Daily Market Review September 07



An interest rate hike by the Fed, expected to be materialised soon this year, could be impeded by the disappointing NFP data released on Friday and a lower than expected ISI non-manufacturing PMI data. Indeed, investors seem increasingly sceptic about an eventual hike while, the San Francisco Fed president, john Williams, nevertheless remained optimistic but announced yesterday that interest rates will be risen at an unprecedented slow rate.

Meanwhile , the yen managed to amass strength against the dollar and the latter reportedly fell by 0.6% against the dollar. Against the the euro also, the American currency could not stick at highs for long. The Wall Street rejoiced from all the buzz, equities being slightly higher, The Nasdaq Composite Index was reportedly trending near a record high.

Calendars are packed today with important economic data aligned to be released today. Amongst, the British month on month Manufacturing Production data, a speech by Bank of England’s governor Mark Carney, British Inflation Report Hearings and the Canadian interest rate decision.

Technical Analysis:
Yesterday, the euro hiked impressively against the dollar at 14.00 GMT. From 1.1161, the EURUSD currency pair recorded a hammer to hit 1.1238 and later reach 1.1256 at 17.00 GMT. As from 16.00 GMT, through today,the currency pair zigzagged near identical levels and was seen at 1.1252 at 02.00 GMT. After that, the pair lost in strength and lost gains to be at 1.1240 at 07.00 GMT. The trend might persist and some improvement might be seen as from 16.00 GMT.
The USDJPY took to a downhill trek as from 12.00 GMT yesterday leaving the 103.39 line to hit 101.32 at 01.00 GMT today. The currency pair consolidated around the same level within the hours that followed, but was seen gaining momentum as from 06.00 GMT to be spotted at 101.54 at 07.00 GMT. The pair might continue on the same pace and is expected to start recording a better performance as from 15.00 GMT.
At 13.00 GMT yesterday, the GBPUSD pair took to the highs and managed to reach 1.3439 at 18.00 GMT. After that, the currency pair lost in strength as was seen losing away the amassed gains. The pair reached the 1.3410 level at 00.00 GMT today and trended at similar levels since then. As from 07.00 GMT, the currency pair was seen adopting a bearish stance and is expected to trend rather similarly throughout the day.  
Economic Calendar