October 18, 2021

This Investors Need To Know Before Resuming Trading In The European Session

 The market opening earlier this week focused on the release of China’s economic growth data for the third quarter for investors to assess current market sentiment.

China's annual Gross Domestic Product (GDP) for the third quarter registered a decline to 4.9%, slightly lower than the expected decline to apras 5.0% compared to 7.9% of the previous reading.

Slightly misguided readings were seen pushing up risk on market sentiment at the start of the Asian trading session earlier this week.

Market risk-off sentiment will give an advantage to safe-haven currency trading, however commodity currencies such as the Australian dollar and the New Zealand dollar have begun to show declines again.

The New Zealand dollar is seen as failing to maintain its upward momentum even as inflation data for the third quarter recorded the biggest jump for quarterly readings in a decade.

This is following the risk of an economic shutdown move in Auckland, New Zealand with a level 3 warning by Prime Minister Jacinda Ardern set to be extended for another 2 weeks.

Meanwhile, for the US dollar, early strengthening was shown at the start of the European session today with support for the rise in US 10 -year bond yields to 1.60% again in addition to risky market sentiment following the release of Chinese economic data.

As for European currencies, the Pound moves better against the Euro in the market.

England’s central bank’s positive outlook on monetary policy and positive developments during Brexit still provide support for the Pound.

Meanwhile investors remained wary of the Euro as the European central bank's dovish projections on monetary policy reduced the attractiveness of the currency.

Investors also want to see whether the gold price movement will continue to experience more severe declines this week or bounce back to reach the $ 1,800 high.