Market focus is expected to be placed on ECB’s interest rate decision today. The bank is expected to hike rates and EUR OIS imply that the market has almost fully priced in such a scenario. Yet the market expects the bank to proceed with another rate hike in the December meeting. Hence the bank’s forward guidance is expected to be the main issue for the EUR’s reaction. Should the bank sound hawkish signalling more rate hikes to come we may see EUR getting some support as the market’s hawkish expectations could be enhanced, while a dovish forward guidance, signalling possibly the end of the hiking cycle could weigh considerably on EUR.  

US equities  remain subdued

US equity indexes ended marginally in the reds yesterday. Fundamentally, rising oil prices and rising bond yields tend to weigh on US equities. Also Apple in its event yesterday rolled out the foldable iPhone Duo starting at $1,999 while iPhone 18 Pro and Max got a $100 hike. Should the developments be reviewed favorably by tech experts, we may see Apple’s share price getting some support and vice versa.

Oil prices correct lower

Oil prices edged lower in today’s Asian session, yet on a fundamental level, ongoing tensions in the Middle East continue to provide support for oil prices. Oil flows through the Strait of Hormuz remain far lower than before the US-Iran conflict, while worries for more severe and prolonged disruption in the supply chains of the international oil market are enhanced, with no easing of tensions in sight at the current stage.  

Gold remains stable

Gold’s price edged higher, yet overall, the precious metal’s price remains relatively stable. We continue to view the inverted relationship of the USD with gold’s price as still being valid and a possibly weaker US Dollar could allow gold’s price to rise further. On the flip side, high yields tend to weigh on gold’s price as safe haven investments could be shifted towards the bond market. 

Other highlights for today

Today we get Germany’s final HICP rates for August, Sweden’s GDP rates for July, Norway’s and Turkey’s CPI rates for August, the weekly US initial jobless claims figure, August’s US PPI rates, the US existing home sales for August and the weekly US EIA crude oil inventories figure. In tomorrow’s Asian session, we get Japan’s PPI rates for August.

Charts to keep an eye out

EUR/USD continued to edge higher, yet remains well within the boundaries set by the 1.1685 (R1) resistance line and the 1.1575 (S1) support level. The RSI indicator remains above the reading of 50, which may imply a bullish predisposition of the market for the pair. We maintain a bias for the sideways motion to continue and intend to keep it as long as the pair respects the prementioned levels. Should the bulls take over, we may see EUR/USD breaking the 1.1685 (R1) resistance line and continue higher aiming for the 1.1825 (R2) resistance level. Should the bears be in charge, we may see EUR/USD breaking the 1.1575 (S1) support line and start aiming for the 1.1470 (S2) support level.

EUR/USD Daily Chart

WTI’s price rose yesterday breaking the 93.30 (R1) resistance line yet corrected lower in today’s Asian session. We intend to remain bullish for the commodity’s price action as long as the upward trendline guiding it remains intact. Should the bulls remain in charge, we may see WTI’s price breaking clearly this time the 93.30 (R1) resistance line and start aiming for the 98.50 (R2) resistance level. Should the bears take over, we may see WTI’s price breaking initially the prementioned upward trendline, signalling an interruption of the upward movement continue to break also the 88.60 (S1) support line.

WTI Cash Daily Chart

Disclaimer:

This information is not considered as investment advice or an investment recommendation, but instead a marketing communication. IronFX is not responsible for any data or information provided by third parties referenced, or hyperlinked, in this communication.

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JPY continued to strengthen yesterday and during today’s Asian session, discouraging even further carry traders shorting the Japanese currency. US Treasury Secretary Bessent was quite intense calling on  traders selling the Yen to bet against him. Analysts mention the possibility that carry traders may switch from shorting the Yen to shorting CHF, which could lead to side effects in the FX market from the US-Japanese market intervention operations.

Oil prices continue to rise

Oil prices continued to rise yesterday, as tensions in the Middle East remain high. In a latest development, the US is reported to have struck and sunk five Iranian oil tankers while Iran hit a US airbase in Jordan and reported strikes on ten ships. Tensions have escalated sharply which in turn may enhance market worries for the supply chains of the international oil market. Should we see further escalation in the US-Iran conflict, we may see oil prices being pushed even higher. 

US equities remain cautious

US equities remained mixed yesterday, as the market re-opened after the US Labour day on Monday. Dow Jones had considerable losses, while Nasdaq remained stable. On a fundamental level, the prospect of higher oil prices given the ongoing US-Iran conflict tends to keep US stock market participants cautious, with a risk-off attitude. Should we see an escalation of tensions we expect US equities to retreat further. 

Gold remains stable

Gold’s price remained relatively stable yesterday and during today’s Asian session. The negative correlation of the USD with gold’s price seems to be still active yet somewhat blurred given the recent inactivity on both fronts. We continue to highlight the Fed’s intentions as the main driver for gold’s price and a possible weakening of the USD may allow gold’s price to rise. 

Other highlights for today

Today we get France’s industrial output for July, and the weekly US API crude oil inventories figure, while ECB President Christine Lagarde is scheduled to speak. In tomorrow’s Asian session, BoJ Policy Board Member Masu speaks and a possibly hawkish tone may prop up the Yen further.

Charts to keep an eye out

USD/JPY continued to fall, yesterday and during today’s Asian session, aiming for the 152.10 (R1) support line. The RSI indicator remains below the reading of 30 and is still falling, highlighting the intensification of the allready strong bearish market sentiment for the pair, yet at the same time also implies that the pair is at oversold levels and possibly ripe for a correction higher allowing us to maintain yesterday’s bearish outlook. Should the bears remain in control over USD/JPY, we may see the pair breaking the 152.10 (S1) support line and start aiming for the 149.40 (S2) support level. Should the bulls take over, we may see USD/JPY breaking the 155.00 (R1) resistance line and continue to break also the 157.50 (R2) resistance level.

USD/JPY Daily Chart

Brent’s price continued to rise aiming for the 101.10 (R1) resistance level. We intend to remain bullish for the commodity’s price action as long as the upward trendline guiding it remains intact. Also the RSI indicator is rising, nearing the reading of 70, implying a strengthening bullish market sentiment for Brents’ price. Yet the fact that the commodity’s price action has reached the upper Bollinger band, may slow down the bulls. Should the bulls remain in charge, we may see Brent’s price breaking the 101.10 (R1) resistance line and start aiming for the 103.30 (R2) resistance level. Should the bears take over, we may see Brents’ price breaking the 82.60 (S1) support line, break also the upward trendline, aiming for the 84.40 (S2) level.

Brent Cash Daily Chart

 Disclaimer:

This information is not considered as investment advice or an investment recommendation, but instead a marketing communication. IronFX is not responsible for any data or information provided by third parties referenced, or hyperlinked, in this communication.

