eToro Weekly Market Review, Oct 10, 2010

8/8/2019 eToro Weekly Market Review, Oct 10, 2010

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Japanese Consumer Confidence is expected to remain stable UK CPI will be watched closely by the BOE UK Claimant Count will give a gauge of the UK employment situation US Retail Sales will reflect the state of the consumer in the US

Instrument Trend Support II Support I Spot Resistance I Resistance II

EUR/USD 1.2550 1.2950 1.3907 1.4155 1.4605

GBP/USD 1.5318 1.5450 1.5957 1.611 1.6310

EUR/GBP 0.8110 0.8150 0.8715 0.9146 0.9402

USD/CHF 0.9509 0.9600 0.9617 1.0640 1.0990

USD/JPY 80.21 81.53 82.08 87.20 93.10

USD/CAD .9953 1.0020 1.0124 1.0680 1.0740

EUR/JPY 107.70 109.85 114.16 1.1569 1.1845

Oil 72.20 78.10 82.67 83.30 87.06

Gold 1160 1280 1349 1366 1399

Silver 17.36 19.88 23.13 23.53 24.83

EXCHANGE RATES

The equity markets had one large surge mid-week, and consolidated during the balance of the week, as

market participants waited for the US unemployment report. The number was worse than expected as

government jobs declined by more than double expectations to show a loss for the month of September of

95 thousand jobs. The private employment figure increased by 64 thousand jobs which was in line with

expectations, which allowed market participants some form of sigh of relief. For the week the S&P 500 Index

increased by 19 to close at 1165.

For more market analysis and news visitwww.eToro.netTrading in the Foreign Exchange market might carry potential rewards, but also potential risks. You must be aware of the risks and be willing to accep

them in order to trade in the foreign exchange market. Don't trade withmoney you can't afford to lose.

Weekly Market Review

October 10, 2010 Visit eToros new social trading network:

openbook.etoro.com

THIS WEEKS EVENTS
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CurrencyTime

(GMT)Release Month Consensus Prior

GBP M 23:01 BRC Retail Sales Monitor Sept 1%

AUD T 0:30 NAB Australia business confidence Sept 5 5

JPY T 5:00 Consumer Confidence Sept 42 43.5

GBP T 8:30 UK consumer prices Sept .5%

GBP T 8:30 UK Trade Balance Aug -4.7b -4.8b

USD T 18:00 FOMC Minutes

CHF W 7:15 Swiss Producer Prices Sept 0.5% 0.5%

GBP W 8:30 UK Claimant Count Sept 2.3K

EMU W 9:00 EMU Industrial Production Aug 0%

USD W 12:30 US Import Prices Sept 4.1%

AUD T 1:30 Australia Consumer Inflation Expectations Oct 3.1%

EUR T 8:00 ECB monthly report

USD T 12:30 US Jobless Claims Oct 445K

USD T 12:30 US Producer Prices Sept 0.1% 0.1%

FINANCIAL CALENDAR

The Euro broke 1.39 continuing the run that began in early September. The move in the EUR/USD

is more a function of the dollar weakness then euro strength. The spread between German 2 year

yields and US 2 year yields have widened out to 47 basis points which makes holding dollars

expensive.

EUR/USD

Despite effort from the BOJ in the form of intervention and easing of interest rate policy, the Yen

continued to strengthen this week. The USD/JPY broke through the 83-82 level, and continues to

test the resolve of the BOJ. Japan will need to find a solution to the strengthening Yen beyond

unilateral intervention. The issue is that every government seems to want a weaker currency.

A better than expected employment report in Australia, pushed the AUD/USD currency pair to an

all time intra-day high. The currency pair is close to par, and with the likelihood of the RBA raising

rates to 4.75 percent in November, the 1-1 relationship will likely move in favor of the AUD.

USD/JPY

AUD/USD

Gold Prices moved to an all time intra-day high of 1366, and closed at 1347 higher on the week.

Gold prices continue to show strength and rebounded after the disappointing US employment

report, as a QE 2 by the FOMC is likely pushing gold prices even higher.

Gold

For more market analysis and news visitwww.eToro.net

Trading in the Foreign Exchange market might carry potential rewards, but also potential risks. You must be aware of the risks and be willing to accethem in order to trade in the foreign exchange market. Don't trade withmoney you can't afford to lose.

THIS WEEKS VIEW & TRADING IDEAS


October 10, 2010


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CurrencyTime

(GMT)Release Month Consensus Prior

JPY F 4:30 Japan Industrial Production Aug 0.2%EUR F 9:00 EMU CPI Sept 0.2%

EUR F 9:00 EMU Trade Balance Aug 6.7B

USD F 12:30 US CPI Sept 0

USD F 12:30 US Retail sales Sept 0.3%

USD F 13:55 US consumer confidence Oct 68.2


Trading in the Foreign Exchange market might carry potential rewards, but also potential risks. You must be aware of the risks and be willing to acce



October 10, 2010


4/6

General Overview The Euro pushed higher moving above 1.39 as a decline in US yields and a potential

QE2 pushed the dollar lower The Euro is likely to continue to grind higher, as its seems the US central

bank in interested in a weak dollar.

EUR/USD

TECHNICAL OPPORTUNITIES OF THE WEEK


Trading in the Foreign Exchange market might carry potential rewards, but also potential risks. You must be aware of the risks and be willing to acceptthem in order to trade in the foreign exchange market. Don't trade withmoney you can't afford to lose.


October 10, 2010


5/6

General Overview The Australian dollar moved higher, on the back of a better than expected Australian

employment report. Given the RBA kept rates unchanged, the market will likely price in that the RBA is

behind the curve.

AUD/USD


Trading in the Foreign Exchange market might carry potential rewards, but also potential risks. You must be aware of th

them in order to trade in the foreign exchange market. Don't trade withmoney you can't afford


October 10, 2010


October 10, 2010


6/6

General Overview Gold prices surged to a new all time high touching 1366, before settling at 1348.

Gold prices are being pushed along by a weaker dollar. Fridays US employment number helped

continue the trend, as traders believe that the FOMC will be forced into a second QE.


Trading in the Foreign Exchange market might carry potential rewards, but also potential risks. You must be aware of the risks and be willing to accep


GOLD

Documents

eToro Weekly Market Review, Oct 10, 2010