Home Forex Market Update – September 14 – Inflation is Sticky – Risk Off

Market Update – September 14 – Inflation is Sticky – Risk Off

by SuperiorInvest

  • USDIndex – Exploded higher (on110) ending the 4-day dive. US CPI is much higher than expected. Fed Funds Futures – 34% chance of 100 bp – up from 0% this time yesterday. Inflation may still have peaked, but it is NOT receding as fast as some expected, Inflation is ALWAYS sticky and often takes longer to get under control.

  • euros – Trades on 0.9980 now from the test 0.9950 yesterday, 1.0000 resistance.
  • JPY The BOJ appears to be conducting rate checks before intervention. USDJPY hit 145.00 yesterday from 142.00 and trades on 143.75 now after the BOJ rant.
  • GBP tpassed over 1.1700 yesterday before US data, but fell below 1.1500 to 1.1485 and it holds 1.1500 Now.
  • Stocks US stocks had their worst day since June 2020 (S&P500 -4.32% 177 points 3932) Shop FUTS at 3940. NASDAQ worst performance (-5.16%) Asian stock markets fell -2.5%, p European FUTS shows some resilience (-0.4%).

  • USOil on the top $89.00 again on Tuesday, turnkey demolition $85.00 pre-recovery level $87.00 Now. The 20-day moving average sits at $89.00.
  • Gold – also tested below 1700 dollars of 1730 dollars and it holds 1700 dollars Now.
  • BTC – fell from $22.7 height k 19.8 thousand dollars and it holds 20.2 thousand dollars Now.

Overnight and today – British inflation lighter at 9.9% vs 10.0% & 10.1% last month, US PPI, GDP of New Zealand, Speeches from the European Commission’s State of the Union speech & Lane ECB.

The biggest FX Mover @ (06:30 GMT) AUDJPY (-0.87%) BOJ gossip and risk off sentiment lifted the safe haven YEN. Collapsed under 98.00, 97.00 and 96.50. MA alignment below, MACD histogram and signal line negative and bearish, RSI 20.85 & OB, H1 ATR 0.241, daily ATR 0.972.

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Stuart Cowell

Chief Market Analyst

Disclaimer: This material is provided as general marketing communication for informational purposes only and does not constitute independent investment research. Nothing in this communication contains or should be considered to contain investment advice or an investment recommendation or a solicitation to buy or sell any financial instrument. All information provided is collected from reputable sources and any information containing an indication of past performance is not a guarantee or a reliable indicator of future performance. Users acknowledge that any investment in leveraged products is characterized by a degree of uncertainty and that any investment of this nature involves a high level of risk for which users are solely responsible and liable. We shall not be liable for any loss arising from any investment made based on the information provided in this communication. This communication may not be reproduced or redistributed without our prior written consent.

Previous articleMarket Update – September 13 – Cooler USD and stocks higher ahead of CPI

With over 25 years’ experience working for a number of globally recognized organizations in the City of London, Stuart Cowell is a passionate advocate of keeping things simple, doing what’s likely and understands how news, charts and sentiment work together to deliver trading opportunities across all asset classes and all time frames.

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