The post Bulls push oil prices higher appeared first on Complete Turnkey Introducing Brokers (IB) Solution at IronFX.

From the S&P 500 and Nasdaq 100 to the DAX and FTSE 100, major indices can provide exposure to some of the world’s largest equity markets.

However, day trading indices requires more than simply predicting whether a market will rise or fall. Traders need to understand what moves an index, when volatility tends to increase, how trading costs affect results, and how to manage risk when prices move quickly.

This guide explains the fundamentals of day trading indices and the key considerations beginners should understand before getting started.

What Is Day Trading Indices?

Day trading indices involves opening and closing positions on a market index within the same trading day. The objective is generally to benefit from relatively short-term price movements rather than holding a position for several days, weeks, or years.

An index itself represents the performance of a group of companies. For example, the S&P 500 tracks a broad selection of large U.S. companies, while the Nasdaq 100 focuses heavily on major companies listed on the Nasdaq exchange.

Rather than buying every company in an index individually, traders can speculate on the index through products such as index CFDs, futures, options, or exchange-traded funds, depending on their location and trading account.

For short-term traders, index CFDs are one commonly used instrument because they can provide access to both rising and falling markets. However, CFDs are leveraged products and therefore carry substantial risk.

Why Do Traders Day Trade Indices?

Indices have several characteristics that can make them interesting for short-term traders.

High Liquidity

Major indices are linked to some of the world’s largest financial markets. High liquidity can make it easier to enter and exit positions, although liquidity can change considerably during volatile periods.

Market-Wide Exposure

Trading an index provides exposure to a basket of companies rather than relying entirely on the performance of one stock.

This can be useful when a trader wants to express a view on a broader market or economic sector.

Regular Price Movement

Major indices can experience significant price movements around economic announcements, company earnings, central-bank decisions and changes in market sentiment.

That creates potential short-term trading opportunities but also increases risk.

Different Trading Hours

Different indices are influenced by their respective markets and trading sessions. Understanding when the relevant exchange or underlying market is most active can be important when planning a day-trading approach.

Which Indices Are Popular for Day Trading?

There are numerous global indices, but some are particularly well known among active traders.

S&P 500

The S&P 500 represents a broad group of large U.S. companies and is one of the most closely followed equity indices globally.

Its movements can be influenced by U.S. economic data, interest-rate expectations, corporate earnings and broader investor sentiment.

Nasdaq 100

The Nasdaq 100 contains many large technology and growth-oriented companies. It can experience significant price movements, particularly when technology stocks react to earnings reports, interest-rate expectations or developments in the technology sector.

Dow Jones Industrial Average

The Dow Jones tracks 30 major U.S. companies. Although it is narrower than the S&P 500, it remains one of the most recognizable U.S. stock-market benchmarks.

DAX

Germany’s DAX is a major European stock index and is widely followed by traders interested in European markets.

FTSE 100

The FTSE 100 tracks 100 major companies listed on the London Stock Exchange and is one of the most prominent UK equity indices.

The best index to trade depends on factors such as trading hours, volatility, liquidity, transaction costs and the trader’s understanding of the market.

What Moves Stock Indices?

Understanding the factors behind index movements is more useful than relying solely on chart patterns.

Several factors can influence indices throughout the trading day.

Economic data: Inflation figures, employment reports, GDP data and consumer spending statistics can affect expectations about economic growth and interest rates.

Central-bank decisions: Decisions from institutions such as the Federal Reserve or European Central Bank can cause substantial market reactions, especially when interest-rate expectations change.

Corporate earnings: Although an index represents multiple companies, earnings reports from its largest constituents can have a meaningful impact on its price.

Geopolitical developments: Political uncertainty, conflicts and major international events can quickly change investor sentiment.

Market sentiment: Investors may move toward or away from riskier assets depending on their expectations about economic conditions.

This is why successful day trading indices is not simply about identifying a technical setup. Context matters.

Technical Analysis for Day Trading Indices

Technical analysis is commonly used by short-term traders to study price behavior and identify potential entry and exit areas.

Some of the most frequently used tools include:

• Support and resistance: Areas where price has previously struggled to move higher or lower.
• Moving averages: Indicators that smooth price data and can help traders assess trends.
• RSI: A momentum indicator that can help analyze the strength of recent price movements.
• MACD: A trend and momentum indicator that traders may use to identify changes in momentum.
• Volume: Trading volume can provide additional information about market participation where reliable volume data is available.
• Price action: Candlesticks, breakouts, pullbacks and market structure can provide information without relying heavily on indicators.

No indicator can reliably predict the future. A setup that worked previously can fail in different market conditions, which is why technical analysis should be treated as a decision-making framework rather than a guarantee of a particular outcome.

Choosing a Time Frame

Day traders typically use shorter time frames than swing or long-term investors.

For example, a trader may use:

• 1-minute charts for very short-term analysis
• 5-minute charts to identify intraday setups
• 15-minute charts to understand short-term market structure
• 1-hour charts to establish broader intraday context

Using several time frames can help prevent traders from focusing too narrowly on small price movements.

For instance, a trader might use a 1-hour chart to identify the broader direction and a 5-minute chart to look for a potential entry.

The appropriate time frame ultimately depends on the trader’s strategy, experience and tolerance for market noise.

A Simple Approach to Day Trading Indices

There is no universal strategy that works in every market environment. However, beginners can use a structured process rather than entering trades based purely on instinct.

Step 1: Identify the Market Context

Before the trading session begins, examine the broader market environment. Is the index trending, moving sideways, or reacting to a major economic event?

Step 2: Mark Important Price Levels

Identify previous highs and lows, support and resistance areas, and other levels that may influence price behavior.

Step 3: Wait for a Setup

Instead of entering immediately, wait for price to reach an area that fits your trading plan.

Step 4: Define Risk Before Entering

Determine where the trade becomes invalid and how much capital you are prepared to risk.

Step 5: Manage the Position

Once a trade is open, avoid changing your plan simply because the market moves unexpectedly. Emotional decision-making can quickly turn a controlled trade into an uncontrolled one.

Step 6: Review the Trade

Keep a trading journal containing the setup, entry, exit, reasoning and outcome. Reviewing previous trades can reveal recurring mistakes and help improve discipline.

Risk Management When Day Trading Indices

Risk management is arguably more important than finding the perfect entry.

Indices can move quickly, particularly around major economic announcements. When leverage is involved, relatively small movements in the underlying market can have a much larger effect on the trading account.

Several basic principles can help manage risk:

Use appropriate position sizes. A larger position does not automatically create a better opportunity.

Consider stop-loss orders. A stop-loss can help limit losses if the market moves against your position, although it cannot guarantee an exact exit price during all market conditions.

