30 November 2021, Sydney, Australia – VT Markets are delighted to welcome Won Tien Ching to the company as Regional Business Development Director.

VT Markets, one of the leading multi-asset trading platforms, announced the appointment of Won Tien Ching, former Chief Marketing Officer of Singapore at HGNH International Asset Management (HGNH AM) as the company’s Regional Business Development Director today.

Won has over 12 years of experience in the international financial services industry and in his newly appointed role, will support VT Markets achieve their marketing and business goals on a global level. The multi-asset trading services provider is planning to utilize the extensive experience of Mr. Won to progress the company’s expansion in different regions.

In his latest role at HGNH International Asset Management, Won led the company’s Sales and Marketing team for the execution of expansion in the region. In his new position at VT Markets, Won will focus on introducing high-profile partnerships and business development to cover the whole client lifecycle.

Won comments:

“I am delighted to join VT Markets at this juncture where there is an adventure awaiting and bigger targets to achieve with the team. VT Markets has shown its impressive capability to grow in the past few years and now we are targeting new markets and higher-value customers and partners. I would also like to inculcate a workplace culture that provides considerable latitude in exploring creative ways of achieving goals and embracing constant changes, whilst being disciplined enough to adhere to guidelines and targets set by the company. With this approach, I believe VT Markets will continue to grow and expand into new territories; building on their excellent brand credibility and top-notch services.”

VT Markets are excited to welcome Mr. Won to the team.

About VT Markets

VT Markets, based in Sydney, Australia, is a subsidiary of VT Markets LLC (VIG) and leverages more than 10 years of experience and expertise in global financial markets to offer easy and transparent market access and help our clients pursue their financial goals. Founded in 2016, VT markets has applied for advanced technical support in the retail FX market to provide clients with superior trading experience.

For inquiries, please contact info@vtmarkets.com or visit our website.

Market Focus

Global equities plummeted on Friday, with a new COVID variant discovered in South Africa rising concerns that new lockdown policies could be imposed and hindered the recovery of the economy once it gets widely spread. In Asia, Japan’s Nikkei 225 dropped 2.53%, and Hong Kong’s HSI slumped 2.67%; in the US, Dow Jones slid 2.52% to 34900.79, and the Nasdaq Composite declined 2.23% to 15491.66.

The World Health Organization is urging caution after two South African health experts, including the doctor who first sounded the alarm about the omicron variant, indicated that symptoms linked to the coronavirus strain have been mild so far.

“Understanding the level of severity of the omicron variant will take days to several weeks,” WHO said in a statement Sunday, adding that “there is currently no information to suggest that symptoms associated with omicron are different from those from other variants.”

The latest variant wreaked havoc in global markets on Friday, and early signs in Asia suggest an uneasy start to the new week as traders digest omicron’s initial impact and spread. Equity futures for Japan, South Korea and Australia pointed lower, while currencies were generally steady. The South African Rand strengthened.

The U.K. government will convene an urgent meeting of Group of Seven health ministers on Monday to discuss the latest developments, according to the country’s Department of Health. In the U.S., President Joe Biden will give an update also on Monday, the White House said.

Main Pairs Movement:

After a warm and cozy Thanksgiving holiday, the global forex market got smashed as the unexpected fresh panic toward the new founded COVID variant frustrated sentiments. Commodities plunged harshly amid the American trading hours, especially the crude oil down more than 10%, and the dollar index dropped 0.74% due to concerns that Fed may propone rate hike schedule to July from June 2022.

Benefitting from the weakness of the greenback, most major currencies posted gains against their American peer. Cable ended its weeklong decline and gained mildly 0.14% to 1.3337, and the euro pair even surged around 100 pips to regain 1.1300. Safe-haven currencies are the best performers during the Friday’s chaos, with USD/CHF plummeted 1.21% and USD/JPY dived 1.82% which once breached the key level 113.00. On the flip side, commodity-linked currencies got left behind as the crash of the oil price. AUD/USD went down 1.04%, while USD/CAD surged 1.11%.

Gold price got a roller-coaster ride on Friday, as the price first stretched to the north on the Europe session, and then rolled down accordingly after the US dollar’s fall amid the dismal Wall Street opening. Oil price got wrecked the most, as both WTI and Brent nosedived more than 10%, back to the price levels two months ago. WTI closed the day at $68.16, and Brent at $72.86.

