Market Overview - Page 48

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.

US inflation slightly exceeded expectations, but a surge in jobless claims shifted attention to the need for further policy easing. The dollar remained largely unchanged after conflicting economic data was released.

The US dollar is on the rise, gaining almost daily against major currencies, driven by a shift in expectations for the Federal Reserve's key rate. Strong data, including a notable jobs report, has bolstered optimism about the US economy.

The cryptocurrency market lost 2.2% in 24 hours to $2.13 trillion, continuing to slide despite the S&P500 index making a solid update to all-time highs. Bitcoin lost over 3%, testing support of 50-day MA.