Crude Oil is back above $85 per barrel and the market is pricing in earlier interest rate hiking in the US. It may seem the effects of the once termed “transitory inflation” are lingering longer than anticipated. In response to higher inflation expectation, the market as moved to price-in earlier interest rate hikes in the US, Q3 2022 and some analysts predicting a possible June 2022 hike. This has translated to a bullish outlook for the USD. With the EURUSD trading above the 100-day moving average, continued bullish momentum in the greenback could possibly see the EURUSD move toward 1.1600 currently trading at 1.1655.
Crude Oil is continuing its upward trend after briefly trading lower in the Friday trading session. Friday trading session saw lows of $81.80 now trading above $85 per barrel. With supply chain constraints persisting, increased demand for energy and winter fast approaching in Europe and US this would suggest that the demand pressures are persisting. A close above $85 could see crude oil trading toward $90 which would be a record high not only for the year but since 2014.
With markets stable at the moment, Bitcoin (BTC) and Ethereum (ETH) are trading higher. With a double top in the ETH at $4386, a reversal in the up trend could be possible. This would give traders the opportunity to buy into the crypto and lower prices. However BTC had a brief drop in the up trend during the weekend trading session though in the Monday session it is recovering from the weekend lows , currently trading at $62,843.
The Nasdaq 100 has been trending upward with sustained bullish momentum as the earning season is in full swing. As big tech companies in the Facebook, Apple, Amazon, Netflix and Alphabet (Google) are expected to announce Q3 earnings beginning with Facebook today (25th Oct) expect volatility in the index, currently trading at 15,389.
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