USD: FX markets in holding pattern awaiting fresh catalyst – Scotiabank

Source Fxstreet

Currency markets are generally quiet as we move into Tuesday’s NA session. All of the G10 currencies are trading in a relatively tight range, with the exception of GBP as it underperforms on the back of a weaker domestic employment release. Markets are waiting for a catalyst as the US and China continue their second day of talks in London, and preliminary reports appear constructive, Scotiabank's Chief FX Strategist Shaun Osborne notes.

USD quietly consolidating as markets await resolution of US/China talks

"The holding pattern is apparent across most asset markets, as we note a tight consolidation in US equity futures at fresh local highs — and just two percent shy of their record from mid-February. The US 10Y yield has pulled back modestly from the 4.50% level it had reached in the aftermath of last week’s payrolls, and the German 10Y yield is fading back to the lower end of its recent range and drifting toward 2.50%."

"In commodities, oil prices are well supported as WTI ignores recent OPEC developments and concerns about Saudi-driven oversupply to extend its recovery above $65/bbl to reach fresh local highs. Copper prices are quietly consolidating at the upper end of their recent range as gold prices consolidate in the middle of the flat range that has defined its price action since reaching its record high in April."

"In terms of data, the US NFIB small business optimism release delivered a better than expected recovery, printing its first m/m gain following a steady run of deterioration since December. The US calendar is empty ahead of Wednesday’s CPI release, leaving the focus squarely centered on headline risk as the Fed is in its quiet period ahead of next Wednesday’s policy meeting."

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Bitcoin drops below $110K ahead of $22B options expiry; altcoins tumbleBitcoin fell below the $110,000 mark on Friday, heading for a steep weekly loss as nearly $22 billion in cryptocurrency options were set to expire. The drop also comes as traders await key U.S. inflation data that could influence the Federal Reserve’s policy outlook.
Author  Mitrade
Sept 26, Fri
Bitcoin fell below the $110,000 mark on Friday, heading for a steep weekly loss as nearly $22 billion in cryptocurrency options were set to expire. The drop also comes as traders await key U.S. inflation data that could influence the Federal Reserve’s policy outlook.
placeholder
Tesla set to beat Q3 delivery estimates on robust U.S. and China demand, says RBCTesla (NASDAQ: TSLA) is on track to exceed market expectations for third-quarter deliveries, driven by stronger sales momentum in both the United States and China, according to RBC Capital Markets. The firm projects 456,000 vehicle deliveries for Q3, compared with consensus forecasts of 440,000 (Visible Alpha) and 448,000 (FactSet).
Author  Mitrade
Sept 26, Fri
Tesla (NASDAQ: TSLA) is on track to exceed market expectations for third-quarter deliveries, driven by stronger sales momentum in both the United States and China, according to RBC Capital Markets. The firm projects 456,000 vehicle deliveries for Q3, compared with consensus forecasts of 440,000 (Visible Alpha) and 448,000 (FactSet).
placeholder
Dollar Weakens and Stocks Stall as Gold Rises Ahead of Fed DecisionOn Wednesday, global markets saw the dollar weaken, shares dip slightly, and gold rise to new highs as investors prepared for the Federal Reserve’s anticipated interest rate cut later in the day.
Author  Mitrade
Sept 17, Wed
On Wednesday, global markets saw the dollar weaken, shares dip slightly, and gold rise to new highs as investors prepared for the Federal Reserve’s anticipated interest rate cut later in the day.
placeholder
Key Challenges Ahead for US-China TikTok Ownership DealA newly announced framework agreement between the United States and China aims to shift TikTok’s ownership to U.S. control, raising numerous questions and challenges.
Author  Mitrade
Sept 17, Wed
A newly announced framework agreement between the United States and China aims to shift TikTok’s ownership to U.S. control, raising numerous questions and challenges.
placeholder
Oil Prices Rise Following Attacks on Russian Energy Infrastructure Oil prices climbed further on Monday as markets reacted to Ukrainian drone strikes targeting Russian refinery infrastructure, raising concerns over potential disruptions to Russia’s crude and fuel exports.
Author  Mitrade
Sept 15, Mon
Oil prices climbed further on Monday as markets reacted to Ukrainian drone strikes targeting Russian refinery infrastructure, raising concerns over potential disruptions to Russia’s crude and fuel exports.
Related Instrument
goTop
quote