Daily wrap up – 25 October

The markets today witnessed a number of strong moves as the economic agenda filled with many important economic data that played a major role in these moves.
The start was with the Australian dollar, which fell markedly to its lowest level in more than three and a half months at 0.7689, following less than expected inflation data. The consumer price index rose by 1.8% on yearly basis in the third quarter, but expectations was a 2% rise after rising by 1.9% in the previous quarter.
Sterling has risen to its highest level since October 17 at 1.3270, after the UK economy grew better than expected in the third quarter of this year, according to preliminary data of GDP, which expanded by 0.4% on a quarterly basis, while stabilized on yearly basis by 1.5%, according to forecasts.
In the US, durable goods orders rose by 2.2% to $5.1 billion in September, the highest since June. The US dollar didn't react positively to the data, as the dollar index fell from its daily high of 93.87, a strong resistance area, also the neckline of an inverted head and shoulders pattern, and if prices managed to exceed this area, we may see rising to levels of 96.50 / 97. The dollar was significantly affected by speculation about the new Fed chairman.
The Bank of Canada decided to keep interest rates unchanged at 1% at its meeting today, the bank had already raised it twice this year, the first was in July and the second in September, and the Canadian dollar fell after the decision directly against the US counterpart after the bank pointed out that the rise in the exchange rate had an effect on a few fronts, and predicted that inflation would reach 2% in the second half of 2018. The Canadian dollar fell to its lowest level against the US dollar over the course of 10 weeks.
The price of oil fell significantly with the start of trading today from a four week high of $52.59, after the sudden rise of US crude oil inventories by 0.9 million barrels, in addition to the largest oil exporter in the world, the Kingdom of Saudi Arabia confirmed its determination to end the oversupply that has continued over the last three years. Oil prices are currently trading at $52.20 a barrel.