FXTM information and reviews
FXTM
93%
OctaFX information and reviews
OctaFX
92%
XM information and reviews
XM
91%
FXCC information and reviews
FXCC
90%
Libertex information and reviews
Libertex
89%
FxPro information and reviews
FxPro
88%

Emerging markets in crosshairs


Emerging market currencies have taken a real beating from King Dollar in recent days with the South African Rand, Turkish Lira and Indonesian Rupiah among many others witnessing steep losses.

It was another day, another record low for the Indonesian Rupiah which tumbled to levels not seen since the 1998 financial crisis past 15,180. While expectations may mount over Bank Indonesia raising interest rates once again to defend the Rupiah, this may do little to limit the downside. In South Africa, the Rand shed roughly 4.26% against the Dollar since the start of the trading week while the Lira was not far behind at 4.11%. With ongoing US-China trade tensions weighing on sentiment and US rate hike speculation supporting the Dollar, EM currencies remain in an unfavourable position.

Across the Atlantic, the Dollar has aggressively appreciated on the back of rising US bond yields, robust domestic economic data and safe-haven demand. Market optimism over the strength of the US economy is likely to boost buying sentiment towards the Greenback, which could result in the Dollar Index marching towards 97.00 in the medium term.

The main event risk and potential market shaker on Friday will be the pending US jobs report for September. With the ADP figures printing above market expectations, the U.S non-farm payrolls data may follow a similar positive pattern. A robust NFP print coupled with signs of rising wage growth could fuel expectations over the Fed tightening policy faster than expected. Naturally, such an outcome will be good news for the Dollar but bad news for emerging markets.

Oil prices are trading near four-year highs amid looming US sanctions against Iran and falling production from Venezuela. With a growing sense of uncertainty over the global supply outlook fuelling fears of possible supply shocks, oil prices remain supported in the near term. In regards to the technical picture, WTI Brent remains bullish with $87.00 acting as the first level of interest.

Gold remains pulled and tugged by conflicting fundamental drivers. A broadly stronger Dollar and prospects of higher US interest rates have weighed heavily on the yellow metal. However, uncertainty surrounding Italy’s debt and ongoing US-China trade tensions continue to accelerate the flight to safety – ultimately supporting safe-haven Gold. The muted price action today suggests that the metal needs a fresh catalyst to make its next major move. Focusing on the technical picture, prices are likely to range within the $1,213 resistance and $1,190 support level ahead of Friday’s US jobs report.

Share:


Related

Which is the most reliable forex indicator?
Which is the most reliable forex indicator?

What is an indicator and why is it useful in the world of trading? Indicators typically refer to technical chart patterns deriving from the price, volume, or open interest of a particular...

Everything You Need to Know About Technical Indicators
Everything You Need to Know About Technical Indicators

Traders are divided into two major groups, fundamental and technical, based on the types of analysis they use. Fundamental analysis relies on economic data and news...

How to Catch Effective Forex Signals
How to Catch Effective Forex Signals

Whether you're a newbie or an expert trader, it's worth using professional forex signals. Signals save you time and provide a higher chance of making a successful trade...

Average Directional Index (ADX) Indicator
Average Directional Index (ADX) Indicator

The Average Directional Index is often considered the "market strength indicator" and is called the ADX indicator for short. The indicator is one of many created by...

Why are Forex trading signals important?
Why are Forex trading signals important?

After you are happy with your demo account, you will want to start trading. However, the truth is that you would not have trained yourself properly in Forex trading...

Automated Wealth Forex Signals
Automated Wealth Forex Signals

Unless you are already a full-time trader, or unable to access a computer 24 hours a day, it's difficult to trade forex on a part-time basis. Many forex brokers...


Editors' Picks

HFM information and reviews
HFM
87%
IronFX information and reviews
IronFX
86%
FXCM information and reviews
FXCM
85%
Pepperstone information and reviews
Pepperstone
84%
NordFX information and reviews
NordFX
83%
LegacyFX information and reviews
LegacyFX
82%

© 2006-2022 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.