<p style=““ class=“text-align-justify“>European leaders are playing down Putin’s announcement, calling it „desperation“ or a signal that Russia’s plans against Ukraine have been „unsuccessful“. I wouldn’t point that as being a key reason for market sentiment turning around but some words of comfort and reassurance can never hurt. In any case, equities are seeing a decent turnaround now with European indices pulling higher alongside US futures on the day.</p><ul><li>Eurostoxx +0.3%</li><li>DAX flat</li><li>CAC 40 +0.2%</li><li>UK FTSE +0.6%</li><li>S&P 500 futures +0.3%</li><li>Nasdaq futures +0.2%</li><li>Dow futures +0.3%</li></ul>

This article was written by Justin Low at forexlive.com.

<p style=““ class=“text-align-justify“>There is just one significant one to take note, as highlighted in bold.</p><p style=““ class=“text-align-justify“>That said, with the euro coming under pressure after Putin’s announcement on partial mobilisation earlier, the parity level isn’t so much at play. But even if it was, it’ll likely act as a cap on price action ahead of the Fed later in the day.</p><p style=““ class=“text-align-justify“>However, just take note that there will be a significantly large chunk rolling off tomorrow and on Friday as well at parity for EUR/USD – particularly the former. That might be a factor depending on the post-market reaction to the Fed.</p><p style=““ class=“text-align-justify“>For more information on how to use this data, you may refer to this post <a target=“_blank“ href=“https://www.forexlive.com/education/!/forexlive-education-option-contracts-their-impact-and-how-to-trade-off-them-20161116″ target=“_blank“>here</a>.</p>

This article was written by Justin Low at forexlive.com.

<p>Headlines:</p><ul><li><a target=“_blank“ href=“https://www.forexlive.com/news/dollar-up-against-the-apex-20220920/“>Dollar up against the apex?</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/bonds-stay-under-pressure-with-the-fed-in-focus-20220920/“>Bonds stay under pressure with the Fed in focus</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/equities-see-bright-start-fade-as-the-push-and-pull-continues-20220920/“>Equities see bright start fade as the push and pull continues</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/germany-august-producer-prices-79-vs-16-mm-expected-20220920/“>Germany August producer prices +7.9% vs +1.6% m/m expected</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/eurozone-july-current-account-balance-199-billion-vs-42-billion-prior-20220920/“>Eurozone July current account balance -€19.9 billion vs €4.2 billion prior</a></li></ul><p>Markets:</p><ul><li>GBP leads, NZD lags on the day</li><li>European equities lower; S&P 500 futures down 0.4%</li><li>US 10-year yields up 6.2 bps to 3.549%</li><li>Gold down 0.4% to $1,668.43</li><li>WTI crude up 0.1% to $85.80</li><li>Bitcoin down 1.7% to $19,200</li></ul><p style=““ class=“text-align-justify“>The push and pull ahead of the Fed continues as we see the dollar keep a firmer hand on the day while equities saw a decent start vanquished and bond yields continued to push higher in the run up to the central bank bonanza this week.</p><p style=““ class=“text-align-justify“>In terms of data, German producer prices saw a record monthly and yearly increase in August as surging cost pressures continue to build in Europe’s largest economy. That won’t provide much comfort with July’s current account coming in at a major deficit – the widest since the global financial crisis more than a decade ago.</p><p style=““ class=“text-align-justify“>But trading sentiment continues to revolve around the countdown to the FOMC meeting tomorrow with the greenback firming slightly as EUR/USD nudged lower from 1.0030 to 0.9995, though keeping close to parity with a host of large option expiries at the figure level in the coming days.</p><p style=““ class=“text-align-justify“>USD/JPY maintained a slight advance around 143.50-70 levels as bond yields continue to push higher across the board. Meanwhile, the pound is somewhat steady, trading little changed around 1.1430 on the day.</p><p style=““ class=“text-align-justify“>As equities retreated after a bright start, commodity currencies are also dragged lower with USD/CAD inching up towards 1.3300 and AUD/USD running into support near 0.6700 once again. The kiwi is bearing the brunt of the declines with NZD/USD sliding by nearly 1% on the day now close to 0.5900.</p><p style=““ class=“text-align-justify“>Putting it all together, it looks like markets are still unable to find a clear path as we await the Fed decision tomorrow to really provide traders and investors with much more conviction for the second-half of the week.</p>

This article was written by Justin Low at forexlive.com.

<p>Today’s S&P Technical Analysis and Trade Idea</p><p>Attempting to target a Long as price might have pierced (down) the 3900 round number and looks like is back testing a previous price range of a potential accumulation zone.</p><ul><li>1st of 4 buy orders is at 3896. See the video below for the other orders, stop loss and take profit target</li><li>Reward vs risk 1.7x. Target a 2.82% gain on the upside and risk 1.65% on the downside</li><li>Take 50% off the Long position if the target is reached, and raise the stop to the entry </li><li>Watch the S&P technical analysis video below and trade at your own risk</li></ul>

This article was written by Itai Levitan at forexlive.com.