Understand leverage. Leverage increases exposure and can magnify both gains and losses.

Avoid excessive trading. More trades do not necessarily mean more opportunities. Overtrading can increase costs and encourage impulsive decisions.

Know when major events are scheduled. Economic announcements can produce sharp price movements and increased volatility.

A sound risk-management plan should be established before entering a trade rather than after the position starts losing money.

Common Mistakes Beginners Make

New traders often make similar mistakes when learning how to trade indices.

One is using too much leverage. Having access to a large position does not mean that using it is sensible.

Another is chasing the market. After seeing a strong move, beginners may enter simply because they fear missing the opportunity.

Ignoring trading costs is another common problem. Spreads, commissions and other charges can have a noticeable effect when many trades are placed.

Some traders also rely on a single indicator. Markets are more complex than any individual technical tool.

Finally, many beginners trade without a defined plan. Entering positions based on emotions, social-media opinions or random signals makes it difficult to evaluate what is actually working.

Is Day Trading Indices Suitable for Beginners?

Beginners can learn about index day trading, but it is important to have realistic expectations.

Day trading is demanding because decisions often need to be made quickly. Short-term price movements can also contain considerable noise, making it difficult to distinguish meaningful trends from temporary fluctuations.

If you are new to trading, learning how indices work, practicing on a demo account and studying risk management can be useful before committing significant capital.

It is also important to understand that past performance does not guarantee future results. A strategy that performs well during a strong trend may behave very differently when markets become range-bound or highly volatile.

Day Trading Indices vs. Trading Individual Stocks

There is an important difference between trading an index and trading an individual stock.

An individual stock can be strongly affected by company-specific developments, such as earnings, management changes, lawsuits or product announcements.

An index is influenced by a much broader combination of companies and macroeconomic factors.

This does not make indices less risky. Instead, it changes the type of analysis required.

Someone trading the Nasdaq 100, for example, may pay considerable attention to technology-sector sentiment, interest-rate expectations and major technology companies. Someone trading an individual stock may need to focus much more heavily on company-specific information.

Final Thoughts on Day Trading Indices

Day trading indices can provide a structured way to participate in short-term market movements, but it is not a shortcut to easy profits.

Successful index trading requires an understanding of market drivers, technical analysis, trading sessions, costs and, most importantly, risk management.

Beginners should focus on developing a repeatable process rather than trying to predict every market movement. Start by understanding how the index behaves, identify a small number of markets to follow, test your approach in a controlled environment and keep detailed records of your trades.

The goal is not to win every trade. A more realistic objective is to build a disciplined approach that manages losses, evaluates opportunities objectively and adapts when market conditions change.

The post Day Trading Indices: How to Trade Market Indexes in a Single Day appeared first on Complete Turnkey Introducing Brokers (IB) Solution at IronFX.

US equities remain mixed

US equities remained relatively mixed with low volatility, given the slight drop of Dow Jones and S&P 500 and slight upward movement of Nasdaq. As US stock markets are reopening after the US Labour Day, we still see the rise of oil prices as weighing on US equities and the emergence of a risk-off market sentiment may weigh on US stock market indexes. 

Oil prices continue to rise

Oil prices continued to rise as Iran and the US continued to exchange salvos on vessels passing through the Straits of Hormuz. The conflict became even more intense as Houthis were reported to have struck oil facilities in Saudi Arabia. Should we see market worries for the supply side of the oil market, we may see oil prices aiming further. Yet we note that the width of the movement of oil prices remains relatively contained, implying that the oil market has allready partially been expecting the developments, and alternative oil sources tend to ease market worries.   

Gold’s price remains stable

Gold’s price remained relatively stable yesterday and during today’s Asian session. The negative correlation between the USD and gold’s price was somewhat blurred yesterday and we continue to highlight the release of the US CPI rates for August on Friday as the next big test for gold’s price and continue to note the Fed’s intentions as the main driver of gold’s price.

Other highlights for today

Today we get Germany’s and France’s trade data as well as France current account balance, all for July. In tomorrow’s Asian session, we get China’s inflation metrics for August, while RBNZ’s Silk speaks

Charts to keep an eye out

USD/JPY tumbled yesterday and during today’s Asian session, breaking the 155.00 (R1) support line, now turned to resistance. The RSI indicator has dropped below the reading of 30, highlighting the strong bearish market sentiment for the pair, yet at the same time also implies that the pair is at oversold levels and possibly ripe for a correction higher. Should the bears remain in control over USD/JPY, we may see the pair breaking the 152.10 (S1) support line and start aiming for the 149.40 (S2) support level. Should the bulls take over which we consider currently as a remote scenario, we may see USD/JPY breaking the 155.00 (R1) resistance line, continue to break also the 157.50 (R2) resistance level and start aiming for the 160.50 (R2) barrier.

USD/JPY Daily Chart

XAU/USD remained relatively stable, well within the boundaries set by the 4550 (R1) resistance line and the 4275 (S1) support level. The RSI indicator runs along the reading of 50, implying a rather neutral stance on behalf of market participants for gold’s price. For a bullish outlook to emerge, we require a clear break above the 4550 (R1) resistance line and gold’s price to start aiming for the 4890 (R2) resistance level. For a bearish outlook to emerge, gold’s price would have to break clearly the 4275 (S1) support line and start aiming for the 3960 (S2) support level.

XAU/USD Daily Chart

 Disclaimer:

This information is not considered as investment advice or an investment recommendation, but instead a marketing communication. IronFX is not responsible for any data or information provided by third parties referenced, or hyperlinked, in this communication.

The post JPY rallies in the FX market appeared first on Complete Turnkey Introducing Brokers (IB) Solution at IronFX.

US CPI rates the next big test for Gold’s price

The US CPI rates for August are set to be released this Friday. The inflation print will be the last release before the Fed’s interest rate decision next week. The data is set to showcase the state of inflation in the US economy and thus could garner significant market attention at the time of its release. Moreover, considering that the Fed is in its blackout period, commentary from Fed policymakers will have to wait until after the Fed’s decision. Hence, the narrative which emerges may take its hold on the market. Nonetheless, lets look at the financial releases, where the headline CPI rate on yoy  level is expected is expected to remain steady at 3.4%, whereas the Core CPI rate on a yoy level as well is expected to showcase signs of easing with the rate expected to come in at 2.4% which would be lower than the prior rate of 2.5%. Therefore should the inflation print showcase signs of easing inflationary pressures, it may ease market expectations of an overly hawkish Fed, which may weigh on the greenback whilst aiding gold’s price given its inverse relationship with the dollar. On the flip side, should the inflation print come in higher than expected and thus imply an acceleration of inflationary pressures it may have the opposite effect.

