Account
New to ADSS? Open an
account now to get started.
Already have an account?
Add funds to your ADSS account
Account
New to ADSS? Open an
account now to get started.
Add funds to your ADSS account
Asset Watch
Thursday, October 19, 2023
US 10-year bond yields have experienced an upward trend and are approaching the significant 5% threshold. It’s worth noting that this rise has continued despite recent retail sales data showing strength. The increase in bond yields hasn’t abated due to concerns related to US fiscal policy. Furthermore, the House of Representatives, one of the two chambers of Congress, has encountered challenges in selecting a new speaker following the removal of its previous leader. This situation may lead to delays in the passage of legislative bills, potentially resulting in a government shutdown in November. Such an event could have adverse effects on consumer spending and the overall performance of the US economy. Additionally, there has been an increase in the supply of US bonds, with some Chinese investors reducing their holdings.
On the euro front, European inflation data, released yesterday, was largely in line with expectations. The core consumer price index recorded 4.5%, while the overall index was at 4.3%. With no major European data releases on the horizon, the movement of the EUR/USD is likely to be influenced by updates on the US economy and ongoing geopolitical tensions.
Chart source ADSS Platform
On October 13, the EUR/USD initiated a corrective move to the upside, forming a higher low at 1.0496 before making further gains to breach a bearish trendline originating from the July 18 high. However, the price failed to break above the trendline therefore, any successful break with a daily close above the resistance area located between 1.0629-1.0657 indicates a possible start of an upward trend that could lead the price towards 1.0873. Nonetheless, the resistance level residing at 1.0789 should be monitored closely.
Conversely, any failure in breaking above the trendline with a daily close below 1.0482 may encourage more bears to join the market and press towards 1.0199. That said, the support level located at 1.0364 should be considered.
ADSS
8th floor, CI Tower
Corniche Road
PO Box 93894
Abu Dhabi
United Arab Emirates
Trading Services
ts@adss.com
+971 2 657 2414
Investing in CFDs involves a high degree of risk that you will lose your money due to the use of leverage, particularly in fast moving markets, where a relatively small movement in the price can lead to a proportionately larger movement in the value of your investment. This can result in loses that exceed the funds in your account. You should consider whether you understand how CFDs work and you should seek independent advice if necessary.
ADS Securities LLC (“ADSS”) is authorised and regulated by the Securities and Commodities Authority (“SCA”) in the United Arab Emirates as a trading broker for Over the Counter (“OTC”) Derivatives contracts and foreign exchange spot markets. ADSS is a limited liability company incorporated under United Arab Emirates law. The company is registered with the Department of Economic Development of Abu Dhabi (No. 1190047) and has its principal place of business at 8th Floor, CI Tower, Corniche Road, P.O. Box 93894, Abu Dhabi, United Arab Emirates.
The information presented is not directed at residents of any particular country outside the United Arab Emirates and is not intended for distribution to, or use by, any person in any country where the distribution or use is contrary to local law or regulation.
ADSS is an execution only service provider and does not provide advice. ADSS may publish general market commentary from time to time. Where it does, the material published does not constitute advice, or a solicitation, or a recommendation to a transaction in any financial instrument. ADSS accepts no responsibility for any use of the content presented and any consequences of that use. No representation or warranty is given as to the completeness of this information. Anyone acting on the information provided does so at their own risk.
