Market Analysis: Markets Awaiting US Inflation Data


Yesterday, the major currency pairs were trading in fairly narrow ranges. Positive data on the US producer price index for September and the publication of the latest Fed minutes did not contribute to increased volatility in the market. Most likely, investors are expecting today's inflation data in the US. If the indicator is at the forecast level or even lower, this could lead to a change in the Fed's monetary policy, which in turn could contribute to the start of a medium-term downward impulse for the US dollar. Conversely, high inflation could force officials to keep rates high for a long time, which could trigger a new wave of greenback growth.


After a sharp decline last week, the USD/CAD pair found strong support in the 1.3600-1.3570 range. At these marks, there are alligator lines on the daily timeframe. Price behaviour at a given location can provide more clues as to the future direction of the pair. A sharp rebound from current levels could return the price back to 1.3700-1.3780. But a move below 1.3520 may contribute to a renewed decline in the direction of lower fractals at 1.3415 and 1.3370.

In addition to inflation data, today at 15:30 GMT+3, it is worth paying attention to the weekly data on applications for unemployment benefits in the United States. Also, at 18:00 GMT+3, weekly data on crude oil inventories will be released.


The GBP/USD pair showed moderate growth yesterday. Buyers retested 1.2300 and strengthened above this level, but so far, there has been no confident upward dynamics.

Today at 11:30 GMT+3, we are waiting for the publication of research on the Bank of England’s credit conditions. A little later, data on the main Thomson Reuters/Ipsos consumer sentiment index (PCSI) in the UK for October will be released.


The temporary weakness of the American currency and the aggravation of the geopolitical situation in the world contributed to a sharp pullback in precious metals. Using the chaos trading strategy, in the XAU/USD pair, we observe the development of a reversal bullish bar from October 6. At the moment, the price is trading around the intertwined alligator lines on the daily timeframe. A move above 1,890.00-1,900.00 could contribute to the resumption of medium-term growth. A rebound from current levels could return the price to 1,830.00-1,810.00.

Trade global forex with the Innovative Broker of 2022*. Choose from 50+ forex markets 24/5. Open your FXOpen account now or learn more about trading forex with FXOpen.

* FXOpen International, Innovative Broker of 2022, according to the IAFT

Start trading commodities with tight spreads. Open your trading account now or learn more about trading commodity CFDs with FXOpen.

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.

Latest from Commodities

Market Analysis: Natural Gas Prices Fall to More than 2-month Lows Market Analysis: Gold Price Dips From $2K While Crude Oil Price Recovers Market Analysis: The Price of WTI Oil Forming a Reversal Pattern Brent Crude Surges to $82.51 Amid OPEC+ Anticipation Market Analysis: Citi Analysts Expect Brent to Reach $73 in 2024

Latest articles

Forex Analysis

EUR/USD, GBP/USD, USD/JPY Analysis: US Dollar Falls to Its Lowest Level Since Mid-August

EUR/USDThe euro strengthened on Monday as the dollar fell on expectations that the Federal Reserve will not raise rates again. Traders this week will have to weigh data on how the US economy performed in the third quarter, as


NASDAQ Composite Index Heralds a Fine Time for Tech Stocks

In the ever-fluctuating landscape of financial markets, the NASDAQ exchange, home to some of the world's most prominent technology stocks, has been a bastion of volatility over the past two years. This week, the NASDAQ index continues its upward trajectory,

Trader’s Tools

Fibonacci Retracement Strategies

Fibonacci retracements are a cornerstone in the toolkit of many traders, offering a mathematical approach to identifying potential areas where reversals may occur. This article delves into the intricacies of using Fibonacci retracements, covering everything from basic understanding to strategies

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 60% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.