Forex Market Snapshot: Calm before the storm
Key events are finally here:
ECB: Will it be a dovish hike, no forward guidance data dependent hike or hawkish hike?
US PPI: Theta was a time when PPI would be ignored in favor of CPI but in the current time there is a hypersensitivity to all inflation data.


COMING UP: Data: German Final CPI (Aug), Norwegian CPI (Aug), Swedish GDP (Jul), US PPI (Aug), Jobless Claims (Sep/05), Existing Home Sales (Aug), Atlanta Fed GDP (Q3).
Events: ECB Announcement, CBRT Announcement, OPEC MOMR.
Speakers: US President Trump; BoJ’s Masu; ECB’s Lagarde. Supply: UK, Italy, US. Earnings: Oracle, Adobe.
Newsquawk US Market Wrap: Stocks hit as oil and yields climb
SNAPSHOT: Equities down, Treasuries down, Crude up, Dollar flat, Gold up.

How Interest Rates Affect Financial Markets and Traders
(Current: US yields slip back, 10 year 4.829%, USD follows, XAUUSD up, US stocks steady)

US PRE-MARKET MOVERS: AAPL, TTAN, GOOG, SIG, CHYM, DOW, EVMN, IRT/CSR
ES -0.4% NQ -0.6% RTY -0.6%
Bessent verbal intervention sent USDJPY lower but did not make a new low.
“I am the house now, so when we intervene with the Japanese yen, I have pretty good insight into what the Japanese, what the Bank of Japan is going to do, what Japanese policymakers are going to do,” Bessent said. “And you can bet against me if you want.”
How Interest Rates Affect Financial Markets and Traders

EURUSD 4 HOUR: Power of “50”
What caught my eye was not the brief break of 1.1641 nor the stall below 1.1660 but the pause just below 1.1650, which is a key pivotal level as it is the 1.15-1.18 midpoint.
To build momentum, 1.1650 would need to become support.
On the downside, 1.1621 and 1.1606 block a return to 1.16.

XAUUSD (GOLD) 1 HOUR: 5 days in a row
Still unable to shake a focus from 4400, which has traded for the 5th day in a row.
The longer this pattern goes on the greater the chance of a directional move once it is broken.
In the meantime, it is rewarding range traders with 4341-4442/49 range narrowed to 4370-4413.

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