US-Iran tensions escalate over the weekend

Tensions between the US and Iran have escalated over the weekend. In particular, the IRCG per the US launched ballistic missiles toward two US Navy warships and in retaliation the US struck three Iranian crude oil carriers. The situation remains volatile and could further escalate during the week, as the situation remains volatile. Therefore, should the relationship between the US and Iran deteriorate drastically during the week, we may see safe haven inflows into gold, which could provide support for the precious metal’s price.

US Employment data comes in higher than expected

The US Employment data for August which was released on Friday exceeded the market’s expectations. In particular, the NFP figure vastly exceeded expectations by coming in at 162k versus the expected figure of 56k. In turn, the dollar may have found support as the release intensified market expectations of a Fed rate hike in their meeting next week, which in turn may have weighed on gold’s price.

Technical Analysis

XAU/USD Daily Chart

Gold’s price appears to be moving in a sideways fashion, with the precious metal appearing to be aiming for our 4335 (S1) support level. We opt for a sideways bias for the precious metal’s price and supporting our case is the failure to clearly break below our 4335 (S1) support level and our 4520 (R1) resistance line. Moreover, the RSI indicator below our chart currently registers a figure near 50, implying  a neutral market sentiment. For our sideways bias to be maintained we would require gold’s price to remain confined between our 4335 (S1) support level and our 4520 (R1) resistance line. On the other hand, for a bearish outlook we would require a clear break below our 4335 (S1) support level with the next possible target for the bears being our 4180 (S2) support base. Lastly, for a bullish outlook we would require a clear break above our 4520 (R1) resistance line with the next possible target for the bulls being our 4695 (R2) resistance level.

Disclaimer:

This information is not considered as investment advice or an investment recommendation, but instead a marketing communication. IronFX is not responsible for any data or information provided by third parties referenced, or hyperlinked, in this communication.

The post Gold Outlook: US CPI rates in focus appeared first on Complete Turnkey Introducing Brokers (IB) Solution at IronFX.

Commodities are basic raw materials or primary agricultural products that can be bought and sold. Unlike a company share, which represents ownership in a business, a commodity represents a physical good or exposure to its market price. Commodities markets include everything from energy and precious metals to agricultural products and livestock.

For forex traders, understanding commodities can also be useful because commodity prices can influence currencies, inflation expectations, interest rates, and global economic sentiment. Below, we will explore how commodity markets work, the major types of commodities, what moves their prices, and how traders can approach them responsibly.

What Are Commodities?

So, what are commodities in simple terms? First of all, it is crucial to note that a commodity is a standardized raw material or primary product that can be traded. Examples include gold, silver, crude oil, natural gas, wheat, corn, soybeans, coffee, and livestock.

The important word here is standardized. A barrel of a particular crude oil benchmark or a specified quantity of gold can be priced and traded according to established market specifications. This makes commodities suitable for organized markets and derivative contracts.

Commodity trading has existed in various forms for centuries because producers and buyers need ways to manage uncertain prices. Today, commodity markets have developed into sophisticated global financial markets where producers, businesses, institutions, investors, and traders participate for different reasons.

Commodity futures are one of the most important instruments used in these markets. A futures contract is an agreement involving a specified quantity of an underlying commodity or financial instrument at a predetermined price and future date. 

The Main Types of Commodities

Now that we have answered the basic question of what are commodities, it is useful to divide them into several major categories.

1. Energy Commodities

Energy is one of the most closely watched areas of the commodity market.

Major examples include:

• Crude oil
• Natural gas
• Heating oil
• Gasoline
• Other refined energy products

Crude oil is particularly important because it is closely connected to transportation, manufacturing, petrochemicals, and global economic activity. Natural gas is similarly influenced by industrial consumption, electricity generation, weather, and regional supply conditions.

Energy prices can react rapidly to geopolitical developments, production disruptions, changes in inventories, and shifts in global demand.

2. Precious Metals

Precious metals include:

• Gold
• Silver
• Platinum
• Palladium

Gold is arguably the most familiar commodity among retail traders. It is often monitored during periods of economic uncertainty and can respond to changes in interest-rate expectations, inflation expectations, the US dollar, and investor demand.

For forex traders, gold is especially interesting because it is commonly quoted in US dollars. This creates an important relationship between the precious-metal market and the currency market.

3. Agricultural Commodities

Agricultural commodities include products such as:

• Wheat
• Corn
• Soybeans
• Coffee
• Sugar
• Cocoa
• Cotton

Agricultural markets have a distinctive characteristic: weather matters enormously.

A drought, flood, frost, or unusually favorable growing season can affect expected production and therefore prices. Planting decisions, crop conditions, inventories, transportation costs, and international trade policies can also influence agricultural markets.

CME Group, for example, categorizes agricultural products alongside energy and metals within its major commodity market offerings. 

4. Livestock

Livestock markets include products such as cattle and other animal-based agricultural commodities.

Prices can be influenced by feed costs, consumer demand, disease concerns, herd sizes, weather, and broader agricultural conditions.

Although livestock may receive less attention from retail traders than gold or oil, they are an important component of the broader commodity ecosystem.

What Moves Commodity Prices?

One of the most important lessons for anyone learning what are commodities is that their prices are heavily influenced by supply and demand.

Imagine that global oil production suddenly falls while demand remains unchanged. Buyers are competing for a smaller supply, potentially putting upward pressure on prices.

The reverse can happen when production increases faster than consumption.

However, commodity pricing is rarely that simple. Several factors can interact at the same time.

Supply and Demand

Supply disruptions are among the most obvious commodity catalysts. Production cuts, mine closures, transportation problems, poor harvests, or unexpected geopolitical events can reduce available supply.

Demand can change because of economic growth, consumer behavior, industrial activity, technological developments, or seasonal patterns.

Weather

Weather is particularly important for agricultural commodities and can also influence energy markets.

For example, extreme temperatures can increase demand for heating or cooling, while droughts can damage crops and affect agricultural supply expectations.

Geopolitical Events

Commodity markets are closely connected to international politics.

Conflicts, sanctions, trade restrictions, shipping disruptions, and changes in relations between major producing or consuming countries can create sudden price movements.

This is particularly relevant for energy commodities because oil and gas production and transportation are concentrated in important geographical regions.

The US Dollar

The relationship between commodities and the US dollar is another important concept for forex traders.

Many major commodities are priced internationally in US dollars. When the dollar changes in value, the effective purchasing cost of a commodity can change for buyers using other currencies.

CME research notes that many commodities are quoted in USD and discusses the historical relationship between the dollar and broad commodity indexes. 

This does not mean commodities will automatically rise whenever the dollar falls. Markets are more complicated than a single inverse relationship. Instead, the dollar should be considered one factor among several.

