Global FX Economy 15th Oct 2015. EUR/USD climbs, gold soars. Markets, news and analysis

Forex Market Commentary  

The Dow has a good day.

The Dow rises +217.00 +1.28% to close at 17141.75  as banks have a good earnings day. Asian markets follow suit and expect to regain the almost 4 trillion Dollars of lost equity value sparked by the China economic crisis. Read on Bloomberg - http://www.bloomberg.com/news/articles/2015-10-15/u-s-stock-index-futures-climb-as-fed-bets-wane-netflix-falls

and gold bullion at the 1180 has erased most of the losses as the greenback starts to stutter in the wake of a Dovish Fed outlook. read here on Bloomberg -  http://www.bloomberg.com/news/articles/2015-10-15/gold-stages-comeback-erasing-2015-losses-on-view-fed-will-delay

The September CPI report suggests the labor market is still tight and that core inflation is still near the fed threshold of 2%. So the USD holds position at the 1.13 today in this grinding pricing match in the EUR/USD pair. The summary data of the report is as follows:

- USD Initial Jobless Claims (OCT 10): 255K versus 270K expected, from 262K.

- USD Continuing Jobless Claims (OCT 3): 2158K versus 2200K expected, from 2208K.

- USD Consumer Price Index (SEP): -0.2% as expected.

- USD Consumer Price Index (SEP): 0.0% versus -0.1% expected, from +0.2% (y/y).

- USD CPI Core (SEP): +0.2% versus +0.1% expected.

- USD CPI Core (SEP): +1.9% versus +1.8% expected, from +1.9% (y/y).

 

In speaking of moving averages; markets are not rational and daily price action volatile, but in the longer run trader expectation and negative sentiment can be collectively summed up through the 50 day moving average. Always look to support and resistance band lines as the key to understanding in the long and short term where prices are converging. Professional technical traders use 50 day and 200 day medium and slow moving averages as fundamental cornerstones for interpreting the direction of price action.

USDX

US Dollar 
94.497    +0.059 +0.08%     
Support 94.805     Resistance 96.895
Forward 1 year - 96.270s.

EUR/ USD
1.13661     -0.01019 -0.89%
Support   1.11140          Resistance 1.15640
Forward 1 year - 1.14310s.  

Crude Oil  WTI

47.42     +0.55 +1.18%

Support 46.02  Resistance  51.96
Forward 1 year - 44.76s.

Gold

1181.925     -2.165 -0.18%

Support  1,156.0    Resistance 1,190.4
Forward 1 year  -  1,133.2s.

Pieter Bergli - DeLoren Trust Holdings

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