The greenback ended September on a high note despite the currency experiencing a mid-month slump due to tensions arising from trade wars.
September Market Review
The USD experienced mixed performance in September, with the trade wars and inflation rate playing key roles in the performance of the currency and it initially recorded losses against EUR, GBP, JPY and a host of other currencies.
However, USD turned things around by the end of the month. The Fed meeting results, along with the growth of US GDP and inflation in the Eurozone played crucial roles in pushing the Greenback higher against the Euro and a host of other currencies.
Even though it performed poorly against the sterling for the most part of August, maintaining trading levels around 1.3225, GBP/USD ended the month at a low of 1.3030. USD/JPY ended the month at a high of 113.70. Powell confirming a few days ago that another rate hike could happen before the end of the year, with the greenback continuing its active growth.
Asian market review
The two major Asian currencies endured a torrid time this month, with the Japanese Yen and the Chinese Yuan both ending the month on a low.
JPY performed badly in September due to a statement by the head of the Bank of Japan Haruhiko Kuroda who stated that the bank doesn’t plan to curtail the mitigation policy. He added that interest rate which now stands at 0.1% could be dropped lower.
The trade war tension between the US and China has continued to affect the Yuan negatively, more so than the greenback. China is not willing to negotiate and will take measure to stabilize trades, which has seen the currency perform rather poorly at the moment.
The Euro did perform excellently in September, with the Turkish Lira’s resurgence helping the shared currency trade higher than most of its pairs. However, it lost some ground last week as inflation rate in the region wasn’t as expected and Italian government publishing its budget for 2019, with a deficit of 2.4% increasing the volatility for EUR.
October forecast: USD Prepares for a Bullish Breakout
The recent performance of the greenback suggests that the currency is preparing for a Bullish breakout in October. USD/JPY closed at and reached its highest price in this calendar year, with both fundamental analysis and market sentiment in favor of a huge movement for this pair.
For the EUR/USD pair, most of the market experts believe the USD will strengthen further and a downward movement to 1.1525 could be seen in the first week of the month.
The greenback might likely struggle to outperform the sterling as market experts believe that a drop of the GBP/USD pair will be very tough. However, deterioration in the UK’s economic performance and the uncertainty with Brexit could affect the performance of GBP negatively in the coming weeks.
ForexSignal trading highlights for the month
- On Monday, September 6th we sent a signal to buy the GBP/USD at 1.2941 and we reached all three targets by September 7th with a total move of 86 pips and profit taken in our Trade Copier.
- On Tuesday, September 11th we sent a signal to buy the USDJPY at 111.59. After an initial drawdown, the trade turned around in the right direction and went on to reach all three of our targets and closed with profit in our Trade Copier.
- On September 18th we sent a signal to sell the USD/CAD at 1.3023 and this trade flew in the right direction and quickly reached all three of our targets with a maximum move of 71 pips. We are happy to report we took profit for our Trade Copier clients as well.
- On September 20th we bought the EUR/USD at 1.1714 and this trade moved a total of 68 pips and hit all 3 of our targets. Again we closed the trade with profit in our MT4 platform and this benefited our Trade Copier clients all over the world.
- The week of September 24th saw excitement with three Trade of the Week highlights. First, on September 24th, we sent a signal to buy the EUR/JPY at 132.27 and this successfully reached all 3 of our targets with a maximum move of 76 pips.
- On Tuesday, September 25th we bought the USD/CAD ahead of the FOMC meeting, and the trade was pushed into profit on Wednesday, September 26th; hitting all 3 of our Take/Profit targets with a maximum move of 74 pips.
- On September 27th our GBP/USD sell signal moved quickly to reach all three of our Take/Profit targets with a maximum move of 62 pips. All 3 of these trades during this week of September 24th closed with profit for our Trade Copier clients.
- Finally on Friday September 30th we closed the month on a high note with a Target 3 winner for our EUR/JPY trade signal to sell at 131.85.
We look forward to another active month of Forex Signals as we head into October.