How Are Commodities Traded?

A common misconception is that commodity trading always means physically buying barrels of oil, bags of coffee, or gold bars.

In financial markets, traders can gain exposure to commodities through different instruments.

Futures Contracts

Futures are standardized contracts traded through organized derivatives markets. They specify factors such as contract size and expiration. Their markets also allow commercial participants to hedge price risk and allow traders to speculate on price movements. 

Options

Commodity options provide another way to obtain market exposure or manage risk. Depending on the contract, an option gives the buyer the right, but not the obligation, to buy or sell an underlying asset or futures contract at specified terms.

Options can be more complex than straightforward buying or selling, so beginners should understand concepts such as premium, strike price, expiration, and implied volatility before using them.

CFDs and Other Broker Products

Some retail brokers offer commodity exposure through contracts for difference (CFDs) or similar products. In this case, the trader generally speculates on the price movement without taking ownership of the physical commodity.

The exact product structure, leverage, costs, overnight financing, margin requirements, and regulatory protections depend on the broker and jurisdiction.

Commodities and Forex: Why Should Currency Traders Care?

If your primary interest is forex, learning what are commodities can provide another perspective on the global economy.

Certain currencies are sometimes described as being sensitive to commodity prices because their economies have significant exposure to commodity production or exports. For example, changes in energy or raw-material prices can influence a country’s trade balance, export revenues, inflation, and economic expectations.

Commodity prices can also affect central-bank expectations.

Suppose energy prices rise substantially. Higher energy costs can contribute to inflationary pressure. Traders may then reassess expectations for monetary policy, which can influence bond yields and currencies.

This creates a chain that can look something like:

Commodity prices → inflation expectations → interest-rate expectations → currency valuations

It is not a guaranteed sequence, but it demonstrates why commodity markets can matter to forex analysis.

Commodity Trading vs. Forex Trading

There are similarities between commodity and forex trading, but they are not identical.

Forex primarily involves currencies and their relative values, such as EUR/USD or GBP/USD. Commodity markets instead focus on raw materials and primary products.

Their price drivers can also differ.

Currency markets are heavily influenced by monetary policy, interest rates, economic data, political developments, and capital flows. Commodities can be particularly sensitive to physical supply constraints, inventories, production levels, weather, and transportation.

That difference can be useful. Traders who understand both markets can develop a broader view of global economic conditions rather than analyzing individual charts in isolation.

What Should Beginners Watch Before Trading Commodities?

Understanding what are commodities is only the beginning. Before placing a trade, beginners should learn what specifically drives the commodity they want to trade.

For oil, this could include production, inventories, refinery demand, transportation, and geopolitical developments.

For gold, traders may monitor interest rates, the US dollar, inflation expectations, and risk sentiment.

For agricultural commodities, weather forecasts, crop reports, planting conditions, and seasonal patterns can become particularly important.

Technical analysis can complement fundamental research. Traders may use support and resistance, trend analysis, moving averages, momentum indicators, and chart patterns to identify potential setups.

However, technical signals do not eliminate risk. Commodity prices can move sharply following unexpected news, and leveraged products can magnify both gains and losses.

Risk Management Is Essential

Commodity markets can offer opportunities, but they can also be highly volatile.

A sound trading plan should define:

• How much capital is at risk on each trade
• Where the trade becomes invalid
• Whether leverage is appropriate
• How position size is calculated
• What market conditions justify entering or exiting
• How major economic or commodity-specific events could affect the position

A stop-loss can help limit losses, although it cannot guarantee a particular execution price during extreme market conditions or market gaps.

It is also important to understand the product offered by your broker. Futures, CFDs, options, ETFs, and other commodity-related instruments have different structures and risks.

Final Thoughts: What Are Commodities and Why Do They Matter?

So, what are commodities?

They are standardized raw materials and primary products that form an essential part of the global economy and financial markets. Energy, metals, agriculture, and livestock are among the major commodity categories, with prices shaped by supply, demand, weather, geopolitics, economic growth, currencies, and investor expectations.

For forex traders, commodities are worth studying because financial markets are interconnected. Oil can influence inflation and energy-sensitive economies. Gold can respond to changing interest-rate and risk expectations. Agricultural prices can reflect weather and supply conditions. Meanwhile, the US dollar plays an important role in the pricing of many internationally traded commodities.

The goal is not to memorize every commodity or predict every price move. A better approach is to understand why a market moves, identify the factors that matter most for a particular commodity, and combine fundamental awareness with disciplined technical analysis and risk management.

Once you understand that framework, commodities become more than just another group of assets on a trading platform—they become a useful window into how the global economy actually works.

The post What Are Commodities – A Beginner’s Guide to Commodity Trading appeared first on Complete Turnkey Introducing Brokers (IB) Solution at IronFX.

The USD got a boost on Friday as the US employment data for August were better than expected. The NFP figure rose beyond even most optimistic expectations reaching 162k, while the unemployment rate remained unchanged at 4.1%. The release tends to ease any market worries for the US employment market and practically paves the way for the Fed to proceed with a rate hike in it’s next meeting. Please note that the market currently prices in by 57% the possibility of a rate hike in the September meeting, according to FFF. We highlight the release of the US CPI rates for August on Friday as the next big test for the USD.

Busy EUR traders

EUR traders are expected to be quite busy this week, as we make a start today with the release of Euro Zone’s revised GDP rates for Q2. Yet the main focal point, is expected to be ECB’s interest rate decision on Thursday, and a rate hike is widely expected at the current stage. Should the bank hike rates as expected, market focus is to be placed on ECB’s forward guidance. Should the bank signal that the rate increase is the end of the hiking cycle, we may see the EUR slipping. We also note the wide election win of the AfD at regional German elections as a source of possible instability that may weigh on the EUR on a fundamental level. 

Other highlights for today

Today we get Germany’s industrial output for July, Sweden’s preliminary CPI rates for August and Euro Zone’s Sentix index for September. In tomorrow’s Asian session, we get Japan’s overtime pay for July, Current account for July and revised GDP rates for Q2, China’s trade data for August, as well as Australia’s Business conditions and confidence for August and consumer confidence for September, while RBA Ass. Governor Hunter speaks.

As for the rest of the week

On Wednesday we get China’s inflation metrics for August and on Thursday we get Germanys’ final HICP rate for August, Sweden’s GDP rates for July, Norway’s CPI rates for August, the US weekly initial jobless claims figure, the US PP rates for August, while we highlight also ECB’s interest rate decision, and from Türkiye CBT’s interest rate decision. On Friday we get Japan’s PPI rates for August, UK’s GDP and manufacturing output rates for July, we highlight the US CPI rates for August, and also note the release of the US UoM consumer sentiment for September.

