Equities Continue to Slide on Inflation Fears

Heightened Inflation Fears Trigger Another Round of Risk Aversion

The US dollar traded mixed against the other major currencies on Monday and during the Asian session Tuesday. It gained versus JPY, GBP, EUR, and CAD in that order, while it lost some ground against AUD, NZD, and CHF.

DJIA — Technical Outlook

The Dow Jones Industrial Average cash index traded sharply lower yesterday, after it hit resistance slightly below the 34985 barrier. Overall, the index remains below the downside resistance line taken from the high of September 3rd, but also above the upside support one drawn from the low of October 1st. Therefore, although we see the downside scenario as more likely than the upside one in equities, we prefer to stand pat for now with regards to this index.

GBP/CAD — Technical Outlook

GBP/CAD traded in a consolidative manner yesterday, staying between the key zone of 1.7055 and the support of 1.6950. On Friday, the pair fell below the 1.7055 hurdle, thereby confirming a lower low, which combined with the fact that it remains below the downside resistance line taken from the high of September 20th, paints a negative near-term outlook.

As for the Rest of Today’s Events

A few hours after the UK employment data, we have the German ZEW survey for October, with both the current conditions and economic sentiment indices expected to have declined slightly, to 29.5 and 24.0 from 31.9 and 26.5. Later, in the US, JOLTs job openings for August are coming out and the forecast points to a small decline.

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
JFD

JFD

JFD is a leading Group of Companies offering financial and investment services and activities.