Weekly Market Commentary | 09.10 – 15.10

Weekly Market Commentary | 09.10 – 15.10
Curious to know what’s happening on the markets this week? Take a quick tour of the latest news, economic updates, and trading setups that will keep you up-to-date and in the know.
  • Markets initiate with a calm macro calendar, observing bank holidays in Japan, Canada, and the US.
    • A noticeable shift towards safe havens in the initial trading hours points to a market sensitively responding to developing violence in the Middle East.
    • Initial responses: bearish indices, bullish commodities, and strengthening of safe currencies like the American dollar, Swiss franc, and Japanese yen.
    • The geopolitical unrest is poised to be a dominant theme throughout not just today but potentially the days to come.
  • An empty calendar with no tier 1 data anticipated, yet markets may continue to grapple with the ripple effects of the Middle East turmoil.
  • A day likely to be characterized more by geopolitical reflections than macroeconomic impulses.
  • A surge of financial data, including the US PPI, punctuates the midweek trading environment.
  • FOMC meeting minutes hold the potential to sculpt trading trajectories, with markets keenly attuned to insights into the Federal Reserve’s perspectives and potential future actions.
  • The UK broadcasts its GDP figures, forecasted at a modest 0.2%, offering insights into its economic recovery.
  • The US enters the spotlight with key inflation data, an annual projection pinning it at a reduction to 3.6%, alongside unemployment claims, anticipated to tally at 216,000.
  • China presents its inflation data, predicted to unveil a 0.2% increase, a metric invariably watched by global markets due to China’s economic stature.
  • A cascade of authoritative voices: Speeches from Bank of England Governor Bailey, ECB President Lagarde, and FOMC member Harker will be meticulously dissected by traders and investors alike.
  • Concluding the week, the Preliminary University of Michigan Consumer Sentiment from the US is projected to stand at 67.5, potentially offering a window into consumer perspectives amidst ongoing economic narratives.
Setups for This Week:

Primary View
  • A bullish gap kicks off the week, revealing an assertive upward push in precious metals, markedly in silver.
  • Rooted in the Middle East violence, this bullishness wasn’t entirely unforeseen, as the previous week closed on a high, escaping a sideways trend indicated by an orange marker.
  • Current trajectory advocates a buy, casting eyes towards the yellow area as a plausible target.
Alternative View:
  • A reversion back into the bounds of the orange rectangle paves the way for a sell signal.
Primary View
  • Despite concluding last week on a bullish breakout from a sideways trend, defined by orange lines, Nasdaq opens this week with a bearish gap and flirtation with returning to said trend.
  • If the price finds itself encapsulated again within the orange confines, it embodies a sell signal.
Alternative View:
  • Surmounting the orange lines, subsequently maintaining a position above, would signify a long signal.
Primary View
  • With safe havens in vogue, the Swiss Franc capitalizes, guiding GBPCHF to a testing phase against the pivotal 1.11 horizontal support, illustrated with a green marker.
  • A breakthrough descending past this green line would firmly plant a sell signal in the landscape.
Alternative View:
  • Conversely, a bounce from the green demarcation serves as a beacon for a long position.
Show More Articles
Axiory uses cookies to improve your browsing experience. You can click Accept or continue browsing to consent to cookies usage. Please read our Cookie Policy to learn more.