Get Ready For ECB Interest Rate Decision And US GDP Number
The US Dollar fell versus the Euro as a disappointment over stimulus may not send investors rushing into the world reserve currency.
U.S. President Donald Trump and Joe Biden participated in a restrained final presidential debate before the Nov. 3 presidential election. The final debate between the two presidential candidates was more restrained than the chaotic first debate, with the debate centering more on policy rather than personal attacks.
Looking ahead, the European Central Bank will announce its rate decision and forward guidance on Thursday. It will likely see policymakers debating whether the prospect of a double-dip recession means that more stimulus will be needed soon. We might see a response from ECB for the economic risk posed by the coronavirus threat.
In addition to that, this week's calendar also features U.S. data on Gross Domestic Product, PCE Price Index, Durable Goods Orders as well as Crude Oil Inventories
Watch out for the US GDP Growth on Thursday. The US third-quarter gross domestic product is expected to come to a record rebound of 31.9%.
The Fed’s preferred measure of inflation, the core PCE index, which calculates spending minus volatile food and energy costs, arrives along with personal spending and income numbers from the Commerce Department Friday. The September core PCE is expected to come out at 1.7%, year on year basis.
Moreover, focus on the Consumer Price Index in the Eurozone. On a year-on-year basis, the Eurozone CPI is expected to be -0.3%. A lower than expected reading will be negative for the single currency.
The EURUSD pair moved up above the 1.1819 daily support level. If the pair stays above 1.1819 on a daily basis, the rise may continue and we will see the resistance levels at 1.2046 and 1.2214. On the other hand, if the price drops below 1.1819, the next support level will be at 1.1744.
Support : 1.1819 - 1.1744 - 1.1658
Resistance : 1.2046 - 1.2214 - 1.2391
The GBPUSD pair showed a downward movement and dropped below the 1.3046 main resistance level. If the price stays below 1.3046, the main support level can be seen at 1.2947. On the other hand, if the price goes beyond 1.3046, the next resistance level will be at 1.3136.
Support: 1.2947 - 1.2838 - 1.2768
Resistance: 1.3046 - 1.3136 - 1.3231
We will closely watch the 104.75 daily resistance level in the USDJPY pair. If the pair stays below 104.75 on a four hourly basis, we will follow 104.46 as a support level. Otherwise, if the price rises above 104.75, the next resistance level will be at 105.05
Resistance: 104.75 - 105.05 - 105.30
Focus on the 40.70 daily resistance level in the Crude Oil Price. If the price stays below 40.70, the rise may pause and the key support levels can be found at 39.27 and 37.78. On the upside, if the price beak out 40.70, the next daily resistance will be at 43.88.
Support: 39.27 - 37.78 - 36.30
Resistance: 40.70 - 43.88 - 47.63
25 Oct 20 (Sun)
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