Daily wrap up – 2 October

2 Oct 2017 10:54 PM

The beginning of the first week of the last quarter of 2017 was very inflammatory. Catalonia held a referendum on secession from Spain and the approval rate reached 90%, but the Spanish government rejected that referendum and considered it illegal. The European Commission supported that view, calling on all parties to sit at the dialogue table.

In light of this, the EUR has declined since the beginning of trading day, especially against the US Dollar as the EURUSD rebounded from 1.1830, which represents a strong resistance where the broken neckline of the head and shoulders pattern on the 4-hour chart, and is currently trading near the support level at 1.1720 And with breaking it the door to the levels of 1.16 / 15 will be open.

Also, the British pound fell since the beginning of trading day to reach its lowest level since mid-September at 1.3255, after the British manufacturing sector slowed down in September.

In the United States, the manufacturing sector grew stronger than expected with the ISM manufacturing index recording 60.8 points in September, its strongest growth since March 2011 to help the US dollar rise as the dollar index hit its highest level since August 18 at 93.54.

Oil fell more than 2% by 1.16$. The rise in US drilling and the rise in OPEC production halted oil gains during the third quarter of the year, the largest in 13 years. Currently trading near $ 50.50$ a barrel.

Gold is currently nearing a support level at 1271$ as markets are somewhat optimistic that the Fed will raise interest rates again before the end of the year.

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