As the markets open this Monday, traders are grappling with a whirlwind of global events. From China’s underwhelming stimulus to a quiet Bitcoin and geopolitical tensions, it’s time to stay sharp.
China Stimulus Falls Short, Oil Prices Drop
Chinese stocks swung higher in volatile trade after Finance Minister Lan Fo’an promised more support for the property sector but delivered no major stimulus.
Oil prices dropped nearly 2% after the announcement, leaving traders questioning Beijing’s ability to jumpstart growth. Brent crude briefly dipped below $78, while West Texas Intermediate fell to $75, amid concerns over Israel’s potential response to Iran’s missile attack.
Energy markets remain on edge as Middle East tensions linger.
Currency Markets React to Global Instability
In addition to the volatility in commodities, forex traders are keeping a close watch on major currency pairs as global instability intensifies. Here’s a quick look at what’s moving in the currency markets:
USD: The U.S. dollar remains strong as safe-haven demand rises, bolstered by ongoing uncertainty surrounding the U.S. elections and global geopolitical tensions. Markets are pricing in potential rate changes from the Federal Reserve, which could further shake up the USD.
GBP/USD: The British pound continues to struggle against the dollar, with concerns over the UK's economic outlook weighing heavily. Traders are awaiting key employment data from the UK this week, which could add further volatility to the pair.
EUR/USD: The euro remains under pressure due to weak economic data from the Eurozone, combined with uncertainty around potential ECB rate cuts. With no clear path forward on economic recovery, expect the EUR/USD to remain volatile in the short term.
JPY: The Japanese yen is benefiting from risk-off sentiment, gaining ground as investors flock to safe-haven assets amid Middle East tensions and concerns over China’s economic growth.
Here’s what’s shaping the trading landscape today, and why you need to follow our Telegram signals for timely insights:
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Gold Intraday Signal: Bullish Outlook
Looking for a strong play today? Here's our Gold Intraday Signal:
Pivot: 2643.00
Our Preference: Long positions above 2643.00, with targets at 2675.00 and 2685.00.
Alternative Scenario: Below 2643.00, look for further downside with 2636.00 and 2628.00 as targets.
Comment: The RSI is bullish, indicating further upside potential.
Bitcoin Stuck in ‘Uptober’ Calm—What’s Next?
Bitcoin, historically strong in October, has entered an unusually calm phase, moving less than 5% over the last 34 sessions.
With the upcoming U.S. election taking center stage, traders are holding back. Many in the crypto community are betting that a Trump win could boost Bitcoin, while Vice President Harris’ position remains less clear. As volatility fades, traders await the next big catalyst, with hopes that Bitcoin's bullish October pattern will soon return.
Middle East Tensions Push Oil Into Turmoil
Meanwhile, the Middle East continues to be a critical focus for oil traders. Israel’s retaliation plans against Iran’s Oct. 1 ballistic missile attack have heightened market risks.
Over the weekend, oil prices were also hit by a Hezbollah drone strike, killing four Israeli soldiers.
With U.S. military support ramping up in the region, oil traders are keeping a close watch on any further developments. Hedge funds have shifted quickly from bearish positions on oil, as the region supplies nearly a third of the world’s crude.
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As market volatility surges due to geopolitical tensions and uncertain economic stimulus, our trading signals provide you with actionable insights. Don’t miss out!