Analysis of the past week

The first week of October was full of influential data and the publication of a significant amount of news. The passing week gave us a new head of the US Federal Reserve – Powell and details of the tax reform in the US. Also, the Bank of England raised rates what disappointed market.

So, this week turned out to be full of news on the US, which had a very ambiguous impact on the American. In addition to Powell’s appointment as head of the Federal Reserve and the presentation of tax reform (which had virtually no effect on the auctions) data on employment in the United States came out in the week. So, the employment report turned out to be very weak, but as the market did not stop being sure of raising rates in December, it did not cause a significant impact. The growth of the indicator of business activity in the non-manufacturing sector, easily returned optimism to the market after data on weak employment. As a result, the market reacted to the news that it liked most.

As a result, it retained the expectations of the past week, indicating the continuation of the upward trend in the dollar index, and the further development of the inverted head and shoulders figure. In fact, the past week could be fully attributed to the correctional movement, which is due to the lack of new highs. This indicates the expectations of strengthening the American next week.

Trade on the recommendations of “EUR/USD today” over the past week brought about 40-80 points that was mainly caused by the movement in the sideways trend and as a result limited the actual earnings.

Anton Hanzenko