Daily Market

Report
October 18, 2023

Focus of the day

China's economy grew by 4.9% in the 3rd quarter.

This is significantly better than the consensus forecast of 4.5%. In general,

over three quarters, China's GDP growth rate amounted to 5.2%. If no
deviations occur over two months, the annual figure will exceed the Party's
goal (5%).

In recent months, Beijing has taken measures to stabilize the real estate
and banking sectors and has also stepped up support for the stock market
and the yuan.

None of these measures reached the gigantic scale of incentives in 2008,

but all of them together had the required positive effect on the Chinese
real economy.

The Chinese economic growth on the one hand may have a positive
impact on oil prices and on the other will increase consumption and may
mitigate the recession destructive processes in developed economies.
Latest news
1 Investors are hoping for good reporting from US BigTechs. The five
tech giants are expected to show profit growth of an average of
34% — also, high hopes for banks. Meanwhile, JP Morgan Chase
reported revenue at $40.7B vs. $39.55B in the forecast; Citigroup
earned $20.1B vs. the forecast $19.22B; and Goldman Sachs
reported of the revenue $11.82B – better than the forecast $11.21B.

2 US retail sales rose 0.7% in September, much higher than

expected. The previous two months were also revised upward
(six consecutive months of growth), resulting in a 3.8% YoY
increase in retail sales (the highest since February 2023).

3 The US is tightening restrictions on chip exports to China. Nvidia is

out of luck. These restrictions may cost a company up to 30% of
sales. Yesterday, Nvidia stocks fell by 6%.
4 The Bank of Japan’s new forecast for the core consumer price
index for fiscal 2023 is likely to be closer to 3%, up from an
estimate of 2.5% in July, and for fiscal 2024, will be set at 2% or
higher. USDJPY dropped to 148.74 but soon recovered to 149.50
 EURUSD
The price is testing the upper channel line.
1

Bears are still strong. We are waiting for the

reversal down and the continuation of the
downtrend.

The nearest resistance level is at 1.0635, while

the support is at 1.0495.

Long-term trend Short-term trend Resistance: 1.0635, 1.0700

Support: 1.0495, 1.0450
 Gold (XAUUSD)
2

Bulls succeed in piercing the price channel. The

breakthrough will be confirmed if the candlestick
closes above 1930. The price is approaching the
new resistance in 1950. Fundamental factors are
much more important than technical ones. We
recommend paying more attention to the news.

Resistance: 1950, 1990

Long-term trend Short-term trend
Support: 1930, 1900
 XBRUSD 3

XBRUSD broke all resistance lines and skyrocketed to

91.90.

DMI lines intersected, confirming the bullish tendency.

But the ADX line is falling – the trend can be weak. If
bulls continue attacking they may push the price to 95,
otherwise the price will return below 90.50.

Resistance: 95, 97.80

Long-term trend Short-term trend
Support: 90.50, 89.10
 US500
The movement down continues. There is no strong
confirmation.

The RVI indicator hasn’t broken its signal line yet and
US500 hasn’t returned to the confirmation level
(4310).

The stock market is watching the companies’ Q3

reports.

Long-term trend Short-term trend Resistance: 4400, 4520

Support: 4310, 4240
 Economic calendar
Time Asset Event Previous Forecast

15:30

USD

Building Permits

1.541M

1.455M

17:30

Oil

Crude Oil 10.176M

-0.3M

Inventories

Want more?
We always provide our traders with valuable articles,

videos, and webinars about trading. Go check out the

freshest materials we’ve prepared for you this time!

Latest articles

Imbalance Trading Strategy

Effective Ways to Detect Trends in Forex

Trading

Video

HOW TO FIND A TREND REVERSAL |

Learn with FBS

Stay tuned

Follow us on social media for

the latest FBS news, contests,

and many more!

Go to Personal Area
Disclaimer
This document is for general informational purposes only and is not intended as a

recommendation or an offer or solicitation for the purchase or sale of any security,

currency, investment, service or to attract any funds or deposits. Information in this

document has been prepared without taking account of the objectives, financial situation

or needs of any particular investor.Therefore, investment products mentioned in this

document may not be suitable for all investors. Any person considering an investment

should seekindependent advice on the suitability or otherwise of a particular investment.

Before making any investment, each investor must obtain the investment offering

materials, which include a description of the risks, fees and expenses and the performance

history, if any, which may be considered in connection with making an investment decision

Each investor should carefully consider the risks associated with the investment and make

a determination based upon the investor’s own particular circumstances, that the

investment is consistent with the investor’s investment objectives.