Yesterday, gold showed restrained growth. Price of yellow metal received support at $1268 and gained to the area of ​​$1278, the market closed at $1275, after a slight pullback. Today, amid the resumption of the growth of the US dollar, the gold market is trading under some pressure. However, as a result of yesterday's trading, we can draw some conclusion. For five weeks, bears failed to push the gold market below the level of 1267-1269. Thus, this level acts as a steady support preventing further decline. The nearest tactical resistance is located at the level of $1275-$1280 - the 100th moving average passes here, which was pierced by the market from top to bottom just five days ago.

The current week will be rich in news, and while the entire global market is trading restrained, waiting for key events that will appear later this week. Three key events can significantly affect the alignment of forces in the precious metals market and set a strong direction for the market. The first of these events is a two-day meeting of the FOMC, which will conclude tomorrow night. An increase in the rate on it is not expected, exactly, as well as any official comments. However, some officials may not be able to resist personal comments.Directly with the prospect of raising interest rates in the US, the attention of market participants will be focused on the nomination of a new head of the Fed, whose name Donald Trump should announce this week.

Finally, at the end of the week we are waiting for Nonfarm Payrolls, one of the two main indicators that the US Federal Reserve is guided by when making decisions on changing rates and adjusting its monetary policy. These data may make it clear that the US economy is ready for another rate hike this year. As you can see, the current trading week is quite saturated with important macroeconomic news, which can have a very strong impact on the market, so in the current situation, investors preferred to take a wait-and-see position. This is the reason for the weak dynamics of the market in recent trading days. In general, the market is at a point of uncertainty. However chances for gold rise in our opinion prevail. The gold market is oversold and has the right to expect a good correction to the downward movement. The price is trying to push up, but so far it has not even reached the nearest local resistance at 1280. Only after the breakdown of this level is possible the acceleration of price movement and further price growth towards the mark of 1300.00.

Trading recommendations - cautious longs at levels of $1264-$1270 and when depositing above $1280

Fort Financial Services

Asian markets were mixed on Monday following a weak lead from Wall Street, with traders digesting China's activity indexes and the Bank of Japan's interest rates decision.

Australia ASX -7.30 -0.12% 5,976.40 OPEN

Shanghai Comp +3.00 +0.09% 3,393.34 OPEN

Hang Seng Index +10.47 +0.04% 28,346.66 OPEN

Nikkei 225 -0.06 -0.00% 22,011.61 OPEN

TSEC 50 Index +36.93 +0.34% 10,793.80 OPEN

China’s official manufacturing PMI for October came in at 51.6, against an estimated reading of 52. Its non-manufacturing PMI stood at 54.3, falling short from a prior month reading of 55.4.

Also, Japanese industrial production edged down 1.1 percent in September, little less than a predicted 1.5 percent decline. Household spending rose 0.4 percent last month.

The Bank of Japan (BoJ) decided to leave unchanged its current monetary policy configuration, with interest rates at minus 0.1 percent and volume of its asset buying programme at 80 trillion yen per year. The bank continued to express optimism about inflation.

“Medium to long-term inflation expectations are projected to rise as firms’ stance gradually shifts towards raising wages and prices,” the regulator said in its quarterly outlook report.

“As a consequence, the year to year rate of change in the CPI is likely to continue on an uptrend and increase towards 2 percent.”

On the corporate front, tech-giant Samsung reported said third-quarter profit came in at nearly $12.91 billion, tripling last year’s result. Samsung shares added more than 1.6 percent.

Wall Street top three indexes ended in red territory on Monday as financial components declined after reports pointed out the House is analyzing a plan that would “gradually” reduce the country’s corporate tax rate.

Dow Jones Industrial Average: 23,348.74; down 0.36 percent

S&P 500: 2,572.83; down 0.32 percent

Nasdaq Composite: 6,698.96; down 0.03 percent

Meanwhile, speculation over President Donald Trump’s decision of who will lead the Federal Reserve for the next four years continued to add pressure on the dollar.

Trump is likely to announce its decision on Thursday and all eyes are now pointing at Federal Reserve Governor Jerome Powell, who is seen as less hawkish than Janet Yellen.

In Europe, attention will be directed to Eurozone’s consumer price index for October and the unemployment rate for September will be presented at 10:00 GMT.

In the United States, traders will be monitoring the release of third-quarter unemployment cost index at 12:30 GMT and the S&P/Case-Shiller house price index half an hour later. The Conference Board will show its consumer confidence indicator for October at 14:00 GMT.

Fort Financial Services

The dollar exchanged at 113.07 against the yen in early trading hours on Tuesday, with the Japanese currency gaining on the back of better-than-expected economic data and as the greenback corrected downwards over concerns for the next Federal Reserve chair.

The US dollar index, which gauges the greenback against six major rivals, was trading unchanged at 94.45 by the time of this writing.

On Monday, the US dollar dropped as speculators are pointing at FOMC Governor Jerome Powell as the prefered candidate to replace Janet Yellen as Fed Chair next February.

Powell is seen as less hawkish than Yellen, which means the monetary policy normalization process could potentially face more delays in the future. However, if Trump’s tax reform receives a green light in the upcoming months, chances are the regulator will have to hike rates faster.

The Federal Reserve kicks off a new two-day monetary policy meeting later in the day. There are no expectations for changes, with rates seen at the current range of 1.00-1.25 percent.

According to Fed funds tracked by CME Group’s FedWatch tool, investors are currently pricing in more than a 90 percent chance of a rate hike by December.

But the American currency found extra support on the personal consumption expenditures (PCE) price index, excluding food and energy, which rose 1.3 percent in the last twelve months.

