Navigating September’s Final Trading Week and What’s Ahead

By Tomasz Wisniewski|

Published: September 25 2023, 07:26 GMT+0

Navigating September’s Final Trading Week and What’s Ahead

Hello traders! As we embark on the final full trading week of September, it’s essential to gauge the market’s opening pulse. But before we delve into the specifics, it’s pertinent to acknowledge the macro calendar. Today’s spotlight falls on the German IFO business climate, anticipated to record a slight dip from 85.7 to 85.1. Wrapping up the European trading session will be a speech by the ECB President, Christine Lagarde. Given the significance of her remarks, the euro might experience some pivotal movements.

Turning our attention to indices, the scene appears cautiously optimistic. Despite an attempt to chart an upward trajectory, the overarching sentiment still leans bearish. The selling pressure dominates the narrative, relegating today’s uptick to a mere technical rebound rather than a robust bullish trend shift.

The currency arena is witnessing the might of the American dollar, showcasing an appreciable ascent. In contrast, the Australian dollar, Swiss franc, New Zealand dollar, and Japanese yen lag, painting a contrasting canvas of weakness. However, typical of most Monday openings, the movements are yet to reach their full amplitude.

Commodities have set out on a positive note. Precious metals, in particular, are seeking to recoup some of last week’s losses. Gold is leading this recuperative march, while silver, fresh from a commendable week, targets the apex of a symmetric triangle formation. Oil, however, remains a subject of speculative caution. After basking in the bullishness of the past Thursday and Friday, the ‘shooting star’ pattern observed on Tuesday casts a long shadow. Nonetheless, the absence of a subsequent slump might hint at sustained buying vigor.

With these observations at hand, we await the week’s unraveling with bated breath, anticipating a confluence of opportunities and challenges.