Daily Market Review September 16

Weak economic data from the U.S. dampened expectations for a raise in policy rates expected next week in the 20-21 sept Fed meeting. The greenback was seen down by 0.7 percent during this week, while the Yen was caught finding favor from risk sentiment resulting from news that central banks could be facing trouble so as to boost their respective economies. Easing by 0.1 percent against the yen at 102.02 yen, the US dollar is likely to remain weak.

Fears that U.S oil rig counts would continue to rise dragged oil prices even lower earlier today. In addition to the woes, exports from Libya and Nigeria could add the existing global supply glut. Brent crude futures were seen trading around $46.32 a barrel, being down by 0.6 percent from their last settlement while the U.S. West Texas Intermediate futures were also down by 0.6 percent, trading at $43.67 a barrel. Focus will now be turned to drilling activity in the U.S., expected to add to supply glut.

U.S. indices are now rising being led by technology shares and this is the fourth big move in five sessions. Traders are informed that volatility has come back to the U.S. stock market and a look at previous sessions shows that the S&P 500 had fallen by 1.6 percent but has been able to recuperate gains. Same scenario was seen for the Dow Jones Industrial Average which tumbled by 1.4 percent last week, but sharp rises in technology shares revived the Wall-Street. Therefore, keep an eye on U.S. indices today, they look bullish.

Technical Analysis:
A lot of action was expected to take place on the EURUSD pair chart but so did not happen. A lot of speculations which resulted into little action for this pair. Traders ended up in disappointment though Thursday was a busy trading day. Yesterday, the EURUSD pair hiked slightly during mid-day trading and the session was initiated around the 1.124 level and consolidated around the same vicinity. Many pullbacks and momentary jumps caused the pair to close the session around the 1.124 level, where the session began. This pair looks likely to incur losses today, therefore keep a close eye on it.

The USDJPY pair ended lower in the trading session yesterday despite important economic indicators released in the U.S. Yesterday, the session for the pair USDJPY commenced at the 102.5 level and fell to the 102.0 level in the initial hours of trading. Later on, the pair gathered momentum and was pushed up to the 102.4 level but many pullbacks dragged the pair lower to close the session at the 101.9 level. The pair is likely to consolidate as economic indicators failed to boost the pair yesterday and the Ichimoku cloud hovers above the candles suggesting a bearish session ahead.
The Pound Sterling remains unstable around the $1.322 level against the US dollar. Problem is that the Bank of England kept rates unchanged at 0.25 percent which turned the sentiment on the market into a bearish one. The GBPUSD has since then been trading in a specific range and was seen starting the session at the 1.326 level. After consolidating in the initial trading hours, the pair GBPUSD closed the session down at the 1.3245 level. The pair is currently adopting a bearish trend and may continue to incur losses in mid-day trading. An eye on this pair is recommended today.


Economic Calendar