405909 September 19, 2024 19:00 Forexlive Latest News Market News
Headlines:
Markets:
The central bank bonanza continued with the BOE today and as expected, they left the bank rate unchanged at 5.00%
The pound still rallied in the aftermath though, briefly nudging above 1.3300 to its highest levels since February 2022. GBP/USD is still up 0.6% on the day, keeping closer to 1.3285 currently. The BOE signaled that they remain comfortable in keeping policy restrictiveness and the bank rate vote also revealed just one dissenter (Ramsden did not vote for a rate cut this time).
The odds of a 25 bps rate cut by the BOE for November fell as such. It is now seen at ~63%, down from having been fully priced in before this.
As for the bigger picture in markets today, it’s all about the post-Fed digestion. And that is seeing the dollar fall as equities are soaring on the day.
USD/JPY might be sitting higher as long-end yield are holding up but that’s the only consolation for the dollar. The pair did drop to a low of 142.03 in European morning trade but picked itself up to sit closer to 143.00 now.
As for other dollar pairs, it was more of a straightforward story as the greenback weakened across the board.
EUR/USD moved up from 1.1120 to 1.1160-70 levels while USD/CAD fell from 1.3600 to 1.3533 before holding just above that now. The antipodeans are the ones running away with things as AUD/USD climbs to its best levels for the year. The pair is up 0.9% to 0.6826 now and just off the high earlier of 0.6839.
In the equities space, European indices are posting gains above 1% now with the CAC 40 even bordering near 2% gains on the day. US futures are also ripping higher with S&P 500 futures up 1.7% and Nasdaq futures up 2.2% on the day. After some trepidation yesterday, investors are liking the fact that the Fed did give in to markets with the 50 bps rate cut.
As for commodities, gold is nearing fresh record highs again in a push to $2,587 currently. Meanwhile, silver is up over 3% to above $31 and testing its highest levels since July.
Coming up, we’ll have the US weekly jobless claims to add to the mix.
This article was written by Justin Low at www.forexlive.com.
405908 September 19, 2024 18:00 Forexlive Latest News Market News
As such, they are maintaining their outlook for the Fed to cut by 50 bps in November before closing things out with a 25 bps cut in December. The latter is changed as Citi did previously expect the Fed to go by 25 bps yesterday before moving by 50 bps in November and December. But the total in terms of how much the Fed is cutting remains the same.
“Powell noted a number of times that today’s 50bp cut is a “commitment” to not get behind the curve which suggests the bar for further large rate reductions is very low. We continue to see risks as balanced toward a more rapid softening of labor market data and a more aggressive pace of rate cuts.”
This article was written by Justin Low at www.forexlive.com.
405907 September 19, 2024 16:45 Forexlive Latest News Market News
We’re seeing fresh highs now for the euro, pound, and the commodity currencies against the dollar. EUR/USD is up 0.5% to 1.1170 with GBP/USD also up 0.5% to 1.3280 currently. AUD/USD in particular is seeing a strong jump to its highest levels for the year, up 1% to 0.6835. The pair had struggled to clear 0.6800 on the daily chart previously but buyers are finding added conviction today.
USD/JPY is up 0.4% to 142.90 again but had earlier met lows around 142.03 in European morning trade. The back and forth action in the pair continues to play out with the bond market also playing a role there.
The dollar had initially weakened on the immediate reaction to the Fed’s 50 bps rate cut yesterday. Then, the first aftershock of the event saw it recover losses for the most part. But now with the second aftershock, we are seeing traders lean back to their immediate conviction again.
The fall in the dollar comes as risk sentiment is starting to gain more positive traction on the session. European indices are seeing well over 1% gains across the board now. Meanwhile, S&P 500 futures are up 1.5% with Nasdaq futures up 2.0% currently. Fresh record highs are beckoning for US indices ahead of Wall Street trading later.
This article was written by Justin Low at www.forexlive.com.