Technical Analysis:

EURUSD (4- Hour Chart)

The pair EUR/USD advanced and gathers upside traction on Friday, continuing its previous rebound from 2021 lows under 1.119 level. The pair started to see heavy buying in early European session and touched a fresh weekly high near 1.130 area at the time of writing. EUR/USD was supported by US dollar weakness, currently rising 0.87% on a daily basis. The falling US dollar is mainly due to the resurgence of coronavirus concerns, as a new variant appeared in Southern Africa. Investors now worry that if new Covid-19 variant does spread globally and damages the global economic recovery, this will leaves the greenback more vulnerable to a dovish Fed policy expectations. But gains for the EUR/USD pair seems to be limited, as the dovish ECB and rising Covid-19 cases both act as a headwind.

For technical aspect, RSI indicator 62 figures as of writing, suggesting that the bullish momentum should persist for a while before there’s a trend reversal. The MACD is also sitting way above the signal line, which means a strong upward trend for the pair. Looking at the Bollinger Bands, the price rose out of the upper band, therefore a trend continuation could be expected. In conclusion, we think market will be bullish as the pair is eyeing a test of the 1.1374 resistance.

Resistance: 1.1374, 1.1464, 1.1608

Support: 1.1186, 1.1115

GBPUSD (4- Hour Chart)

After dropping to a yearly low near 1.328 area, the pair GBP/USD rebounded slightly back on Friday. The pair was trading lower and struggled in negative territory during Asian session, but then surrounded by bullish momentum after European session started. At the time of writing, the cable reverses its intraday loss with a 0.02% gain for the day. The GBP/USD gained some bullish traction today amid weaker US dollar across the board, as the benchmark 10-year US Treasury bond yield is falling nearly 7% and weighing heavily on the greenback. Meanwhile in UK, after new Covid-19 variant appeared in Southern Africa, the British Health Secretary Sajid Javid announced on Friday that flights from six African countries will be banned from now on.

For technical aspect, RSI indicator 39 figures as of writing, suggesting that the downside appears more favored as the RSI still holding below the midline. As for the Bollinger Bands, the price is falling after touching the moving average, therefore the downward trend should remain. In conclusion, we think market will be bearish given that its technical correction today could be temporary, since the fundamental outlook doesn’t yet point to a steady recovery.

Resistance: 1.3390, 1.3514, 1.3607, 1.3698

Support: 1.3188

USDCAD (4- Hour Chart)

Following its previous three-day slide, the pair USD/CAD rebounded sharply to 1.278 area on Friday amid falling oil prices. The pair continued to climb higher most of the day and touched the highest level since September 22. USD/CAD had pulled back since then and surrendered some of its intraday gains, currently rising 0.86% on a daily basis. Despite the greenback tumbled 0.75% today, USD/CAD still rallied amid risk-off market mood. The new South African Covid-19 variant, which have more mutations and evade vaccines, are pushing countries across the world to start implementing travel restrictions. Therefore the concerns about fuel demand sent the oil prices below $70, meanwhile underpinned the USD/CAD pair.

For technical aspect, RSI indicator 66 figures as of writing, suggesting the bullish momentum should persist for a while before there’s a trend reversal. Looking at the MACD indicator, the MACD is now sitting above the signal line, which means a upward trend for the pair. As for the Bollinger Bands, the price moved out of upper band and dropped immediately back inside the band, therefore the suggested strength is negated. In conclusion, we think market will be bearish as long as the 1.2828 resistance line holds. The pair is likely to experience technical correction after accelerating the upward move.

Resistance: 1.2828

Support: 1.2645, 1.2585, 1.2493

Economic Data

VT Markets MetaTrader Scam: Untrue Allegations

Recently, certain websites have been attempting to cast doubt on the integrity of VT Markets by highlighting potential scams occurring on the MetaTrader platform. It’s important to note that while VT Markets is a regulated broker and adheres to strict standards, scams can occur on any trading platform due to external fraudsters. VT Markets remains committed to providing a secure trading environment and encourages traders to stay informed and vigilant to protect their investments.

How VT Markets Upholds Integrity and Trust in Forex Trading

Forex market is considered as the biggest market in the world, it deals trillions of dollars’ worth of trades every day. Investors are always looking for the best broker to trade forex, precious metals, indices, share CFDs, and other trending assets such as digital currencies. With thousands of brokers out there when you conduct your research, determining whether a broker is legit (or not a scam) can be quite challenging. As an investor (especially for those who trade online), it is vital to research a company before making a commitment and depositing money to trade.

