Global FX Economy 25th Sept 2015, bullion firms as Fed under fire. Currency markets, news and analysis.

Forex Market Commentary  

The Dow finishes the week on a high note.

Up to close at  16,314.67 with +113.35 points on the session or +0.70%. Hardly surprising since Fed Chair Yellen  will not be moved even in the face of mounting criticism. Fortune 500 companies have their cheap credit and consequently the Dow can breathe once again  as the status quo remains unchanged. Where are we going? On the back of such uncharacteristic uncertainty traders have been buying gold futures s a hedge.

USDX is trading  at the 50 day moving average at 96.2 where it has been sitting the last 4 weeks. Signs are that it cannot break above the 50 day m.a. for the moment. A slide back to the 93 mark is expected.

EUR/ USD is also sitting on the 50 day moving average at 1.15. The strong upside move since 3rd week April appears to be drawing to a close with a test of the 1.08 at play once again.

WTi crude oil is below the 50 day moving average at 46 and has been in such down trend since 3rd week June but consolidating within the 45 range. Topside targets at 50 remain out of reach; more likely 43-48 range bound trades for the remainder this year.

Gold is above the 50 day moving average this week by virtue of late speculative interest. Gold may test 1200 later this year.

Important moving averages: USDX  at the 50 day m.at 96.2.
EUR/ USD at 50 day m.a at 1.15
Crude Oil WTI below 50 day m.a. at 46
Gold above 50 day m.a. at 1130
US - 30 DAY FED FUND at 50 day m.a. at 99.83
US - 10 YEAR T-NOTES above 50 day m.a at 127

Equities:

On the back of Fed Chair Yellen's statements global equities have a fairly good day Friday realizing that  cheap money is available for the markets.

Asia:
Nikkei 225   17,880.51 + 308.68(1.76%)
SSE Composite 3,092.35 - 50.34 (1.60%)
Hang Seng 21,186.32    + 90.34 (0.43%)

Europe:

DAX 9,688.53 +  260.89(2.77%)
CAC 40 4,480.66 + 133.42(3.07%)

USA:
Dow 16,314.67  +113.35 (+0.70%)    

Fixed Income Markets: US Federal Reserve -  +0.25%   
ECB Base rate 0.050 %
Chinese interest rate PBC     China     4.60 %
Japanese interest rate (BoJ)    0.10 %

 

In speaking of moving averages; markets are not rational and daily price action volatile, but in the longer run trader expectation and negative sentiment can be collectively summed up through the 50 day moving average. Always look to support and resistance band lines as the key to understanding in the long and short term where prices are converging. Professional technical traders use 50 day and 200 day medium and slow moving averages as fundamental cornerstones for interpreting the direction of price action.

USDX

US Dollar
96.227     -0.077 -0.10%   
Support 94.569     Resistance 96.849
Forward 1 year - 95.534s.

EUR/USD
1.11975     +0.00174 +0.16%
Support   1.10853          Resistance 1.14673
Forward 1 year - 1.14840s.  

Crude Oil  WTI

45.37     +0.46 +1.02%

Support 42.53  Resistance  48.11
Forward 1 year - 50.46s.

Gold

1146.340     -4.660 -0.40%

Support  1,131.1    Resistance 1,150.1
Forward 1 year  -  1,138.1s.

Pieter Bergli - DeLoren Trust Holdings

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