Several largest American companies will publish their financial results this week. BTCUSD and XAUUSD are skyrocketing. What's going on in the markets?
The US Dollar Is Correcting
Hello, dears! Friday is here, and the weekends are coming. Let’s look at the final events for this week.
The situation in the US economy
Goldman Sachs recalls the historical seasonality in US stocks at the end of September (September dip), and the first half of October was often the “bottom” in stocks before entering the rally for the new year. Headlines about the return of “extreme fear” in US stocks appeared in the media.
Richmond Federal Reserve Bank President Thomas Barkin said maintaining the status quo at the September FOMC meeting was appropriate. “The Fed has time to review the data before deciding what to do next on rates; Further actions depend on what happens with inflation.”
The shutdown is very near. Unless there is a breakthrough in negotiations, federal funding will end in the US at midnight on September 30, shutting down almost all government agencies. The five-week economic shutdown in 2018–2019 reduced real GDP by $11 billion, or 0.3%.
EUR and GBP movement
Economists at Wells Fargo expect further weakening of major European currencies. The company expects the pound and euro to weaken in early 2024, targeting a cable low of around 1.1600 and an EURUSD low of about 1.0200.
GDP in the UK grew by 0.6% in the second quarter. Economists expected +0.4%. GBPUSD bounced from 1.2110 and is rising two days in a row. Bulls may push the price to 1.2310.
CPI in the Eurozone was released at 4.3% vs. 4.5% in the forecast. The situation has improved in almost all European countries except Ireland, Spain, Italy, Cyprus, and Slovenia. Today, EURUSD is growing by 0.4%.
XAUUSD touched 1857 and bounced back. The movement down may continue. In the daily timeframe, 50MA broke down the 200MA – a bearish signal. However, before sliding down, XAUUSD may correct and even reach 1884.50.
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