405906 September 19, 2024 16:14 ICMarkets Market News
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Ex-Dividends | ||
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20/09/2024 | ||
3
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Indices | Name |
Index Adjustment Points
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4
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Australia 200 CFD
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AUS200 | 0.1 |
5
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IBEX-35 Index | ES35 | |
6
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France 40 CFD | F40 | |
7
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Hong Kong 50 CFD
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HK50 | 0.39 |
8
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Italy 40 CFD | IT40 | |
9
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Japan 225 CFD
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JP225 | |
10
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EU Stocks 50 CFD
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STOXX50 | |
11
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UK 100 CFD | UK100 | |
12
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US SP 500 CFD
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US500 | 0.05 |
13
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Wall Street CFD
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US30 | |
14
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US Tech 100 CFD
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USTEC | |
15
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FTSE CHINA 50
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CHINA50 | |
16
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Canada 60 CFD
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CA60 | 0.14 |
17
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Germany Tech 40 CFD
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TecDE30 | |
18
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Germany Mid 50 CFD
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MidDE50 | |
19
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Netherlands 25 CFD
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NETH25 | |
20
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Switzerland 20 CFD
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SWI20 | |
21
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Hong Kong China H-shares CFD
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CHINAH | |
22
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Norway 25 CFD
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NOR25 | |
23
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South Africa 40 CFD
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SA40 | |
24
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Sweden 30 CFD
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SE30 | |
25
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US 2000 CFD | US2000 | 0.08 |
The post Ex Dividend 20/09/2024 first appeared on IC Markets | Official Blog.
405905 September 19, 2024 15:14 Forexlive Latest News Market News
Looking at the breakdown, surpluses were recorded for goods (€35 billion) and services (€19 billion). Meanwhile, deficits were recorded for secondary income (€13 billion) and primary income (€1 billion).
This article was written by Justin Low at www.forexlive.com.
405904 September 19, 2024 14:39 Forexlive Latest News Market News
The dollar is lower in European morning trade, as the post-Fed reaction is starting to weigh more heavily now. USD/JPY traded to a high of 143.94 in Asia but has been dragged all the way back down now to roughly flat levels on the day at 143.18.
Looking at broader markets, equities are running higher while bond yields have dropped off from the highs earlier in the day.
In fact, Treasury yields are now pushing to the lowest points for the day now. 2-year yields are down to 3.59% from 3.65% earlier while 10-year yields are down to 3.69% from 3.73% earlier.
Gold is also now sitting higher by 0.8% to $2,579 in hopes of pushing for a test of $2,600 again.
Going back to USD/JPY, the pair is still very much at the mercy of how the rates market is going to move. But the near-term chart above at least shows that buyers are still hanging in there, by the very slightest.
A fall back below both the 100 (red line) and 200-hour (blue line) moving averages will put scrutiny back on the 140.00 mark. So, those will be key near-term levels to watch for the time being.
As for other dollar pairs, GBP/USD looks poised for a retest of daily resistance from the August high of 1.3266 currently. Meanwhile, AUD/USD is starting to challenge a firm break above 0.6800 before aiming a test of the December 2023 high of 0.6871 next.
This article was written by Justin Low at www.forexlive.com.
405903 September 19, 2024 14:30 Forexlive Latest News Market News
S&P 500 futures are up 1.1%, Nasdaq futures up 1.6%, and Dow futures up 0.7% currently. There was a bit of a hiccup right after the Fed decision yesterday but equities are looking to bounce back stronger today. It looks like market players are happy with what they got from Powell & co. for now.
This article was written by Justin Low at www.forexlive.com.
405902 September 19, 2024 13:39 ICMarkets Market News
Global Markets:
Asia-Pacific markets experienced gains amid volatile trading on Thursday as investors reacted to the Federal Reserve’s half-percentage-point interest rate cut. Japan’s Nikkei 225 increased by 2.53%, and the Topix rose 2.41%. Meanwhile, the Japanese yen weakened by 0.68% against the U.S. dollar to 143.24. The Federal Reserve’s rate cut lowered its benchmark borrowing rate to a target range of 4.75% to 5%.
Following the Fed’s move, the Hong Kong Monetary Authority reduced its interest rate by 50 basis points to 5.25%, reflecting the city’s currency peg to the U.S. dollar. The Hang Seng index in Hong Kong climbed 1.81%, with China Vanke shares jumping 8.7%. Mainland China’s CSI 300 index went up by 0.8%, driven primarily by real estate stocks, which saw a 4.3% increase.
South Korea’s Kospi index inched up 0.11%, while the Kosdaq gained 0.65%. In Australia, the unemployment rate held steady at 4.2% in August, with employment figures surpassing expectations at 47,500 additions. This contributed to the S&P/ASX 200 rising by 0.64%, reaching a new record high.
New Zealand’s GDP for the second quarter contracted by 0.2%, which was better than the expected 0.4% decline. Taiwan’s central bank is preparing to announce a key rate decision, with the Taiwan Weighted Index up by 1.24%.
In the U.S., all major indices fell overnight. The Dow Jones decreased by 0.25%, the S&P 500 by 0.29%, and the Nasdaq by 0.31%, despite intraday highs.
