Daily Market Review September 01



The Federal Reserve continues to point towards a probable increase in rates, but investors are now being cautious and await tomorrow’s NFP data release. Another Fed member, Mester is set to speak today. More cues on U.S. policy rates is expected from her and the unnecessary excitement behind the increase of rates is only creating more turmoil in the trading market. As the US ADP nonfarm employment change slumped yesterday, indications for the nonfarm payrolls are not so positive.

Moving on, oil prices rebound as the USD gets a little weaker compared to other major currencies. Prices rose considerably despite as the Chinese manufacturing sector also lent some support as PMI data released earlier today were positive. A slid in U.S. crude oil inventories helped prices to increase by more than 3 percent today, Brent crude futures climbed by 27 cents to settle at $47.16 a barrel while the U.S. crude futures rose by 25 cents climbing to $44.95 a barrel, still below $45 a barrel.

Elsewhere, Manufacturing PMI data will be released in the UK as well today, but still traders think that the GBP will remain in the lows. However, ahead of jobs data release in the U.S. tomorrow, the USD trends in a weak range, which may let the GBPUSD pair hike a little upwards. Note that, on the Wall-Street, indices have edged lower as apprehensions increase before the NFP release tomorrow. The Dow futures were down by 0.05 percent and the S&P 500 futures slumped by 0.03 percent.

Technical Analysis:
The Relative Strength index data shows that the pair EURUSD keeps away from the overbought section and settled around 48.5 RSI level. However, it is to notice that the pair is currently moving in a downtrend near the 1.115 level. Yesterday, the session for the pair EURUSD was initiated at the 1.114 level on a bearish note and later hiked slightly up. During the initial hours of trading pullbacks continuously dragged this pair below and the session came to a halt around the 1.115 level. The German manufacturing PMI data for august is awaited today, therefore keep an eye on the evolution of this pair during the day.

It’s the day of manufacturing PMIs data releases today as always seen during the weeks of nonfarm payrolls release. Ahead of the nonfarm payrolls, economic indicators in the U.S. are expected to show slight growth. During this week, the USDJPY pair picked up a nice momentum, also as a result of the Japanese Yen curbing previous gains. Yesterday, the USDJPY session started at the 102.8 level and gradually the pair moved higher to the 103.47 level. The 103.6 level is the resistance level above while the Ichimoku cloud moves below the candles suggesting a bullish session for the moment.
Manufacturing PMI data will be released in the UK also today which is expected to bring the boost expected for the pair GBPUSD. Since the beginning of this week, the pair GBPUSD adopted a downtrend which many analysts believe is a continuous effect of the risks posed by Brexit. The pair GBPUSD session commenced at the 1.309 level and fell initially to move back to the 1.311 level. From there on, the pair encountered many pullbacks and momentary jumps and the session closed around the 1.313 level, which is still slightly bearish. Keep an eye on the PMI data today to trade safely on this pair.

 

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