News, Trends, & Analytics 28.09.2021

Tapering Soon?

Today the focus is on Japan’s recovery, soaring oil prices, & bond tapering in the US.



14:00 UTC

The US CB Consumer Confidence data for September will be released. Forecast: 114.9. If the results are lower than expected the USD could receive a negative push.

Assets to trade: USD/SGD, USD/MXN, USD/NOK



The Bank of Japan will continue to focus on cushioning the economic blow from the coronavirus pandemic, given lingering uncertainty over the outlook and subdued inflation, Governor Haruhiko Kuroda said on Monday. Affects JPY

The US economy is close to having met the Federal Reserve’s bar for beginning to reduce its bond purchase program and will meet it soon if job gains continue, Chicago Fed President Charles Evans said on Monday. Affects USD

Oil prices rose for a fifth straight day on Monday with Brent at its highest since October 2018 and heading for $80 amid supply concerns as demand picks up in parts of the world with the easing of pandemic restrictions. Affects Brent

German inflation is likely to accelerate from already high levels and will stay above 2% through mid-2022, exceeding the European Central Bank’s target for the 19-nation eurozone, the Bundesbank said in a monthly report on Monday. Affects EUR

US House of Representatives Speaker Nancy Pelosi on Sunday set a vote on the $1 trillion bipartisan infrastructure bill for Thursday and voiced confidence it would pass. Affects USD


Technical Analysis


The USD has pressure from the potential end of the Fed’s bond purchase program, and the possible positive influence of the upcoming vote on infrastructure. The eurozone is experiencing accelerated inflation, though leadership is slow to curb it in the face of COVID uncertainty.

The pair is testing its support level with a Three Outside Down pattern.


The credit card’s chart shows Three White Knights heading toward its resistance level.


The pair is testing its support level and has reflected upwards, though it may not have broken the downtrend.

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