Market Update – September 2 – USD Holds at Highs, Stocks stem losses

  • USDIndex – spiked to 109.95 highs yesterday and holds the BID @109.50 now. A strong NFP could lift the USD even higher. A weak number could prick the USD bubble from 20-yr highs. Strong Weekly Claims and PMI’s added to USD demand. Fed Fund Futures now at 74%/26% for 75bp vs. 50 bp at next Fed meeting.

  • EURECB action expected next week, but EUR remains under Parity lows of 0.9910, trades at 0.9970 now.
  • JPY rallies again (new 24 yr highs) broke 140.00 & holds at 140.30 BOJ holding accommodative policy line, & yield differentials driving trend. 
  • GBP new multi-year lows under 1.1500 yesterday, back to 1.1550 now. New PM next week.
  • Stocks US stocks halted 4-day slide (S&P500 3966).  Nvidia -7.67%, AMD -3% weighed again. Futs. flat at 3968 now.

  • Oil down again on weak outlook,  lows at $86.25 and trades at $88.20 now.
  • Gold – also down under $1700 to $1688 lows, back to $1702 now.
  • BTC – recovers 20k again today, from 19.5k lows yesterday. 

OvernightNZD Trade Balance  missed (-2.4% vs 0.6%German Trade Balance  better than expected (see below).

Today – US NFP & Factory Orders, EZ Producer Prices.

Biggest FX Mover @ (06:30 GMT) EURNZD (+0.68%). Continued to recover from weekly lows at 1.6185 on Tuesday to 1.6450 today, next resistance 1.6485.  MAs aligning higher,  MACD histogram positive & signal line rising, RSI 63.62,  H1 ATR 0.00238, Daily ATR 0.01615.

 

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.