FX Axe - Official Channel

Friday Market News! USD UPDATE In the European session on Friday, USD/JPY trades lower near 149.70, breaking a three-day winning streak that started on Tuesday. The USD/JPY pair has pulled back despite achieving weekly highs, which is related to the US Dollar’s decline. As of press time, the US Dollar Index is trading down around 106.30, declining from the weekly highs. The negative US Treasury yields contribute to a decline in the US Dollar (USD), with the 10-year US bond yield being down 1.23% at 4.64% at the time of writing. The United States’ dynamic economic environment may have limited the US Dollar’s (USD) losses. The Consumer Price Index (CPI) increased by 3.7% annually in September, slightly more than the predicted 3.6% increase. GOLD ANALYSIS In the midst of returning bets on additional Federal Reserve (Fed) rate hikes, the price of gold (XAU/USD) experienced an intraday turnaround from the $1,885 region ( over a two-week high touched on Thursday), and finished towards the lower end of its daily range. Release of consumer inflation data from the United States (US), which increased more than anticipated in September and supports chances for additional Fed tightening, has been the major event for international markets during the past 24 hours. The large overnight increase in US Treasury bond yields as a result of this caused a significant US Dollar (USD) short-covering rally, which was therefore seen to be a major factor putting pressure on the precious metal. EUR/GBP OUTLOOK The EUR/GBP pair trades back-and-forth after a strong recovery to near 0.8650 in the European session. UK’s Manufacturing and Industrial Production dropped by 0.7% and 0.8% on a monthly basis. UK firms have slowed down their manufacturing activities as higher interest rates, supply chain disruptions, strong inflation have dampened the overall demand environment. Also, firms have postponed their plans of increasing their operating capacity due to higher mortgage rates.

Gold! Following a prolonged sell-off Gold recovered ground and currently hovers around the 1857$ mark. We have been taking advantage of some recent range-bound activity in the last couple of days. We await FOMC minutes, consumer and producer inflation data + updates from the Israel conflict.

MARKET UPDATE: USD AND GBP! USD Gains made by the US Dollar (USD) on Monday are now being reversed as the flight to safety soon subsided. The markets evaluated the situation in Israel and Gaza quite quickly. Markets briefly braced for a potential regional spillover to the larger oil-producing nations, but it wasn't until late Monday night that Saudi Crown Prince Mohammad bin Salman issued a statement urging both sides to sit down and discuss their positions rather than resorting to violence. Since several US markets were closed on Monday for the public holiday, they need to catch up a little with the current situation. Both Dallas Federal Reserve (Fed) President Lorie Logan and Fed Governor Philip Jefferson declared on Monday that the road of interest rate increases has come to a halt. In the meantime, prices in the US bond market are reaching a top and yields are falling as a result of Monday's shortened trading day. GBP As market sentiment recovers and Bank of England (BoE) policymaker Catherine Mann advocates for a more aggressive strategy to bring inflation down to 2%, the Pound Sterling (GBP) stabilises after rebounding from a six-month low. However, she emphasised that she does not guarantee the accomplishment of price stability in a timely manner. Last week, BoE Governor Andrew Bailey stated that he expected inflation to decrease to or below 5% by year's end. The effects of increasing interest rates are most noticeable in the UK's manufacturing and construction industries. The UK's factory activity has been declining, and the PMI gauge has frequently been below the threshold of 50.0. Investors will turn their attention to the UK manufacturing activity and GDP figures for August, which will be revealed on Thursday, to gain better understanding of the current state of the economy.

MARKET UPDATE! FUNDAMENTALS = VOLATILITY. WATCH OUT! ISRAEL Over the weekend, fighting broke out in the Middle East as a result of an attack on Israel by the Palestinian Islamist militant group Hamas, which has so far claimed over 700 lives. In retaliation, Israel struck Hamas sites in the Gaza Strip, resulting in over 400 reported fatalities. Despite widespread censure, the long-running feud between the two shows little signs of ending, leaving markets open to additional spikes in volatility. The Middle East turmoil has caused gold to rise dramatically, adding to Friday’s post-NFP gain. The action late last week prevented the precious metal from hitting support just above $1,800/oz and broke a short-term bearish pennant formation. Even though the headline NFP number was somewhat higher than anticipated, the Fed will have been pleased with a slight decline in average hourly wages as they continue their fight against inflation. GBP/USD Following a brief reversal, the Pound Sterling (GBP) fell on Monday as the Israel-Hamas confrontation that erupted over the weekend reinforced the risk-aversion theme. The Federal Reserve (Fed) is anticipated to consider one more interest rate hike, while the Bank of England (BoE) may decide to leave interest rates unchanged to allay concerns about a recession in the UK economy. As a result, the GBP/USD pair fell substantially. WTI OIL – MARKET DRIVERS Like all assets, the price of WTI Oil is primarily influenced by supply and demand. As a result, higher demand might be driven by worldwide growth and vice versa for weak global growth. War, sanctions, and political unrest all have the potential to alter supply and raise costs. The decisions made by OPEC, a large collection of nations that produce oil, are another important factor in price. Since WTI Crude Oil is mostly traded in US Dollars, the value of the US Dollar has an impact on the price of the commodity. A weaker US Dollar might make oil more inexpensive, and vice versa.

If you're not happy with your current performance and profits in the markets we might just be able to help! www.fxaxe.com

Start of a new trading week and with that comes new opportunities to extract money out of the markets!

Struggling to navigate the world of forex? Message us! @SuppFXAxe

All the important news to look out for straight from the Axe Analyst team including the Fed Interest Rate Decision later today!

The Consumer Price Index (CPI), which measures inflation, is a crucial indicator of pricing pressures in an economy. Forex traders keep an eye on the CPI because the central bank may adjust its monetary policy as a result, which could enhance or weaken the value of the currency relative to other currencies. It is anticipated that the US Consumer Price Index will climb by 3.6% YoY in August, up from the 3.2% increase seen in July. Inflation in the core CPI is predicted to drop significantly in August, to 4.3% YoY. The US CPI inflation report might have a big impact on the value of the US dollar before the September policy meeting of the Fed. Since the middle of July, the US Dollar (USD) has been outperforming its competitors as new macroeconomic data emphasises the US economy's solid performance and the tight labour market. Chairman of the Federal Reserve (Fed), Jerome Powell, emphasised that the Fed is prepared to raise the policy rate further if appropriate during his final public presentation at the Jackson Hole Symposium on August 25. Despite recent readings that have been more encouraging, Powell stated that inflation "remains too high" and that there is still a long way to go in bringing it down. Data on US CPI inflation may change how markets perceive the Fed's rate forecast and have a substantial impact on how much the USD is worth. Investors will closely examine the report's specifics to determine whether any strides have been made in taming the sticky aspects of inflation. The CME Group FedWatch Tool indicates that markets are pricing in a 40% possibility that the Fed will increase the policy rate by 25 basis points (bps) before the end of the year at the time of the event.

What better time to start up the Telegram than 20 minutes before a major news announcement!