Charts to keep an eye out

EUR/USD remained relatively stable between the 1.1685 (R1) resistance line and the 1.1575 (S1) support level. We maintain a sideways motion bias for the pair as long as it remains within the corridor set by the R1 and the S1. The RSI indicator remains just above 50, yet nothing convincing about the pair’s bullish tendencies at the current stage. Should the bulls take over, we may see EUR/USD breaking the 1.1685 (R1) resistance line and start aiming for the 1.1825 (R2) level. Should the bears take control over EUR/USD, we may see the pair breaking the 1.1575 (S1) support line and start aiming for the 1.1470 (S2) support level.

EUR/USD Daily Chart

XAU/USD slipped on Friday and during today’s Asian session, yet remained well between the 4550 (R1) resistance lien and the 4275 (S1) support level. The RSI indicator remains near 50, implying a rather indecisive market while the Bollinger bands narrowed, implying less volatility for gold’s price. The movement of both indicators tends to support our sideways motion bias at the current stage. For a bullish outlook to emerge, we require a clear break above the 4550 (R1) resistance line and gold’s price to start aiming for the 4890 (R2) resistance level. For a bearish outlook to emerge, gold’s price would have to break clearly the 4275 (S1) support line and start aiming for the 3960 (S2) support level.

XAU/USD Daily Chart

Disclaimer:

This information is not considered as investment advice or an investment recommendation, but instead a marketing communication. IronFX is not responsible for any data or information provided by third parties referenced, or hyperlinked, in this communication.

The post August’s US employment report allows USD to maintain the initiative appeared first on Complete Turnkey Introducing Brokers (IB) Solution at IronFX.

With the US employment data still to be released as these lines are written we have a look at what may move the greenback next week. On a monetary level the market’s expectations for the Fed to tighten its monetary policy remain pivotal for the USD. In a latest turn of events Fed Board Governor Waller stated yesterday that he would favour the bank remaining on hold in the September meeting should US CPI rates continue to slow down easing the market’s hawkish expectations for the Fed.

It’s characteristic that currently Fed Fund Futures imply that the market marginally expects the bank to remain on hold in September and proceed with only rate hike, instead of two, until the end of the year. Hence we highlight the release of the US CPI rates for August, next Friday. A possible beyond market expectations acceleration of the rates could provide support for the USD, while on the flip side, possible slower than expected CPI rates could weigh on the USD as market expectations for the Fed to tighten its monetary policy could ease further.

GBP – UK’s July GDP rates eyed

We highlight in next week’s calendar the release of UK’s GDP rates for July for pound traders. A possible acceleration could lift the pound as it would imply a faster expansion of the UK economy and vice versa. On a monetary level, we note the high expectations of the market for BoE to keep rates unchanged on the 17th of September. Yet BoE’s chief economist, Huw Pill, seemed to be leaning on the hawkish side, when he was calling yesterday for a prompt rate hike to tackle the threats of inflation from rising energy prices. Further similar comments from other BoE policymakers could hawkishly shift market’s expectations for the BoE, if not for September , then for a later data and thus provide support for the pound. On a fiscal level, we express our worries for the UK national debt its attached servicing costs, given also BoE Governor Bailey’s warnings about them. The rise of UK bond yields could hinder the implementation of an expansionary fiscal policy UK PM Burnham may want to implement and thus could weigh on a fundamental level on the GBP.

JPY – BoJ’s intentions, a beacon for JPY

In a surprise move in the FX market, JPY strengthened across the board on Thursday’s Asian session. JPY’s strengthening seems to be linked to BoJ board member Takata’s hawkish comments. He stated that BoJ could conduct rate hikes in a nimble manner to fight inflationary pressures. The comment enhanced market expectations for the bank to hike rates in the September meeting and currently, JPY OIS imply a 75% probability for a 25 basis points interest rate increase and a 57% for another rate hike in the December meeting. Overall at the current stage BoJ’s intentions seem to be the main driver behind JPY’s direction, hence we note coming Thursday the speech of BoJ Policy Board member Kazuyki Masu in Fukui. Further hawkish comments could push JPY even higher and vice versa. As for financial releases, we note the release of Japan’s Overall Lab Cash Earnings and current account balance, both for July, yet regard the release of the revised GDP Rate for Q2 as a possible highlight for JPY traders. A possibly faster than expected expansion of the rate could provide some support for JPY and vice versa.

EUR – ECB in the epicenter of EUR traders’ attention

EUR traders in the coming week are expected to keep a close eye on the release of ECB’s interest rate decision. The bank is expected to deliver a 25 basis points rate hike and the market seems to have almost fully priced in such a scenario, according to EUR OIS. Yet the bank is also expected to hike rates again in the December meeting, which is a display of the market’s current hawkish inclination. Hence should the bank hike rates as expected, we may see the markets’ attention turning on the bank’s forward guidance. Should it be characterised by a hawkish nature, we may see the common currency getting some support as the markets’ expectations for a rate hike in the December meeting as well, could be enhanced. Conversely should the forward guidance fail to be adequately hawkish we may see the ERU slipping. Please be advised that the banks’ forward guidance is to include besides the accompanying statement also ECB President Lagarde’s press conference later on. The ECB President has been well known to be able to reverse the market reaction during her press conferences after the release of the interest rate decision, so we expect volatility for EUR pairs to be extended.

Also on a fundamental level, we note the elections in the state of Upper Saxony, Germany, this Sunday. The extreme right AfD party seems about to win the elections and EUR traders may wake up with a nasty surprise on Monday morning. Should the election results, increase political uncertainty in Germany and shock the markets we may see the EUR taking a dive.

AUD – Market sentiment to lead the Aussie

The Aussie’s amazing upward movement against the USD seems to be maintained, despite some hick-ups during the week. On a macro level he acceleration of Australia’s GDP rate for Q2 and the widening of the country’s trade surplus during July tends to be supportive for AUD. In the coming week not much is on the calendar, with maybe some interest gathering around the release of the Australia’s business conditions for August and consumer confidence for September, both on Tuesdays’ Asian session. Hence, in the coming week we expect fundamentals to lead the Aussie.

On a monetary level, the market’s expectations for RBA to hike rates at the end of September tend to be supportive for AUD. Also given that the Australian Dollar is considered a commodity currency and quite sensitive to the market mood a possible improvement of the market sentiment could provide some support for AUD, while a possibly risk averse approach by the market could weigh.

CAD – Fundamentals to drive Loonie

With the Canadian employment data due out as these lines are written, we note that in the coming week the calendar is rather empty from high impact financial releases from Canada. Hence, we expect fundamentals to lead the Loonie next week. On monetary level, we note BoC’s interest rate decision last Wednesday. The bank remained hawkishly on hold, as it expressed its worries for inflationary threats deriving from rising energy costs. The release tended to shift market expectations for BoC to the hawkish side and the bank is currently expected to hike rates in the December meeting, which tends to be supportive for the Loonie.

