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USD Falls & Equities Higher…but Don’t Be Fooled! Can JPY Get any Worse?

   

Hey Valutraders! Did you see the fall in USD? Don’t be fooled!

Subscribe to Free Valutrades Signals at https://www.valutrades.com/en/trading-signals

I’m Brad Alexander and in this week’s Market Blast Fundamentals let’s take a look at GBPUSD, WTI (USOil), Gold (XAUUSD), the USD Index, the NASDAQ (US100), CHFJPY, and USDCHF.


Starting late last week, the USD started to fall and the most prominent pair was USDCHF.Screenshot 2022-09-12 at 14.16.02

CHF is almost the only safe-haven left, with the extreme weakness of JPY, and we will look at that in a minute.

Overall, the USD Index tells the same story and you may be asking, “Why?”

The answer is in the stock market and this chart on the NASDAQ tells the story of investor optimism, shifting cash into equities.Screenshot 2022-09-12 at 14.16.17

If we put the two charts (the NASDAQ and the USD Index) together, we can see the inverse correlation.

However, many analysts feel that this USD weakness is temporary and that the Fed will ignore tomorrow’s CPI figures and severely raise Interest Rates next week.Screenshot 2022-09-12 at 14.16.30

Price action on Gold rose based on the weaker USD and we will look at the technical aspects tomorrow.Screenshot 2022-09-12 at 14.16.47

The weakness of the JPY is still a big concern in Japan as global Interest Rate rises, by other central banks, make the JPY quite unattractive for investors.

Both CHF and JPY have been considered to be Safe-Havens for many years but this monthly chart on CHFJPY, starting in 1998, shows just how bad the situation is.Screenshot 2022-09-12 at 14.17.23

We see a continuing downtrend on WTI as global demand may be in doubt and many countries, including the G-7, are encouraging a price cap on Russian Crude with which Russia may have no choice.Screenshot 2022-09-12 at 14.17.39

The UK economy is currently in great difficulty, with inflation running very high, and the new Prime Minister, Liz Truss, wants to make some radical changes to get the situation under control.

However, she and Andrew Bailey, are postponing their plans and Interest Rate rises, as the nation is in mourning over the death of Queen Elizabeth II.

The Bank of England will meet next week, the day after the Fed.

Watch out for the fireworks.

Thanks for watching and don’t forget to subscribe to Valutrades Signals and the link will be in this video’s description below.

Also, subscribe to our YouTube channel and register on the Valutrades website to get notifications on new content as it happens.

That’s all for now. Happy trading with Valutrades and we will see you next time.

CFDs and FX are leveraged products and your capital may be at risk.12 September 2022 Fundamentals EN TN

 

Disclaimer:

The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice. If such information is acted upon by you then this should be solely at your discretion and Valutrades will not be held accountable in any way.

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