central bank meetings, helped by bets of fiscal stimulus in Japan and undeterred by concerns of future interest rate hikes that have tempered bonds. The pan-European STOXX 600 rose 0.7% to finish at a record closing high as the global mood was supported by Japan’s post-election boost and stabilizing coal prices in China.

Japan’s Nikkei closed up 2.6% after Prime Minister Fumio Kishida’s Liberal Democratic Party won an unexpected comfortable victory, raising hopes for political stability and stimulus in the term ahead.

 

 

CHART

 

 

Brent crude oil – 4-Hour Candlesticks

Source: GKFX Prime Metatrader 4

Brent crude broke below a rising wedge pattern and has now rebounded to re-test the underside of the wedge as resistance. - Prepared by Trading Writers*

 

 

CALENDAR

 

 

*Times in GMT

Source: FX Street Economic Calendar

 

 

SOURCE

 

 

https://www.fxstreet.com/economic-calendar
https://www.nasdaq.com/articles/buzz-comment-us-recap%3A-pre-fed-caution-keeps-eur-usd-well-away-from-october-lows-2021-11
https://www.exchangerates.org.uk/news/34313/2021-11-01-pound-australian-dollar-exchange-rate-outlook-gbp-aud-slides-on-au-rate-hike-optimism.html
https://www.investing.com/news/commodities-news/oil-continues-its-upward-march-to-opec-drumbeat-2663097
https://www.cnbc.com/2021/11/01/gold-markets-dollar-us-federal-reserve.html
https://www.reuters.com/article/global-markets/global-markets-stocks-hit-new-peaks-before-central-bank-meetings-idUSL1N2RS1MX