The crypto market keeps recovering. Bitcoin has broken above $57,000. The way up to $60,000 is open now!
What drives the market on September 3?
- The US dollar continues edging higher, pushing riskier currencies and gold to the downside. At the same time stock indices are climbing up to fresh highs, driven by vaccine hopes. It’s said that Moderna and Pfizer are planning to distribute Covid-19 vaccines as early as October. However, investors have some fears over the political pressure on the Center for Disease Control to rush the vaccine approval ahead of the US president elections.
- Yesterday ADP came out much less than analysts anticipated. Only 428 000 people have found jobs in August, while the forecast was 1.25 million. As you may know, the ADP report is often used as an initial assessment of the US labor market and helps to predict what will be the NFP like. Nevertheless, the last two times ADP reports failed to play this role as they came out worse than the forecasts, while NFP came out better.
- Traders are waiting for unemployment claims at 15:30 MT time today and ISM Non-Manufacturing PMI at 17:00 MT time for some hints ahead of the Friday’s NFP.
As for the euro, it is dipping down not only because of the rising US dollar, but also concerns of the ECB that the stronger euro may threaten the EU recovery. Let’s look at the charts. EUR/USD has just broken down the key support of 1.8000 and keeps falling down. The move below the lower trendline near the support of 1.1770 will drive the pair to the low of August 12 at 1.1715. Resistance levels are at 1.1800 and 1.1850.
S&P 500 has set a record high yesterday, almost touching the 3 600 mark. If it manages to cross this level, it will jump to the key psychological mark of 3 650. Support levels are at 3 550 and 3 500.
Let’s move on to gold. XAU/USD was fluctuating inside of the triangle and finally it broke it down. If it falls below the support of $1 930, the way to the next support of $1 910 will be clear. Resistance levels are at $1 950 and $1 990.
Finally, let’s discuss USD/JPY. The pair keeps rallying upward. If it crosses the high of August 26 at 106.50, the doors towards the high of August 28 at 106.70 will be open. Support levels are at the key psychological mark of 106.00 and at the low of September 1 at 105.70.
Follow US PMI report and unemployment claims!
The US Inflation Rate (CPI) will be announced on Wednesday, October 13, at 15:30 MT (GMT+3). Traders eagerly await this event as it will impact the USD and thus the vast majority of currency pairs in the Forex market.
The upcoming CPI and the earnings season are the main events in the focus of traders next week. Check out more!
The bullish movement in the stock market is gaining speed, and Bitcoin ETFs are closer than they might seem. What do we need to know for the next trading week?
The Fed is ready to start tapering in November. Since the markets were expecting this and it wasn’t a surprise, the USD slumped allowing risk-on currencies and gold to rally up.
US Retail Sales will be out on October 15 at 15:30 MetaTrader time (GMT+3).