The higher prices seen today are generally related to the pandemic, that’s no doubt. US consumer prices jumped in October at the fastest pace in three decades putting the Biden administration on the defensive and increasing prospects that the Federal Reserve will raise interest rates next year. Jerome Powell says Fed will discuss speeding up bond-buying taper at the December meeting. What does it mean for markets?
Trading plan for October 23
From the Economic calendar:
The main focus for today will be on the speech of the Bank of England governor Mark Carney in Toronto. He can make some comments regarding the monetary policy. Now let’s check the charts. Yesterday new uncertainties around the Brexit pushed the British pound down. Despite the British Prime Minister Theresa May’s comments on the reaching final compromise, Eurosceptics within the UK parliament and the members of the Democratic Unionist party of Ireland will try to make the solution proposed by European Union illegal.
From the charts:
Yesterday GBP/USD crossed the psychological support at 1.3. For now the pair is testing the resistance at 1.2969. If Carney’s comments are hawkish, GBP/USD can stick above 1.3 targeting the next resistance at 1.3102. More bad news on Brexit will push the pair down to the support at 1.2876.
As for EUR/USD, the pair keeps struggling due to the Italian budget problem. Positive news for the EUR will help the pair to stick above the resistance at 1.1521. Otherwise, it will fall below the support at 1.1421.
AUD/USD is falling following the Chinese economic outlook. The next support for the pair is at 0.7050. If the USD is weak, the pair will rise above the resistance at 0.7083.
The USD is strong after the comments of the Federal Reserve members. Gold is under the impact of contradictory factors. Watch the video to get trade ideas for EUR/USD, USD/JPY, XAU/USD, and XBR/USD!
Find out the insights for today's trading of the most popular instruments on the Forex market
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