A boost in US consumer confidence fails to push indices higher

EURUSD jumps back into consolidation: Chart

The US Dollar was bearish against most of its major pairs on Tuesday with the exception of the CAD and JPY. On the US economic data front, Wholesale Inventories unexpectedly rose 0.5% on month in the August preliminary reading (-0.1% expected), compared to a revised -0.1% in the July final reading. Finally, the Conference Board's Consumer Confidence Index spiked to 101.8 on month in September (90.0 expected), from a revised 86.3 in August. 

On Wednesday, the Mortgage Bankers Association's Mortgage Applications data for the week ending September 25th is expected. Automatic Data Processing's Employment Change for September is expected to increase to 648K on month, from 428K in August. U.S. GDP for the second quarter third reading is expected to remain at -31.7% on quarter, in line with the second quarter second reading. Market News International's Chicago Purchasing Managers' Index for September is expected to rise to 52.0 on month, from 51.2 in August. Finally, Pending Home Sales for August are expected to jump 3.2% on month, compared to +5.9% in July.                       

The Euro was bullish against most of its major pairs with the exception of the AUD. In Europe, France's INSEE has released September Consumer Confidence Index at 95 (vs 93 expected). The Bank of England has released the number of mortgage approvals for August at 84,700 (vs 71,300 expected). The European Commission has reported the Eurozone's September Economic Confidence Index rose from 87.5 to 91.1 (vs 89.0 expected). German CPI fell 0.2% in September in first estimation (-0.1% expected) after a 0.1% decline in August.

The Australian dollar was bullish against all of its major pairs.

Looking at the most active major pairs, the EUR/USD jumped 74 pips to 1.174. The pair as entered back into its prior consolidation zone. A bearish cross remains in-play after the 20-day moving average crossed below the 50-day moving average however bearish momentum as so far failed to materialize. A break above 1.2015 would signal a resumption of the prior uptrend. A break below 1.1605 support could cause an acceleration lower towards 1.15 key support that was acting as resistance back in March. 

Source: GAIN Capital, TradingView

Happy Trading

More from Forex


This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.

GAIN Capital Singapore Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the GAIN Capital group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), GAIN Capital Singapore Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact GAIN Capital Singapore Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.

In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither GAIN Capital Singapore Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.

GAIN Capital Singapore Pte. Ltd. is not under any obligation to update this report.

Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit cityindex.com.sg for the complete Risk Disclosure Statement.

Important Notice:

Cryptocurrencies are not legal tender currency and trading of derivatives on Cryptocurrencies are currently not covered under any regulatory regime in Singapore. Consequently, investors should be aware they do not have protection under the Securities and Futures Act (Cap. 289). Please ensure that you are fully aware of the risks.