Analytics

News, Trends, & Analytics 16.09.2020

UK Internal Market Act gets second reading

Today, the focus is on Nvidia’s deals, oil market forecasts, and consideration of the UK home market law.

 

Calendar

 12:30 UTC

The benchmark US retail sales for August will be released. The indicator is forecast to grow by 0.9%. If the real data turns out to be lower, the USD will receive a negative impulse.

Assets to trade: USD/CHF, USD/CAD


14:30 UTC

The report on changes in US crude oil reserves will be published. An increase of 2.049 million barrels is expected. If the totals exceed the forecast, Brent may decline.

Assets to trade: Brent, ExxonMobil


18:00 UTC

The Fed’s decision on the interest rate will be published. It is expected that the regulator will keep the key rate at the previous level of 0.25%, however, the event may cause an increase in volatility in the markets.

Assets for trading: S&P 500, EUR/USD, gold


18:30 UTC

The US Federal Reserve will hold a press conference following a two-day meeting of the Monetary Policy Committee. The statements of the head of the regulator Jerome Powell may contain hints of a change in monetary policy, which will lead to an increase in trading volatility.

Assets for trading: S&P 500, EUR/USD, gold


18:30 UTC

New Zealand GDP for Q2 2020 will be released. The indicator is forecast to fall by 12.8%. If the real data turns out to be lower, the NZD will receive a powerful negative impetus.

Assets for trading: NZD/USD, NZD/JPY

 

News

Nvidia’s deal to acquire Britain’s Arm Holdings could squeeze out AMD and Intel’s positions in the microprocessor market. Affects Nvidia


Apple announced revenue growth ahead of new product launches. Impacts Apple


Industrial production in China continues to grow. Affects the S&P 500


The British Parliament passed the controversial bill on the internal market in the second reading. Affects GBP


The IEA, following OPEC, lowers its forecast for oil consumption for 2020. Affects Brent

 

Technical Analysis

FTSE 100

The lack of opposition from the UK Parliament towards the Domestic Market Bill signals its likely adoption. Despite criticism from the EU, London has not compromised on the provisions of a bill that violates the terms of the Brexit deal. It is quite possible that Brussels will nevertheless initiate a trial.

From the technical analysis point of view, the UK stock index FTSE 100 may continue to rise to 6200. After that, a trend change is likely.

EUR/AUD

The asset’s chart has formed a “triple top” pattern, which indicates an imminent continuation of the downtrend.

USD/JPY

The currency pair also gives a sell signal, as the asset obediently reversed from the descending resistance level. The likely target of the downward movement may be the level of 104.150.

 

USD/JPY on this day in history

  • Since 2000, Sept 16th has been a trading day 12 times.
  • On 66% of those days, the asset finished trading with growth.
  • The maximum strengthening range was 1.8%.
  • The downward trend was limited to 1.07%.
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