The Last October Session Starts Positively - 31.10.2012
Tuesday session was characterized by increase in risk appetite: main stock indexes rose by more than 1%, American futures showed growth around 0,5% and Asian markets’ growth is around 0,6%. Oil contracts are stably traded – slightly higher than $85 per barrel (WTA) and $109 (Brent). It is expected that the USA oil manufacturing in the regions damaged by the hurricane will be restored pretty quick, while demand may be significantly decreased due to temporary termination functioning in airports and other infrastructure elements.
We recommend to pay close attention to the Oil market. The volatility has been extremely low in the last 5 sessions. Such consolidations lead to strong price movements after quitting a trading range. Similar situation is about Gold. The consolidation is triangularly shaped here. Probably, traders are expecting the upcoming USA Labor market data on Friday in order to define a further trend direction. Out of today figures, Canadian GDP at 13:30(CET) and the US Oil reserves at 15:30 (CET).
XAU/USD, 4-hours chart