The Fed can start tapering already this November, oil is rallying pushing the Canadian dollar up! Jump in to know more!
What drives the market on August 17?
The week has started with a mixed sentiment on the market. Let’s discuss main market movements and latest news.
First of all, investors weigh on the escalating tensions between China and the USA. Two countries delayed the meeting over their phase-one trade agreement, which has been scheduled for this weekend. Moreover, Sino-American disputes only increase amid the Donald Trump’s re-election. Trump’s officially made an order to sell TikTok’s US assets. According to president, the Chinese app presents a threat to the US national security.
It is worth noting, the Japanese data came worse than analysts expected. The preliminary GDP came out -7.8%, while the forecast was -7.5%. The preliminary report is the earliest and thus tends to have the most impact. After the report USD/JPY surged, but then contracted to the initial level. If the pair breaks down the 38.2% Fibonacci level at 106.35, it will open doors towards the key psychological mark at 106.00. In opposite, if USD/JPY surges above the high of August 13 at 106.78, it will jump to 50.0% Fibonacci level at 107.00.
The euro has started the week on a positive footing. It gained on the weak US dollar and the German Finance Minister’s suggestion to boost the job subsidy by 10 billion euros. If EUR/USD crosses the key resistance at 1.1880, it may jump to the high of July 31 at 1.1900. On the contrary, if it falls below the support at 1.1840, it will dip down to the next one at the 61.8% Fibonacci level at 1.1825.
S&P 500 keeps climbing up slowly, but surely. If it crosses the all-time high at 3 390, it may surge to 3500. On the flip side, the move below the low of August 11 at 3 335 will push the price lower to the next support at 3 270.
Finally, let’s look at the gold chart. It’s moving up towards the Friday’s high at $1 960. If it breaks it out, it will clear the way to the resistance at $1 980. Support levels are $1 930 and $1 910.
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.