USD off lows after Powell taper hint

“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 pares losses as Powell signals bond taper
• GBP/JPY clings to 156.00 on retreat from highs
• Gold rises, set for weekly gain on softer dollar
• Oil climbs on tight U.S. supply even as coal, gas crunch eases
• Nasdaq, S&P 500 end lower, dragged down by communications services
• Tech giants' earnings may be another test for markets at new highs
• Inflation Is the Problem, Bitcoin Is the Solution — Says Michael Saylor

 

 

FOREX

 

 

Dollar pares losses as Powell signals bond taper

 

The dollar pared losses on Friday after Federal Reserve Chairman Jerome Powell said the U.S. central bank should begin reducing its asset purchases soon, but should not yet raise interest rates. Powell said employment is still too low and high inflation will likely abate next year as pressures from the COVID-19 pandemic fade, even as many market participants are concerned that rising price pressures will last longer than policymakers believe.

 

GBP/JPY clings to 156.00 on retreat from highs

 

The British pound has depreciated for the second consecutive day on Friday, retreating further from multi-year highs at 158.20, to seek support at 156.00 area. The pair is set to post a 0.6% weekly reversal, after having surged about 4.5% over the previous two weeks. 

 

 

COMMODITIES

 

 

Gold rises, set for weekly gain on softer dollar

 

Gold inched higher and was poised for a second weekly gain on Friday, as a softer dollar provided some respite against higher U.S. bond yields and rising expectations that central banks could begin easing economic support. Bullion prices were en route to a second week of gains, aided by a weaker dollar which was set to decline this week.

 

Oil climbs on tight U.S. supply even as coal, gas crunch eases

 

Oil prices resumed their climb on Friday on continued tightness in U.S. supply, but were headed for a flat finish on the week as coal and gas prices eased, curbing fuel-switching which had stoked demand for oil products for power.

 

 

STOCKS

 

 

Nasdaq, S&P 500 end lower, dragged down by communications services

 

The S&P 500 and Nasdaq closed lower on Friday as disappointing quarterly reports from Snap Inc (SNAP) and Intel Corp (INTC) put pressure on the communications and technology sectors and investors turned skittish as Federal Reserve Chair Jerome Powell discussed stimulus tapering.

 

Tech giants' earnings may be another test for markets at new highs

 

Investors are homing in on a flood of earnings reports from Wall Street’s tech and Internet giants, as the high-growth stocks that have led markets higher for years face pressures from regulation, supply-chain snags and rising Treasury yields.

 

 

CRYPTO

 

 

Inflation Is the Problem, Bitcoin Is the Solution — Says Michael Saylor

 

MicroStrategy CEO, Michael Saylor, sparked an interesting topic on Twitter today. He tweeted, ‘Inflation is the problem. Bitcoin is the solution’, which Bitcoin Magazine immediately retweeted on its account. Like how the Twitter crypto space reacted to this tweet, the entire crypto market also has varied opinions and take on this matter. More so, this argument says that the central bank money-printing will soon lead to inflation or might decrease in value as time goes on.

 

 

CHART

 

 

British pound / US dollar – 4-Hour Candlesticks

Source: GKFX Prime Metatrader 4

GBP/USD is falling back to possible uptrend line support as well as a demand area created near the October 18 low. - Prepared by Trading Writers*

 

 

CALENDAR

 

 

*Times in GMT

Source: FX Street Economic Calendar

 

SOURCE

 

https://www.fxstreet.com/economic-calendar
https://www.cnbc.com/2021/10/22/jeffrey-gundlach-says-bitcoin-double-top-chart-at-all-time-highs-looks-scarier-than-this-summer.html
https://www.cnbc.com/2021/10/22/gold-markets-dollar-us-bond-yields-central-banks.html
https://www.reuters.com/world/asia-pacific/dollar-pares-losses-powell-signals-bond-taper-2021-10-22/
https://www.fxstreet.com/news/gbp-jpy-clings-to-15600-on-retreat-from-15820-highs-202110221743
https://financialpost.com/pmn/business-pmn/oil-climbs-on-tight-u-s-supply-even-as-coal-gas-crunch-eases