Four Banks Fight Against Inflation
It will be the hottest week of September, with four central banks’ meetings, five PMI releases, and a lot to trade.
How to trade on September 14?
Optimistic vaccine news improved market sentiment. Stocks and riskier assets are rising, while the US dollar is dipping down. Let’s have a closer look.
Fundamentals
- AstraZeneca in collaboration with Oxford University has restarted phase-3 trials. Pfizer assured that Americans should get a vaccine already by the end of this year.
- Cabinet Secretary Yoshihide Suga has become the new Japan Prime Minister. He is the successor of the previous Prime Minister Shinzo Abe and he’s likely to continue Abe’s policy further. The Japanese yen is climbing up amid the weak US dollar.
- The British pound has started the week on the positive footing after the huge slump last week amid no-deal Brexit fears. Today EU-UK talks will continue. The main sticking point is the Internal Market Bill, announced earlier by the UK Prime Minister Boris Johnson, which violates the previous EU-UK agreement. The refusal to withdraw this bill will lead to sanctions from the EU.
- US-China tensions are escalating. Microsoft’s bid to buy TikTok’s US assets was rejected. Oracle is the next possible candidate.
Technical tips
EUR/USD
The euro is trading sideways. If it rises above the resistance of 1.1860, which it has touched several times already, it may jump to the key psychological mark of 1.1900. In the opposite scenario, the move below the significant support of 1.1800 will drive to the low of September 9 at 1.1760.
S&P 500
The stock index is edging higher amid the upbeat market sentiment. If it jumps above the high of September 10 at 3 410, the way towards the next high at 3 435 will be open. On the flip side, the move below the Friday’s low of 3 330 will push the S&P 500 to the next support of 3 315.
Gold
XAU/USD is just under the key resistance of $1 950. If it manages to cross it, it will surge to the next resistance of $1 975, which it has failed to break a few times already. Support levels are $1 925 and $1 910.
USD/JPY
Finally, let’s talk about USD/JPY. The move below the key psychological mark of 106.00 will drive the price to the low of September 9 at 105.90 and then to 105.70. Otherwise, if it jumps above the resistance of 106.25, the doors to 106.50 will be open.
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