Main market news on September 23
The US dollar has broken through the key resistance, it failed to cross since March so far. Riskier assets are dipping. Let’s discuss it in detail.
Catch these risk-on movements on June 3
EUR and risky currencies, stocks and oil prices surged on prospect for reopening.
Stocks gain, USD dropped
It looks like investors turned a blind eye to the US-China trade war. By the way, violent protests have increased in most American cities after Donald Trump promised to deploy military troops to stop them. Nevertheless, the market is mainly focused on the optimistic outlook for economies reopening as lockdowns eased all over the world and life started to come back to normal.
S&P 500 keeps rallying on a high speed. Two shares increased on the S&P 500 Index for every one that decreased. Let’s look at the chart. The price has passed 3080. Now it’s headed to the highest point over three months at 3110. Support levels are 3000 and 2935.
EUR is moving up
EUR gained on the weak US dollar and the upcoming ECB meeting on June 4 at 14:45 MT time. Analysts expect that the central bank will increase the rescue program by additional 500 billion euros of asset purchases. If EUR crosses the resistance level at 1.121, it will rise further to 1.124. Support levels are 1.117 and 1.11.
AUD is rising
As you know, the Australian dollar is really sensitive to the market sentiment. And, today it’s really risk-on! AUD continues climbing up. It has just passed the resistance at 0.69. Now it’s approaching the highest level of this year at 0.7. Support levels are 0.69 and 0.675.
Oil returned to early March levels
The market continues surprising us today. The Brent oil price has just crossed the unseen level since March 6 – $40 a barrel. If the price breaks out the 100-day moving average, it even may skyrocket to $45. Support levels are 36 and 34. The reason behind is that OPEC+ heads to expand the output cuts. However, things may not be so sunny. Russia may reject to extend supply cuts as rival shale producers can open their taps again on increasing oil prices.
To trade Brent with FBS you need to choose BRN-20N.
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Will the pound keep standing?
Services and Manufacturing PMIs are out on Wednesday at 11:30 MT time.
Main market movements on September 22
The market sentiment remains risk-off amid rising virus cases around the world and fears over new restrictions and lockdowns.
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The market sentiment is mixed as investors weigh US stimulus package against the rising infections and worse-than-expected US unemployment claims. Jump in for fresh analysis of EUR/USD, USD/JPY, S&P 500 and gold!
The US weekly labor data is out!
US Initial jobless claims will be announced on Thursday at 15:30 MT time.
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