Welcome to our comprehensive Forex Market Update, your go-to resource for the latest trends and key events affecting major currency pairs. This week, we’ll cover essential updates across EUR/USD, GBP/JPY, XAU/USD, AUD/USD, and USD/JPY. Whether you’re a seasoned trader or just getting started, our in-depth analysis will help you make informed trading decisions.
Monday’s Movements
A Look at China’s PMI Data
This week kicked off with much-anticipated data from China, specifically the Manufacturing PMI and the Non-Manufacturing PMI. The Purchasing Managers’ Index (PMI) for China’s manufacturing sector came in at 49.8 in September, up from 49.1 in August. While still under the 50-mark that separates growth from contraction, this was the highest reading in five months.
China’s factory activity shrank for the fifth consecutive month, and the services sector slowed sharply. This suggests Beijing may need more stimulus to hit its 2024 growth target. Despite recent policy announcements, including loosened property curbs in major cities, analysts remain skeptical about an immediate recovery.
Positive Trends in New Zealand’s Business Confidence
Meanwhile, New Zealand’s ANZ Business Confidence survey showed headline confidence at its highest since May 2014. Firms are notably upbeat about their own outlook, profits, investment, and steady jobs. The retail and construction sectors, in particular, appear more cheerful.
ANZ’s survey for September indicated a significant rise in general sentiment, reaching a net 61 percent optimism.
Euro and Dollar Dynamics
The EUR/USD pair hit 1.1208 during European hours on Monday amid persistent US Dollar weakness. Positive news from China and hopes for continued monetary loosening underpinned this optimism.
Gold and GBP/USD Movements
Gold extended its downward correction, trading deep in negative territory near $2,630. Anticipation of Fed Chairman Powell’s speech and profit-taking ahead of the long Chinese holiday weighed on XAU/USD.
GBP/USD briefly lost momentum, breaking below 1.3400. Renewed downside pressure on the Greenback led to this shift.
USD/JPY Rally
USD/JPY rallied above 143.00 following Japan Ishiba’s dovish dialogue, emphasizing the need for an accommodative policy stance. Investors are eagerly awaiting Fed Powell’s speech for fresh interest rate guidance.
Crypto Market Snapshot
In the crypto market, Bitcoin traded at $63,823. Bitcoin Spot ETFs recorded consistent inflows for seven days, indicating strong institutional demand. Ethereum traded at $2,601, down 2% on the day, while XRP slipped below $0.6500 amid speculation around the SEC’s appeal in the Ripple lawsuit.
Tuesday’s Trends
New Zealand and Australia’s Economic Indicators
Tuesday brings the release of New Zealand’s Business Confidence report and Australia’s retail sales m/m. These reports are crucial for gauging the economic health of both nations and may impact the NZD and AUD respectively.
Europe’s CPI Flash Estimate
Europe will release the CPI Flash Estimate y/y, crucial for understanding inflationary pressures. This report could significantly influence EUR/USD and EUR/GBP trading pairs.
Key US Economic Reports
In the USA, we anticipate the release of the Final Manufacturing PMI, ISM Manufacturing PMI, and ISM Manufacturing Prices. Additionally, the JOLTS Job Openings report will be closely watched, as these metrics can impact the US Dollar and associated currency pairs.
Wednesday’s Watch
OPEC-JMMC Meetings and US Crude Inventories
On Wednesday, all eyes will be on the OPEC-JMMC Meetings and the US Crude Oil Inventories report. The outcomes may affect crude oil prices, influencing energy stocks and currencies linked to oil-exporting nations.
ADP Non-Farm Employment Change
The ADP Non-Farm Employment Change report will also be released, providing insights into job growth in the private sector and potentially impacting the US Dollar.
Thursday’s Insights
Switzerland’s CPI and US Economic Metrics
Thursday features Switzerland’s CPI m/m report, which may impact the Swiss Franc or USD/CHF. In the US, the weekly Unemployment Claims report, ISM Services PMI, and Final Services PMI will be released. These metrics are critical for gauging economic health and could affect the US Dollar.
Friday’s Focus
Non-Farm Employment Change and Britain’s Construction PMI
Friday is pivotal for forex traders as the Key Non-Farm Employment Change (NFP) report will be released. This report is known to shake the currency markets. Additionally, Britain’s Construction PMI report could impact the GBP.
US Ivey PMI
The US Ivey PMI will also be released on Friday, and its outcome may influence the US Dollar.
Disclaimer:
All information has been prepared by TraderFactor or partners. The information does not contain a record of TraderFactor or partner’s prices or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. Any material provided does not have regard to the specific investment objective and financial situation of any person who may read it. Past performance is not a reliable indicator of future performance.
