Hi everyone! It is already Tuesday and we have lots of interesting news for you. Traders are anticipating US retail sales and industrial output data for October. Apart from that, at the virtual meeting, Xi Jinping expressed his readiness to work with President Biden to build consensus and take active steps to move China-US relations forward in a positive direction. These statements are sure to have an impact on market sentiment. Watch our video review and find out more interesting pieces of news.
The trajectory of the US dollar is in line with our forecast. Yesterday, it reached the support level of 95 and began to grow again. Now, the index has approached 95.5. On the current chart, the resistance level is located at 95.6. So, the US currency is likely to trade in this range for some time ahead of the release of important economic reports.
The yen remains weak versus the greenback. There are several reasons for it. The main reason is Japan’s pessimistic GDP report for the third quarter. Economic growth slowed down and even fell in annual terms. The Japanese government also intends to introduce cash payments to households with children under the age of 18 as part of an economic stimulus plan. It will also include tax benefits and salary increases for care workers and nurses This may trigger inflation in the country but partially offset economic losses. The dollar/yen pair is now moving up. From its current level of 114.25, it may climb to 114.45.
On Monday, the Aussie showed the biggest gain amid upbeat China’s retail sales and industrial production data. However, today, it is declining again from f 0.7335 to 0.7300. It is likely to keep dropping for some time mainly because of the strengthening of the US dollar.
Let’s sum up. The situation in the global market is relatively calm. Bulls are still in control amid the ongoing quantitative easing programs in many countries. However, keep in mind that the Fed may be forced to raise the key rate earlier than expected amid high inflation and the recovery of the labor market. Besides, the regulator may taper asset purchases at a faster pace than planned.
Today, speculators are looking for the US retail sales and industrial output reports for October. If the figures turn out to be positive, it may be rather bearish for the stock market. So, there may be some pullbacks in the market.
That’s all for now! Do not miss our next video review! See you!
00:00 Intro
00:40 USDX
01:10 USD/JPY
02:07 AUD/USD
https://www.instaforex.com

FX Analytics - https://www.instaforex.com/forex_analytics
Forex Calendar - https://www.instaforex.com/forex_calendar
Forex TV from InstaForex - https://www.instaforex.com/instaforex_tv

Forex charts - https://www.instaforex.com/charts
Instant account opening - https://www.instaforex.com/fast_open_live_account
Forex Trading Contests - https://www.instaforex.com/forex_contests

List of official InstaForex blogs:
https://www.facebook.com/instaforex
https://www.instagram.com/instaforex/
https://twitter.com/InstaForex

#forex_news # asian_session #instaforex_tv