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2 Oct 2013
Session Recap: Not too much damage to the USD as Gold didn't come to the party
FXstreet.com (San Francisco) - Shutdown who? There were two questions over the market today: how much the Dollar and stocks would be hurt by the US government impasse and how much the Gold would rise in such as risk environment. But none was right.
Wall Street recovered from multi-week lows, the USD traded overall inside its range against its major competitors and the Gold didn't rally but it collapsed throughout the US government shutdown 1st day. As FXstreet.com Chief Analyst commented in a recent report, “market digested pretty well news from the US, as despite dollar ends the day down against most rivals, there have been no fireworks after all."
The EUR/USD jumped to fresh multi-month high of 1.3587, but the pair was unable to keep those levels. Now the Euro to Dollar exchange rate is closing the day at 1.3525. The USD/JPY rallied early in the day to test the dynamic downtrend resistance at 98.70, however the pair was rejected and currently it’s trading at 98.00.
The GBP/USD rallied to 1.6260, nearly 10-month highs but the cable retraced to finish the day at 1.6195. The Sterling has rallied around 1400 pips from its double bottom of 1.4830 and now it's facing the area where the pair failed in April and September 2012, and April 2013, plus a resistance from the downtrend that started in mid-2009.
"At this point, however, I would be tentative," ForexLive analyst Adam Buttom commented in a recent news. "Any trendline is a minor technical feature, especially one that hasn’t been tested multiple times. A more definitive feature is the double bottom from this year and the measured target of that formation is around 1.6820."
The AUD/USD climbed to trade at high as 0.9430 and now it is consolidating levels around 0.9400. The US Oil extended declines for third day and closed the day at $101.60. Nevertheless, the gold was the biggest loser of the day as the XAU/USD reach fresh lows since August 8 at $1,282/oz fueled by news about India hike imports tariffs on the metal and Fitch seeing a base case price of $1200 but stresses could push it to $1000.
Main headlines in the American session
Not a Letta confidence in Italy
US September Markit Manufacturing PMI down to 52.8 vs 53.1 (August))
US: ISM Manufacturing PMI rises to 56.2 in September, against expectations
Fitch sees gold in $1200-$1000 range, limited scope for upside
Wall Street rallies in the 1st shutdown day
Wall Street recovered from multi-week lows, the USD traded overall inside its range against its major competitors and the Gold didn't rally but it collapsed throughout the US government shutdown 1st day. As FXstreet.com Chief Analyst commented in a recent report, “market digested pretty well news from the US, as despite dollar ends the day down against most rivals, there have been no fireworks after all."
The EUR/USD jumped to fresh multi-month high of 1.3587, but the pair was unable to keep those levels. Now the Euro to Dollar exchange rate is closing the day at 1.3525. The USD/JPY rallied early in the day to test the dynamic downtrend resistance at 98.70, however the pair was rejected and currently it’s trading at 98.00.
The GBP/USD rallied to 1.6260, nearly 10-month highs but the cable retraced to finish the day at 1.6195. The Sterling has rallied around 1400 pips from its double bottom of 1.4830 and now it's facing the area where the pair failed in April and September 2012, and April 2013, plus a resistance from the downtrend that started in mid-2009.
"At this point, however, I would be tentative," ForexLive analyst Adam Buttom commented in a recent news. "Any trendline is a minor technical feature, especially one that hasn’t been tested multiple times. A more definitive feature is the double bottom from this year and the measured target of that formation is around 1.6820."
The AUD/USD climbed to trade at high as 0.9430 and now it is consolidating levels around 0.9400. The US Oil extended declines for third day and closed the day at $101.60. Nevertheless, the gold was the biggest loser of the day as the XAU/USD reach fresh lows since August 8 at $1,282/oz fueled by news about India hike imports tariffs on the metal and Fitch seeing a base case price of $1200 but stresses could push it to $1000.
Main headlines in the American session
Not a Letta confidence in Italy
US September Markit Manufacturing PMI down to 52.8 vs 53.1 (August))
US: ISM Manufacturing PMI rises to 56.2 in September, against expectations
Fitch sees gold in $1200-$1000 range, limited scope for upside
Wall Street rallies in the 1st shutdown day