Daily Market Review September 09



The European Central Bank raised its growth forecast from 1.6 percent to 1.7 percent for this year and as a result, the Euro soar higher. Eurogroup meetings scheduled today at 13:00 GMT may give more indications towards the same matter today. Note that the US dollar trends lower versus other major currencies, still being dampened by huge expectations regarding the US interest rate decision. The EURUSD pair rose by 0.20 percent and settled 1.128 level as last seen on the EURUSD chart.

The greenback remains vulnerable due to a low sentiment prevailing on the market after downbeat in jobs data published last Friday. Elsewhere commodities such as Gold and crude continue to affect the whole market. Gold prices were slightly higher but remained between small gains and losses, especially after China’s data on manufacturing and trade came in. Gold for December delivery on the Comex division of the New York Mercantile Exchange rose to 0.05 percent to $1,342.25 a troy ounce.

As the OPEC continues to bargain on the current output issue, Iran’s crude output stalled. In the last three months, Tehran struggled to fulfill its plans to raise production. Tehran also stated that it wants to be excluded from any deals the OPEC might be coming up with as it has no intention of agreeing to them. Iran is the only country blocking the intention of the OPEC wanting to curb the supply on the market. Brent and NYMEX crude continue to trend lower as a result of this issue.

Technical Analysis:
The EURUSD pair took an uphill with the help of some momentary jumps earlier today but is likely consolidation around the 1.127 level, as last seen. As a Eurogroup meeting is scheduled today at 13:00 GMT, traders await for more cues so as to trade further. A dovish comment could send the pair higher, while a negative pair could drag it down. Yesterday, the pair initiated the session around the 1.123 level and within some hours upped to the 1.306 level which was a nice uptrend for the pair. Later the pair was dragged to the 1.124 level and closed the session around the same level. The Ichimoku could hovers below the candles, suggesting that this session might turn bullish. Thus, keep a close eye on this pair today.

After having edged lower against the Japanese Yen, the pair USDJPY upped slightly higher in the trading session yesterday. However, on an overall view the US dollar slipped lower against a basket of major currencies and as a result the Japanese Yen is expected to affect the USDJPY chart again today. Lack of major economic indicators on the market could also suggest a slow trading session today. A look at yesterday’s trading session shows that trading began around the 101.8 level on a bearish note and fell to consolidate in a specific range. Later, the pair hiked upwards as momentum grew on this session and reached to the 102.5 level. Last seen today, the pair was around the 102.1 level and this pair may continue trade within a range without giving proper indication of its trend. Therefore, keep an eye on it.
The GBPUSD focus is on the 1.3320 level which is the current shorter resistance level for this pair. As seen earlier today, the banged against the same level and was dragged lower to the 1.3308 level within the first few hours of trading. Despite the weakness of the US dollar, the GBPUSD pair is not being able to hike higher, probably still being subject to comments delivered by Carney on UK policy rates. The Bank of England still needs to think whether it need to lower policy rates so as to stabilize the economy. Yesterday, GBPUSD session started at the 1.333 level and it hiked up to the 1.337 but later, many little pullbacks dragged the pair down to the 1.328 level. This pair may continue to hover around the same level and keep a consolidated mode.

 

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