Market Overview - Page 34

The Canadian dollar has weakened in anticipation of the Bank of Canada's rate decision. However, if the Bank of Canada's comments remain dovish, the USDCAD pair could continue to rise.

The S&P500 and other US indices are showing signs of a potential correction before the election, with the sentiment on Greed territory and the VIX volatility index indicating heightened nervousness. There is potential for the S&P500 to reach a correction target of 5600-5700.

Silver prices surged last week, reaching 12-year highs. While a short-term correction may occur, the rally could continue and potentially reach all-time highs near $50.

The German Producer Price Index fell more than expected, increasing the likelihood of further monetary policy easing in the eurozone. This weakened the euro against the dollar, with a potential path towards lower support levels.

The key events for the market this week will be the interest rate decision from the People’s Bank of China on Monday and the Bank of Canada’s rate decision on Wednesday, where there may be a fourth cut this year,.

Oil has lost around 8% since Monday, experiencing downward momentum at the beginning and end of the week. It ended the week below $73 per barrel Brent. The price of oil had risen rapidly in early October. However, all bullish.

Dollar The dollar has been on an impressive streak, gaining almost daily, particularly against emerging market currencies. This is the currency market’s reaction to Trump’s higher chances of winning the presidential race, fuelled by his promises of increased trade tariffs..

The British pound fell below the 1.30 level against the dollar after weak inflation data across indicators. This sent the pound to a two-month low on speculation that the Bank of England will cut interest rates further in the coming.

The UK unemployment rate dropped to a record low, supporting the pound. However, there are concerns over a drop in employment and a slowdown in wage growth. Further gains for the pound will depend on a global shift in sentiment.

Swiss inflation continues to disappoint, with producer and import prices falling by 0.1% m/m in September, contrary to expectations. This weakness supports the case for further monetary easing by the Swiss central bank. USDCHF rose 0.8%, following the Dollar Index's gains since late September.

China's latest economic data shows weak growth, with CPI slowing to 0.4% y/y and PPI falling 2.8%. While external trade data signals potential recovery, the overall sentiment remains disappointed. Monetary dynamics indicate some positive movement, with M2 growth at 6.8%.

US producer prices rose at a faster pace in September than analysts had forecast. The headline PPI slowed to 1.8% y/y instead of the expected 1.6%. The core price index, which excludes food and energy, accelerated to 2.8%. While this.