Forex Market Recap: USD Rebounds, Eurozone Inflation Surges, Bitcoin Plunges

Market Wrap: Stocks, Bonds, Commodities

Here's a summary of Thursday's market activity:

• U.S. Stocks:The Dow Jones Industrial Average decreased by 168 points (-0.48%) to reach 34,721. The S&P 500 dipped by 7 points (-0.16%) to land at 4,507. However, the Nasdaq 100 rose by 38 points (+0.25%) to hit 15,501, marking a five-session rally.

• Economic Data:The core personal consumption expenditure (PCE) price index in the U.S. grew by 4.2% year-on-year in July, slightly above the expected 4.0%. The Chicago Purchasing Managers index climbed to 48.7 in August, surpassing the anticipated 45.0. Initial jobless claims fell to 228,000, lower than the expected 236,000.

• U.S. 10-Year Treasury Yield:The yield experienced a slight decrease of 0.8 basis points, reaching 4.106%.

• U.S. Jobs Report:The much-anticipated U.S. jobs report for August was expected to show around 180,000 non-farm payrolls added, with a stable jobless rate of 3.5%.

• Sectors Performance:Retailing (+1.11%), semiconductors (+0.80%), and automobiles (+0.45%) performed well. Healthcare equipment & services (-2.01%), transportation (-1.27%), and food & beverage (-1.03%) sectors lagged.

• Stock Highlights:

• Nvidia (NVDA) increased slightly by 0.18%, closing at a new record of $493.55.

• Amazon (AMZN) and Shopify (SHOP) announced integration, leading to Amazon rising by 2.18% to $138.01, and Shopify jumping up by 10.8% to $66.49.

• Salesforce.com (CRM) saw gains, rising by 2.99% to $221.46, following better-than-expected second-quarter earnings.

• European Markets:The DAX 40 went up by 0.35%, while the CAC 40 decreased by 0.65%. The FTSE 100 also saw a decline of 0.46%.

• Commodities:

• U.S. WTI crude futures gained $1.90, reaching $83.52 per barrel.

• Gold prices dropped slightly by $2, landing at $1,939 per ounce.

Market Wrap: Forex

• U.S. Dollar Index:

• The U.S. dollar index rebounded to 103.63.

• EUR/USD:

• The EUR/USD pair fell 81 pips to 1.0842. Eurozone's consumer prices grew 5.3% year-on-year in August (vs +5.0% expected), and the jobless rate remained at 6.4% in July (as expected).

• Germany:

• The jobless rate edged up to 5.7% in August (as expected).

• Retail sales declined 0.8% month-on-month in July (vs +0.3% expected).

• France:

• The inflation rate rebounded to 4.8% year-on-year in August (vs 4.2% expected).

• USD/JPY:

• The USD/JPY pair dropped 75 pips to 145.49. Japan's data showed that enterprises' capital spending increased 4.5% year-on-year in the second quarter (vs +6.0% expected).

• GBP/USD:

• The GBP/USD pair decreased 50 pips to 1.2671.

• AUD/USD:

• The AUD/USD pair gained 7 pips to 0.6482.

• USD/CHF:

• The USD/CHF pair climbed 52 pips to 0.8837.

• USD/CAD:

• The USD/CAD pair added 18 pips to 1.3514.

• Bitcoin:Bitcoin plunged over 5% to $25,930 after the U.S. Securities and Exchange Commission (SEC) delayed a decision on whether to approve applications for spot bitcoin exchange-traded funds (ETF) from various financial firms.

EUR/USD Intraday: towards 1.0800

• Pivot:1.0880

• Preference:Short positions below 1.0880 with targets at 1.0820 & 1.0800 in extension.

• Alternative scenario:Above 1.0880, look for further upside with 1.0900 & 1.0920 as targets.

• Comment:The RSI is bearish and calls for further downside.

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GBP/USD Intraday: key resistance at 1.2705

• Pivot:1.2705

• Preference:Short positions below 1.2705 with targets at 1.2650 & 1.2630 in extension.

• Alternative scenario:Above 1.2705, look for further upside with 1.2725 & 1.2745 as targets.

• Comment:As long as the resistance at 1.2705 is not surpassed, the risk of a break below 1.2650 remains high.

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USD/JPY Intraday: under pressure

• Pivot:146.00

• Preference:Short positions below 146.00 with targets at 145.10 & 144.80 in extension.

• Alternative scenario:Above 146.00, look for further upside with 146.30 & 146.55 as targets.

• Comment:The RSI calls for a new downleg.

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Dow Jones (CME)‎ (U3)‎ Intraday: under pressure

• Pivot:34990.00

• Preference:Short positions below 34990.00 with targets at 34670.00 & 34480.00 in extension.

• Alternative scenario:Above 34990.00, look for further upside with 35170.00 & 35340.00 as targets.

• Comment:The RSI has broken down its 30 level.

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