DOW JONES SOARS AFTER STRONG RESULTS FROM KEY CORPORATE GIANTS

US stocks rose on Wednesday as investors reflected on strong quarterly results by some of the biggest American companies. Some of the firms that released strong results this week are Netflix, Johnson & Johnson, Philip Morris, Tesla, and Bank of New York Mellon. The earning season will continue today, with some of the top companies to watch being Danaher, Tractor Supply, Ally Financial, Dow Chemicals, Intel, and Chipotle. While earnings have been good, analysts are concerned about the rising cost of doing business.

The USDCAD pair declined sharply as the US dollar maintained its bearish trend and after strong Canadian inflation data. Numbers by Canada’s statistics agency showed that the headline consumer price index rose from 4.1% in August to 4.4% in September. This increase was better than the expected 4.3%. Core CPI, which excludes volatile products, rose from 3.5% to 3.7%. These numbers are substantially above the 2% target by the Bank of Canada. Therefore, with the country’s election done, there is a likelihood that the bank will continue with its tightening cycle.

The key item in the economic calendar today will be the Turkish central bank decision. The bank surprised the market last month when it slashed interest rates even as inflation remained above its target. As a result, data published this month showed that the country’s inflation rose sharply in September. At the same time, the country’s president fired central bankers who opposed rate cuts. Therefore, there is a likelihood that the bank will slash its rates again. Other key numbers to watch today will be the American initial jobless and Philadelphia manufacturing index.

USDCAD

The steep sell-off of the USDCAD pair continued after strong Canadian inflation data. On the four-hour chart, the pair is at the lower side of the Bollinger Bands. It is also below the two lines of the envelopes indicator and the short and longer-term moving averages. The MACD is also below the neutral level. Therefore, the pair will likely keep falling as investors price in a rate hike by the BOC. If this happens, the next key support level is at 1.2250.

EURUSD

The EURUSD continued its bullish trend as US dollar weakness persisted. The pair rose to a high of 1.1657, which was the highest level since Monday. On the 30-minute chart, the pair rose above the 25-day moving average while the MACD moved above the neutral level. The pair also rose above the Ichimoku cloud. The pair will likely keep rising as bulls target this month’s high of 1.1670.

AUDUSD

The AUDUSD continued its relentless rally, soaring to a multi-month high of 0.7515. On the four-hour chart, the pair rose above the Ichimoku cloud. It has also cruised above the moving averages while oscillators have soared. It also moved above the important resistance level at 0.7480. Therefore, the pair will likely keep rising, with the next key resistance level being at 0.7600.