Weekly Market Review September 26

Crude prices recouped on Monday in the wake of suggestions given by the Algerian Energy Minister for a probable cut in oil output or a freeze this week which could materialize during the meeting of OPEC producers. Oil prices tumbled by a significant 4 % on Friday due to the little progress made by Saudi Arabia and Iran to curb oil production. Also, US stockpiles data releases expected tomorrow and Wednesday will also be important indications for crude prices.

Gold prices fell in Asia on Monday, losing earlier gains with a very hectic week for central bank remarks, amid what is anticipated to be a record audience for the first presidential debate between U.S Presidential candidates. Moreover Janet Yellen Federal Reserve chair is expected to talk on the ongoing timeframe for the next U.S rate hike.

This week, traders should not let go of these upcoming events and should keep a close watch to make the most out of them. Today, the U.S new home sales data releasing at 14.00 GMT, cold provide good cues about the future movements of the dollar. Earlier than that, at 13.30 GMT, a speech by FOMC member Kashkari should not be missed too. ECB’s president, Mario Draghi speaks at 15.05 GMT today, another one not to miss. Th September U.S CB Consumer COnfidence shall be the highlight for tomorrow while Wednesday’s shall be loaded with decisive events. At 12.30 GMT, catch the U.S month on month Core Durable Goods data. Fed’s chair, Janet Yellen shall give a testimony at 14.00 GMT while Mario Draghi is expected to speak at 14.30 GMT. Thursday’s eyecatcher shall be the German Unemployment Change due at 07.55 GMT and the U.S. quarter on quarter GDP releasing at 12.30 GMT. The dollar could be the asset to trade on this week as Yellen delivers yet another speech on Thursday at 20.00 GMT. ON Friday, traders should not miss the Chinese September Caxin Manufacturing PMI due at 01.45 GMT.

Technical Analysis:
As from 05.00 GMT on Friday, the currency pair took to an uphill trek, rising from 1.1197 to hit 1.1237 at 17.00 GMT. From then, the pair fluctuated up and down through today and trended at 1.1224 at 06.00 GMT. The currency pair could be much volatile this week with a bunch of speeches waited from Janet Yellen and Mario Draghi. For today, the pair is expected to gain momentum as from 07.00 GMT and fluctuate up and down all through until 00.00 GMT. The dollar should be given a close watch this week.

Rising from 100.67 on Friday at 11.00 GMT, the USDJPY pair made it t o101.07 at 18.00 GMT and went back to the lows as from the hour that followed to be spotted at 100.78 at 00.00 GMT. As from 01.00 GMT, the currency pair gained in strength to be at 101.06 at 04.00 GMT. After that, however, the bears seemed to be back again with the currency pair retracting to 100.84 at 06.00 GMT. The bearish trend is expected to persist until 15.00 GMT, as from which the pair could go bullish.

On Friday, the GBPUSD pair recorded a phenomenal plummet to be seen at 1.2945 at 13.00 GMT. After that, the pair fluctuated around similar levels and continued doing so through today. At 00.00 GMT, the currency 1.2981 at 00.00 GMT. The currency pair reportedly appeared to be losing in strength afterwards and was at 1.2946 at 06.00 GMT which is a considerable fall. The bears might be around until 12.00 GMT. The pair could gain momentum afterwards.

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