In a separate report, the Commerce Department said Monday consumer spending increased by 1 percent last month, the biggest advance since August 2009.

Earlier today, industrial production in Japan notched down 1.1 percent in September, little less than a predicted 1.5 percent decline. Household spending rose 0.4 percent last month.

In other news, China’s manufacturing PMI for October came in at 51.6, against an estimated reading of 52. Its non-manufacturing PMI stood at 54.3, also short from a prior reading of 55.4.

Ahead in the day, investors will be monitoring the release of third-quarter unemployment cost index at 12:30 GMT and the S&P/Case-Shiller house price index half an hour later. The Conference Board will present its consumer confidence indicator for October at 14:00 GMT.

Fort Financial Services

GOLD

Gold futures dropped in Asian hours on Tuesday, with market participants digesting downbeat economic activity from China, which increases questions about future demand for the metal.

On the Comex division of the New York Mercantile Exchange, gold futures were down 0.01 percent to $1.277.60 a troy ounce as of 06:30 GMT.

Earlier in the session, China said its official manufacturing PMI for October came in at 51.6, against an estimated reading of 52, while its non-manufacturing survey stood at 54.3, also falling short from a prior month reading of 55.4.

Also, industrial production in Japan notched down 1.1 percent in September, little less than a predicted 1.5 percent decline. Household spending rose 0.4 percent last month.

In Europe, attention will be directed to Eurozone’s consumer price index for October and the unemployment rate for September will be presented at 10:00 GMT.

In the United States, traders will be monitoring the release of third-quarter unemployment cost index at 12:30 GMT and the S&P/Case-Shiller house price index half an hour later. The Conference Board will show its consumer confidence indicator for October at 14:00 GMT.

On Monday, the yellow metal settled in green territory on the back of a weaker US dollar as speculation over President Donald Trump’s choice for the next Federal Reserve chair seems to be pointing at FOMC Governor Jerome Powell as the prefered candidate.

The Federal Reserve kicks off a new two-day monetary policy meeting later in the day, although there are no expectations for changes as far as interest rates concern. However, tomorrow’s announcement will serve to assess the rhetoric of the regulator before the December decision.

According to Fed funds tracked by CME Group’s FedWatch tool, investors are currently pricing in more than a 90 percent chance of a rate hike by December.

Upbeat reports on the data front capped gains for the precious metal on Monday, with the personal consumption expenditures (PCE) price index, excluding food and energy, increasing 1.3 percent in the last twelve months. Fed keeps its target at 2 percent.

In a separate report, the Commerce Department said consumer spending rose 1 percent last month, the biggest increase seen since August 2009.

OIL

Crude futures were slightly lower in Asia on Tuesday as market players digested a weaker-than-expected activity index in China, which rises concerns about future energy demand levels from the world’s second largest economy.

The US West Texas Intermediate crude contracts were down 0.15 percent to $54.07 per barrel as of 06:30 GMT. Brent futures were down 0.20 percent, to $60.78 a barrel.

Earlier in the session, China said its official manufacturing PMI for October came in at 51.6, against an estimated reading of 52, while its non-manufacturing survey stood at 54.3, also falling short from a prior month reading of 55.4.

Also, industrial production in Japan notched down 1.1 percent in September, little less than a predicted 1.5 percent decline. Household spending rose 0.4 percent last month.

Ahead in the day, traders will be looking at weekly estimates of crude and refined products stockpiles from the American Petroleum Institute.

Analysts are forecasting a 2.575 million barrels decline in crude supplies, a 2.450 million barrels draw in distillates and a 2.050 million barrels reduction in gasoline inventories.

These figures will be followed by official data from the US Energy Information Administration on Wednesday. While both reports are often showing similar results, they might differ significantly.

On Monday, crude benchmarks settled in green territory over rising speculation that the Organization of the Petroleum Exporting Countries will extend its output cuts deal.

OPEC and non OPEC producers are due to gather on November 30 in Vienna to discuss a potential extension of the production cuts agreement.

“OPEC welcomes the clear guidance from the crown prince of Saudi Arabia on the need to achieve stable oil markets and sustain it beyond the first quarter of 2018, [...] Together with the statement expressed by President Putin, this clears the fog on the way to Vienna on Nov 30” said OPEC Secretary General Mohammad Barkindo on Monday.

In other news, investment bank JP Morgan upgraded its 2018 forecast for Brent and WTI contracts by $11 and $11.40 respectively to $58 and $54.63 per barrel.

Fort Financial Services

The London-based crude benchmark known as Brent has reached a $60-per-barrel mark by the end of last week, a level not seen since 2015. Now the obvious question is… what will be next?

At FortFS we believe there two ways to see this recent uptick:

From one side, we think higher prices attract more investors to pour money into the commodity, pushing prices even higher as they fight to juice benefits out of it.

From another side, the recent uptick could become a great excuse for bull investors to take profits, which eventually could cause a downward correct in oil prices.

The estimated crude price for 2018 has increased by $3 to $56 per barrells, according to the World Bank. While the institution recognized output cuts have had a positive effect on prices, it also explained that the Organisation of Petroleum Exporting Countries is integrated by members that could jeopardize its efforts in the future, such as Libya, Nigeria and Venezuela.

Below you will find a list of the most common determinants of oil prices:

Demand and supply forces

Same with almost any asset out there. The laws of demand and supply apply just the same. If you have the US producing more and more barrels, while demand stays constant, then prices are likely to go down. The opposite situation is expected to boost prices. Keeping an eye on crude inventories and the oil rig count is highly advised.

Natural disasters

No need for explanations. We’ve seen the effects of hurricanes Harvey and Irma, capable of disrupting key facilities in America’s refining heart. In 2005, hurricane Katrina affected nearly 20 percent for the US crude oil supply, pushing prices remarkably higher.