On a deeper fundamental level a risk off market sentiment tends to weigh on the Loonie given its commodity currency nature, while a substantial increase in oil prices could provide some support for the CAD, given that oil remains the main export product of Canada. The main fundamental issue though for Canada’s economy at the current stage remains the US-Canadian trade war. BoC expressed its worries for a possibly negative impact on Canada’s economic growth, and we expect that any further escalation of tensions with the US could weigh on the Loonie.

Disclaimer:

This information is not considered as investment advice or an investment recommendation, but instead a marketing communication. IronFX is not responsible for any data or information provided by third parties referenced, or hyperlinked, in this communication.

The post August’s US CPI rates and ECB’s interest rate decision appeared first on Complete Turnkey Introducing Brokers (IB) Solution at IronFX.

Market indices bring together selected companies or assets and provide a snapshot of how a particular market, sector, or economy is performing. For traders, they can offer opportunities to speculate on broad market movements without focusing on the individual performance of every company inside an index.

But indices are not simply “stocks bundled together.” Each index has its own composition, weighting methodology, economic influences, and personality. Understanding these differences can make a significant difference when developing a trading approach.

What Is Indices Trading?

Indices trading involves speculating on the price movement of a market index rather than buying individual shares that make up that index.

Popular examples include the S&P 500, Nasdaq-100, Dow Jones Industrial Average, FTSE 100, DAX, and Nikkei 225.

For example, imagine that investors become increasingly optimistic about the U.S. economy. Technology companies report strong earnings, employment data is encouraging, and expectations for corporate growth improve.

Rather than choosing one technology stock and hoping it outperforms, a trader could look at an index such as the Nasdaq-100, which represents many large non-financial companies listed on the Nasdaq exchange.

The important point is that an index reflects a broader collection of market forces.

Why Do Traders Choose Indices?

One of the biggest attractions of indices trading is market exposure.

When trading an index, you are not necessarily trying to answer:

“Will this particular company rise?”

Instead, the question becomes:

“Will this broader market move higher or lower?”

That can make analysis more focused.

Indices are also closely connected to major economic themes. Interest rates, inflation, employment figures, corporate earnings, geopolitical developments, and investor sentiment can all influence index prices.

Another feature is variety. Different indices behave differently.

A technology-heavy index may react strongly to interest-rate expectations, while an index dominated by industrial or energy companies may respond more noticeably to commodity prices and economic growth.

This gives traders the opportunity to choose markets that match their trading style and interests.

How Do Indices Actually Move?

An index does not simply rise because “the economy is doing well.”

Its movement depends on the companies included in it and, importantly, how those companies are weighted.

Some indices give greater influence to companies with larger market capitalizations. Others may use different methodologies.

Consider a simplified index containing five companies:

• Company A: 40% weighting
• Company B: 25%
• Company C: 15%
• Company D: 10%
• Company E: 10%

If Company A experiences a major price move, the index could react much more strongly than it would to an identical percentage move in Company E.

This is why understanding an index’s composition can be useful even when you are not directly trading individual stocks.

The Economic Factors Behind Indices Trading

Successful indices trading requires more than staring at a chart.

Economic news can change market expectations within minutes.

Interest Rates

Central-bank decisions are particularly important.

When interest rates rise, borrowing generally becomes more expensive and financial conditions can tighten. This can affect corporate valuations and investor appetite for risk.

Technology-heavy indices can sometimes be especially sensitive to changes in interest-rate expectations because investors place significant value on future growth.

Inflation

Inflation data can influence expectations about future monetary policy.

Higher-than-expected inflation may cause traders to reconsider how quickly interest rates could fall—or whether further tightening could become necessary.

That shift in expectations can quickly affect major indices.

Employment Data

Employment reports provide clues about economic strength.

Strong employment can support consumer spending and economic activity, but exceptionally strong data can also influence expectations about monetary policy.

This is a good example of why market reactions are not always straightforward.

Corporate Earnings

Although an index represents multiple companies, earnings remain important.

If several large companies report disappointing results, an index can come under pressure. Conversely, strong earnings from major constituents can provide support.

Popular Indices for Traders

Different indices can offer very different trading environments.

S&P 500

The S&P 500 tracks large U.S. companies across multiple sectors and is widely used as a broad measure of U.S. equity-market performance.

For traders, it can provide exposure to a diversified collection of major companies rather than relying on one stock.

Nasdaq-100

The Nasdaq-100 has substantial exposure to large technology and growth-oriented companies.

This can make it attractive to traders interested in sectors that may respond strongly to technology trends, earnings expectations, and interest-rate changes.

Dow Jones

The Dow Jones Industrial Average consists of 30 major U.S. companies.

Its structure differs from many broader indices, making it useful for traders who want to understand how a specific group of established companies is performing.

DAX

Germany’s DAX provides exposure to major German companies and is closely watched by traders interested in European markets.

European economic data, energy prices, monetary policy, and global trade can all influence its movement.

Indices Trading Strategies

There is no universal strategy that works in every market environment. Instead, traders often adapt their approach to volatility, trend direction, and market conditions.

Trend Trading

Trend traders look for sustained upward or downward movements.

For example, if an index repeatedly creates higher highs and higher lows, a trader may consider the market to be in an uptrend.

The challenge is avoiding the assumption that every trend will continue indefinitely.

Breakout Trading

A breakout occurs when price moves beyond an important support or resistance level.

Imagine an index repeatedly failing to move above 5,000. After several attempts, price finally breaks through the level with strong momentum.

A breakout trader may interpret this as a potential change in market behavior.

However, not every breakout is genuine. False breakouts can occur, which is why confirmation and risk management matter.

Support and Resistance Trading

Some traders focus on areas where price has historically struggled to move beyond.

Support can represent an area where buying interest has previously appeared, while resistance may represent an area where selling pressure has emerged.

These levels are not magical barriers. They are zones where traders may pay increased attention.

Short-Term Momentum Trading

Momentum traders focus on strong price movements that may continue for a period of time.

This approach can be attractive during highly active market sessions, but it also carries greater risk because rapid price movements can work against a position just as quickly.

Risk Management Is the Real Strategy

A sophisticated trading setup means very little if risk is poorly controlled.

This is one of the most important lessons for anyone learning indices trading.

Suppose a trader has a €10,000 account and decides to risk 1% on a single trade.

That means the maximum planned loss is €100.

The exact position size should then be calculated based on the distance to the stop-loss and the instrument’s specifications.

This approach is more sustainable than simply choosing a position size based on how confident the trader feels.

