Risk-taking has been the name of the game in the last trading sessions.
Will the optimism push EUR/USD above its potential Reverse Head and Shoulders pattern?
Before moving on, ICYMI, today’s Asia-London session watchlist checked out a potential straddle trade on AUD/JPY ahead of Australia’s jobs reports. Be sure to check out if it’s still a valid play!
And now for the headlines that rocked the markets in the last trading sessions:
Fresh Market Headlines & Economic Data:
RBA deems climate change “first order risk” to economy
UK house prices could surge as fewer properties come on market
Fed’s Bowman ‘very comfortable’ with November taper, sees inflation risks
Inflation in US, Europe over 2% due to transitory factors – BoJ’s Kuroda
Australia’s unemployment rate rose to 4.6% in September – and the labour market might not recover before 2022
Cold keeps China coal prices high, power crunch stokes factory inflation
China has tools to cope with economic challenges despite slowing growth – premier
Turkish lira hits record low after Erdogan sacks central bank officials
BoE hike expectations push sterling to two-week high
Earnings optimism drives European stocks to two-week highs
Most Asian currencies rise as dollar eases
Upcoming Potential Catalysts on the Forex Economic Calendar:
Canada’s manufacturing sales at 12:30 pm GMT
U.S. initial jobless claims at 12:30 pm GMT
U.S. PPI reports at 12:30 pm GMT
FOMC member Bostic to participate in a virtual panel discussion at 2:00 pm GMT
U.S. crude oil inventories at 3:00 pm GMT
If you’re not familiar with the forex market’s main trading sessions, check out our Forex Market Hours tool.
What to Watch: EUR/USD
No good economic data? No problem!
Reports released so far this week point to consumer prices rising higher and way longer than market geeks expected. They added to the risk of major central banks raising their interest rates while the economy still needs cheap money.
But market playas legit said “Ain’t nobody got time to worry about that!” because high-risk currencies are up against the U.S. dollar and other safe-havens today.
Let’s see if EUR/USD can continue to benefit from all the optimism. Word on the hood is that traders are looking forward to key earnings reports that are slated to show strong numbers.
But Uncle Sam’s producer prices are scheduled for release and faster-than-expected price increases may spook some risk-takers.
If risk-taking continues to hold the markets, then EUR/USD could break above its 1.1650 resistance, which is also around a Reverse Head and Shoulders “neckline.”
Heck, you might also want to keep close tabs on another moving average crossover that may push EUR/USD to the 1.1700 – 1.1750 area!
Meanwhile, a rejection at current levels and another wave of dollar-buying can drag EUR/USD back to the 1.1550 inflection point.