Production limits

Currently, attention is directed to the OPEC’s November 30 meeting, here it will be discussed the possibility of extending the output cuts beyond its March 2018 meeting. An extension of the deal could provide extra support for oil contracts, but that is not the only driver out there.

Limiting production levels, like OPEC is now doing, is an intend to reduce supply and therefore, force it to match with demand levels. A smaller differential translates into higher prices.

Geopolitical instability

Geopolitical instability may not be as bad as it sounds if you are trading crude oil. Despite terrible things going on in the world, from a trader’s perspective, geopolitical tensions in regions like Middle East only threat oil production and therefore, support prices to the upside.

Fort Financial Services

EURUSD significantly weakened last week, when sellers finally seized the initiative, using the results of the ECB meeting. Bears pushed the price below the key support at 1.1670. However, this scenario has long been evident in the market, as well as the implementation of the reversal figure "head and shoulders", which has not yet completed the implementation process. In the light of the development of bearish scenario, we are moving to a more bearish market for EURUSD. Therefore, now it is worth considering sales, while prices are under the previous resistance level of 1.1700-1.1711. We expect lower market prices for EUR/USD. Look for upward pullback to go short. The first support is located around 1.1485

Trading recommendations - sales on the upside and at the level of 1.1670

AUDUSD - the market is testing an important support level around 0.7660

The Australian dollar also weakened significantly last week, closing near the key support level of 0.7660. This strategic level constrained market growth throughout 2016 and throughout most of 2017. The level is serious; somewhere here passes the 50th moving average on weekly chart, capable of supporting the market. If the level is broken and the market moves lower, the Australian dollar expects a medium-term decline. In addition, the market is oversold and a corrective pullback is very probable. We assume corrective growth and an upward pullback to the 0.7720-0.7740 zone. Careful longs of AUD / USD with short stops can be an interesting strategy for earning.

Trading recommendations-longs at the level of 1.1670 with targets 0.7750

Fort Financial Services

Asian equity indexes were mainly higher on Monday as market players awaited third-quarter earnings from important companies in the region.

Australia ASX +19.90 +0.33% 5,989.20 OPEN

Shanghai Comp -24.78 -0.73% 3,392.03 OPEN

Hang Seng Index +13.37 +0.05% 28,452.22 OPEN

Nikkei 225 -22.42 -0.10% 21,986.03 OPEN

TSEC 50 Index +57.55 +0.54% 10,766.66 OPEN

Today’s corporate earnings calendar includes: Nintendo, Agricultural Bank of China, Sinopec, Bank of China, Kobe Steel, WH Group and ICBC.

HSBC has already presented its earnings this morning, with third-quarter pre-tax profit standing at $4.62 billion, increasing $843 million from the same period a year ago. Adjusted revenue gained 3 percent in the past twelve months to $13 billion.

On the data, Japan retail sales for September rose 2.2 percent on yearly basis, missing a forecasted build of 2.5 percent. No more relevant economic reports are due for the day in Asia.

However, more data is scheduled in Europe and the United States ahead in the day. Traders will be paying attention to German retail sales for September at 07:00 GMT and the country’s consumer price index, which is due for release at 13:00 GMT.

Attention will also be directed to the US core PCE price index for September at 12:30 GMT. Personal spending will be available by the same time.

US stock indexes closed in green territory on Friday, with the top three indexes finding support in strong earnings reports from the technology sector. The Nasdaq gained 2.2 percent.

American investors were cheered by upbeat economic data. The Commerce Department said the first world’s economy expanded by 3 percent last quarter, topping an expected 2.5 percent.

Meanwhile in Europe, the euro extended losses to 1.1573 against the greenback as Catalonia’s parliament declared its independence, rising uncertainty among investors.

Prime Minister of Spain Mariano Rajoy responded by triggering Article 155 of the constitution, which allows the central government to take control over the region. Catalonia’s parliament was dissolved and early elections were called for December 21.

Fort Financial Services

The dollar exchanged at 113.65 against the Japanese yen in early hours on Monday, with market players awaiting fresh economic data from the United States ahead in the session.

The US dollar index, which gauges the greenback against six major rivals, was trading at 94.70 by the time of this writing, adding 0.20 percent.

On Friday, the American currency moved higher, supported by a better-than-expected economic expansion in the third quarter. The Commerce Department said the US economy grew 3 percent year over year against a forecasted rate of 2.5 percent.

In other news, Michigan University said its consumer expectations and consumer sentiment indicators fell short of expectations at 90.5 and 100.7 points.

Another factor weighing on the dollar was speculation over President Donald Trump’s decision on who will replace current Fed Chairwoman Janet Yellen next February.

New reports pointed out on Friday at Fed Governor Jerome Powell as the prefered candidate to replace current Fed Chairwoman Janet Yellen.

Powell is considered to be a less hawkish economist than other candidates in the race, like Stanford University economist John Taylor.

According to Fed funds tracked by CME Group’s FedWatch tool, investors are currently pricing in more than a 90 percent chance of a rate hike by December.

But that is not the only relevant matter being under scrutiny in the first world’s economy. Trump’s tax reform is also on the watch as it could potentially build an environment of rising interest rate hikes and adjust in a faster way monetary policy.

Fort Financial Services

The DAX futures were 61 percent into green territory on Monday at 13,216 points, as market participants prepared to receive further economic reports from Europe and the US.

No relevant data was released on Friday. The German benchmark ended last week at 13,217.54, adding 84.26 points or 0.64 percent, supported by a dovish rhetoric from the European regulator.

