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Silver hits 1-year low

Beginners focus on analysis, but professionals operate in a three dimensional space. They are aware of trading psychology their own feelings and the mass psychology of the markets. - Alexander Elder

 

 

HEADLINES

 

 

  • Dollar ascends to fresh 10-1/2-month peak; U.S. debt ceiling impact muted
  • Gold retreats on dollar rally as Fed taper looms
  • Oil Ignores U.S. Weekly Build to Focus on Goldman’s $90 Call
  • Silver Extends Drop to Lowest in a Year as Dollar Keeps Rising
  • S&P 500 Climbs, but Government Shutdown, Growth Concerns Limit Gains
  • Treasury yields to grind higher on more persistent inflation – Charles Schwab

 

 

FOREX

 

 

Dollar ascends to fresh 10-1/2-month peak; U.S. debt ceiling impact muted

 

The dollar surged on Wednesday to a fresh 10-1/2-month peak against rival currencies, boosted by increased expectations for a reduction in the U.S. Federal Reserve’s asset purchases by the end of the year and an interest rate hike, possibly in late 2022. The greenback also fared well despite an impasse in Washington over the U.S. debt ceiling that threatened to plunge the government into a shutdown.

 

 

COMMODITIES

 

 

Gold retreats on dollar rally as Fed taper looms

 

Gold fell to its lowest in seven weeks on Wednesday as the dollar rose and on expectations the U.S. Federal Reserve could soon begin winding down its economic support measures. The dollar, an alternate “safe haven”, rallied to a one-year high against rival currencies, even though a deadlock in Washington over the U.S. debt ceiling threatened to plunge the government into a shutdown.

 

Oil Ignores U.S. Weekly Build to Focus on Goldman’s $90 Call

 

Goldman Sachs has called for $90 a barrel, and the oil market seems bent on getting there, even if weekly U.S. inventory isn’t going to be as supportive. The U.S. Energy Information Administration said crude stockpiles rose by 4.58 million barrels in the week to Sept. 24 versus forecasts for a drop of 2.2 million. Instead of correcting substantially on the data, crude prices which have risen more than 10% since the start of September, fell only slightly on the data. There was, however, an overnight drop of 2% triggered by similar preliminary data from the American Petroleum Institute.

 

Silver Extends Drop to Lowest in a Year as Dollar Keeps Rising

 

Silver extended declines to the lowest in more than a year as the dollar advanced. Gold slipped to the lowest in more than a month. Spot silver fell as much as 4.6% to $21.42 an ounce, the lowest intraday level since July 2020. The white metal is headed for its biggest monthly loss in a year, while gold is on course for its biggest monthly decline since June. Both precious metals are under pressure this year as more central banks start signaling a pullback in stimulus measures used to cushion the economic impact of the pandemic.

 

 

STOCKS

 

 

S&P 500 Climbs, but Government Shutdown, Growth Concerns Limit Gains

 

The S&P 500 climbed Wednesday, attempting to claw back some losses from a day earlier, though ongoing concerns about the recovery and a potential government shutdown stifled upside momentum. Consumer staples and utilities, which serve as the defensive corners of the markets, were the biggest sector gainers, as investors appeared to remain cautious amid fears about slowing growth, faster inflation, and a potential U.S. government shutdown.

 

 

ANALYSIS

 

 

Treasury yields to grind higher on more persistent inflation – Charles Schwab

 

“We see the potential for yields to move higher, due more to inflation becoming ‘stickier’ versus the Fed reducing the pace of its bond buying program… Prices for longer-term bonds are generally more sensitive to changes in interest rates relative to shorter-term bonds, and as a result may experience greater declines in price.”

 

 

CHART

 

 

Euro / US dollar – Daily Candlesticks

Source: GKFX Prime Metatrader 4

EUR/USD looks to be breaking down from major support at 1.16 created by the lows in September/October last year. - 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/us-treasury-yields-to-grind-higher-on-more-persistent-inflation-charles-schwab-202109290746
https://www.reuters.com/article/global-precious/precious-gold-retreats-on-dollar-rally-as-fed-taper-looms-idUSL4N2QV3FP
https://www.reuters.com/article/global-forex/forex-dollar-ascends-to-fresh-10-1-2-month-peak-u-s-debt-ceiling-impact-muted-idUSL1N2QV14Y
https://www.investing.com/news/stock-market-news/sp-500-gives-up-some-gains-as-wall-of-worry-sidelines-bulls-2630122
https://www.investing.com/news/commodities-news/oil-ignores-us-weekly-build-to-focus-on-goldmans-90-call-2629903
https://finance.yahoo.com/news/gold-near-7-week-low-023129054.html

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