Why Stop-Losses Matter

A stop-loss can automatically close a trade when the market reaches a predefined level.

It does not guarantee that the final execution price will always be identical to the stop level, particularly during fast-moving or illiquid conditions, but it can help define the maximum intended risk.

The goal is not to avoid every losing trade.

The goal is to make sure that one losing trade does not seriously damage the account.

Why Leverage Deserves Extra Attention

Many trading platforms allow traders to use leverage when trading indices.

Leverage can increase market exposure without requiring the full notional value of a position upfront.

That sounds attractive—but it cuts both ways.

If a market moves in your favor, gains can be amplified. If it moves against you, losses can increase just as quickly.

For this reason, leverage should be treated as a risk-management consideration rather than a shortcut to larger profits.

A Simple Example of Indices Trading

Imagine that the S&P 500 has been trending upward for several weeks.

A trader identifies:

• an established upward trend,
• a previous resistance zone,
• improving market sentiment,
• and a potential breakout.

Instead of entering immediately because the chart “looks bullish,” the trader waits for price confirmation.

Suppose the trader then enters a position after the breakout, places a stop-loss below a relevant technical level, and defines a profit target before entering.

The trade can still lose.

That is normal.

What makes the setup potentially more disciplined is that the trader knew the entry, invalidation point, and risk before committing capital.

This distinction is crucial: a good trading process does not guarantee a good outcome on every trade.

Common Mistakes Beginners Make

One of the easiest ways to improve is to recognize what frequently goes wrong.

Trading Every Market Move

Not every candle represents an opportunity.

Sometimes the best trade is no trade at all.

Ignoring Economic Events

Opening a position shortly before a major central-bank announcement or economic release can expose a trader to sudden volatility.

Always know what major events are approaching.

Using Too Much Leverage

A small market movement can become a significant account loss when position sizes are excessive.

Moving the Stop-Loss

Some traders move their stop farther away after a position starts losing because they do not want to accept the loss.

This turns a planned trade into an emotional one.

Confusing Prediction With Analysis

Analysis is about identifying probabilities and scenarios.

It is not about knowing exactly what the market will do next.

How to Build a Better Indices Trading Routine

A simple routine can help bring structure to the trading process.

Before entering a trade, ask:

1. What is the broader market trend?
2. What is moving the index today?
3. Are there important economic events ahead?
4. Where are the key support and resistance areas?
5. What would invalidate my trading idea?
6. How much am I willing to lose?
7. Is the potential reward reasonable compared with the risk?

After the trade, record what happened.

Over time, a trading journal can reveal patterns that are difficult to notice in the moment. You may discover that your best trades happen during particular market sessions or that certain setups perform poorly in sideways markets.

That information is far more valuable than simply counting winning trades.

Final Thoughts: Induces trading

Indices trading offers a way to participate in broad market movements rather than concentrating on a single company.

But the simplicity of trading an index should not be confused with easy profits.

The strongest foundation is built from understanding the index itself, following the economic factors that influence it, using a clearly defined strategy, and controlling risk consistently.

Think of each trade as one decision in a much larger series.

You do not need to predict every market move. You need a process that helps you identify opportunities, manage uncertainty, and protect your trading capital when the market does not behave as expected.

The post Indices Trading: A Practical Guide to Understanding and Trading Market Indices appeared first on Complete Turnkey Introducing Brokers (IB) Solution at IronFX.

Market attention today is expected to be on the US employment report for August. The release gains on attention as the Fed’s interest rate decision is nearing. Currently the NFP figure is expected to modestly recover from its drop into the negatives in July, reaching 56k, while the unemployment rate is expected to remain unchanged at 4.1%. Should the rates and figures show a wider than expected tightening of the US employment market, it could enhance market expectations for a tightening of the Fed’s monetary policy and thus provide support for the USD, while at the same time weigh on gold’s price and US equities. 

Canada’s employment data to move the Loonie

Simultaneously with the US employment report, we are also getting Canada’s employment data for August. Despite BoC’s interest rate decision showing the bank’s focus on inflationary pressures, the state of the Canadian employment market given also the US-Canadian trade war remains high. Should the data show a tighter than expected employment market we may see the Loonie getting some support, while weaker than expected employment data could weigh on the CAD.

Gold’s price stabilises for now

Besides the release of the US employment report for August mentioned yesterday, we also note the Fed’s intentions as one of the main factors behind the gold’s direction today. Fed Board Governor Waller stated yesterday that he would favour the bank remaining on hold in the September meeting should US CPI rates continue to slow down easing the market’s hawkish expectations for the Fed. It’s characteristic that currently Fed Fund Futures imply that the market marginally expects the bank to remain on hold in September and proceed with only rate hike, instead of two, until the end of the year. Should we see  further cooling of the market’s expectations for the Fed to tighten its monetary policy, gold’s price may be allowed to rise again.   

Bitcoin defends $81.5k level

Bitcoin was on the rise again yesterday defending the $81.5k level. The crypto-market added about $112.4 billion with falling US yields and easing market expectations for a possible tightening of the Fed’s monetary policy aiding the cryptocurrency market. A possible improvement of the sentiment in the crypto-market, may allow Bitcoin and the wider crypto-market to rise further, given its risky nature.

Other highlights for today

Today we note that BoE Governor Bailey and ECB’s chief economist Lane speak, while we get Canada’s Ivey PMI for August.

Charts to keep an eye out

USD/CAD dropped yesterday aiming for the 1.3730 (S1) support line. We maintain a sideways motion bias for the time being, yet the RSI indicator remains between the readings of 50 and 30, implying a bearish predisposition of the market for the pair. Should the bears take control over the pair, we may see USD/CAD breaking the 1.3730 (S1) support line and start aiming for the 1.3550 (S2) support level. Should the bulls take over, we may see USD/CAD breaking the 1.3880 (R1) resistance line and start aiming for the 1.3990 (R2) level.

USD/CAD Daily Chart

BTC/USD rose covering the distance between the 76800 (S1) support line and the 81450 (R1) resistance level.  The RSI indicator remains near 70, implying a bullish market sentiment for the crypto king. Yet for the time being we maintain a bias for a sideways motion between the S1 and the R1. For a bullish outlook to emerge, we require a clear break above the 81450 (R1) resistance line and the crypto’s price to start aiming for the 86500 (R2) resistance level. For a bearish outlook to emerge, Bitcoin’s price would have to break clearly the 76800 (S1) support line and start aiming for the 72500 (S2) support level.

BTC/USD Daily Chart

Disclaimer:

This information is not considered as investment advice or an investment recommendation, but instead a marketing communication. IronFX is not responsible for any data or information provided by third parties referenced, or hyperlinked, in this communication.

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