What's New in FXCM?
The market continues to face headwinds as we move into Q3 earnings seasons. Yields remain elevated with OPEC+ maintaining its supply cut. However, this has been compounded by the breakout in hostilities between Israel and Hamas. This has increased uncertainty and has added to risk that markets are facing. The risk side has hit resistance with havens supported. Read on for all the details.
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Top Market Events
As we head into Q3 earnings season, the technical makeup regarding the major US indices is mixed. The US2000 smaller companies index is below its 200-day EMA with the EMA pointing down. This is concerning because the US2000 is sensitive to macroeconomic data.
The SPX500 and the NAS100 are both above their respective 200-day EMAs but momentum has stalled.
The higher yields continue to act against the stock market and the Israel-Hamas conflict is an added headwind, with a risk of regional escalation. In this environment, the USDOLLAR continues to act as a safe haven. Gold has improved markedly following the eruption of the Middle East conflict and has moved above its 200-day EMA, as its haven status comes into focus. However, the GER30 is showing weakness as it trades below its 200-day EMA.
Finally, oil is very much top-of-mind due to supply constraints and geopolitics and is trading above its 200-day EMA and its shorter 20-day EMA.
In the Spotlight
USOil has charted a higher trough followed by a higher peak on its daily chart. OPEC+ has extended its supply cuts and there is a fear that this may be compounded if the Israel-Hamas conflicts escalates and spreads in the region.
Given the headwinds that the markets are facing, the precious metal has caught a bid. Capital may rotate towards safety including gold if uncertainty continues to escalate.
EURUSD is trading below its 200-day EMA. Any rallies into resistance may be compelling especially given the higher US yields, which may stay higher for longer, and the pressure arising from the Mid-East conflict, with dollar safety being potentially sought.
Take a look at the client service response times across the FXCM Group during September.
Average wait time for live chat support.
Source: FXCM Service data, review period: September 2023.
Top Traded in September
See the top instruments by trading volume during September 2023 across the FXCM Group.
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