Daily wrap up -26 September

26 Sep 2017 09:02 PM

On the economic calendar today, the most prominent headline was Janet Yellen, FED Governor speech, entitled "Inflation, Uncertainty and Monetary Policy", warning FOMC from moving too gradually and confirmed that the Fed able to meet the inflation target of 2%, and not considering changes in the target, noting that it is the uncertainty that strengthens the policy of gradually rate hike, which she supports despite the weakness of inflation.

Markets are now pricing rate hike in December at 76% according to FedWatch.

The dollar saw a significant rise with the beginning of the day, where the dollar index reached its highest level since August 31 at 93.08 before the Yellen's comments to retreat slightly to trade currently near the levels of 92.75. Also, the EURUSD dropped to its lowest level in more than a month to reach 1.1757 after breaking the neckline of the head and shoulders pattern over the 4-hour chart, it is expected to target 1.1560 levels.

On the other hand, US consumer confidence fell in September to its lowest level in eight months due to the impact of hurricanes that hit the US coast, also continued to escalate tensions between the United States and North Korea.

Crude oil prices continue to recover as demand from emerging markets such as China and India, as well as from Europe, is recovering, leading to a faster-than-expected reduction in oil stocks to put global markets firmly on course to rebalance. Prices reached 52.40$ a barrel today, its highest level in 5 months, before declining since midday trading to trade currently at levels of 51.90$.

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