On Friday, Germany stocks were supported by industrials, software and technology

The best performers of the session were Volkswagen, which added 4.47 percent to 152.00,Linde rising 3.00 percent to 189.00 and Siemens up 2.21 percent to end at 120.50.

The worst performers of the session were Commerzbank, which fell 1.70 percent to finish 11.880. Deutsche Bank taking a 1.67 percent loss at 14.160 and Deutsche Boerse down 1.19 percent to 90.030.

Last week, the European Central Bank decided to reduce the volume of its monthly asset purchases from 60 billion euro to 40 billion euro.

While the decision was widely expected, the euro rapidly fell under pressure, leaving room for other currencies, especially the US dollar, to take a leading position.

Scaling down its monetary stimulus programme could be interpreted as a sign of recognition that the economy is growing in way consistent with ECB standards.

Nevertheless, ECB President Mario Draghi reassured that it is still too soon to talk about a full suspension of quantitative easing and even more to think of interest rate hikes.

Ahead in the session, attention will be directed to the following economic reports:

• German retail sales at 07:00 GMT, with a 0.6 percent build seen for September.
• German consumer price index for October, with an estimated increase of 0.1 percent.

Fort Financial Services

Copy trading is great. Of course, if you know how to make it work for you and not against. Copy trading is also known as “mirror trading” and it is an strategy developed in late 2000s that allows market participants to copy trades of successful investors.

There is an obvious double benefit here: followers have an opportunity to make profits without getting their hands dirty, while lead investors will have more capital to work out their strategies.

Think of it as a social network. People come into the platform and interact, comment, and eventually subscribe or unsubscribe from investors. The decision is taken mainly on the type of portfolio the lead investor offers and of course, the return rate and profits record.

So… why people lose money when copying successful strategies?

1 - Laziness

The fact that your account will open and close positions based on others’ strategies, doesn’t mean you should not sit down and do some homework. Choosing the right lead investors is your top priority if you want to get good returns with copy trading.

Pick up the ones that are aligned with your trading profile and risk tolerance level. Otherwise, copy trading will become a dangerous thing for your capital. As a general rule, try avoiding exuberant ROI percentages. See what’s really inside and how the investor behaves.

2 - No diversification

Copy trading IS A TRADING STRATEGY. And as any profitable strategy, diversification must be taken into consideration to avoid easy-comes-easy-goes profits.

Spreading your money between a number of lead investors will considerably reduce your risks, just like it happens when operating with a regular investment portfolio.

3 - No patience

One of the common mistakes ever. Copy trading, as any other investment strategy needs time work out returns. You can improve it, suggest changes and so on, but if you jump from one to another lead investors, chances are you will be left empty handed. Give it time.

Does FortFS offer a social investment platform? Yes. Our service allows traders to copy trades from selected traders’ accounts. For more information on CopyTrading

Fort Financial Services

GOLD

Gold futures were up in early trading hours on Monday as the dollar reversed previous gains and investors looked ahead further economic reports later in the day.

On the Comex division of the New York Mercantile Exchange, gold futures were up 0.06 percent to $1.272.50 a troy ounce as of 05:05 GMT.

The yellow metal settled higher on Friday, boosted by rising concerns over Catalonia’s unilateral declaration of independence and its effects for the country’s economy.

The regional parliament declared on Friday its independence from Spain. The move left no other option to the central government than to dissolve the Catalan parliament and call early elections.

Prime Minister of Spain Mariano Rajoy promised to fired Catalonia’s President Carles Puigdemont, who has played a key role in promoting the region’s independence.

Immediately after the independence was announced in the region, the Spanish Senate gave a green light to Rajoy’s administration to apply Article 155, which allows the central government to take control over Catalonia. New elections are expected on December 21.

Gold is a safe-haven assets and it performs well in periods of high uncertainty and market stress. Futures for December delivery were up 0.51 percent at $1,276.06 by Friday’s close. However, the precious metal ended with a 0.68 percent loss for the week.

But bullion gains were capped by a continuous strengthening of the US dollar, which traded near three-month highs against a basket of six major rivals.

By the time of this writing the US dollar index was 0.15 percent lower at 94.68.

The American currency came under pressure following reports pointing at Fed Governor Jerome Powell as the prefered candidate to replace current Fed Chairwoman Janet Yellen.

Powell is considered to be a less hawkish economist than other candidates in the race, like Stanford University economist John Taylor.

Gold is very sensitive to changes in US interest rates. A higher interest rate environment makes the metal less attractive for market participants as they turn into assets with higher yields.

The dollar was previously supported by a better-than-expected economic expansion in the third quarter. The Commerce Department said the US economy grew 3 percent year over year against a forecasted rate of 2.5 percent.

Ahead in the day, traders will be looking ahead to fresh economic reports, including German retail sales for September at 07:00 GMT and its consumer price index at 13:00 GMT.

In the United States, attention will be directed to the core PCE price index for September, which is scheduled for release at 12:30 GMT. Personal spending will be available at the same time.

OIL

Oil prices were slightly down in early trading hours on Monday as market participants prepared for fresh inventory data later in the week.

The US West Texas Intermediate crude contracts were down 0.02 percent to $53.89 per barrel as of 06:15 GMT. Brent futures were down 0.08 percent, to $60.39 a barrel.

Oil futures settled in green territory on Friday, with the American benchmark touching its highest level in eight months and the international contracts ending above $60 per barrel.

This uptick could be interpreted as an speculatory movement over the potential extension of OPEC and non OPEC output cuts beyond its March 2018 deadline.

The Organization of the Petroleum Exporting Countries (OPEC) and a group of independent producers led by Russia will gather on November 30 in Vienna to discuss the matter.

Last week, Saudi Arabia pledged to “do whatever it takes” to rebalance the oil market, ending once for all the supply glut that has been pressuring benchmarks in the last three years.

