Market Prediction 1 November, 2017

Forex: Markets Await F O M C (01-Nov-2017    at   12:23:28 pm)

On Tuesday, the Bank of Japan made no changes to its huge monetary stimulus plan even as it reduced 

its inflation forecasts. The BoJ board voted, 8-1, to maintain the central bank’s yield curve control 

program and asset purchases. The board kept its view that its 2% inflation target is likely to be met at the 

start of the fiscal year that begins in April 2019. Governor Kuroda continued to stress the importance of

 maintaining monetary easing as the world major Central Banks are moving towards monetary 

normalization. However, this is whilst the Japanese economy is seeing its longest expansion since 2001, 

with equities at their highest level in 20 years and a labor market that is the tightest for several decades.

Wednesday Is Fed Day (01-Nov-2017    at   11:41:43 am)

One of the month's most highly anticipated events will take place on Wednesday, as the Federal Reserve 

unveils its latest policy decision. Although no change in policy is expected, the official statement may 

reveal clues about the likelihood of a December rate hike. For the vast majority of traders, a December 

liftoff is a foregone conclusion, according to the CME Group's 30-day Fed Fund Futures prices.

New Zealand Dollar Sellers In Driver's Seat Vs USD (01-Nov-2017    at   11:38:24 am)

The New Zealand Dollar started a crucial downtrend from the 0.7200 swing high 

against the US Dollar. The NZD/USD pair is currently well below 0.6920 and looks set 

to extend declines. During the recent slide, the pair broke the 0.7060 and 0.6900 

support levels and traded as low as 0.6818. The pair is currently attempting a 

recovery, but facing sellers near the 38.2% Fib retracement level of the last decline 

from the 0.7003 high to 0.6818 low.

Australia's Manufacturing Sector Growth Slowed In October (01-Nov-2017    at   11:18:15 am)

The pair is expected to find support at 0.7640, and a fall through could take it to the next support level of 0.7613. 

The pair is expected to find its first resistance at 0.7693, and a rise through could take it to the next resistance 

level of 0.7719.

Eurozone GDP Advanced For The Third Quarter, But Inflation Growth Slowed In October (01-Nov-2017    at   11:17:09 am)

The pair is expected to find support at 1.1618, and a fall through could take it to the next support level of 

1.1603. The pair is expected to find its first resistance at 1.1654, and a rise through could take it to the 

next resistance level of 1.1675.

Pound Trading Lower This Morning Ahead Of Britain's Manufacturing PMI (01-Nov-2017    at   11:14:42 am)

The pair is expected to find support at 1.3216, and a fall through could take it to the next support level of 

1.3157. The pair is expected to find its first resistance at 1.3313, and a rise through could take it to the 

next resistance level of 1.3351

Japanese Manufacturing PMI Dropped Less Than Expected In October (01-Nov-2017    at   11:13:16 am)

The pair is expected to find support at 113.23, and a fall through could take it to the next support level of 

112.6. The pair is expected to find its first resistance at 114.21, and a rise through could take it to the next 

resistance level of 114.56.

Swiss Franc Trading Lower Ahead Of The SVME – PMI Data (01-Nov-2017    at   11:11:32 am)

The pair is expected to find support at 0.9959, and a fall through could take it to the next support level of 

0.9931. The pair is expected to find its first resistance at 1.0006, and a rise through could take it to the 

next resistance level of 1.0025.

Canadian Economy Showed An Unexpected Contraction In August (01-Nov-2017    at   11:10:23 am)

The pair is expected to find support at 1.2843, and a fall through could take it to the next support level of 

1.2787. The pair is expected to find its first resistance at 1.2935, and a rise through could take it to the 

next resistance level of 1.2971.

Market Update - Asian Session: Markets Continue Higher, Metals Also Gaining Ahead Of Fed And BOE Meetings (01-Nov-2017    at   11:00:36 am)

Asian equity markets opened generally higher, tracking the gains seen in the New York session. Honda

 has gained over 1%, ahead of its earnings report which is expected later today. Nissan and Toyota are

also trading higher. Electronic parts manufacturer Murata Manufacturing has declined by over 7%, after 

reducing its profit forecast. Australian building products manufacturer, CSR, has declined by over 5% 

after releasing its H1 results and guidance.

Another Taxing Day For Dollar Bulls (01-Nov-2017    at 

  07:08:41 am)

Month-end flow distortions, Fed Chair announcement and the anticipation of House Republicans to 

release a draft of legislation on tax reform tomorrow likely explains the dollars reluctance to move higher 

but hopefully, Thursday's FOMC will have traders cranked up for some tangible offerings as the FX 

market's focus has been wholly purposeless the past 24 hours or so.

USD/CAD Canadian Dollar Falls After GDP Contraction And Dovish Poloz (01-Nov-2017    at   07:07:31 am)

The Canadian dollar depreciated on Tuesday versus its American counterpart. The monthly gross 

domestic product report published by Statistics Canada showed a 0.1 percent contraction in August.

 Declines in manufacturing, mining and the energy industry edged down the indicator despite rises in

 other sectors. The biggest red flag was the drop in manufacturing which contracted 1.0 percent. 

Manufacturing was down across the board with the biggest loses coming in chemical manufacturing.

Dollar Rebounds Ahead Of Private Jobs And Fed Statement (01-Nov-2017    at   07:05:43 am)

The US dollar is higher against most major pairs on Tuesday ahead of the release of private payrolls data 

and the statement by the Federal Open Market Committee (FOMC). With employment data due for some 

good news after the hurricane season, a Fed Chair appointment now imminent before the end of the 

week and progress in the tax reform front the USD has been bid.

Soft Signals (01-Nov-2017    at   06:43:16 am)

Soft US economic data sent incorrect signals over the past year but the mounting strength of survey data

 is increasingly difficult to disregard. For the second day in a row both the pound was the leader and the

 loonie was the laggard. Higher than expected employment figures and lower than expected jobless rate 

from New Zealand gave the kiwi a much-needed respite. The FOMC decision is due on Wednesday. The 

Dow "divergence" addressed in today's Premium video (below) has grown deeper today, setting up for 

suitable 2nd-half-of-the-week.