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.
USD rose on market uncertainty
- The week has started with mixed market sentiment. Coronavirus cases continue rising, especially in Europe, where countries have been forced to impose restrictions, but have still avoided full lockdowns. Therefore, there are some chances that the economic recovery will slow down in that area. The situation in the USA isn’t better as the record number of new infections was recorded on Saturday: 82 668.
- The stimulus talks between Democrats and Republicans keep going, showing some progress. However, the deal won’t be reached until after the election.
- As for the Brexit front, hopes were rising, but then the situation got worse as the French president threatened to ruin the Brexit deal, if French fishermen are negatively impacted. Some reports showed that the compromise between France and the UK is near.
EUR/USD is trading inside of the ascending channel. It approaches its upper trendline, that’s why we can expect some sort of falling ahead of the further rising. Pay close attention to 1.1800 as it may reverse from it and start moving up. If it manages to break the resistance of 1.1860, the way to the key psychological mark of 1.1900 will be clear.
The British pound is edging lower. The move below the 50-day moving average of 1.3000 will drive GBP/USD to October’s lows of 1.2870. But again, we can anticipate the reverse to occur here as the 1.3000 level has been acting as strong support. If it bounces off it, the way to the recent high of 1.3150 will be clear.
Gold reversed from the upper trendline and has been declining for the third day. The move below the recent low of $1 890 will push XAU/USD to the low of October 6 at $1 875. In the opposite scenario, if it rises above the recent highs of $1 912, the doors towards the next resistance of $1 925 will be open.
Finally, let’s talk about the S&P 500. It entered the descending channel. If it drops below the key support of 3 400, the way to 3 385 will be open. Otherwise, the move above the 100-period moving average of 3 440 will push the stock index to the high of October 23 at 3 460.
The Bank of England will hold a meeting on Thursday at 14:00 MT time (GMT+3).
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.
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.
The Fed can start tapering already this November, oil is rallying pushing the Canadian dollar up! Jump in to know more!