Today’s Key Market Drivers: 22nd October 2018

“US Stock Indexes will again likely lead financial markets this week.”

Can the S&P 500 stock index continue to stay above its 200 EMA on the daily chart? That will be a key barometer to whether or not the safe haven currencies rally or fall this week. I know it’s getting old talking so much about stock markets but the major 4 global stocks indexes, the Nikkei in Tokyo, DAX in Germany, FTSE in London and the S&P 500 in the USA have been leading currency markets for close to two weeks and with no high impacting news until Thursday I suspect the theme won’t change any time soon. My medium-term view is global stock indexes will go lower in the coming weeks.

Canadian CPI data missed estimates when released on Friday coming in a full 0.5% lower than economists expected. The Canadian Dollar was not heavily sold off after the data miss which tells me traders are continuing to price in their expectation the Bank of Canada will raise the official cash rate from 1.5% to 1.75% when it meets this Thursday. In my Sunday Forex Traders Pre-Market Prep Video, I talked about the USD v JPY and the potential for it to move higher this week if stock indexes rally. If they do it will also drag up the Canadian Dollar but I want you to be mindful the BOC’s decision could see significant volatility on the Caddie. When trade setups occur right in front of a key economic data number I try and find an alternative trade that can give me exposure to a general move but without the volatility attached. I will explain more about what I mean in my videos updates this week as we get closer to the ECB and BOC’s policy statements.

I am excited to announce that this coming Friday I will be launching my new podcast Friday Live with Andrew. A one-hour live podcast that you can access live or catch it later when it suits you. So what’s different about the new podcast to your regular Friday Live sessions? You will no longer need to wait until an alert is sent via Trade Time to watch it if you can’t watch Live. You can watch it whenever you wish within minutes of the podcast finishing. More details to come later this week.

Any trade updates throughout the day will be sent via Trade Time. You can also follow my daily updates on Facebook, Twitter, Instagram by searching for TrainwithAndrew. Make sure you subscribe to the Andrew Barnett YouTube channel after watching today’s Sunrise video below.

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About the Author: Andrew Barnett

Andrew is a professional trader and successful investor who has a strong focus on education. He is a regular Sky News Money Channel Guest and one of Australia’s most awarded and respected financial experts and is regularly contacted by the Australian Media for the latest on what is happening with the Australian Dollar. Director at LTG GoldRock, Andrew Barnett, guides thousands of traders around the world in the live market on a daily basis, advising them on buy and sell directions, as well as trading his own personal account. Andrew, a regular keynote speaker at trading and wealth-creation events throughout the Asia Pacific region, is an authorized representative registered with the Australian Securities and Investment Commission (ASIC).

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