Also contributing to the upside trend, Saudi Arabia's Crown Prince Mohammad bin Salman said he was in favor of extending deal for nine months.

The original agreement, which applies for nearly all OPEC members and 10 external producers, sets production cuts at a target 1.8 million barrels a day (bpd). The deal was extended in May 2017 but no alterations were made to cuts volumes.

WTI contracts were up by 4.7 percent on weekly basis, while the Brent added 1.9 percent. Last week was the third consecutive week of increases.

On Friday, market players paid close attention to the weekly oil rigs count from Baker Hughes. The oilfield services provider said rigs in the US rose by 1 to 737 units.

Ahead this week, investors will be pending on crude and refined products stockpiles from the American Petroleum Institute on Tuesday, official data on Wednesday and Baker Hughes weekly oil rig count on Friday.

Fort Financial Services

Australia ASX -22.30 -0.37% 5,960.20 OPEN

Shanghai Comp +9.55 +0.28% 3,417.12 OPEN

Hang Seng Index +236.05 +0.84% 28,438.43 OPEN

Nikkei 225 +220.88 +1.02% 21,960.66 OPEN

TSEC 50 Index -12.44 -0.12% 10,722.32 OPEN

Wall Street top three indexes ended mostly higher as tech heavyweights reported positive earnings for the third quarter of 2017, including Alphabet, Microsoft, Intel, Twitter and Amazon.

The Dow Jones Industrial Average rose to 23,400 by the closing bell. The S&P 500 posted a 0.13 percent gain, but the Nasdaq Composite dropped by 0.11 percent to finish at 6556.77.

US benchmarks were also supported by data. The National Association of Realtors’ said pending home sales for Sept. were flat, falling below an originally forecasted increase of 0.2 percent.

The Department of Labor said initial jobless claims rose by 10,000 to a seasonally adjusted 233,000 in the week ended October 21, above an estimated build of 12,000.

Meanwhile, the European Central Bank announced cuts to its monthly asset purchases from the current 60 billion euros to 30 billion euros starting from January 2018. However, the quantitative easing programme will continue to run for at least nine more months.

Currencies rapidly reacted to the news, with the euro falling across the board and letting his major counterpart (the dollar) regain some positions. The pair was around 1.1637 by the time of this writing. The US dollar index stood at 94.71, adding 0.20 percent.

Ahead in Asia, market players will be paying attention to Q3 earnings from companies such as Yahoo, Shapan, China Merchants Bank, Bank of Communications and Kia Motors.

In the United States, focus will be at the release of the third quarter GDP at 12:30 GMT. Analysts are expecting a 2.5 percent increase. Economists believe the economic growth rate will be affected by recent hurricanes Harvey and Irma.

Michigan University consumer expectations and confidence due as of 14:00 GMT.

Fort Financial Services

The dollar exchanged at 114.17 against the Japanese yen in early hours on Friday, with traders awaiting economic expansion data from the US later in the session.

The US dollar index, which gauges the greenback against six major rivals, was trading at 94.70 by the time of this writing, adding 0.20 percent.

US economic data help to support the dollar across the board on Thursday. The National Association of Realtors’ said pending home sales for September were flat, falling below an originally forecasted increase of 0.2 percent.

The Department of Labor said initial jobless claims rose by 10,000 to a seasonally adjusted 233,000 in the week ended October 21, above an estimated build of 12,000.

Today, market attention will be directed to the release of the third quarter GDP at 12:30 GMT. This report could affect expectations for further interest rate hikes in the year.

According to Fed funds tracked by CME Group’s FedWatch tool, investors are currently pricing in more than a 90 percent chance of a rate hike by December.

Investors are expecting a 2.5 percent build from a prior year reading of 3.1 percent. Economists believe the economic growth rate will be affected by recent hurricanes Harvey and Irma.

Also, the University of Michigan is set to release its consumer expectations and confidence indicators at 14:00 GMT, with 91.2 and 100.9 readings seen.

President Donald Trump’s decision about the next Federal Reserve chair capped dollar gains yesterday, as Stanford University economist John Taylor seems to be not as hawkish as market players initially estimated, according to sources.

In the Asian session there were no relevant reports presented. Late on Sunday, Japan will kick off next week with retail sales for September due at 23:50 GMT.

Fort Financial Services

The DAX futures were 1.60 percent into positive territory on Friday at 13,147 points, as market players continued to digest the ECB decision to reduce monthly bond purchases.

Thursday’s data included the release of the GfK German consumer climate for November, which came in at 10.7 points, below an estimated reading of 10.8.

However, economic reports were not the main event of the previous session. Attention was mainly directed to the European Central Bank monetary policy meeting.

European policymakers decided to leave interest rates at a record low of 0.00 percent and the deposit facility at a negative rate of 0.40 percent. But rather than focusing on interest rate changes, traders were worried about the future of the bank’s stimulus program.

The European Central Bank announced that its asset purchase program will be extended until September 2018, although the volume of monthly purchases will be reduced to 30 billion euros from its current 60 billion euros target.

While this announcement was widely expected by world traders, the euro took a hit, falling across the board and leaving room for the US dollar to regain some ground.

Germany is currently leading the anti quantitative easing program movement within the bloc. However, ECB President Mario Draghi continues to defend the importance of monetary stimulus to keep the European Union economy healthy for the time being.

Jens Weidmann, governor of the Bundesbank and a hawkish member of the ECB, said recently: "I don't see the need to continue pressing on the gas pedal of monetary policy and we are doing just this if we continue to make further purchases every month."

No relevant economic data is scheduled in Europe for today.

