Hot moving markets not to miss
By Stanislav Bernukhov
29 September 2023
This week in the financial markets has been marked by volatility, as the decline in bond markets persisted alongside the rise of the US dollar. Later in the week, the decline in US Treasuries' prices eased in anticipation of Powell's upcoming speech. Meanwhile, in the UK, yields on benchmark government bonds surged by as much as 20 basis points, representing the most significant daily increase at the close in nearly a year.
September is on track to become the worst-performing month for global bonds since February. On Thursday, the upward momentum in oil prices came to a halt, following a period during which WTI crude briefly surpassed $94 per barrel earlier in the week. Both the value of the US dollar and the price of gold experienced declines by week's end.
US stocks rebounded ahead of Fed Chief Jerome Powell's speech, with the volatility index VIX falling below 20. As we approach October, the possibility of a sharper bullish rebound in the coming week is worth noting. Traders are eagerly awaiting the publication of CPI data from the Eurozone on Friday, as well as a slew of data from Japan, including unemployment and Tokyo CPI.
It’s been a busy week, but today, our focus will be on USDJPY and gold.
USDJPY has failed to break above the upper border of a massive pennant formation that has formed atop the existing trend. If the price fails to establish a new high, it may experience a decline, as indicated on the chart. The release of data from Japan on Friday could potentially increase volatility and expedite this process.
Gold experienced significant selling pressure throughout this week, ultimately reaching the $1860 level. This level could potentially serve as the foundation for an intermediate-term low. Analyzing the price action, the gold chart displayed a notable acceleration below $1900, indicating the possible culmination of the prevailing trend.
Considering that the price has breached the lows from both August and June 2023, there is a higher likelihood of establishing another low above $1860, potentially paving the way for a reversal to the upside.
This is not investment advice. Past performance is not an indication of future results. Your capital is at risk, please trade responsibly.
Stanislav Bernukhov is a professional and trained trading trainer with 15 years of experience in this field. He specializes in multiple trading methods, including price action, Market auction theory, and unconventional graphical analysis.
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