This article was written by Adam Button at www.forexlive.com.
That’s a dovish headline from Lagarde, though hardly a signal about a Sept pause.
This article was written by Adam Button at www.forexlive.com.
Markets:
It was a quiet session in terms of headlines as markets are waiting on the Jackson Hole symposium or more specifically Fed chair Powell’s speech later. Personally, I don’t expect anything new from Powell but it has been a while since he last spoke and markets are hoping for something to work with.
Equities are keeping steadier on the day but as has been the case in the past two weeks, the heavy selling tends to only hit in US trading. So, watch out for now. I wouldn’t look much into the slight gains today unless Wall Street follows up on that.
The dollar was slightly higher earlier on but has seen gains pared during the session. EUR/USD looked to keep with the downside break in a push to 1.0770 but is now being rechecked back at 1.0800. Similarly, GBP/USD touched a low of 1.2560 but has reversed higher to 1.2610 for now at least.
All eyes will be on equities sentiment once again and if we do see another ugly session ahead, that should keep the dollar underpinned.
I wish you all a pleasant Friday and a wonderful weekend ahead!
This article was written by Justin Low at www.forexlive.com.
It was mostly the euro and pound which were pressured lower against the dollar earlier. But we are seeing both currencies turn back to near flat levels on the day now with EUR/USD back up to 1.0800 and GBP/USD up to just above the 1.2600 mark. Here’s a snapshot of things and you can see how the ranges remain fairly tight and dollar pairs are basically flat currently:
After having been wrong-footed yesterday, it seems like European traders are happy to wait on North America traders to make their move especially as stocks have the risk and tendency to reverse later in the day.
Going back to the dollar, EUR/USD has key resistance at around 1.0800 with the 200-day moving average at 1.0802 one to watch today as highlighted here. Besides that, GBP/USD is keeping below its 100-day moving average and that key level is seen at 1.2638. Stay below that and sellers will be in control.
This article was written by Justin Low at www.forexlive.com.
As such, the calm and steadier mood we’re seeing today belies the nervousness and fragile sentiment that is prevailing currently. Here’s a snapshot so far on the day:
After being burned by the Nvidia hopium yesterday, tech stocks are the ones that are less enthused so far today. And after the ugly reversal, the S&P 500 has pretty much erased gains for the week although the Nasdaq is still up a little over 1%. The Dow is the laggard as it is now down over 1% on the week coming into today.
In any case, just be wary that the pessimism can quickly accelerate in US trading as we have seen time and time again in the past two weeks. So far, broader markets are also calmer on the day as such. But if we are to lean to being more risk averse again, the dollar is likely to shine before the weekend comes along.
This article was written by Justin Low at www.forexlive.com.
US:
New Zealand:
NZDUSD Technical Analysis –
Daily Timeframe
On the daily chart, we can see that after breaking
the May low and falling into the 0.59 handle, NZDUSD rallied back to retest the
broken support now turned resistance before
restarting the downtrend. The sellers are firmly in control and the breakout
opened the door for a fall into the 0.5514 level.
NZDUSD Technical Analysis –
4 hour Timeframe
On the 4 hour chart, we can see that the price has
been diverging with the
MACD for a
while. This is generally a sign of weakening momentum often followed by
pullbacks or reversals. In this case, we got the pullback into the trendline where we
had also the confluence with the
38.2% Fibonacci retracement level.
This is where the sellers piled in with a defined risk above the level to
target new lows. The buyers will need the price to break above the trendline to
switch the bias from bearish to bullish and start targeting new higher highs.
NZDUSD Technical Analysis –
1 hour Timeframe
On the 1 hour chart, we can see that the
price is bouncing from the previous low. A good resistance for the sellers
might be the one around the 0.5925 level where the price has reacted to
multiple times and where we can also find the red 21 moving average for
confluence. More conservative sellers may want to wait for the price to break
below the recent low to pile in and target new lows.
Upcoming Events
Today the only major
event is Fed Chair Powell’s speech at the Jackson Hole Symposium. The
expectations though are for him to take a “wait and see” approach as we have
more key economic data ahead before the next FOMC meeting.
This article was written by FL Contributors at www.forexlive.com.
And if we’re talking about the greatest sport person ever alive, we gotts show some of his moves as we talk about how much dough he made…
From barely having two nickels to rub together in his childhood to touching a staggering net worth of $3.5 billion, MJ’s story is the epitome of the American dream. Ain’t just about the dunks; it’s about those dollar signs, baby! Thanks, Bloomberg Billionaires Index, for the heads up!
Here’s a quick snapshot of the journey:
And if you’re thinking this is where the story ends, think again. MJ’s still pretty young in the grand scheme of things. With his knack for business and those clever investments, there’s no cap to his wealth. The sky’s the limit!
You know, it’s not just about the money. It’s about resilience, vision, and the will to be the best. Mike’s life is a testament to the saying, “Where there’s a will, there’s a way.” If MJ’s story doesn’t light a fire in you, I don’t know what will. To the kid from Wilmington who became a global icon: You’re an inspiration, Mike! 🐐🏆💰
BTW, here are the richest athletes in the world…
This article was written by Itai Levitan at www.forexlive.com.
