FXOpen
On Friday (15:30 GMT+3), markets will pay attention to the Personal Consumption Expenditure (PCE) Price Index, the metric the Federal Reserve prefers to gauge the inflation level. According to forecasts, the annual Core PCE declined to 3.7% in September, compared to 3.9% the month before. Still, the Fed targets an average inflation rate of 2%. Analysts expect that the Core PCE MoM level rose 0.3% in September, up from 0.1% in August. The Fed is in its blackout period this week, ahead of the meeting scheduled for October 31-November 1. According to the CME FedWatch Tool, there is a 98.5% chance the central bank will keep the interest rate on hold at the current 525-550 bps level. A significant deviation from the forecast may lead to increased volatility in US markets.
This week, traders will closely monitor earnings reports from four of the so-called "Magnificent Seven'' stocks that include Microsoft, Amazon, Alphabet, and Meta. These stocks pushed the S&P 500 index higher this year. Alphabet and Microsoft will report on Tuesday, Meta will announce its quarterly results on Wednesday, and Amazon will present its results on Thursday. Better-than-expected data may boost the leading US stock indices.
US GDP growth will be tracked by traders on Thursday (15:30 GMT+3). According to the forecasts, the GDP growth rate in the third quarter increased to 4.2%, up from 2.1% in the second quarter, due to stronger-than-expected gains in exports, consumer spending, and employment. Enormous growth may lead to the appreciation of the US dollar.
The economic calendar doesn’t list crucial events for the oil market. On Wednesday, markets may check the weekly EIA Crude Oil Inventories report (17:30 GMT+3). However, the main focus will be on developments in the Middle East. Geopolitical tensions keep creating enormous volatility, including in the oil market.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Stay ahead of the market!
Subscribe now to our mailing list and receive the latest market news and insights delivered directly to your inbox.
Latest articles
Coinbase (COIN) Shares Fall Amid Bitcoin Weakness
The Coinbase Global (COIN) chart shows that the cryptocurrency exchange’s share price has dropped below:
→ the psychological $300 level,
→ the previous November low.
Bearish sentiment is largely linked to Bitcoin slipping below a key psychological threshold — as noted earlier
Natural Gas Prices Hover Near a Three-Year High
As the XNG/USD chart shows today, natural gas prices are trading close to the March peak, which is the highest level since December 2022.
According to Trading Economics, the rise in gas prices has been driven by several factors:
Pound Strengthens After Weak GDP Data as Markets Assess the Impact of the US Shutdown
The British pound posted a solid advance yesterday, despite UK GDP data coming in weaker than expected. The economy showed virtually no growth, underscoring persistent pressure on domestic demand and the manufacturing sector. However, the market appears to have used