September 2: Overnight Market Wrap

September 2: Overnight Market Wrap

Key Points:

US ISM manufacturing climbs to 56 from 54.8 expected boosting USD

ECB’s Lane talks down EUR strength

Trump edges ahead of Biden in latest odds for the presidency

The USD remained under pressure into the US open which saw EUR/USD squeeze above 1.20 for the first time since May 2018 reaching a high of 1.2010. It was a brief dalliance which saw sellers push back through key support around 1.1960 to close off 100 pips on the day. ECB’s Lane comments that “the ECB doesn’t target FX rates, but EUR/USD matters” along with a CPI print of -0.2% from 0.2% expected was the double whammy to assist the sell off. From a USD positive point of view a beat on US ISM print gave the dollar a lift and aided the EUR demise. The DXY had sunk to a 2 year low of 91.70 but has now moved back above last week’s support at 92.00/20. Are we on the verge of a correction? Time will tell but US yields remained under pressure whilst US stocks rallied once again. No surprise it’s the tech sector once again that continues to keep these indices buoyant with yet again record closes for the S&P500 and Nasdaq and the Dow Jones up 0.76%.  With US stocks strong the commodity bloc currencies remained well supported vs the likes of EUR and GBP. The latter having tried to reach 1.35 but capped at 1.3481 before following EUR/USD trajectory back to 1.3380. The lack of USD selling for month end also allowed the greenback to steady. Gold jumped to 1992 but failed to hold onto its gains and we saw a slump back to 1963. Yesterday the RBA came and went but with little market impact. Reference to the AUD being the highest in two years wasn’t exactly breaking news however the pair fell back from a high of 0.7414 to 0.7360 during the US session. Today’s GDP data will be the biggest mover for the AUD this week from a domestic front although recent price action has been more volatile around external influences. The Q2 number is expected to be weak around -6% so it will take a much worse number to push the AUD lower where buyers are likely to lurk. Tonight we get the ADP jobs report from the US and will hear from Fed’s Williams and Mester and the BOE’s Haldane and Broadbent so there could be some GBP volatility depending on what comments are made about rates.

Trade the global markets with a broker that has integrity, honesty and transparency at its core


Market Wrap: 24 August 2023

Stocks Rally on Tech Optimism, Fed Rate Outlook:  Lackluster US, Europe economic data opens door for rate pause Nvidia’s bullish sales outlook prompts after-hours stock

Read More »

Market Wrap: 15 August 2023

Yuan Falls on PBOC Rate Cuts; Asian Stocks Mixed:  Japan’s economy shows resilience as growth beats estimates Economic woes mount in China as post-pandemic recovery

Read More »

Market Wrap: 11 August 2023

China Tech Pulls Asian Stocks Lower; Dollar Steady:  US core CPI posts smallest back-to-back increases in two years Daly says Fed has ‘more work to

Read More »

Market Wrap: 31 July 2023

Asian Stocks Echo US Rally on Soft Landing Hopes:  Yen declines after unscheduled Bank of Japan bond buying China manufacturing PMI data shows contraction in

Read More »

Market Wrap: 27 July 2023

Stocks Rise, Dollar Slips as Rates Peak in Sight:  ECB will raise rates by another quarter-point, survey shows US data Thursday include GDP, initial jobless

Read More »

This website is owned and operated by the Ox Securities group of companies, which include:
Ox Securities Pty Ltd registered address Level 37, 1 Macquarie Place, Sydney NSW 2000 Australia. AFSL 438402 ACN 163 551 602
Ox Securities Limited (SV) registered address Suite 305, Griffith Corporate Centre, Beachmont, Kingstown, St Vincent and the Grenadines
Risk Warning: The information contained on this website is general in nature and does not constitute advice or a recommendation to act upon the information or an offer. The information on this website does not take into account your personal objectives, circumstances, financial situations or needs. You are strongly recommended to seek independent professional advice before opening an account with us and/or acquiring our services/products. Ox Securities Limited (SV) do not accept applications from residents of the United States of America and Australia
Before you decide whether or not to invest any products referred to on this website, being over the counter (OTC) derivatives, it is important for you to read and consider our Financial Services Guide (FSG), Product Disclosure Statement (PDS), and Terms and Conditions (T&C), and ensure that you fully understand the risks involved. Fees, charges and commissions apply. OTC derivatives, including margin foreign exchange contracts and contract for differences, are leveraged products that carry a high level of risk to your capital. Trading is not suitable for everyone. You may incur losses that are substantially greater than your initial investment. You do not own, or have any rights to, the underlying assets which the OTC derivative is referring to. You should only trade with money you can afford to lose. There are also risks associated with online trading including, but not limited to, hardware and/or software failures, and disruptions to communication systems and internet connectivity.

Copyright © OxSecurities 2020. All rights reserved