The
selloff that started at the beginning of August is starting to show signs of
weakness. Although nothing changed fundamentally, the Nasdaq Composite started
to rise as the market was just probably overstretched. This looks more like a
pullback as the miss in yesterday’s US PMIs doesn’t
support the bullish case.
Nasdaq Composite Technical
Analysis – Daily Timeframe
On the daily chart, we can see that the Nasdaq
Composite bounced from a key support level at
13174 and rallied back strongly into the broken trendline and the
red 21 moving average. This is
where we can expect the sellers to pile in with a defined risk above the
trendline to target a break below the 13174 support.
Nasdaq Composite Technical
Analysis – 4 hour Timeframe
On the 4 hour chart, we can see more closely the
strong bounce on the 13174 support and the strong resistance that we have
around the 13820 level where we can also find the confluence with the
Fibonacci retracement levels
and the previous support now turned resistance.
Nasdaq Composite Technical
Analysis – 1 hour Timeframe
On the 1 hour chart, we can see the
resistance zone with the market likely to open today around those levels as
Nvidia yesterday after the close crushed expectations across the board. So, at
the open we might see a “sell the fact” but more conservative sellers may want
to wait for the price to fall below the black counter-trendline first before
positioning for more downside.
Upcoming
Events
Today we will have the latest US Jobless Claims
report where the market will want to see if the labour market is still holding
or starting to weaken. Strong data may cause some hawkish repricing in
expectations and it’s unclear if the market will take it as good news because
of the resilient labour market or bad news because the Fed will keep at it.
Weak data should be more straight forward as it’s likely to cause recessionary
fears given the yesterday’s PMIs and send the market lower. Tomorrow we will
hear from Fed Chair Powell who is set to speak at the Jackson Hole Symposium,
although the expectations are for him to just repeat their data dependency and
keep all the options on the table.
This article was written by FL Contributors at www.forexlive.com.
Markets:
It was a quiet session for the most part but there were some decent albeit mixed flows in markets today.
Equities are buoyed since Asia trading, after Nvidia’s earnings beat helped to boost sentiment. US futures are holding higher, led by tech shares, with Nasdaq futures up by 1.1% and S&P 500 futures up by 0.6%. However, Dow futures are slightly lower now and down by 0.1% so perhaps not everything is bright and rosy in the equities space.
The less enthusiastic mood is also shared by the antipodean currencies today with both the aussie and kiwi keeping lower. Both were initially little changed against the dollar but AUD/USD is now down 0.5% to 0.6445 and NZD/USD down 0.7% to 0.5940 at the lows for the day.
The dollar is overall keeping steadier, with USD/JPY holding higher by 0.5% to 145.50 levels again as Treasury yields nudge a little higher. 10-year yields were down to around 4.18% earlier but have now recovered to around 4.21% on the day.
Besides that, the euro is little changed against the dollar while cable is down 0.4% to 1.2670 as the pound struggles to maintain yesterday’s rebound.
The thing to watch now is to see if tech shares can hold their head above water later today, with US weekly jobless claims coming up as well. If not, we might be set for a bit of an uglier end to the week if stock investors truly do go with the buy the rumour, sell the fact play after Nvidia.
This article was written by Justin Low at www.forexlive.com.
US:
EU:
EURUSD Technical Analysis –
Daily Timeframe
On the daily chart, we can see that the EURUSD
selloff is losing momentum although the bias remains bearish given the lower
lows and lower highs and the moving averages being
crossed to the downside. We can see that the price is currently bouncing on a
previous swing low level and we might see a bigger pullback into the downward trendline where we
will also find the red 21 moving average for confluence.
EURUSD Technical Analysis –
4 hour Timeframe
On the 4 hour chart, we can see that the price has
been diverging with the
MACD for a
while. This is generally a sign of weakening momentum often followed by
pullbacks or reversals. In this case, we might see the price pulling back into
the trendline where we can also find the Fibonacci retracement levels
for confluence. This is where the sellers are likely to pile in with a defined
risk above the trendline and target a break below the 1.08 handle. The buyers,
on the other hand, will want to see the price breaking above the trendline to
confirm the reversal and target new highs.
EURUSD Technical Analysis –
1 hour Timeframe
On the 1 hour chart, we can see that we
have a minor resistance zone around the 1.0875 level that should act as a
barometer for the sentiment. In fact, a break above it should give the buyers
more room to extend the rally into the trendline. Vice versa, as long as the
price stays below the level we should see the sellers piling in at every
pullback.
Upcoming Events
Today we have the US
Jobless Claims, and the market will want to see if the labour market remains
strong or starts to show signs of weakness. Strong readings should keep the
hawkish expectations steady and support the US Dollar, while weak data should see
a weaker greenback in the short term as the market would lean even more on the
dovish side. Tomorrow we will hear from Fed Chair Powell who is expected to
just repeat their data dependency and keep all the options on the table.
This article was written by FL Contributors at www.forexlive.com.