Dollar hits 2-week high on taper talk

“Investment is the discipline of relative selection.” - Sid Cottle

 

 

HEADLINES

 

 

• U.S. dollar rises to two-week high as Fed taper view builds
• GBP/USD seesaws below 1.3850 ahead of US CPI figures
• Gold Labours Under $1,800 Ahead of U.S. CPI Release
• U.S. oil prices climb back above $70 a barrel; natural-gas rallies to a fresh 7-year high
• Wall Street stocks on track for worst losing streak since pandemic began
• Price of Litecoin Spikes on Fake Walmart Press Release
• EUR/USD to grind lower from 1.18 to 1.12 in the next year – SocGen

 

 

FOREX

 

 

U.S. dollar rises to two-week high as Fed taper view builds

 

The dollar climbed to a two-week peak against a basket of major currencies on Monday, as investors continued to price in expectations that the U.S. Federal Reserve could reduce its asset purchases sooner rather than later despite a surge in COVID-19 cases. The Philadelphia Fed President Patrick Harker became the latest official to say he wants the central bank to start tapering this year, saying in a Nikkei interview that he was keen to scale back asset purchases.

 

GBP/USD seesaws below 1.3850 ahead of US CPI figures

 

GBP/USD is trading virtually unchanged on the day currently trading at 1.3831. Market sentiment remains upbeat, influencing commodity- currencies and weighing on the dollar, as investors focus on US inflation numbers. On Tuesday, in the UK economic docket, the Claimant Count Change is expected to come at -71K, while the ILO Unemployment Rate is forecasted at 4.6%...Meanwhile, across the pond, the CPI figures for August will be released on Tuesday. The US CPI is expected to come at 0.4%, while the CPI excluding energy and food number is foreseen at 0.3%.

 

 

COMMODITIES

 

 

Gold Labours Under $1,800 Ahead of U.S. CPI Release

 

Gold laboured mostly under $1,800 an ounce Monday as long interest was capped ahead of the release of U.S. consumer inflation numbers that could surprise to the upside and hurt the yellow metal. December gold fell 2.3% last week, sliding its most since the week to July 29, and booking its first weekly loss in five as brief euphoria for longs over the dismal U.S. jobs report for August gave way to dismay as the dollar rebounded on talk of a prompt Fed taper.

 

U.S. oil prices climb back above $70 a barrel; natural-gas rallies to a fresh 7-year high

 

U.S. benchmark oil prices settled above $70 a barrel on Monday for the first time in nearly six weeks, and natural gas futures extended last week's rally to mark a finish at the highest since February 2014. The Bureau of Safety and Environmental Enforcement reported Monday that an estimated 43.6% of oil production and 51.6% of natural-gas production in the Gulf remains shut in following Hurricane Ida.

 

 

STOCKS

 

 

Wall Street stocks on track for worst losing streak since pandemic began

 

US equities dipped on Monday afternoon, on track to notch a six-day run of losses for the S&P 500 and mark the benchmark’s longest losing streak since the onset of the coronavirus pandemic. The S&P had its worst week since June last week, although it remains close to the all-time high reached earlier this month, as investors fretted about the US Federal Reserve cutting its $120bn a month of bond purchases designed to boost lending and spending during the pandemic.

 

 

CRYPTO

 

 

Price of Litecoin Spikes on Fake Walmart Press Release

 

The price of litecoin surged Monday morning after a fake press announcement was released saying retail giant Walmart intended to offer its customers the option to make payments in crypto via a new partnership with the Litecoin Foundation. Walmart confirmed, however, that the press release was fake, saying that “Walmart had no knowledge of the press release issued by GlobeNewswire, and it is incorrect.”

The news initially caused the price of litecoin to soar almost 30% from $175.45 to $225.75, and the price of bitcoin to rise 1.8% to $45,540. Litecoin’s price has since fallen back to $178, while the price of bitcoin has dropped to $44,498.

 

 

ANALYSIS

 

 

EUR/USD to grind lower from 1.18 to 1.12 in the next year – SocGen

 

Economists at Société Générale expect the world’s most popular currency pair to plummet from 1.18 to 1.12 in 2022. “Medium-term, we expect the EUR/USD to appreciate.” “We see the pair depreciating from 1.18 to 1.12 next year, due to quicker changes from the Fed (tapering and rate hikes).”

 

 

CHART

 

 

NZD/USD – Daily Candlesticks

Source: GKFX Prime Metatrader 4

Having dropped back from a falling long term trendline on the daily chart, NZD/USD could see a sharper pullback if it were to drop below former resistance near 0.71. - 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/eur-usd-to-grind-lower-from-118-to-112-in-the-next-year-socgen-202109131256
https://www.fxstreet.com/news/gbp-usd-seesaws-below-13850-ahead-of-us-cpi-figures-202109131859
https://www.investing.com/news/commodities-news/gold-labors-under-1800-ahead-of-us-cpi-release-2614835
https://www.investing.com/news/economy/dollar-finds-footing-as-traders-await-inflation-data-2613945
https://www.marketwatch.com/story/us-oil-prices-climb-back-above-70-a-barrel-natural-gas-rallies-to-a-fresh-7-year-high-2021-09-13
https://www.ft.com/content/ca021fdd-7701-45e7-befa-867a9052887e
https://www.coindesk.com/business/2021/09/13/price-of-litecoin-spikes-on-fake-walmart-press-release/