Good news is bad news again

Chris Beauchamp IG

Equities are dropping again following more good economic news in the US, and both the dollar and oil prices are on the move higher once more, says Chris Beauchamp, Chief Market Analyst at online trading platform IG.

Stocks fall again despite government shutdown progress

“US lawmakers seem to be on course to avoid a government shutdown, but solid durable goods orders in the US have spooked investors. Good data is very much ‘bad news’ for stocks right now, as it means there is no pressure on the Fed or other central banks to think about loosening policy. September’s current swoon has been driven by the realisation that high rates are going to be a feature well into 2024, absent a recession which, as yet, refuses to appear on the horizon.”

Oil prices surge again

“The latest consolidation in oil prices seems to have run its course, with both Brent and WTI making solid gains. It makes no sense to stand in the way of oil’s rally, since there is no indication of any increases in supply from key producers, and economic data continues to support the idea of more growth.”

Author

Chris Beauchamp

EUR/USD holds near 1.1900 ahead of US data

EUR/USD struggles to build on Monday's gains and fluctuates near 1.1900 on Tuesday. Markets turn cautious, lifting the haven demand for the US Dollar ahead of the release of key US economic data, including Retail Sales and ADP Employment Change 4-week average.

GBP/USD declines toward 1.3650 on renewed USD strength

GBP/USD stays on the back foot and declines to the 1.3650 region on Tuesday. The negative shift seen in risk mood helps the US Dollar (USD) gather strength and makes it difficult for the pair to find a foothold. The immediate focus is now on the US Retail Sales data.

Gold stabilizes above $5,000 ahead of US data

Gold enters a consolidation phase after posting strong gains on Monday but stays above the $5,000 psychological mark and the daily swing low. US Treasury bond yields continue to edge lower on news of Chinese regulators advising financial institutions to curb holdings of US Treasuries, helping XAU/USD hold its its ground.

Bitcoin Cash trades lower, risks dead-cat bounce amid bearish signals

Bitcoin Cash trades in the red below $522 at the time of writing on Tuesday, after multiple rejections at key resistance. BCH’s derivatives and on-chain indicators point to growing bearish sentiment and raise the risk of a dead-cat bounce toward lower support levels.

Dollar drops and stocks rally: The week of reckoning for US economic data

Following a sizeable move lower in US technology Stocks last week, we have witnessed a meaningful recovery unfold. The USD Index is in a concerning position; the monthly price continues to hold the south channel support.

Bitcoin Cash trades lower, risks dead-cat bounce amid bearish signals

Bitcoin Cash (BCH) trades in the red below $522 at the time of writing on Tuesday, after multiple rejections at key resistance. BCH’s derivatives and on-chain indicators point to growing bearish sentiment and raise the risk of a dead-cat bounce toward lower support levels.