Fort Financial Services

GOLD

Gold futures traded lower in early hours on Friday with market participants preparing ahead of key economic data from the US later in the session.

On the Comex division of the New York Mercantile Exchange, gold futures were down 0.08 percent to $1.268.60 a troy ounce as of 05:05 GMT.

The yellow metal dropped sharply on Thursday as the greenback reached three-month highs in the light of a rapid weakening of the euro triggered by the European Central Bank decision to reduce its bond purchases while extending its quantitative easing programme for nine-months.

The European Central Bank will start purchasing 30 billion euro per month of bonds, almost half of its previous target level. However, the bond purchasing programme has been extended until September 2018, a decision that was widely expected.

The regional currency came under pressure despite there was nearly no surprises from the announcement. ECB president Mario Draghi’s remarks were carefully examined by market participants in search for signs of further measures affecting the monetary policy configuration.

Gold is sensitive to moves in the US dollar rate as it is a dollar-denominated commodity. A stronger base currency makes the metal more expensive and less attractive for investors holding foreign money.

Also, economic reports from the US supported the American currency across the board. Attention today will be directed to the release of the third quarter GDP at 12:30 GMT.

Investors will also monitor the releases of Michigan University consumer expectations and confidence due as of 14:00 GMT.

On Thursday, the National Association of Realtors’ said pending home sales for September were flat, falling below an originally forecasted increase of 0.2 percent.

The Department of Labor said initial jobless claims rose by 10,000 to a seasonally adjusted 233,000 in the week ended October 21, above an estimated build of 12,000.

OIL

Oil futures were mixed in early Asian hours on Friday, with market participants looking ahead to the weekly US rig count as they continued to digest mixed inventory data.

The US West Texas Intermediate crude contracts were down 0.04 percent to $52.62 per barrel as of 05:05 GMT. Brent futures were up 0.13 percent, to $59.38 a barrel.

Today, attention will be directed to Baker Hughes’ weekly oil rig count. The report will be released as of 17:00 GMT. These figures are used to anticipate production levels in the US.

Last week, Baker Hughes reported a 7 rigs decline in the world’s first economy to 736 units, which marked a third-consecutive weekly draw. Total active rigs in the US stood at 913 units.

On Thursday, crude benchmarks settled to the downside as weekly inventories from the US Energy Information Administration weighed on market expectations for a soon rebalance.

According to the EIA, crude supplies increased by 856,000 barrels in the week ended October 22, compared to an expected draw of 2.6 million barrels.

These figures were aligned with a previous estimation by the American Petroleum Institute, which reported a rise of 519,000 barrels in crude stockpiles last week.

Meanwhile, gasoline took a different path and fell by 5.5 million barrels against expectations for a 17,000 barrels drop. Distillate supplies eased by 5.2 million barrels.

Earlier this week, crude prices were supported by Saudi Arabia’s pledged to “do whatever necessary” to end the ongoing output glut in the market.

Speculators are looking anxiously to November 30, when OPEC and non-OPEC producers will gather in Vienna to discuss a potential extension of the production cuts agreement beyond its current March 2018 deadline.

Fort Financial Services

Momentum trading is currently one of the most popular types of trading. It is specially popular among new investors, which perceive momentum trading as a rather easy-to-apply strategy.

Depending on the speed assets (stocks, currencies, futures…) are moving in the market, a momentum trader will hold an open position for minutes to days.

It will also depend on which time frame the trader operates. For instance, a long-term momentum trader will focus on solid trends that could take months to become really profitable.

What is momentum trading?

Momentum investing is an strategy that focuses on trends in the market. A momentum trader opens long positions to take advantage of an active upward trend. On the contrary, the trader will sell the asset when facing a downward trend.

The logic behind momentum trading is not difficult to understand. Have you ever heard about the risks of betting against the trend? That’s mainly it. Momentum traders believe in a vast majority of contexts, it is more profitable to ride trends that looking for breakpoints and turns.

Which are the two types of momentum traders?

1. Technical momentum trader

Technicals-based momentum traders base their decisions on indicators that tell them whether an assets is trading higher or lower than it should. In the first scenario, a trader would opt for a short position to take profits as the asset corrects lower. An opposite scenario applies when an asset traders lower than it should.

2. Fundamental momentum trader

A fundamental-based momentum trader base their decisions on news and events that have the power to move asset prices upside down. High-impact news create volatility, which is seen as an opportunity to take advantage of sudden momentary spikes in quotes.

Fort Financial Services

Asian stocks little changed as focus moves to ECB policy decision

Asian stock markets were little changed in early trading on Thursday, with investors digesting a weak close in Wall Street and a batch of regional corporate earnings.

Australia ASX +3.40 +0.06% 5,976.10 OPEN

Shanghai Comp +15.55 +0.46% 3,412.45 OPEN

Hang Seng Index -45.72 -0.16% 28,257.17 OPEN

Nikkei 225 +37.82 +0.17% 21,745.44 OPEN

TSEC 50 Index -4.01 -0.04% 10,746.56 OPEN

Among an extensive list of components, we noted relevant developments in OCBC, Qantas and ANZ stock prices in reaction to their third-quarter results.

In Singapore, OCBC reported a net profit growth of 12 percent for the third quarter of this year up to S$1.06 billion. The bank noted figures were a result of good performance seen in its banking, wealth management and insurance divisions.

In Australia, Qantas stock prices dropped as the company said earlier this year that market conditions in the second-half of 2017 were not expected to be as good as previous months.

ANZ reported a year to year net profit increase of 12 percent to A$6.41 billion up to September 30, 2017. The bank fell short from an initially forecasted profit of A$6.87 billion for the period.