The key and first question you should ask is whether the broker is regulated. As scam brokers do not have to report to a governing body or authority. This means that if they scam you in any way (e.g. causing slippage intentionally, blocking your withdrawal, etc.), there is pretty much nothing you can do about it besides posting a bad review online can be helpful for others to avoid falling into the same pit. To check whether a broker is a scam, the quickest way is to check the footer of broker’s website:

VT Markets Regulations

A regulated broker always includes proper risk disclaimers and regulatory information at the bottom of all their website pages. VT Markets is a fully regulated broker, which has been in the financial service industry for over a decade. VT Markets have entities that are regulated under the Financial Sector Conduct Authority (FSCA).

After confirming the broker is regulated, the next thing you should do is to determine whether the regulatory body is trustworthy. Regulators such as International Financial Services Commission (IFSC), Securities Commission of The Bahamas (SCB) and Seychelles International Business Authority (SIBA) are certainly not as trustworthy as Cyprus Securities & Exchange Commission (CySEC) and Financial Conduct Authority (FCA). Some regulatory body such as St. Vincent & the Grenadines does not monitor or regulate forex companies, thus a lot of scam brokers has St. Vincent & the Grenadine listed as their regulatory body, which means their investors are not protected at all. Here is a list of the regulatory bodies that are mostly recognized by investors:

• Financial Conduct Authority (FCA) – United Kingdom
• Cyprus Securities & Exchange Commission (CySEC)– Cyprus
• Monetary Authority of Singapore (MAS) – Singapore
• Financial Services Agency (FSA) – Japan
• Cayman Islands Monetary Authority (CIMA) – Cayman Islands

VT Markets is regulated by CIMA – one of the commonly recognized regulatory bodies. Our clients are well-protected.

VT Markets Reviews

VT Markets prioritizes transparency and client trust, a commitment clearly evidenced through the feedback and reviews on Trustpilot. Our high ratings affirm the reliability of our trading services, the efficiency of our customer support, and the user-friendliness of our platforms. These testimonials reflect the successful outcomes of our efforts to create a secure and effective trading environment, and the satisfaction our clients experience with our comprehensive support.

We invite both prospective and existing clients to explore our Trustpilot profile to gain a genuine perspective on trading with VT Markets. This engagement with client feedback is crucial for our ongoing improvement and underscores our dedication to a trustworthy, client-centered trading experience.

In conclusion, it is crucial to check your broker’s regulatory information before sending money to them. The regulatory is the only thing to ensure the safety of your capital. Any other information such as awards, company stories, and corporate sponsorship can be considered as an additional endorsement of the brand, but these cannot guarantee the legitimacy of a broker without appropriate regulation.

Market Focus

Eurozone’s October inflation rate hit a 13-year high of 4.1%, well above the European Central Bank’s 2% target, prompting some investors to bet that the European Central Bank will raise interest rates next year. But the Council of the European Central Bank believed that many of the factors driving inflation higher this year may subside next year, albeit at a slower pace than recently predicted.

Although the possibility of raising interest rates at the earliest next year is small, investors can still look forward to the European Central Bank’s December meeting. Most people expect that the central bank will decide on the 1.85-ton bond purchase plan launched last year in response to the epidemic and stop new purchases in March 2022.

As a compromise between the doves and the hawks, the European Central Bank continues to expect to supplement the monthly pace of the asset purchase plan of 20 billion euros with a fixed-scale envelope of approximately 200 billion euros. In addition, the European Central Bank also proposed a new bond purchase plan that can cope with market fluctuations.

Main Pairs Movement:

As the US market was closed for the Thanksgiving holiday, the market is quiet on Thursday. The market will shorten working hours on Friday, and trading is expected to continue to be quiet.

GBP/USD fell to a new low of 1.33053 in 2021 and closed at 1.33181. Affected by concerns about Brexit, the price trend has hardly changed and maintained a downward trend.

USD/JPY basically remained above the 115.3 area. With the Thanksgiving holiday, the momentum of the dollar has eased, and the yen has also respite. At the time of writing, the currency has fallen below the 115 level and hovered at 114.9.

After touching the 1.1190 area for two consecutive days, the EUR/USD surged to 1.1229 today and closed above 1.1200. It seems that it has finally gained some support and successfully rebounded.

The gold market is also very calm, with precious metals stable at around $1,790 per troy ounce. Crude oil prices fell slightly, but WTI crude oil prices remained above $78.00 per barrel.

