Euro flat after ECB tapers

The elements of good trading are: 1 cutting losses, 2 cutting losses, and 3 cutting losses. If you can follow these three rules, you may have a chance. - Ed Seykota

 

 

HEADLINES

 

 

• Euro holds minor daily gains after ECB trims emergency support
• Dollar drops with US yields
• Gold futures finish higher to reclaim the key $1,800 mark
• Wall Street ends down after jobless claims hit 18-month low
• Tencent and NetEase shares fall as China urges end to profit focus in gaming
• SEC Sets November Deadline for Final Decision on VanEck Bitcoin ETF
• ECB: A predictable meeting, next re-calibration in December – Danske Bank

 

 

FOREX

 

 

Euro holds minor daily gains after ECB trims emergency support

 

The euro held onto small daily gains on Thursday after the European Central Bank said it will trim emergency bond purchases over the coming quarter, taking a first small step towards unwinding the emergency aid that has propped up the euro zone economy during the pandemic. In the past two quarters, the bank has bought around 80 billion euros worth of debt each month. It provided no numerical guidance for the three months ahead, but analysts had predicted prior to the meeting that purchases would fall to between 60 billion and 70 billion euros in those months.

 

Dollar drops with US yields

 

The dollar dipped on Thursday as Treasury yields fell after the U.S. government saw strong demand for a sale of 30-year bonds, while the euro was supported after the European Central Bank said it would trim emergency bond purchases over the coming quarter. The greenback has largely moved in line with Treasury yields this week. Yields fell on Thursday after the Treasury completed $120 billion in coupon-bearing supply scheduled for this week.

 

 

COMMODITIES

 

 

Gold futures finish higher to reclaim the key $1,800 mark

 

Gold futures finished higher on Thursday, after spending much of the session seesawing between gains and losses, as investors weighed a drop in weekly U.S. jobless claims to their lowest since the pandemic began and news that the European Central Bank will slow asset purchases.

 

 

STOCKS

 

 

Wall Street ends down after jobless claims hit 18-month low

 

all Street ended lower on Thursday after weekly jobless claims fell to a near 18-month low, allaying fears of a slowing economic recovery, but also stoking worries the Fed could move sooner than expected to scale back its accommodative policies. The Labor Department said initial claims for state unemployment benefits dropped 35,000 to a seasonally adjusted 310,000 for the week ended Sept. 4, the lowest level since mid-March 2020.

 

Tencent and NetEase shares fall as China urges end to profit focus in gaming

 

Shares in Tencent and NetEase fell sharply after authorities ordered the Chinese technology companies to pivot from focusing on profits in online gaming and on reports that Beijing had halted approvals for new games.

China’s two leading gaming companies were summoned for talks on Wednesday in Beijing, in which top officials asked them to “profoundly understand the importance and urgency of preventing minors from online game addiction”, according to Xinhua, the state news service.

 

 

CRYPTO

 

 

SEC Sets November Deadline for Final Decision on VanEck Bitcoin ETF

 

The Securities and Exchange Commission (SEC) has once again delayed ruling on VanEck’s bid for a bitcoin exchange-traded fund (ETF).

The U.S. regulator on Wednesday gave itself until Nov. 14 to approve or reject “VanEck Bitcoin Trust,” one of the earliest bitcoin ETF hopefuls to try its luck this filing cycle, and the first whose judgment day has been delayed three times.

That’s an important distinction: The SEC can only extend its consideration period for prospective ETFs three times. Unless it rules on one of the many other bitcoin ETF applications in the interim, Nov. 14 will yield a final answer on where VanEck’s offering stands.

 

 

ANALYSIS

 

 

ECB: A predictable meeting, next re-calibration in December – Danske Bank

 

“Overall, we largely share the ECB’s cautiously optimistic outlook for the economy and transitory inflation narrative. That said, with inflation expected to print above the ECB's target for the remainder of this year, we would not be surprised to see hawks in the ECB's Governing Council to become more vocal about pro-inflationary risks in the coming months. Fiscal rather than monetary policy will increasingly determine how the euro area recovery continues in 2022 and in that respect the outcome of Germany’s upcoming parliamentary election will play a crucial role in our view.”

 

 

CHART

 

 

Wall Street 30 – Daily Candlesticks

Source: GKFX Prime Metatrader 4

WS30 has broken below a rising 6-month old trendline. Profit-taking near the big 35,000 psychological number could prompt a steeper pullback - Prepared by Trading Writers*

 

 

CALENDAR

 

 

*Times in GMT

Source: FX Street Economic Calendar

 

 

SOURCE

 

https://www.fxstreet.com/economic-calendar
https://www.reuters.com/business/dollar-drops-with-us-yields-euro-buoyed-ecb-trims-emergency-support-2021-09-09/
https://www.fxstreet.com/news/ecb-a-predictable-meeting-next-re-calibration-in-december-danske-bank-202109091548
https://finance.yahoo.com/news/forex-euro-holds-minor-daily-140612078.html
https://www.ft.com/content/f724834b-53fb-4e1b-83d6-62150e3741f2
https://www.marketwatch.com/story/gold-futures-rise-aim-to-snap-2-session-skid-11631187349