The ECB is in the spotlight | | | | | Hello, my name is Nicholas. I am a financial analyst with the OctaFX team. | | | | | Let's rewind to review the events that impacted the market and which events will affect it in the future. | | On Friday, the U.S. Department of Labor released disappointing Nonfarm Payroll data. The speed of economic recovery raises doubts as nonfarm employment slowing. Nevertheless, the overall unemployment rate fell from 10.2% to 8.4% in July. | | | | Britain set a deadline for 15 October to come to an agreement with the European Union on a new trade deal. If a deal cannot be reached, both sides must 'accept it and move on'. | | | | U.S. and China relations may further deteriorate as the November elections approach with the Trump administration considering blacklisting major Chinese chipmaker, SMIC. The main focus this week will be on the European Central Bank's (ECB) deposit rate decision, which takes place on Thursday. Most analysts aren't expecting significant changes in the overall political view, but the ECB inflation forecast is highly anticipated. | | | | | | | EUR: Industrial Production | | | | | | | | JPY: Gross Domestic Product | | EUR: Trade Balance | | EUR: Gross Domestic Product | | | | | | CNY: Consumer Price Index | | CAD: BoC Rate Statement | | | | | | | | EUR: ECB deposit rate decision | | USD: Initial Jobless Claims | | | | | | EUR: Harmonised Index of Consumer Prices | | GBP: Manufacturing Production | | GBP: Gross Domestic Product | | USD: Consumer Price Index Ex Food & Energy | | | | | | | | | The SPX500 index fell last week after reaching a record of 3,580. The drop is a result of investors' pessimistic outlook of the speed of economic recovery in the U.S. and due to investors selling long positions ahead of the Federal Reserve meeting this month. We may see a slow upward movement in the middle term. | | | | | The dollar held steady on Monday against all major currencies. Last week, investors believed there could have been an early aid package decision, which has been tabled for weeks. The dollar began to recover gradually against most major currencies as a result of this belief. The GBPUSD pair is confronting disconcerting news, too, about the U.K.'s potential trade deal with the E.U. | | | | | Gold is experiencing increased volatility. On Friday, prices dropped to 1,920 USD. Information about the new coronavirus vaccines is a downward factor for gold prices. We can expect a bit of a sideways trend this week, with the support level of gold remaining at 1,906 USD. | | | | | Oil prices dropped more than one dollar per barrel on Monday, falling to their lowest level since July. The last time oil was this low was when Saudi Arabia made the deepest monthly cut in Asian supply prices over five months, as pessimism regarding a recovery in demand rose. With the U.S. Labor Day holiday marking the end of the summer driving seasons, investors noted that demand for gas was sluggish, while supply remained high. Currently, Brent crude is trading at 42.20 USD. Oil prices were also pressured by the beginning of the U.S. refinery service season, which means a lower oil demand. | | | | Leverage the most relevant financial information to trade profitably by reading our daily technical analysis. | | Trade wisely | | | | | | Trade in our app |  | | | | Business license no. 19776 IBC 2011 | | Registered address: Suite 305, Griffith Corportate Centre, Beachmont, Kingstown, St. Vincent and the Grenadines | | © 2020 Octa Markets Incorporated | | | | |
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