Overnight, Wall Street top indexes closed lower on the back of disappointing corporate earnings, marking their worst day in nearly two months.

The Dow Jones industrial average notched down 112.3 points to finish the session at 23,329.46, with Boeing leading other sectors to the downside.

The S&P 500 eased 0.47 percent to end at 2,557.15, with industrials and telecommunications contributing most to losses. Stocks of fast-food chain Chipotle Mexican Grill plunged 14.6 percent after the company's quarterly earnings fell short from expected values.

The tech-heavy Nasdaq composite was down half of a percent to 6,563.8, with Advanced Micro Devices leading decliners with a 13.5 percent loss.

In the previous session, the US Commerce Department said non-defense capital goods orders rose 1.3 percent in September, above an initially forecasted 1.0 percent build.

Existing home sales in the United States rose 18.9 percent in September from a prior month to a seasonally adjusted 667,000 units, a separate report from the Commerce Department showed. Analysts had estimated a 0.9 percent drop to an annual rate of 555,000 units.

Ahead in the day, attention will be directed to the European Central Bank monetary meeting. Policymakers are expected to reduce the volume of the bank’s asset purchase program to 30 million euro per month.

On the data front, participants await goods trade balance for September and initial jobless claims as of 12:30 GMT. Pending home sales are due for release at 14:00 GMT.

Fort Financial Services

The dollar exchanged at 113.51 against the Japanese yen in early hours on Thursday, with investors awaiting reports from the US, but remaining mainly quiet as inflation data gets closer.

The US dollar index, which gauges the greenback against six major rivals, was trading at 93.46 by the time of this writing, down 0.13 percent.

No relevant data was released in Asian hours. Ahead in the session, traders await goods trade balance for September and initial jobless claims as of 12:30 GMT. Pending home sales are due for release at 14:00 GMT. FOMC member Kashkari will speak half an hour later.

Market participants are likely to take a breather ahead of US inflation data on Friday. Inflation is closely monitored by Fed policymakers when deciding about monetary policy changes.

According to Fed funds tracked by CME Group’s FedWatch tool, investors are currently pricing in more than a 90 percent chance of a rate hike by December.

In the previous session, durable goods orders and housing data were not enough to keep the American currency in green territory, helping bullion prices to shrug off a three-day losing streak.

The US Commerce Department said non-defense capital goods orders, excluding aircraft, increased by 1.3 percent in September, above an initially forecasted 1.0 percent build.

Existing home sales in the United States rose 18.9 percent in September from a prior month to a seasonally adjusted 667,000 units, a separate report from the Commerce Department showed. Analysts had estimated a 0.9 percent drop to an annual rate of 555,000 units.

Meanwhile, speculation over President Donald Trump’s decision of who will lead the Federal Reserve for the next four years drove the dollar higher on Wednesday.

New reports said on Wednesday Stanford University economist John Taylor, one of Trump’s major candidates for becoming the new Fed chair in February, was ahead in the race.

Taylor is seen as more hawkish than the current chairwoman Janet Yellen when it comes to monetary policy normalization.

Fort Financial Services

The DAX futures were 0.33 percent into negative territory on Thursday at 13,974 points, with market participants looked ahead to the European Central Bank monetary policy meeting.

The German benchmark ended 0.46 percent or 59.78 points lower in Frankfurt at 12,953.41 points, despite the release of upbeat economic reports, with pharmaceuticals & healthcare, basic resources and utilities dragging the index to the downside.

On the data front, German business expectations for October came in at 109.1, while the current assessment rose to 124.8. In both cases, indicators were above expected values of 107.3 and 123.5 from prior month readings of 107.5 and 123.7 respectively.

In other news, the lfo Institute for Economic Research said its business climate index increased to 116.7 points in October, up from an initially forecasted 115.2 reading.

The best performers of the session were Deutsche Lufthansa, which added 3.67 percent to 27.145. Meanwhile, BASF rose 1.04 percent to close the session at 91.050, followed by Commerzbank up 0.37 percent to 12.160.

The worst performers of the session were RWE, which declined 3.19 percent to 20.620, E.ON easing 2.29 percent to 9.795 and Thyssenkrupp down 2.19 percent to 22.985.

Ahead in the session, traders will be paying attention to GfK German consumer climate for November as of 06:00 GMT, but all focus will be directed to the European Central Bank encounter, where policymakers are expected to decide the future of monetary stimulus.

ECB’s interest rate decision is due at 11:45 GMT and President Mario Draghi will offer a press conference as of 12:30 GMT. The EU regulator is likely to extend its massive asset purchase program for nine months, but reduce the volume of purchases to 30 million euro per month.

Fort Financial Services

GOLD

Gold futures were up in early trading hours on Thursday, as market focus shifts to the European Central Bank monetary policy meeting.

On the Comex division of the New York Mercantile Exchange, gold futures were up 0.19 percent to $1.281.40 a troy ounce as of 05:00 GMT.

The yellow metal showed a moderate dynamic on Wednesday, moving close to breakeven as the dollar eased across the board despite upbeat economic data from US, but with expectations for further monetary policy adjustments remaining very high.

The US dollar index, which gauges the greenback against six major rivals, was trading at 93.46 by the time of this writing, down 0.13 percent.

Durable goods orders and housing data were not enough to keep the American currency in green territory, helping bullion prices to shrug off a three-day losing streak.

The US Commerce Department said non-defense capital goods orders, excluding aircraft, increased by 1.3 percent in September, above an initially forecasted 1.0 percent build.

Existing home sales in the United States rose 18.9 percent in September from a prior month to a seasonally adjusted 667,000 units, a separate report from the Commerce Department showed. Analysts had estimated a 0.9 percent drop to an annual rate of 555,000 units.

