Morning wrap (18.09.2023)

6:52 AM September 18, 2023
  • Today the macro calendar is relatively poor, and the Japanese stock market was closed due to a national holiday. In the new week, the markets are waiting for the Fed decision and Powell's conference and the other big central banks like the BoE and BoJ, as well as industry and services PMI data from major economies. On Wednesday, two large US companies General Mills (before the session) and FedEx (after the session) will also report their results.
  • Last Friday, Wall Street closed the session with declines after a massive expiration and rollover of options and contracts in the face of the 'Freaky Friday', with Nvidia and Meta Platforms losing heavily and the Nasdaq100 alone retreating nearly 2%. Semiconductor companies came under pressure after Taiwan's TSMC warned major principals of delivery delays;
  • Bond yields rose, with the USDIDX itself trading down a modest 0.1% today. The VIX index rebounded from its lowest level since 2020.Inflation expectations in the United States fell to their lowest level in more than two years.
  • The indexes are currently trading with little volatility but the futures counter indicates that the opening in Europe may run in a slightly better mood.
  • The Asian session was dictated by sellers. The Hangseng and KOSPI lost close to 1%. Singapore's merchandise exports (excluding oil) fell 3.8% versus an expected increase of 4.2% and a decline of 3.4% previously;
  • The EURUSD is gaining just over 0.8% and is still trading firmly below 1.07. In the fx market pairs related to the PLN are again experiencing increased volatility. 
  • Precious metals are trading slightly higher, with gold gaining 0.4% and silver recording almost 1% gains
  • Oil is trading slightly higher, with WTI and Brent gaining similarly close to 0.46%. Natural gas loses 0.2%
  • Cryptocurrencies are trading higher, although Bitcoin alone is trading up only 0.6%. It has held above $26,000, however, which gives markets hope that the rebound will continue. Chainlink is leading the altcoins rally and has already gained over 8%

EURUSD is trading at 1,066 - but at the same time it is holding support at the 38.2 Fibonacci retracement of the upward wave from the fall of 2022, which gives bulls hope that the upward trend will eventually continue. In view of this week's Fed meeting, volatility on the pair may still be very high. Source: xStation5


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