Market Brief: FX Subdued Ahead of ECB Tomorrow, US Indices Rally Across the Board
Matt Weller, CFA, CMT September 11, 2019 9:09 PM
- FX: The aussie was the strongest major currency and the loonie was the weakest as PM Trudeau called for an election on October 21, introducing an element of political uncertainty into the currency. For more on today’s moves and the outlook for major currencies moving forward, today’s articles on GBP/USD and USD/CHF.
- US data: August PMI came in at +1.8% y/y, above expectations of a +1.7% reading. Continued solid inflation readings have caused traders to cut back the odds of a 50bps “double” rate cut from the Fed next week, though a 25bps cut looks like a done deal at this point.
- Separately, President Trump met with his advisors to discuss a possible capital gains tax cut.
- Tomorrow’s ECB decision will be the week’s marquee event – see our full preview here!
- Commodities: Oil fell around -2.5% on the day while gold edged higher after four straight days of selling.
- US indices traded higher across the board, with the tech-heavy Nasdaq leading the way.
- Utilities (XLU) and Materials (XLB) were the strongest major sector on the day, while REITs (XLRE) brought up the rear.
- Stocks on the move:
- A couple of retailers rallied on no company-specific news: J.C. Penney Company (JCP) tacked on 25% today, while embattled Overstock.com (OSTK) gained 7%.
- All was not well for retailers though as GameStop (GME) lost -10% after reporting worse-than-expected earnings.
- RH (RH) rallied 5% on better-than-expected earnings figures.
Disclaimer: GAIN Capital UK Limited (trading as "Forex.com") is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, Forex.com does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by Forex.com or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although Forex.com is not specifically prevented from dealing before providing this material, Forex.com does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
For further details see our full non-independent research disclaimer and quarterly summary.