Technical Analysis:

EURUSD (4- Hour Chart)

After previous day’s slide to a 2021 low under 1.119 level, the pair EUR/USD regained bullish momentum and rebounded back on Thursday. The pair was trading higher at the start of the day and touched a fresh daily high near 1.123 area, but now has pulled back slightly at the time of writing. EUR/USD was supported by US dollar weakness, currently rising 0.14% on a daily basis at the time of writing. In the US, markets are likely to be flat due to Thanksgiving holiday, and the greenback dropped to 96.74 area after reaching yearly tops. In Europe, ECB Publishes Account of Monetary Policy Meeting released today highlighted that net purchases under the PEPP could be expected to come to an end by March 2022, which did not contain any surprises.

For technical aspect, RSI indicator 33 figures as of writing, suggesting that the bearish momentum should persist for a while before there’s a trend reversal. Looking at the Bollinger Bands, the price is falling from the moving average, which means that the downward trend is likely to persist. In conclusion, we think market will be bearish as the pair is heading to re-test the 1.1186 support, a beark below that level would target 1.1115 support that touched in June 2020.

Resistance: 1.1275, 1.1374, 1.1464

Support: 1.1186, 1.1115

GBPUSD (4- Hour Chart)

The pair GBP/USD updated its yearly low on Thursday, following previous slide to 1.331 area for the fifth day. The pair climbed higher during Asian session and touched a daily high, but then failed to preserve its bullish momentum. At the time of writing, the cable stays in negative territory with a 0.04% loss for the day. The GBP/USD pair remained under pressure despite US dollar weakness, but the greenback’s corrective pullback should be alleviated amid growing market expectation of a more aggressive policy from the Fed due to rising inflationary pressures. Meanwhile, the worsen situation over the post-Brexit fishing rights between France and UK keep acting as a headwind for the cable.

For technical aspect, RSI indicator 33 figures as of writing, suggesting that the downside appears more favored as the RSI still holding below the midline. Looking at the MACD indicator, the MACD is now sitting below the signal line, which means a downward trend for the pair. As for the Bollinger Bands, the price still staying between the lower band and moving average, therefore the downward trend should remain. In conclusion, we think market will be bearish as a drop to the 1.32 area appears likely.

Resistance: 1.3390, 1.3514, 1.3607, 1.3698

Support: 1.3188

USDCAD (4- Hour Chart)

The pair USD/CAD declined on Thursday, continuing its slide from a monthly high near 1.275 area that touched earlier this week. During early European session, the pair started to see fresh buying and reached daily top above 1.267 level. USD/CAD had pulled back since then and surrendered its intraday gains, currently posting a 0.14% loss on a daily basis. Weaker US dollar across the board today dragged the pair lower, though market conditions are currently very thin amid the Thanksgiving holiday. On top of that, the recovery in oil prices acted as a tailwind for the commodity-linked loonie.

For technical aspect, RSI indicator 46 figures as of writing, suggesting tepid bear movement ahead. Looking at the MACD indicator, the MACD is now sitting below the signal line, which means a downward trend for the pair. As for the Bollinger Bands, the price dropped off the upper band and then crosses below the moving average, the lower band then becomes the loss target. In conclusion, we think market will be bearish as the pair is eyeing a test of the 1.2585 support.

Resistance: 1.2475, 1.2849

Support: 1.2585, 1.2493, 1.2387

Economic Data

Dear Client,

As part of our commitment to providing the best reliability and service to our client, we are planning an upgrade in our MT4/MT5 server on this weekend.

As a result, we will keep the maintenance according to the following schedule and will reopen for trading at 00:00 (GMT+2, system time) on Monday, November 29, 2021.

Kindly be reminded that the following things might be affected during this maintenance period:

1. The login and operation of the client portal

2. The login of the trading account

3. Demo accounts will be temporarily unavailable for opening/logging/trading.

4. The quotations on MT4 / MT5 server will be paused. Clients might not be able to open new positions or close the held positions.

5. There might be a gap between the original price and the price after maintenance. Pending orders, Stop Loss, and Take Profit settings within the gap will be filled at the market price after maintenance ends.

After the upgrade, clients can login to trading account using the server which is shown in the account activation mail.

No action is required by our client. Your service will be back online after the maintenance is completed.

Thank you for your patience and understanding with regard to this important initiative.

If you’d like more information, please don’t hesitate to contact trading@vtmarkets.com.

Dear Client,

Warmly reminds you that the component stocks in the stock index spot generate dividends. When dividends are distributed, VT Markets will make dividends and deductions for the clients who hold the trading products after the close of the day before the ex-dividend date.

