The Fed can start tapering already this November, oil is rallying pushing the Canadian dollar up! Jump in to know more!
Bullish optimism in the market continues
Did you expect your trading day to be as bullish as today? Indeed, the reports that the US and China trade talks are going “very well”, the news that China has agreed to buy agriculture goods and the US has canceled its planned tariffs boosted the risk-on sentiment in the market.
The final note which increased the market’s confidence comes from a tweet by the US president, where he commented that “something significant would happen”. He was talking about his meeting with Chinese Vice Premier later today.
How does the anticipated announcement affect the pairs?
· EUR/USD stuck above the 1.1 level and tested the 1.1059 level. If this level is broken, the next resistance will lie at 1.1068-1.1073. From the downside, pay attention to the support at 1.1038, 1.1028 and 1.1014. RSI is moving within the overbought zone, close to its border. If it leaves this zone, selling opportunity may appear.
· USD/JPY has broken the strong resistance at 108.46 and moved to the highest levels since August 1. The next resistance will lie at 108.65. After that, reaching the 108.9 level may be possible. In case of risk aversion, the pair will slide downwards and the fall to the 108.14 level may be possible. The next key level in the focus of bears will be placed at 107.84.
· As the risk sentiment improved, the price for the yellow metal weakened. Gold’s price tested the support at $1,475.8. If this level is broken, the next support will be placed at $1,464.1. In case of a reversal, the $1,487 level will be important for bulls. After it is broken, the resistance level will lie at $1,494.
Germany, the leading economy in the Euro Zone, will reveal one of the key economic indicators – German Ifo Business Climate on September 24 at 11:00 MT time.
That day has come, guys! The Fed will hold a meeting at 21:00 GMT+3. It can be a highly impactful event. The markets expect the bank to hint about the timing of tapering.
Commodities (iron ore, oil) and commodity-linked currencies (AUD, CAD) surged. West Texas Intermediate has reached $75 a barrel, while Brent rose to the highest mark since October 2018.
Although Jerome Powell’s speech sounded hawkish on Wednesday, September 22, markets did not get scared and the main stock indices got bought back…
Turkey’s central bank governor was at a crossroads: to hold interest rates and take a risk to be fired like it was for three governors before him, or to comply with the president, to cut rates, and to risk the market. Let’s find out, how to react to the rate cut.