Stocks Down, USD Up

The looming government shutdown talks continue feeding into a stronger US dollar. US politicians have agreed to a 6-week short-term funding to keep the government running for another month and a half, but getting approval from the full Senate will be a challenge with far-right Republicans’ determination to ‘shoot it down if it reaches the floor’.

WTI Oil Technical: Continuation of Potential Impulsive Up Move Within a Major Uptrend

West Texas Oil (a proxy of WTI crude oil futures) has indeed shaped the bearish counter-trend pull-back movement of -4.7% from its 19 September 2023 minor swing high of US$93.05/barrel to a low of US$88.66/barrel printed yesterday, 26 September which fell short of the earlier highlighted short-term support zone of US$86.30/US$84.90 as per highlighted in our prior analysis.

Crypto Market is in a Dilemma

Despite the storm in the equity markets, the crypto market remains subdued, losing only 0.3% in 24 hours to $1.045 trillion. The Crypto Market Fear and Greed Index is dipping into “fear” territory. The crypto market did not suddenly become a safe haven. Still, it only temporarily turned out to be of no interest to active speculators, as the movements of shares of technology giants and government bond prices now attract their primary attention.

Australian Dollar's Decline Continues

The Australian dollar has extended its losses on Wednesday and has dropped 1% on the week. In the European session, AUD/USD is trading at 0.6374, down 0.35%. The Australian dollar finds itself perilously close to 0.6357, an 11-month low.

EUR/USD Extends Losses, Eyes German Inflation

The euro has extended its losses on Wednesday and has declined close to 1% this week. In the European session, EUR/USD is trading at 1.0552, down 0.18%.

Markets Fat as the Dust Settles on a Massive Week of Central Bank Meetings

Equity markets are pretty flat in the middle of the week, struggling to pick themselves up off the floor as investors worry about higher for longer interest rates and the economy.

New Zealand Dollar Edges Lower, Business Confidence Next

The New Zealand dollar is slightly lower on Wednesday. NZD/USD is trading at 0.5937 in the North American session, down 0.13%.

Spanish and German Inflation Data to Set the Direction for European Markets

In the euro area, we receive inflation data from Spain and Germany which will give some clues ahead of the aggregate euro area inflation print tomorrow.In the US, Powell hosts a town hall speech at 22:00 CET with Q&As. There are several ECB speeches today including Holzman as well as a couple of speeches by the Riksbank members.

Crypto Needs Financial Chaos for Growth

Crypto market capitalisation rose 0.7% in 24 hours to 1.053 trillion. This is a return to the levels seen at the end of last week. Cryptocurrencies saw increased buying when equity markets were under the most pressure and the dollar was gaining momentum. However, this momentum didn’t last long.

Australian Dollar Steadies, Retail Sales Dip

The Australian dollar is in positive territory on Thursday after three straight daily losses in which AUD/USD lost over 1% and hit an 11-month low. In the European session, AUD/USD is trading at 0.6367, up 0.23%.