Indices dividends will not be paid/charged as an inclusion along with the swap component. It will be executed separately through a balance statement directly to your trading account, the comment for which will be in the following format “Div & Product Name & Net Volume ” .

Please note the specific adjustments as follows:

Note: The above data is for reference only, the actual execution data may be changed, please refer to the MT4/MT5 software for details.

If you’d like more information, please don’t hesitate to contact trading@vtmarkets.com.

Market Focus

The US indices edged higher on Wednesday, and technology stocks rebounded due to the slowdown in the rise in bond yields. The recent increase in yields is due to the decision of President Joe Biden, who re-nominated Jerome Powell as chairman of the Federal Reserve on Monday. After the 10-year US Treasury bond yield closed at 1.55% on last Friday, it traded above 1.68% this week. However, the ratio fell to about 1.64% on Wednesday.

At the end of the market, the S&P 500 Index rose 0.23% to close at 4,701.46, the Nasdaq Composite Index rose 0.44% to 15,845.23, and the Dow Jones Industrial Average fell only 9.42 points to close at 35,804.38. The Nasdaq Composite Index, which is dominated by technology stocks, outperformed the broader market, mainly due to the 1.1% increase in the stock price of Facebook’s parent company Meta, the increase in Apple’s stock price by 0.33% and the TSLA increase by 0.63%.

There are slightly more falling stocks in the S&P 500 index than rising stocks. The gains in technology, real estate and energy stocks outpaced declines in banks, materials companies and other parts of the market. Currently, there are several company will released latest quarterly report. Computer manufacturer HP rose 10.10% after announcing solid financial results, Autodesk shares fell 15.5% after the design software company warned investors that its pace of recovery is being affected by supply chain issues and inflationary pressures. As crude oil prices remained relatively stable and natural gas prices rose, energy stocks rose. Devon Energy rose 3.8%.

Main Pairs Movement:

After a series of U.S. data suggest that inflationary pressures remain high and the Fed is about to take action to deal with its impact on the economy, demand for the U.S. dollar continues.

According to the CPI report, U.S. inflation surged to its highest level in 30 years in October. In addition, at the FOMC meeting held yesterday, the statement showed that if inflation continues to heat up, they will be prepared to adjust the pace of production cuts and raise the target range of the federal funds rate in advance. However, since the announcement was not unexpected, the market response was very limited.

Affected by local data and the European Central Bank’s inaction, the EUR/USD fell below the pivot support level of 1.1200 and failed to hold. In addition to market sentiment, another factor affecting the euro is the re-spread of the coronavirus in Europe.

GBP/USD is facing bearish pressure again and is currently in the 1.33362 area. The USD/JPY reached a new high of 115.51 in 2021 and remained stable near the close. AUD/USD is currently trading below 0.7200, and USD/CAD is trading near 1.2670.

Technical Analysis:

EURUSD (4- Hour Chart)

After previous day’s slightly rebound from a sixteen-month lows, the pair EUR/USD was surrounded by heavy selling pressure again on Wednesday. The pair was flirting with 1.124 area to start the day and touched a daily top in early European session, but then dropped to under 1.120 level amid US dollar strength. EUR/USD now remained under pressure, currently losing 0.41% on a daily basis at the time of writing. The US Weekly Initial Jobless Claims released today decline to 199K, which is better than the market expectation of 260k. The upbeat data supported the greenback and push the DXY index higher above 96.8. In Europe, the Germany IFO Business Climate easing to 96.5 in November, therefore the dismal report weighed on the EUR/USD pair.

For technical aspect, RSI indicator 23 figures as of writing, suggesting that the pair is in oversold zone, a trend reversal could be expected. As for the MACD indicator, a death cross just formed on the histogram, which means a short-term downward trend for the pair. Looking at the Bollinger Bands, the price is moving alongside the lower band, therefore the downward trend is likely to persist. In conclusion, we think market will be bearish as the pair already broke below the previous 1.1226 support, now eyeing a test of the 1.1115 support that touched in June 2020.

Resistance: 1.1275, 1.1374, 1.1464

Support: 1.1115

GBPUSD (4- Hour Chart)

The pair GBP/USD declined on Wednesday, continuing to maintain its bearish tone for the fourth day. The pair started to see fresh selling in early European session, now trading at the lowest level since December 2020 and posting a 0.31% loss for the day. The stronger US dollar across the board keep acting as a headwind for the cable, as the upbeat US economic data and hawkish Fed expectations both lend support to the greenback. Meanwhile, the deadlock over the post-Brexit arrangement in Northern Ireland and fishing rights still weighed on the GBP/USD pair, but France will continue discussions with the UK over post-Brexit fishing access before any retaliatory measures taken.

