The USD is little changed to start the new trading week with the EURUSD unchanged, the USDJPY higher by 0.10% (higher USD) and the GBPUSD down -0.16% (higher USD as well).
Geopolitical concerns continue to drive the markets with the US shutdown now in day 20, US/China tension continuing to be a major economic concern, the Ukraine/Russia war continues with Ukrainian President Zelensky saying he doesn’t expect U.S. President Trump to escalate with Russia until after another meeting with Moscow and that he remains focused on maintaining U.S. support while preparing Ukraine to supply drones if Washington provides missiles. Meanwhile, President Trump reportedly told Zelensky he has no immediate plans to send missiles and urged Ukraine to consider Russian President Putin’s terms, warning that Russia might “destroy” Ukraine if it refused.
In Japan they are moving closer to a coalition government with LDP leader Takaichi and Innovation Party Yoshimura signing an agreement to form a coalition government.
In the video above I take a technical look at the 3 major currency pairs, the EURUSD, USDJPY and GBPUSD focusing in on what I see as the bias dominating the price action, the specific risks and target levels for each. Knowing the roadmap for your trade is the most important thing a trader can do to keep fear down, and traders in tune with the market.
The Fed is now in the blackout period until its FOMC rate decision a week from Wednesday (Oct 29). WIth most of the economic data on pause, the market will be grasping at any private data that may tell a picture about the US economy. Having said that, the US will publish the delayed CPI report on Friday as it impacts Social Security payments. It is expected to rise by 0.3%/0.4% for the month (not that great a number if it comes in as expected).
Also on tap this week is the US existing home sales on Thursday with a modest rise to 4.06M annualized sales pace from 4.0M last month. That is about it.
The US earnings calendar will continue with the following
Major Earnings Releases This Week
Tuesday
BMO: Coca-Cola (KO), GE Aerospace (GE), Texas Instruments (TXN), Raytheon Technologies (RTX), 3M (MMM), PulteGroup (PHM), GM (GM), Northrop Grumman (NOC),
AMC: Netflix (NFLX), Intuitive Surgical (ISRG), Capital One (COF)
Wednesday
BMO: GE Vernova (GEV), Kinder Morgan (KMI), Boston Scientific (BSX),AT&T (T), Taylor Morrison Home (TMHC), SAP (SAP), Alcoa (AA),
AMC: Tesla (TSLA), IBM (IBM), Hilton (HLT), Lam Research (LRCX), T-Mobile (TMUS)
Thursday
BMO: American Airlines (AAL), Honeywell (HON), Alaska Air Group (ALK), DOW (DOW)
AMC: Intel (INTC), Newmont (NEM), Deckers Brands (DECK), Ford (F), Southwest Airlines (LUV)
Friday
BMO: Procter & Gamble (PG), Gentex (GNTX),General Dynamics (GD), HCA Healthcare (HCA)
Looking at the markets today, the major US indices are higher:
- Dow +89 points
- S&P index +20.79 points
- NASDAQ index +106 points
in the US debt market, yields are marginally lower
- 2-year yield 3.463%, unchanged
- 5 year yield 3.588%, -0.4 basis points
- 10 year yield 4.001%, -0.8 point basis points
- 30 year yield 4.592%, -1.0 basis points