Gold prices were not able to take full advantage of its recovery as new reports said on Wednesday Stanford University economist John Taylor, one of President Donald Trump’s major candidates for becoming the new Federal Reserve chair in February, was leading the race.

Taylor is seen as more hawkish than the current chairwoman Janet Yellen when it comes to monetary policy normalization. It seems the Trump administration is working hard to push further adjustments to the country’s monetary policy in the near term.

The administration’s tax reform, a bill that will be unveiled on November 1, is expected to promote higher inflation levels, leaving no option to the regulator than raising rates further.

Gold, a dollar-denominated commodity, is highly sensitive to changes in US interest rates. Higher rates dampen demand for safe-haven assets such as the precious metal.

OIL

Oil futures notched down in early trading hours on Thursday as US official inventory data showed a larger-than-expected increase last week, weighing on market sentiment.

The US West Texas Intermediate crude contracts were down 0.15 percent to $52.10 per barrel as of 04:55 GMT. Brent futures were up 0.12 percent, to $58.37 a barrel.

Crude benchmarks settled in red territory on Wednesday, following a downbeat weekly inventory report from the US Energy Information Administration.

The agency showed US crude stockpiles rising for the first time in five weeks, although gasoline and distillate products supplies notched down sharply.

For the week ended October 22, crude stockpiles added 856,000 barrels, against expectations for a 2.6 million barrels decline and above a 519,000 barrels gain estimated by the American Petroleum Institute earlier.

According to EIA data, total crude inventories in the United States were at 457.3 million barrels last week.

Gasoline, one of the most high-demand derivatives of crude oil, dropped by 5.5 million barrels against expectations for a 17,000 barrels draw. Distillate supplies fell by 5.2 million barrels.

In general, the upward trend for energy commodities seems to be still on and far from a serious correction. Drivers for growth include Saudi Arabia’s pledge to “do whatever it takes” to end the supply glut in the market.

Another factor boosting prices is the geopolitical tensions between Iraqi forces and the Kurdish people, who recently voted in favour of independence.

And of course, we could not forget about the controversial OPEC-led output cuts agreement. The oil cartel and non members will gather in Vienna on November 30 to discuss a potential extension of the deal beyond its March 2018 deadline.

Ahead in the week, attention will be directed to Baker Hughes’ weekly oil rig count, which is set for release on Friday as of 17:00 GMT.

Fort Financial Services

Monday

Asia: Japanese retail sales for September are set at 23:50 GMT (Sunday), with market analysts pointing at a 2.6 percent growth.

Europe: German retail sales are due for release as of 07:00 GMT, with a 0.6 percent build seen for September. At 13:00 GMT, Europe’s first economy will present its consumer price index for October, with an estimated month-to-month increase of 0.1 percent eyed.

United States: further inflation data from the US will be in focus. The core PCE price index for September is set for publishing at 12:30 GMT. Analysts expect a rise of 0.2 percent. Personal spending will become available at the same time, with a 0.7 percent build seen.

Tuesday

Asia: Japan’s household spending, jobs/applications ratio will be out by 23:30 GMT (Monday). Twenty minutes later, investors will receive the latest industrial production figures. China will present its manufacturing and non-manufacturing activity indexes for October at 01:00 GMT.

Europe: German stock markets will be closed as the country celebrates its Reformation Day. Eurozone’s CPI for October and the unemployment rate for September will be out at 10:00 GMT.

United States: third-quarter unemployment cost index is due for release at 12:30 GMT. Half an hour later, players will assess the latest S&P/Case-Shiller house price index, which gauges variations in selling prices of single-family homes in 20 metropolitan areas. The Conference Board will present its consumer confidence indicator for October at 14:00 GMT.

Wednesday

Asia: China’s Caixin manufacturing PMI for October will be out by 01:45 GMT, with a 51.5 points reading on the watch.

Europe: UK’s nationwide HPI for October is set for release at 07:00 GMT. Later on, Markit’s manufacturing PMI for October will be presented at 09:30 GMT.

United States: ADP nonfarm employment change for October will be release as of 12:15 GMT, with analysts forecasting a 225,000 jobs addition. The Institute for Supply Management will present its manufacturing PMI for October at 14:00 GMT, while Markit will release its own at 14:45 GMT. However, attention will be mainly directed to the Federal Reserve monetary policy meeting. The rate decision will be announced at 18:00 GMT. No changes are expected.

Thursday

Europe: Germany’s manufacturing PMI for October will be out as of 08:55 GMT and the latest unemployment rate at 09:00 GMT. Eurozone’s manufacturing PMI is set at 09:00 GMT. After these publications, focus is likely to shift to the United Kingdom, where the Bank of England will hold a new monetary policy meeting and the interest rate is expected to rise by 25 basis points to 0.50 percent. The decision will hit the markets by 12:00 GMT.

United States: Nonfarm productivity for the third quarter, along with unit labor costs will be presented at 12:30 GMT, with 2.0 percent and 0.4 percent builds seen respectively.

Friday

Asia: China’s Caixin services PMI for October will be released at 01:45 GMT. Japanese markets will remain closed for holidays.

Europe: UK’s services PMI for October is up at 09:30 GMT.

United States: All eyes will be placed at October’s nonfarm payrolls, unemployment rate and average hourly earnings, which are set for release at 12:30 GMT. Economists are forecasting a 295,000 jobs increase last month and no changes to the current 4.2 percent unemployment rate. Earnings are expected to rise 0.3 percent. Trade balance figures will also be out at 12:30 GMT, with a deficit of $43.4 billion seen. ISM non-manufacturing PMI and Markit’s services PMI for October are due at 14:00 GMT and 14:45 GMT respectively.

Fort Financial Services