A Week in the Market: Protective Assets Are Ruling (26 September – 30 September)
Central Banks have made their key decisions – it is high time to watch around. Market demand is focused on safe haven assets, so the USD and the yen may demonstrate unusual activity.
EUR: downed and drowned
The Euro zone is ready to publish the prelim inflation statistics for September, and it is going to be really informative. Moreover, unemployment reports for August are also due and are most likely to show some balance in the employment sector. The EUR is very weak because of the advance of the USD, and while market players are fleeing from risks, the situation is unlikely to change.
USD: strong as ever
The US will publish real estate market statistics, where we will most probably see a decline due to the gradual increase in the crediting cost. The CCI by Conference Board may also go down. Also, make notice of the final US GDP info for Q2. The USD is likely to remain strong.
China will show us the PMI in production and non-production, giving some understanding of what is going on in the country’s economy. Strong reports will support currencies of developing countries.
JPY: protective asset
This week, Japan will be active on the macroeconomic calendar. Mind the CCI and retail sales reports. However, in the upcoming minutes of the latest meeting of the Bank of Japan investors will hardly find anything interesting. The JPY might feel some support as a protective asset.
Brent: ready to stabilise
The commodity market turned out depressed because of fear about the future demand. Brent barrel has dropped to the lows of February, but any neutral comment of the OPEC of IEA can push it back. The nearest OPEC+ meeting is scheduled for the next week.