- Moderately positive stock session on Wall Street. The indices are gaining 0.5-0.7%, and the dollar is losing slightly.
- Tesla (TSLA.US) is up nearly 7.0%. The stock rise is driven by a recommendation from Morgan Stanley with a target share price of 400 dollars due to optimistic forecasts associated with the development of the Dojo supercomputer.
- Qualcomm (QCOM.US) is gaining over 3.0% after Apple decided to extend the semiconductor supply contract for another three years.
- The USD is one of the weaker performing currencies today. The EURUSD rate is increasing by 0.35% to 1.075. The Polish zloty is equally weak, losing to the dollar, euro, franc, and pound. On the other hand, the euro stands strong. On Thursday, we will know the ECB's decision regarding interest rates.
- The dollar is also generally losing due to significant drops in the USDJPY pair. The pair lost over 1% today mainly due to the yen strengthening, reacting to hawkish comments from BoJ chief Ueda. He indicated that the data by the end of the year should justify exiting negative interest rates. Ueda also noted that the bank would gradually withdraw from the accommodative policy.
- On Thursday, there's the ECB decision. Expectations indicate a 40% probability of an increase. More often, the market discusses a "hawkish hold off on increases." A similar situation occurred in June when the Fed decided to hold off.
- Thanks to the dollar's weakness, we observed a strong rebound in commodity prices, primarily metals. Silver gained over 1%, and palladium about 2%. Gold gained 0.5%, although it later retreated below 1925 USD per ounce.
- Panic in the cryptocurrency market concerning the upcoming decision on the liquidation of assets after the bankruptcy of the FTX exchange. Bitcoin is fighting to stay above 25k dollars, losing over 2.5%, while Ethereum is trading 3.60% lower at the 1560 dollars level.
- Analysts indicate that even if FTX receives approval to proceed with the liquidation from September 13th, the exchange may not initiate the plan immediately, and asset liquidation might occur on the OTC market outside exchanges, not affecting the selling pressure in this way.
- Today's forecasts from the European Commission indicate that inflation in the Eurozone in 2023 will remain at 5.6% compared to the 5.8% forecast in May and 2.9% in 2024 compared to the 2.8% forecast in May. The Eurozone GDP forecast is lowered to 0.8% compared to 1.1% in 2023 and 1.3% compared to 1.6% in 2024.
The Canadian dollar is strengthening against the dollar. Stronger labor market data in Canada and increasing oil market prices support CAD, additionally today's USD weakness contributes to USDCAD declines from the level of the key resistance zone, source xStation 5