For technical aspect, RSI indicator 29 figures as of writing, suggesting that the pair is in oversold zone, a trend reversal could be expected. Looking at the MACD indicator, the MACD is now sitting below the signal line, which means a downward trend for the pair. As for the Bollinger Bands, the price just touched the lower band, the bearish tone will be intensified if the price move out of the band. In conclusion, we think market will be bearish as the recent downward momentum might still be far from being over, and the next 1.3188 support awaits.

Resistance: 1.3514, 1.3607, 1.3698

Support: 1.3188

USDCAD (4- Hour Chart)

After falling from a monthly high near 1.275 area yesterday, the pair USD/CAD edged higher on Wednesday amid renewed US dollar strength. During American session, the pair pulled back from a daily top touched earlier in the day and surrendered its modest intraday gains. USD/CAD was last seen trading at 1.2672, currently posting a 0.01% gain on a daily basis. The risk-off market sentiment and better-than-expected US job data both spurred demand for the greenback, which is sitting at the highest level since July 2020. On top of that, falling oil prices put pressure on the commodity-linked loonie and pushed the USD/CAD pair higher.

For technical aspect, RSI indicator 53 figures as of writing, suggesting tepid bull movement ahead. But looking at the MACD indicator, the MACD is now sitting below the signal line, which means a downward trend for the pair. As for the Bollinger Bands, the price dropped off the upper band and then crosses below the moving average, the lower band then becomes the loss target. In conclusion, we think market will be bearish as the pair is eyeing a test of the 1.2585 support.

Resistance: 1.2475, 1.2775, 1.2849

Support: 1.2585, 1.2493, 1.2387

Economic Data

Dear Client,

Please kindly note that the Shares CFDs Facebook Inc. (FB) has changed its corporate name to Meta Inc. (MVRS) as part of a major rebrand, effective from November 29th, 2021 on our platform.

Please contact trading@vtmarkets.com if you would like more information regarding to this.

Market Focus

As investors cheered on the appointment of Federal Reserve Chairman Jerome Powell for the second term, U.S. stocks rose to a record high, and the S&P 500 index surged to a high of the day immediately after the opening of the U.S. market. However, the S&P 500 Index closed lower on Monday as Wall Street Bank expects to raise interest rates in 2022. In addition, rising U.S. Treasury yields put pressure on major growth stocks such as Amazon and Alphabet, which fell -2.83% and -1.92% respectively. Moreover, following the surge in US Treasury yields, the S&P 500 Bank Index rose, as investors investors priced in tighten policy in the first half of 2022. Wells Fargo Bank (WFC.N) is one of the strongest banks on Wall Street.

At the close of the market, the S&P 500 Index fell 15.38 points or 0.32% to close at 4,682.88 points, the Nasdaq Composite Index fell 202.68 points or 1.26% to 15,854.76, and the Dow Jones Industrial Average rose 17.28 points, or 0.05%, to 35,617.83.

Tesla is also one of the biggest gainers, rising 1.74%. Earlier on Monday, Tesla CEO Elon Musk said on Twitter that Model S Plaid may arrive in China “around March.”

Main Pairs Movement:

The US dollar led the way and became the overall winner. In 2021, it set a new high against the euro and a multi-month high against other major competitors. Most of the strength of the dollar comes from US President Joe Biden, who nominated Jerome Powell for re-election as chairman of the Federal Reserve.

The US 10-year bond yield finally rose by nearly 9 basis points to 1.62% in intraday trading. The current yield has returned to its highest level since last Wednesday, and is currently only about 3 basis points lower than last week’s high of 1.65%. With the rise in yields, the US dollar index has also continued to roll to the year’s high of 96.502, and its upward trend seems to be endless.

The EUR/USD is currently hovering near 1.12400 and is in a sharp downward trend because it continues to suffer from the severe wave of Covid19, and the dovish state is also the main key to the weakness.

The price of gold plummeted due to the strengthening of the U.S. dollar, trading at $1,803.00 per ounce. Crude oil prices are rising, and WTI is currently hovering around US$76.70 per barrel.