The post Thursday 19th September 2024: Asia-Pacific Markets Rise Amid Fed’s Interest Rate Cut first appeared on IC Markets | Official Blog.
405901 September 19, 2024 13:14 Forexlive Latest News Market News
US futures are also on the up with tech shares leading the charge. S&P 500 futures are now up 1.0% while Nasdaq futures are up by 1.5% on the day. Dow futures meanwhile are up by 0.6% currently. Fresh highs are beckoning for US equities again after the slight setback overnight.
This article was written by Justin Low at www.forexlive.com.
405900 September 19, 2024 13:14 Forexlive Latest News Market News
The Swiss trade surplus narrowed in August with the breakdown seen below:
This article was written by Justin Low at www.forexlive.com.
405899 September 19, 2024 13:00 Forexlive Latest News Market News
The Fed gave market players what they wanted with a 50 bps rate cut yesterday. And the aftermath so far has been… fairly calm to be fair. The dollar did drop on the kneejerk reaction yesterday but that didn’t last too long. Treasury yields are bouncing back up and that’s creating for some mixed moves among major currencies at least.
As for stocks, it did fall yesterday but US futures are looking to bounce back strongly today. It’s all setting up for a rather swingy end to the week with most of the action likely to come in US trading.
Anyway, the central bank bonanza doesn’t just stop at the Fed this week. The BOE is next on the cards before we get to the BOJ tomorrow. Bailey & co. is expected to keep the bank rate unchanged today, with a vote of 7-2. The two dissenters are likely to be the more dovish members i.e. Dhingra and Ramsden.
Traders are pricing in ~81% odds of there being no change today. As such, the decision should not be one to rock the boat too much in sterling and broader markets on the day.
0600 GMT – Switzerland August trade balance data0800 GMT – Eurozone July current account balance1100 GMT – BOE announces its September monetary policy decision
That’s all for the session ahead. I wish you all the best of days to come and good luck with your trading! Stay safe out there.
This article was written by Justin Low at www.forexlive.com.
405898 September 19, 2024 12:39 ICMarkets Market News
IC Markets Europe Fundamental Forecast | 19 September 2024
What happened in the Asia session?
After growing 0.2% QoQ in the first quarter of 2024, New Zealand’s economy contracted 0.2% QoQ in the second quarter. This marked the sixth quarter of contraction over the past year and a half but it was less worse than originally anticipated – markets were forecasting a decline of 0.4%. The combination of weak economic output and higher demand for the greenback is likely to weigh on the Kiwi this morning.
A robust labour force report propelled the Aussie this morning as it surged towards the threshold of 0.6800, gaining almost 50 pips at its highest point. The unemployment rate remained unchanged at 4.2% while a whopping 47.5K jobs were added to the Australian economy. This marked the second highest job gains of 2024 as it beat the estimate of 26.4K by a wide margin – a result that could lead the Aussieto be one of the few currencies to defy the strength in the U.S. dollar today.
What does it mean for the Europe & US sessions?
After reducing its official bank rate by 25 basis points in August, the Bank of England (BoE) is now anticipated to keep rates steady at 5.0%. As GDP growth has picked up sharply thus far in 2024 while core CPI remains sticky, the Monetary Policy Committee members appear inclined to maintain the bank rate at current levels – a move that could provide lift for the Cable later today.
The Dollar Index (DXY)
Key news events today
Unemployment Claims (12:30 pm GMT)
What can we expect from DXY today?
After rising quite sharply from mid-May till the end of July, unemployment claims have steadied over the past six weeks with the 4-week average standing at 231K. With claims stabilizing in recent weeks, it alleviates some concerns surrounding labour market weakness as evident in the recent employment reports by the ADP and BLS. The forecast of 230K claims points to a continuation of stabilization for this data point – a lower figure could function as a near-term bullish catalyst for the dollar.
Central Bank Notes:
Next 24 Hours Bias
Medium Bullish
Gold (XAU)
Key news events today
Unemployment Claims (12:30 pm GMT)
What can we expect from Gold today?
After rising quite sharply from mid-May till the end of July, unemployment claims have steadied over the past six weeks with the 4-week average standing at 231K. With claims stabilizing in recent weeks, it alleviates some concerns surrounding labour market weakness as evident in the recent employment reports by the ADP and BLS. The forecast of 230K claims points to a continuation of stabilization for this data point – a lower figure could function as a near-term bullish catalyst for the dollar which would weigh on gold prices.
