
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!
The day started with the poor data from Japan. The country officially fell into a recession, that’s likely to deepen further as consumers limit their spending, companies cut back on investment, production and hiring stay at low levels amid the coronavirus.
As we can see, USD/JPY didn’t react so much, it slightly moved up after the report. We shouldn’t forget that the Japanese yen is a safe haven, as well as USD. That’s why it’s hard to tell which way the USD/JPY will go this week as investors use both currencies for a safe-haven protection.
Let’s look at the chart. If the USD/JPY increases and crosses the resistance line at 107.45, it will open doors further to the next one at 107.7. Support levels are at 106.9 and 106.6.
Even so, futures on the S&P 500 climbed. It’s strange in such a risk-off market. This disconnect between economic reality and the stock markets could be associated with the comments by the Fed’s Chairman Jerome Powell that the central bank hasn't run out of ammunition yet and could do more if required. However, he also said that the stock rally could decline significantly if there were some setbacks in the fight to contain the virus. Another reason of stocks’ fall could be the deterioration of the US-China relationship.
Moreover, the WTI oil price went above $30 a barrel! For the first time in two months! As producers continued to cut production, helping to rebalance a market. Together with a tentative recovery in demand, that’s made a repeat of last month’s plunge below zero extremely unlikely before the expiration of the WTI June contract on Tuesday. There’s still a risk, however, that oil’s recovery could be derailed if the pandemic worsens. However, prices are unlikely to drop below $20 a barrel.
Resistance is 35. Support levels are 23, 20 and 13.
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 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.
The Fed is going to take a decision about the interest rate. This is the crucial news for the following week. What's going on in the markets and what to expect?
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%.
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.
It will be the hottest week of September, with four central banks’ meetings, five PMI releases, and a lot to trade.
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