Technical Analysis:

EURUSD (4- Hour Chart)

After touching the lowest level since July 2020 under 1.126 level, the pair EUR/USD continue its bearish traction on Monday amid US dollar strength. The pair flirted with 1.128 level most of the day, but then dropped towards 1.124 area, currently losing 0.14% on a daily basis at the time of writing. White House announced on Monday that Federal Reserve Chair Jerome Powell was nominated for a second four-year term by President Joe Biden. The news provided strong support to the US dollar and sent the DXY index above 96.4 level. In Europe, concerns about rising Covid-19 cases acted as a headwind for the Euro, as some countries in Europe may reimpose a full lockdown or bring back restrictions to tackle rising infections.

For technical aspect, RSI indicator 30 figures as of writing, suggesting that the pair is in oversold zone, a trend reversal could be expected. Looking at the Bollinger Bands, the price is moving alongside with the lower band, therefore the downward trend is likely to persist. In conclusion, we think market will be bearish as the greenback’s strength still remained by hawkish Fed expectations. A potential move lower towards 1.1200 seems possible as the pair has broken the previous support.

Resistance: 1.1374, 1.1464, 1.1608

Support: 1.1168

GBPUSD (4- Hour Chart)

Following last Friday’s slide, the pair GBP/USD declined for the second day on Monday. The pair was trading in a range near 1.344 area during Asian and early European session, but started to see heavy selling after the announcement of Powell’s renomination as Fed chair. The cable rebounded slightly after touching a two-week low, currently losing 0.28 on a daily basis. The latest dovish comment from BoE governor Andrew Bailey over the weekend put some downward pressure on the GBP/USD pair. Moreover, the deadlock over the post-Brexit arrangement in Northern Ireland and fishing rights continued acting as a headwind for the British pound.

For technical aspect, RSI indicator 41 figures as of writing, suggesting tepid bear movement ahead. Looking at the MACD indicator, the MACD is now sitting below the signal line, which means a downward trend for the pair. As for the Bollinger Bands, the price moved out of the lower band, therefore a strong trend continuation could be expected. In conclusion, we think market will be bearish as the pair is eyeing a test of the next support, which is at 1.3353. Given that there isn’t any major market-moving UK macro data today, investors await Tuesday’s UK PMI reports for trading impetus.

Resistance: 1.3514, 1.3607, 1.3698

Support: 1.3353, 1.3188

USDCAD (4- Hour Chart)

After a five-day rebound from 1.25 area, the pair USD/CAD climbed higher on Monday amid stronger US dollar across the board, now targeting at 1.27 level. The pair jumped to a monthly top after Powell’s renomination, paring its initial intraday losses. USD/CAD was last seen trading at 1.2695, currently posting a 0.45% gain on a daily basis. Even though WTI crude oil has risen 1.15% for the day, the resurging oil prices failed to underpinned the commodity-linked loonie. On top of that, expectations that the Fed will hike rates by the middle of 2022 also acted as a tailwind for the pair, as hawkish Fed speculations were reinforced by elevated US Treasury bond yields.

For technical aspect, RSI indicator 75 figures as of writing, suggesting that the pair is near overbought zone, a trend reversal could be expected. But looking at the MACD indicator, the MACD is now sitting above the signal line, which means that upward trend could persist. As for the Bollinger Bands, the price moved out of the upper band, therefore a strong trend continuation could be expected. In conclusion, we think market will be bullish as the pair already broke the previous 1.2648 support, a break above 1.2775 could intensify the bullish tone.

Resistance: 1.2775, 1.2896

Support: 1.2585, 1.2493, 1.2387

Economic Data

Market Focus

Stocks looked set to fall Monday weighed by growing concerns over nationwide COVID-19 lockdowns in Europe that raised fears about new restrictions beyond the continent, and the risk of a faster withdrawal of Federal Reserve stimulus. The Treasury yield curve was near the flattest since the pandemic’s onset. Stocks ended mixed on Friday, Dow Jones slid 200 points, or 0.6%, settling at its lowest levels in 3 weeks and down 1% on the week, while the S&P 500 notched a slim daily gain, 0.32% throughout the week. However, the Nasdaq Composite set a fresh record, bolstered by rallying technology shares.

Former Credit Suisse Group AG bankers have told criminal investigators that the bank is still helping U.S. clients hide accounts from the Internal Revenue Service, even after the firm paid $2.6 billion in penalties in 2014 and promised to stop the practice.

The latest allegations of wrongdoing come during a tumultuous year for the Zurich-based bank, which lost $5.5 billion in the blowup of family office Archegos Capital Management and had to unwind client funds that were managed with collapsed lender Greensill Capital. It also is happening weeks after the U.S. Justice Department vowed to crack down on corporations that repeatedly violate the law.

