Daily Market Review September 27

U.S presidential elections campaign takes the markets by control. Indeed, yesterday’s live debate between Hillary Clinton and Donald Trump created some agitation for specific assets. The debate did definitely leverage Clinton’s changes for the White House but simultaneously took Asian shares to the highs. Hillary, having been acclaimed as the winner of the debate by several news outlets, did not fail to take Wall Street equities higher too. While the Japanese Nikkei surged 0.8% higher, thus being off its recent 1.5% lows, the S&P 500 moved higher by 0.6%.

In Japan, BOJ’s deputy governor, Nasako, announced today that the central bank has taken steps to push down real interest rates, yet a better off economic growth will also require structural reforms. Meanwhile, the U.S reportedly posted the biggest fall in Single-family home sales data in nearly one year for the month of August yesterday. Traders are advised to watch out for the U.S. CB consumer confidence data release at 13:00 GMT today.

It is to note that the data, nevertheless hiked to nine- year highs for the month of July. The Commerce Department revealed a fall of 7.6% to a seasonally adjusted annual rate of 609,000 units. The BOJ’s meeting minutes released yesterday obviously impacted on the Japanese currency, making it stronger than its American counterpart today. The USDJPY currency pair, thus upped by 0.18% . Today, the U.S Dollar Index rose by 0.05% to 95.26.

Technical Analysis:
As from 07.00 GMT yesterday, the EURUSD currency pair started exhibiting a leveraged momentum thus leaving the 1.1224 line to hit 1.1269 at 15.00 GMT. In the hour which followed, the currency pair gave in to the bears and was seen recording impressive pullbacks as from 18.00 GMT to fall all the way through today and be spotted at 1.1243 at 03.00 GMT. As form 04.00 GMT, the currency pair starting showing bullish signs and at 05.00 GMT, it was at 1.1245. The bullish trend might continue until 12.00 GMT today.

The USDJPY currency pair took to the lows yesterday as from 05.00 GMT, thus recording a series of pullbacks to leave the 101.06 line and reach 100.40 at 10.00 GMT. Thereafter, the currency pair fluctuated up and down to, nevertheless retract to the 2100.26 line at 19.00 GMT. As from then, the pair reportedly adopted a bullish stance and at 01.00 GMT today, recorded an impressive high jump to be seen at 100.83 at 05.00 GMT. The pair can be expected to fluctuate around identical levels until 12.00 GMT as from which, the USDJPY could go higher.

Yesterday, the GBPUSD pair was seen depicting a ‘Cup and Handle’ pattern. At 06.00 GMT from 1.2978, the pair fell to 1.2925 at 10.00 GMT and as from 11.00 GMt, took to the highs to hit 1.2976 at 16.00 GMT. After that, the currency pair retracted to 1.2965. The pair thereafter fluctuated up and down to be spotted at 1.2953 at 00.00 GMT today. At 01.00 GMT, however, the GBPUSD pair recorded a significant hike to the 1.2083 line and zigzagged around that line since then. The currency pair is expected to turn bullish as from 07.00 GMT and might trend so until 16.00 GMT. The bulls could be back at around 19.00 GMT too.


Economic Calendar