Forex Market

Market Update – September 12 – USD slips again, EUR lifts, Stocks firm

USDIndex – Slips again as EUR and YEN see demand. Final FedSpeak remained Hawkish as news blackout starts. 88-90% chance of 75 bp hike up from 57% last week.
EURECB looking at 2% interest rates (currently 0.75%) to bring inflation to 2% target (currently 9.1%). 2024 exceptions 2.4% and 2% by 2025. Market expects 2-3 more rate hikes into December. Trades at 1.0100 now.
JPY Govt spokesman (Kihara) – need to take steps to curb “excessive” Yen declines, stopped short of calling for BOJ intervention. However, USDJPY rallied from test of 142.00 Friday to 143.25 now.
GBP Trades at 1.1643 despite miss for GDP earlier. London remains muted (politics suspended) but open ahead of Queen’s funeral next Monday (bank holiday).
Stocks US stocks moved higher again as Dollar & Yields cooled (S&P500 4067) FUTS trade at 4076. Asian stock markets have rallied too, and European FUTS are higher pre-open.

USOil topped at $87.50 on Friday on more chatter of supply issues. Trades at 86.30 now. 20-day moving average sits at $90.00.
Gold – also rallied to $1728 and holds the key $1700 at $1720 now.
BTC – rallied higher again, touching $22.2k earlier from $18.5k lows last week. Trades at 21.7k now.

Overnight & Today – UK Monthly GDP missed (0.25 vs 0.5%), ECB Survey of Analysts, Speeches from ECB’s Schnabel & de Guindos.

Biggest FX Mover @ (06:30 GMT) EURJPY (+1.01%). Continues to rally from a test of 142.75 on Friday, trades at 144.80 now. MAs aligning higher, MACD histogram & signal line positive & rising, RSI 72.56 & OB, H1 ATR 0.00142, Daily ATR 0.00850.

Click here to access our Economic Calendar

Stuart Cowell

Head Market Analyst

Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.

Leave a Reply

Your email address will not be published. Required fields are marked *