The bankers who came forward said that Credit Suisse opened accounts for South American clients who held dual citizenship, but bank documents failed to indicate they were U.S. citizens, according to people familiar with the matter. Some of the accounts held tens of millions of dollars, the people said. U.S. taxpayers are supposed to pay taxes on income earned anywhere in the world, and disclose their offshore accounts to the Treasury Department, even if they have dual citizenship.

Over the summer, those bankers were interviewed by U.S. tax prosecutors, IRS criminal agents and U.S. Senate investigators, the people said. Credit Suisse still faces fallout from the 2014 guilty plea of its main banking unit, which admitted helping thousands of Americans evade taxes.

Main Pairs Movement:

The greenback may remain its robust northern momentum in the week ahead as markets turn to important macro risks from the U.S. Inflation has been a hot topic in the country, with headline price growth at its most aggressive since the early 1990s using YoY timeframes. Now, the Federal Reserve’s preferred gauge of inflation, core PCE, is in focus.

It is expected to breach the 4.1% YoY record in October, up from previous 3.6%. That would be the fastest pace since January 1991. Ongoing elevated price readings above the central bank’s target would likely continue to keep Fed policymakers on their toes. Still, the broader argument from the central bank remains that the recent bout of inflation is ‘transitory’.

EUR/USD closed on Friday with another dip to below the 1.1300 threshold, and GBP/USD also dropped hard to around 1.3440. Commodity-linked currencies slumped severely as well, with USD/CAD regained 1.2650, AUD/USD fell to the 0.7230 level, and erased its gains on Thursday, again fell underneath 0.7000. Japanese Yen is the top performer among the majors, outplaying the vigorous US dollar amid lower US yields and falling equity prices

Amid the strength of the US dollar, gold price slipped to $1845 a troy ounce, and crude oil prices savagely plummeted over 3%, with WTI plunged 4.07% to $75.30, and Brent dived 3.23% to $78.45.

Technical Analysis:

EURUSD (4- Hour Chart)

The pair EUR/USD declined on Friday amid US dollar strength, ending its previous rebound from 2021 lows near 1.126. The pair flirted with 1.136 level during Asian session, then started to see heavy selling in early European session. At the time of writing, EUR/USD has rebounded moderately and pared some of its losses, currently losing 0.50% on a daily basis. The stronger US dollar across the board is mainly due to risk-off market sentiment, as the DXY index touched a yearly high above 96.2. In Eurozone, German PPI report today showed that Producer Prices rose more than expected in October at a monthly 3.8%. But ECB’s Chairwoman Lagarde kept her dovish tone and said there is no rush to tighten the current monetary conditions, which put the EUR/USD pair under pressure.

For technical aspect, RSI indicator 38 figures as of writing, suggesting tepid bear movement ahead. For the MACD indicator, a diminishing positive histogram also indicates a downward trend for the pair. Looking at the Bollinger Bands, the price moved out of the lower band first and move immediately back inside the band, which means a bull movement. In conclusion, we think market will be bearish as the greenback’s appreciation should keep weighing on the pair. If price break below the 1.1250 support, the slide could extend further to 1.1168, which was touched in June 2020.

Resistance: 1.1374, 1.1464, 1.1608

Support: 1.1250, 1.1168

GBPUSD (4- Hour Chart)

In line with EUR/USD pair’s price movement today, the pair GBP/USD also declined on Friday and dropped to a fresh daily low under 1.341 in early European session. Despite trying to rebound back above 1.347 level, the pair still stays in negative territory now, currently losing 0.17% on a daily basis. The UK Retail Sales data released today showed that retail sales in October rose by 0.8% on a monthly basis, better than market’s expectation for an increase of 0.5%. But the upbeat data failed to support the cable, as the risk-off market mood underpinned the safe-haven US dollar and dragged the cable lower.

For technical aspect, RSI indicator 52 figures as of writing, suggesting tepid bull movement ahead. As for the Bollinger Bands, the price crossed above the moving average after rising from lower band is moving alongside the upper band, therefore a upward trend continuation could be expected. In conclusion, we think market will be bullish as the pair might attract some dip-buyers and re-test the 1.3514 resistance. A break above that level should clear the way towards the 1.3607 mark

Resistance: 1.3514, 1.3607, 1.3698, 1.3834

Support: 1.3397, 1.3353