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.
What drives the market on September 3?
Fundamentals
- 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.
Technical tips
EUR/USD
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
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.
XAU/USD
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.
USD/JPY
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!
Similar
Inflation Risks Return To The Markets
Lagarde says difficult times have come, and the ECB raised the rate not to cause a recession but to stabilize prices. Read the report to learn the freshest news of the day!
ECB Key Rate is in Focus
ECB is ready to take the decision about the key rate. What to expect from officials? Oil prices are high, and economy indicators demonstrate the slowing down in the strongest European economies.
Latest news
Inflation Is in Focus Again
Oil prices are rising and Russia banned the export of its petrol. What's happening in the markets?
Fed’s Rate Pause and UK Inflation Slows
Today's main event for the markets is the FOMC Interest Rate Decision, where the US regulator is widely expected to keep the interest rate at the same level of 5.5%.
GBPUSD May Strengthen Resulting the Fed and The BOE Meetings
In today's market insights, we delve into Citibank's oil price predictions, the evolving competition between Huawei and Apple, the Saudi Arabia-Tesla partnership, and the upcoming rate decisions from the world's major central banks.