<p style=““ class=“text-align-justify“>The early gains have evaporated and equities have tilted lower in European morning trade. S&P 500 futures are now down 12 points, or 0.3%, holding near the lows for the day while European indices have also nudged lower. The DAX is down 0.6%, CAC 40 down 0.7%, and UK FTSE down 0.1% upon returning from the long weekend.</p><p style=““ class=“text-align-justify“>This is keeping the pressure on commodity currencies with the dollar holding firmer alongside higher Treasury yields today. That said, we’re still sitting in the confines of key technical levels as mentioned <a target=“_blank“ href=“https://www.forexlive.com/news/dollar-up-against-the-apex-20220920/“ target=“_blank“>here</a>.</p>

This article was written by Justin Low at forexlive.com.

<ul><li>2-year Treasury yields +2.2 bps to 3.968%</li><li>5-year Treasury yields +1.6 bps to 3.709%</li><li>10-year Treasury yields +2.9 bps to 3.518%</li><li>30-year Treasury yields +3.8 bps to 3.543%</li></ul><p style=““ class=“text-align-justify“>It looks like the rates market is still siding with a more hawkish Fed ahead of the main event tomorrow. Yields are continuing to push higher on the week with 2-year Treasury yields hitting 3.97% – its highest since November 2007. The dollar didn’t take much cue from bonds yesterday but is looking steadier so far today with USD/JPY also up 0.3% to 143.65 at the moment.</p><p style=““ class=“text-align-justify“>The Fed remains the driving force for the next key move but with markets already inching towards 4% rates, it will take some added convincing from Powell & co. to drive another push higher surely – same might be said for the dollar as well.</p>

This article was written by Justin Low at forexlive.com.

<p class=“MsoNormal“>During the last few months, the crypto
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Keep reading to find out more!</p><p class=“MsoNormal“>Crypto
Market Overview Q2 2022</p><ul><li>During the second quarter of 2022,
Bitcoin drops 56%, its worst performance in a decade.</li><li>A cumulative change of -$501.8 billion
was recorded in crypto market capitalization, falling to $337.5 billion.</li><li>A record decline of eleven weeks led to
a 67.4% decline for Ethereum in Q2. As a result, Ethereum’s cumulative market
cap declined by $265.79 billion, to $128.62 billion.</li></ul><p class=“MsoNormal“>Currently, cryptocurrencies are holding
on, trying to stay above average-price levels. If you consider that in 2021
Bitcoin’s price had surpassed 65,000 USD and now it is struggling to maintain
its ground over the 20,000 USD barrier, you can understand how challenging this
year has been for this trending crypto.</p><p class=“MsoNormal“>Top
Reasons the Cryptocurrency Market Is Crashing</p><ol><li>The effects of inflation: As prices
rise across the board, people might be pulling their savings from non-essential
investments – which, for many, include cryptocurrencies. Q3 also enhanced
recession fears, making crypto traders even more sceptical when it comes to
investing in such assets.</li><li>Russia-Ukraine War: In times of major
geopolitical uncertainty, people tend to invest in safe, conventional, and
consistently reliable assets. This has resulted in increased volatility in the
cryptocurrency market, turning traders away from the challenge of crypto
trading.</li></ol><p class=“MsoNormal“>Will
it ever go up again?</p><p class=“MsoNormal“>If you’re a crypto CFD trader you’re
probably wondering what you should be doing in these turbulent times. We’ve got
good news and bad news. The bad news is that you can never be 100% sure about
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staying up to date with economic events that could impact your trades. </p>

This article was written by ForexLive at forexlive.com.

<p style=““ class=“text-align-justify“>The implied odds of a 100 bps rate hike by the Fed this week have crept back up a little to ~19% now, roughly where it was before the UMich report at the end of last week <a target=“_blank“ href=“https://www.forexlive.com/news/umich-september-us-prelim-consumer-sentiment-595-vs-600-expected-20220916/“ target=“_blank“>here</a>. Those are still relatively paltry odds but the fact is that markets are leaning towards expecting more from the Fed – with the baseline set at a 75 bps rate hike.</p><p style=““ class=“text-align-justify“>I reckon that might say something about the reaction to the policy decision later in the week, with markets seemingly leaning towards a more hawkish message to cover for the extra that is being priced in above.</p>

This article was written by Justin Low at forexlive.com.

<ul><li>German economy is already contracting</li><li>Situation to get worse as gas consumption is cut or rationed</li><li>The economy is likely to shrink even if outright rationing is avoided</li><li style=““ class=“text-align-justify“>Economic activity may pull back somewhat this quarter and shrink markedly in autumn, winter months</li></ul><p style=““ class=“text-align-justify“>The bright spot is that they do not expect the adverse scenario published in June, which saw the economy contracting by 3.2% next year, to materialise at least. But nonetheless, a looming recession will keep the dark clouds hanging over the euro in the months ahead and the gas/energy crisis will only be amplified again next year.</p>

This article was written by Justin Low at forexlive.com.

<ul><li>Monetary policy always tries to act to fight inflation</li><li>Further interest rate increases will depend on economic data</li></ul><p style=““ class=“text-align-justify“>There’s still some time before next month’s policy meeting decision on 27 October, so I reckon we might get a better sense of what the ECB wants to do then. Another 75 bps rate hike is plausible as money markets have priced in roughly ~70 bps for both October and December, though rate cuts are already being priced in as well for late next year.</p>

This article was written by Justin Low at forexlive.com.