FX Careers

General Market Analysis || 29 September 2023

Markets Bounce for the First Time this Week

US markets had their first reprieve since last week’s Fed meeting as tech stocks led a rally as markets saw a glimmer of hope from some Fed comments. The Dow closed 0.35% in the black, the S&P 0.83% and the Nasdaq 0.83%. The dollar also broke its 6-day winning streak, dropping 0.4% against its usual basket of currencies. US treasury yields also took a breather with the benchmark 10-year dropping back from nearly 4.7% to trade around 4.58% at the end of the day. Oil also fell back off recent highs but the only product yet to catch a break was Gold which continued its recent demise, now trading around the $1,865 level.

All Eyes on US Inflation Data Today

Markets took a bit of a breather yesterday following a torrid few days, but concerns still remain for many investors and the possibility that this was just a blip backup providing better levels to sell is very real. A key data release is due later today in the US in the form of the Fed’s favourite inflation indicator, the Core PCE Price Index and if continues to show signs of ‘sticky’ inflationary conditions then expect more downside risk for stocks and risk sentiment in general. There is also still the chance yet again of a US government shutdown and this could see volatility increase further if it occurs.

Busy End to a Busy Week

It has been a tough week for traders this week and it looks like it will go right down to the wire with key data coming out throughout the day. The Asian session has already seen Tokyo CPI data come out slightly under expectation and more date releases are due out of Japan as the day progresses. The European day will see the release of the latest Euro Core CPI data as well as feature another update from ECB President Christine LaGarde, however, the New York session once again has the greatest propensity to move markets. The US Core PCE Price Index is due out early in the day alongside Canadian GDP data and later in the session, the Chicago PMI number and University of Michigan Consumer Sentiment numbers will keep investors on their toes through to the close.