CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
✖

Taper debate still ongoing

Article By: ,  Financial Analyst
September 9, 2013 10:27 AM

The weaker than expected US jobs report on Friday kept the Fed tapering debate open, with the WSJ’s and known Fed watcher Jon Hilsenrath commenting that the disappointing jobs report has left Federal Reserve officials without a clear cut signal of an economy on the mend. The biggest miss comes from revisions from previous months which shaved off 74k. The 0.1% drop in the unemployment level from 7.4% to 7.3% came due to the participation rate which has now dropped back to levels last seen in 1978. The general thought in the market seems to be that this will not stop the Fed from tapering this month but the size is likely to be scaled back from the expected $25 billion per month to a more modest $10 billion in treasuries and $5 billion in mortgage backed securities.

JPY opened weaker at the start of trading this week in Sydney following news that Japan will host the 2020 Olympic Games, beating Istanbul and Madrid. The Nikkei is trading up 2% on the day led by the construction component, with the victory likely to boost Japanese GDP by 0.5%.

In other news Australia has a new Prime Minister in Tony Abbot. The Liberal leader has vowed to reduce corporate tax and boost the mining industry. AUD is rather unchanged on the news as the outcome has been widely expected.

This week’s data releases are the Italian Q2 GDP (Tuesday), UK employment (Wednesday) and EU industrial production (Thursday), along with the euro group and finance ministers holding a two-day meeting starting Friday. In the US, July consumer credit is released this evening, wholesale inventories on Wednesday, weekly jobless claims data and the monthly budget statement on Thursday). Consumer confidence , retail sales and PPI will be out on Friday and for me, the most important news will be the US Senate vote on action against Syria, which is most likely to come mid-week. In Asia Chinese industrial production and retail sales figures are released tonight with the Australian jobs report being released on Thursday.

 


EUR/USD

Supports 1.3145-1.3100-1.3065 | Resistance 1.3200-1.3240-1.3300


USD/JPY

Supports 99.15-98.50-97.80 | Resistance 100.25-100.80-101.65


GBP/USD

Supports 1.5600-1.5520-1.5450  | Resistance 1.5680-1.5750-1.5825

StoneX Financial Ltd (trading as “City Index”) 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, City Index 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 City Index 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 City Index is not specifically prevented from dealing before providing this material, City Index 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.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.

© City Index 2024