S&P 500 HOLDS STEADY AFTER STRONG MICROSOFT AND ALPHABET EARNINGS

US stocks rose in the futures market as investors reflected on the strong quarterly results by Alphabet and Microsoft. Microsoft’s revenue jumped to more than $45.3 billion in the third quarter, helped by the strong demand for cloud computing services. Analysts were expecting the company’s revenue to jump to $44.5 billion. Its net income for the quarter was $20.5 billion. Meanwhile, Alphabet’s revenue jumped to $65.11 billion as digital advertising grew. Its net income rose to more than $18.94 billion, which was double where it was in the same quarter last year. These companies joined other firms like JP Morgan, Goldman Sachs, and Morgan Stanley that have reported strong results.

The Australian dollar declined against the US dollar as investors reflected on the latest Australian inflation numbers. The data showed that the headline consumer price index (CPI) declined from 3.8% in the second quarter to 3.0% in Q3. This decline was worse than the median estimate of 3.1%. In the same period, the trimmed mean CPI rose to 2.1% while the weighted mean inflation rose to 2.2%. Still, analysts expect that consumer prices will keep rising in the fourth quarter as energy prices soar. Elsewhere, in New Zealand, exports jumped to N$4.4 billion while imports rose to N$6.57 billion.

The Canadian dollar declined sharply as investors waited for the latest Bank of Canada (BOC) interest rate decision that will come out later today. Analysts expect that the bank will leave interest rates unchanged at 0.25%. The biggest change is that the bank will likely reduce the size of its asset purchases to about C$1 billion per week. This will be the fourth time that the bank has tapered in the past 12 months. Analysts also expect that the bank will hint about higher interest rates, which will likely happen in the first half of 2022.

USDCAD

The USDCAD pair jumped to a high of 1.2415, which was the highest level since October 15. This price was substantially higher than this month’s low of 1.2287. On the four-hour chart, the pair has moved above the 25-day and 50-day moving averages. It also moved slightly above the neckline of the inverted head and shoulders pattern. The MACD has also moved above the neutral level. Therefore, the pair will likely keep rising as bulls target the next key resistance level at 1.2500.

EURUSD

The EURUSD was little changed ahead of the latest European Central Bank (ECB) interest rate decision. It is trading at 1.1595, which was lower than the neckline of the triple-top pattern at 1.1620. On the four-hour chart, the pair moved between the lower and middle lines of the Bollinger Bands indicator. It also declined below the 25-day moving average. Therefore, the pair may keep falling as bears target the next key support at 1.1550.

GBPUSD

The GBPUSD made a bearish breakout as traders waited for Rishi Sunak’s budget speech. It declined to a low of 1.3725. On the four-hour chart, the pair moved below the lower side of the ascending channel. It also approached the 50% Fibonacci retracement level. The MACD also declined below the neutral level while the RSI has been in a bearish trend. Therefore, the pair will likely keep falling as bears target the next key support at 1.3650.