Next 24 Hours Bias
Medium Bearish
The Australian Dollar (AUD)
Key news events today
Labour Force Report (1:30 am GMT)
What can we expect from AUD today?
A robust labour force report propelled the Aussie this morning as it surged towards the threshold of 0.6800, gaining almost 50 pips at its highest point. The unemployment rate remained unchanged at 4.2% while a whopping 47.5K jobs were added to the Australian economy. This marked the second highest job gains of 2024 as it beat the estimate of 26.4K by a wide margin – a result that could lead the Aussieto be one of the few currencies to defy the strength in the U.S. dollar today.
Central Bank Notes:
Next 24 Hours Bias
Weak Bullish
The Kiwi Dollar (NZD)
Key news events today
GDP (10:45 pm GMT 18th September)
What can we expect from NZD today?
After growing 0.2% QoQ in the first quarter of 2024, New Zealand’s economy contracted 0.2% QoQ in the second quarter. This marked the sixth quarter of contraction over the past year and a half but it was less worse than originally anticipated – markets were forecasting a decline of 0.4%. The combination of weak economic output and higher demand for the greenback is likely to weigh on the Kiwi this morning.
Central Bank Notes:
Next 24 Hours Bias
Weak Bullish
The Japanese Yen (JPY)
Key news events today
No major news events.
What can we expect from JPY today?
Following yesterday’s FOMC meeting and press conference by Chairman Jerome Powell, demand for the dollar saw a renewed resurgence as USD/JPY broke above the 142-level overnight before racing past 143 as Asian markets came online. This currency pair is likely to continue climbing higher as the day progresses – these are the support and resistance levels for today.
Support: 139.80
Resistance: 143.70
Central Bank Notes:
Next 24 Hours Bias
Medium Bullish
The Euro (EUR)
Key news events today
No major news events.
What can we expect from EUR today?
The Euro initially spiked as high as 1.1188 before reversing sharply to dive under 1.1100 following yesterday’s FOMC meeting and press conference by Chairman Jerome Powell. Overhead pressures were building for this currency pair at the beginning of the Asia session and it is likely to slide lower today – these are the support and resistance levels for today.
Support: 1.1000
Resistance: 1.1180
Central Bank Notes:
Next 24 Hours Bias
Medium Bearish
The Swiss Franc (CHF)
Key news events today
No major news events.
What can we expect from CHF today?
Following yesterday’s FOMC meeting and press conference by Chairman Jerome Powell, bids for the dollar surged creating massive tailwinds for USD/CHF as this currency pair raced past 0.8450 overnight. The strong bullish momentum is likely to push UDS/CHF beyond the threshold of 0.8500 today – these are the support and resistance levels for today.
Support: 0.8400
Resistance: 0.8550
Central Bank Notes:
Next 24 Hours Bias
Medium Bullish
The Pound (GBP)
Key news events today
BoE Monetary Policy Statement (11:00 am GMT)
What can we expect from GBP today?
After reducing its official bank rate by 25 basis points in August, the Bank of England (BoE) is now anticipated to keep rates steady at 5.0%. As GDP growth has picked up sharply thus far in 2024 while core CPI remains sticky, the Monetary Policy Committee members appear inclined to maintain the bank rate at current levels – a move that could provide lift for the Cable later today.
Central Bank Notes:
Next 24 Hours Bias
Medium Bearish
The Canadian Dollar (CAD)
Key news events today
No major news events.
What can we expect from CAD today?
Following yesterday’s FOMC meeting and press conference by Chairman Jerome Powell, demand for the dollar saw a renewed resurgence as USD/CAD made a clean break above the 1.360-threshold overnight. This currency pair was racing towards 1.3650 at the beginning of the Asia session – these are the support and resistance levels for today.
Support: 1.3550
Resistance: 1.3700
Central Bank Notes:
Next 24 Hours Bias
Medium Bullish
Oil
Key news events today
No major news events.
What can we expect from Oil today?
Crude oil prices fell overnight as a 50-basis point rate cut by the Federal Reserve at yesterday’s FOMC meeting raised concerns over a looming slowdown in the world’s largest economy. With ongoing demand concerns from China lingering for most parts of 2024, prices face significant headwinds. WTI oil reversed sharply from $70.30 to plunge as low as $68.95 per barrel by the end of the U.S. session – this benchmark will likely continue to head south as the day progresses.
Next 24 Hours Bias
Weak Bullish
The post IC Markets Europe Fundamental Forecast | 19 September 2024 first appeared on IC Markets | Official Blog.