Financial markets are experiencing a wave of uncertainty once again. Recent reports indicate a downturn in Germany’s business climate, leading to significant volatility during the European trading session. This evening, market participants are eagerly awaiting the release of critical economic data from the United States, specifically New Home Sales, which are anticipated to decline from prior levels.
Here are the details from Trading Central:
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- US New Home Sales (AUG) at 21:00 WIB: forecast 640K vs previous 652K
GOLD
Gold prices have managed to maintain their upward momentum, even reaching a high of $3,779 per troy ounce during the European session. Expectations of a rate cut by the Federal Reserve, combined with rising geopolitical uncertainties, are key factors supporting the price.
Tonight, Gold is poised to extend its rally if the US data reflects further weakness, aligning with the dovish bias on interest rates.
OIL
Oil prices have continued to rebound throughout the European session today, climbing to as high as $63.82 per barrel. Positive sentiment has emerged from the delay in the Iraqi Kurdistan oil export deal, which had previously raised market concerns regarding potential oversupply.
Should US oil reserve data indicate a significant decrease this evening, the bullish momentum for Oil may persist.
EURUSD
EURUSD has been unable to sustain the rally that began earlier in the week. The latest data on Germany’s business climate came in at 87.7, falling short of the Trading Central forecast (89.2) and lower than the previous reading (89), thereby exerting pressure on the Euro during today’s trading.
In the upcoming evening session, EURUSD could experience heightened volatility against the backdrop of a bleak economic outlook for Germany and a dovish stance from the Federal Reserve.
GBPUSD
The GBPUSD pair has also experienced a downturn. The British pound fell to 1.34706 during the European session, pressured by reports of slowing business activity in the UK for September.
Moving forward, GBPUSD is expected to exhibit fluctuating movements. Expectations of a rate cut in the US alongside deteriorating economic sentiment in the UK create opportunities for the Bank of England to adopt a more dovish approach.
USDJPY
The USDJPY pair managed to recover from its recent lows, strengthening to 148.344 during the European session. The strengthening of the US dollar is the primary driver for this increase.
However, tonight’s New Home Sales data from the US is predicted to come in lower than before, which may trigger further volatility in the USDJPY movement.
NASDAQ
After a sharp correction in the previous session, the Nasdaq has shown resilience, rebounding during the European afternoon trade. Gains in technology stocks combined with increasing expectations of a rate cut have served as positive catalysts.
With this momentum, there appears to be a solid chance for the Nasdaq to continue its rally this evening.
