Dollar gains for a third week

“If you do not know how to care for money, money will stay away from you.” Robert Kiyosaki

 

 

HEADLINES

 

 

• Dollar climbs as Evergrande uncertainty percolates
• Germans vote in close election to decide Merkel successor
• Oil Nears 3-Year High on Bets Over Tight Winter Supply
• Gold Flat on Week But Deeply Bruised After Fed Taper Plan
• Dow, S&P 500 end with gains up after bumpy week, but Nike drags
• Ukraine joins the comity of crypto-friendly nations with new regulation
• USD/JPY: Likely to move higher as US yields lift off – Danske Bank

 

 

 

FOREX

 

 

Dollar climbs as Evergrande uncertainty percolates

 

The dollar rose on Friday and was poised for its third straight week of gains against a basket of major currencies, as uncertainty over beleaguered Chinese property developer Evergrande helped the greenback bounce back from a sharp decline in the prior session.

 

Germans vote in close election to decide Merkel successor

 

Germans vote in a national election on Sunday that looks too close to call, with the centre-left Social Democrats (SPD) mounting a strong challenge to retiring Chancellor Angela Merkel’s conservatives. Merkel has been in power since 2005 but plans to step down after the election, making the vote an era-changing event to set the future course of Europe's largest economy.

 

 

COMMODITIES

 

 

Oil Nears 3-Year High on Bets Over Tight Winter Supply

 

Winter may be months away, but markets being markets have the habit of forerunning things. Oil was running on that sentiment on Friday as crude prices closed up for the fifth week in a row, after nearing three-year highs during the session. London-traded Brent crude, the global benchmark for oil, settled up 84 cents, or 1.1%, at $78.09. For the week, Brent gained 3.7%.It was a fifth straight week of gains for WTI and a fourth in five weeks for Brent, which are both up about 50% on the year.

 

Gold Flat on Week But Deeply Bruised After Fed Taper Plan

 

For the record, it ended flat on the week. Yet, gold wouldn’t fool anyone on what prompt sentiment is for the yellow metal. For the week though, it was virtually flat, in fact settling 30 cents higher from last Friday.

But to those tracking the market, especially the long investors who have repeatedly been burned following optimistic forecasts of the past nine months, the real weekly comparison should have been against last Wednesday. That was the day when gold lost 2%, its most since early August, as U.S. bond yields spiked and the dollar girded higher as well on speculation of hawkish Federal Reserve action over its economic stimulus and lower-for-longer interest rates.

 

 

STOCKS

 

 

Dow, S&P 500 end with gains up after bumpy week, but Nike drags

 

The Dow and S&P 500 edged higher on Friday and ended a turbulent week with slight increases, helped by gains in Tesla (TSLA.O) and Facebook (FB.O) that offset a tumble by Nike (NKE.N). Athletic wear company Nike's shares fell 6.3% and were the biggest drag on the Dow and the S&P 500 after it delivered a downbeat sales forecast and warned of delays during the holiday shopping season, blaming a supply chain crunch.

 

 

CRYPTO

 

 

Ukraine joins the comity of crypto-friendly nations with new regulation

 

While some countries move toward blanket prohibitions or stringent regulations, others elect to go with a more open approach to crypto. For Ukraine, the latter path appears to be the case, with the government encouraging legalized crypto operations within the country. Ukraine’s seemingly positive stance on cryptocurrencies also stands in stark contrast with neighbouring Russia where officials are enacting regulatory roadblocks against the ownership and use of digital currencies.

 

 

ANALYSIS

 

 

USD/JPY: Likely to move higher as US yields lift off – Danske Bank

 

“To take USD/JPY back towards 100, we need a long lasted change in risk sentiment causing US rates and commodities to decrease again. BoJ tolerating higher JGB yields poses a limited risk, because they will be very careful and only take baby steps exactly to avoid a significant strengthening of the yen.” “We expect USD/JPY to drift higher, as US yields starts to climb and commodity prices remain high.”

 

 

CHART

 

 

US dollar / Japanese yen – Daily Candlesticks

Source: GKFX Prime Metatrader 4

USD/JPY had its highest daily close since early July in what looks like a potential breakout through the top of its horizontal trading range. - Prepared by Trading Writers*

 

 

CALENDAR

 

 

*Times in GMT

Source: FX Street Economic Calendar

 

 

SOURCE

 

 

https://www.fxstreet.com/economic-calendar
https://www.fxstreet.com/news/usd-jpy-likely-to-move-higher-as-us-yields-lift-off-danske-bank-202109241519
https://www.reuters.com/article/germany-election/refile-germans-vote-in-close-election-to-decide-merkel-successor-idUSL8N2QQ2J1
https://www.reuters.com/business/dow-sp-500-end-with-gains-up-after-bumpy-week-nike-drags-2021-09-24/
https://www.reuters.com/business/dollar-climbs-evergrande-uncertainty-percolates-2021-09-24/
https://www.investing.com/news/commodities-news/oil-nears-3year-high-on-bets-over-tight-winter-supply-2626274
https://www.investing.com/news/cryptocurrency-news/ukraine-joins-the-comity-of-cryptofriendly-nations-with-new-regulation-2626705