USD/JPY: the Japanese currency has the advantage in the pair
The stabilization of the US dollar has led to the USD/JPY pair testing the level of 146.70.
The U.S. is waiting for the results of the midterm elections in Congress, the preparation for which has been going on for a long time. Thus, the ruling Democratic Party looks rather weak to its opponents, and the experts are committed to the scenario when the Democrats will not be able to retain the advantage over the two chambers, the probability of which exceeds 53%, the success of complete control is minimal - only 16% probability. The volatility index on the trading floors has been reduced to zero in anticipation of the coming strong political change.
- Resistance levels: 148.25, 151.00.
- Support levels: 145.00, 141.50.
Read more: USD/JPY: chart, forecast for today, currency pair overview
USD/CAD: Canadian data has determined the dynamics of the instrument
Dollar is trading at 1.3520 with the prospect of strengthening in the future. The US dollar is recovering the lost positions the day before with the positive signal from the US jobs market statistics, reflecting the strengthening of new vacancy rate in October by 261.0 thousand exceeding expectations of 200.0 thousand, and the unemployment rate to 3.7% from 3.5%.
Meanwhile, reports from Canada put pressure on the instrument quotation. According to the data, the index of employed citizens in October rose by 108.3 thousand, showing an increase of 21.1 thousand in the previous month, while the market previously expected only by 10.0 thousand. Bidders assume that the Central Bank of Canada will remain committed to the "hawks" course on monetary parameters, and already at the next scheduled meeting scheduled for December will strengthen the interest rate by 0.50%. However a correction in the tightening step might come on the back of November's labor market survey and October's inflation report, which would have an impact on financial authorities.
- Resistance levels: 1.3550, 1.3600, 1.3650, 1.3700.
- Support levels: 1.3500, 1.3440, 1.3356, 1.3300.
Gold Signals
The precious metal traded under the influence of the negative background, having retreated from the local maximum of October 13, updated by the end of the previous week due to October statistics on the US employment, which became the growth driver of the key currencies against the American currency. Gold reacted positively to the increasing probability that the U.S. financial authorities will adjust their future policy on the pace of interest rate hikes. However, traders can't be certain of that definitively, continuing to expect another stimulus in the current trading week.
Economists are eager to wait for the U.S. midterm election results and statistics on the October inflation index, scheduled for Thursday. Earlier it was reported that experts made a forecast to soften the pace of price pressure strengthening in the national economy in the annual rate to 8.0% from 8.2%, and for the month the value may strengthen to 0.7%, having previously shown an increase of 0.4% for September. If the forecast turns out to be correct, it might be another incentive for the U.S. Federal Reserve to soften the further rate of increase in key indicators. Some 57% of experts now expect Fed officials to raise interest rates by 0.50% after the December meeting.
- Resistance levels: 1675.00, 1688.58, 1700.00, 1720.00.
- Support levels: 1653.92, 1637.69, 1616.42, 1600.00.
Crude Oil Signals
In the Asian trading session, the price of the "black gold" of the benchmark Brent brand is moving in a slight correction, having behind the two-day growth, which allowed to renew the local maximum for August 30, and now the asset is trying to hold below the level of 96.80.
The trading instrument is negatively influenced by the growing risk of the world economic recession. Economists didn't ignore the dynamic decline in China's trade balance, moreover, they didn't find any rebuttal to the message that the Celestial Empire authorities intend to abandon strict quarantine measures to combat the spread of Covid-19 infection. However the expected crude oil deficit on the markets against the ban on oil supplies from Russia to the eurozone countries and reduction of the production capacity from OPEC+, which was set for November to 2.0 million barrels per day, keep the instrument from negative dynamics.
- Resistance levels: 97.80, 98.90, 100.00, 101.00.
- Support levels: 96.54, 94.50, 92.47, 91.00.