September Fx Trading – Let the games begin!
September 1 – 15 Forecast For Forex traders,
Institutional and large fund managers in the European and USA markets September is “back to school” and business as usual – so let the games begin. September traditionally has always been the month to fire up the FX Market and usually creates some much-needed activity for Forex Traders. Most notably, after one of the most lackluster and slow summer Fx markets in recent memory. August was almost a nonevent with most pairs trading in a tight range with no unusual moves until the last few days.
US Dollar – Friday, September 06: This Fridays USA jobs report will give a keen insight into the state of the job market if it’s continuing to pick up steam or tapering off. Either way, it will set the scene for year-end retail sales and any possible interest rate cuts on the horizon as we sprint towards the end of 2019.
The Loonie – Friday, September 06: Canadian employment data combined with the volatility in the oil markets should be an interesting read into the commodity producers continuing slump or the start of a revival.
Aussie Dollar – Tuesday, September 10: The September RBA ( Royal Bank of Australia) meeting is on deck for next week and is undoubtedly a top event to keep on the trading radar. High-impact event risk surrounding the Reserve Bank of Australia’s latest interest rate decision due for release this coming Tuesday at 4:30 GM. We expect AUDUSD price action swinging despite the central bank widely expected to stay on hold.
Euro Zone Dollar – Thursday, September 12: A slew of technical data and ECB (European Central Bank) decisions will determine the fate of Eurozone interest rates. Already at the lowest levels in recent history – will the struggling Euro Zone look to the ECB for even lower rates to help bail them out?
US Dollar – September 12th / 13th: USD Consumer Price Index and Initial jobless claims set for Thursday next week, followed by Fridays Retail sales report, will once again be closely watched by the Fed and other USA interest rate observers. Stay posted for the balance of Septembers activity which we will make available to our subscribers by mid-September.
September – Brexit Concerns Continue To Affect The Currency Market
The Pound Sterling experienced a mini-rally last month despite the Brexit concerns affecting the financial markets over the past few weeks.
Sterling Enjoyed A Mini Rally In August
The Pound sterling started August on an unsatisfactory note. It performed weaker against the US Dollar and the Japanese Yen (which ended the week as the best performer). Against the Greenback, the Pound plunged by 2.1%, with the GBPUSD ending the week at 1.2123. It also dropped by 2% against the Japanese Yen, with the pair ending the week at 118.5.
In the week ending 12/08, the Sterling still underperformed against the major currencies. The GBPUSD pair surged by 0.38% to trade at 1.2078.
It was in the third week of the month that the GBP embarked on its mini rally as the Brexit talk increases among the opposition in the UK. The Pound was the best performing currency for the week. It surged by 0.63% against the USD, with the pair ending the week at 1.2154. The British currency also recorded an impressive gain of 1.8% against the Euro on the third week of the month as recession fears in Germany heightens.
After that, the Sterling continued its mini rally as optimism increased that France and Germany might back Johnson’s alternative arrangements to the Irish backstop.
In the last few days of August, Sterling’s mini-rally came to a halt, but it still recorded some impressive gains against the Euro as the Brexit talk in the UK continues to increase among the political class.
The Brexit Battle, NFP Data, And Fed Chair Jerome Powell Talks To Dominate September
September is packed with many activities that may affect the performance of the currencies. The British House of Commons will continue to debate the Brexit situation, a move that could further affect the performance of the Sterling in the coming weeks.
The US Non-Farm Payrolls for August is released on Friday, September 6. This data is crucial to the performance of the US Dollar as the NFP is an essential indicator of the US economy performance. Fed Chair, Jerome Powell is set to give talks on Friday, September 4. The Fed Chair will have the opportunity to shape decisions ahead of the September 18 decision.
September – The Financial “New Year”
August is typically the slowest month for most financial markets and especially for the Forex market. The month is recognized as the unofficial holiday month in the economic and trading world. The prices of most currencies trade sideways for the entire month or spikes without direction. The movement of the market usually slows down in August because the major market players are on vacation. The traders who typically have authority and resources to enter large trades are also on vacation, thus leading to a massive decrease in trading volume and a general slip in market liquidity.
Then in September, everyone is back to work and the month now serves as the unofficial financial “New Year” for forex traders. The large institutional traders and investors come back from their holidays looking to make up for the lost time the previous month. As a result, September tends to be an active month for the Forex Signal trading team with many opportunities to trade.