ECB Is Ready To Act If Necessary, EZ CPIs Are In Focus Together With Canada’s GDP

Yesterday, as it was expected, the ECB announced that it is keeping their interest rates the same. Japan’s Inflation Disappoints But Unemployment Improves. The US also delivered a few important data sets yesterday, which were one of the factors that helped the US equities to close in the green. Canada will deliver its MoM GDP figure for the month of August.

ECB Is Concerned

On the positive side, today we will be getting some key economic data sets from the eurozone. The preliminary inflation numbers and GDP figures will be released. So far, the only forecasts we have are for the October YoY CPI reading, which is expected to come out the same as previous, at -0.3%, and the Q3 YoY GDP figure, which is believed to have also stayed the same, at -15.0%. That said, according to yesterday’s comment by Christine Lagarde, the preliminary GDP number might come out as a surprise. If so, it may help EUR/USD to stabilise, after yesterday’s decline.

US Preliminary GDP

Japan’s Inflation Disappoints But Unemployment Improves

NZD/JPY — Technical Outlook

A further slide below the 68.97 hurdle, which is yesterday’s low, may interest more sellers in joining the game. If so, NZD/JPY might drift to the 68.63 hurdle, marked by the lowest point of September. That hurdle may initially provide decent support, possibly resulting in a small rebound. If so, the pair could go for a slight correction higher, however, if the aforementioned downside line stays intact, that might apply bearish pressure on the pair again. Another drop may push the rate below the 68.63 obstacle, a break of which could set the stage for a move to the 68.42 level, marked by the low of June 24th.

Alternatively, if the rate breaks the previously-discussed downside line and then climbs above the 69.21 barrier, marked by the low of October 15th and by an intraday swing low of today, that may spook the bears from the field temporarily, allowing more buyers to jump in. NZD/JPY could then travel to the 69.44 obstacle, or to the 69.52 hurdle, marked by yesterday’s high. Initially, the pair might get held there, but if the buying doesn’t stop there, the next possible target could be at 69.86, which is marked by an intraday swing low of October 28th.

Nasdaq 100 — Technical Outlook

A small correction back up could test the 11215 hurdle, marked by the lows of October 2nd and 6th, which might provide resistance. If so, this may result in another slide, possibly sending the index to the 11028 area, marked by the inside swing high of September 24th. If the selling does not end there, the next potential target could be at 10831, marked by the low of September 25th.

In order to shift our attention to some higher areas, we would prefer to wait for a break of the aforementioned downside line and a price-rise above the 11472 barrier, marked by the high of October 29th. Such a move could open the way to the 11635 obstacle, a break of which might set the stage for a move to the 11800 level. That level is marked y the low of October 16th and the high of October 20th.

As For The Rest Of Today’s Events

Canada will deliver its MoM GDP figure for the month of August. The current expectation is for a worse number, going from the previous +3.0% to +0.9%. If the actual reading comes out as forecasted, or below it, that may prove negative for the Canadian dollar, which might lose some ground against some of its major counterparts.


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