Market Fundamental Analysis by RoboForex

[RoboForex Team]

US Tech rises on optimism in the AI sector

US Tech has reached a new all-time high and is now correcting. The current price is 30,682.

US Tech forecast: key takeaways

• The US Services Purchasing Managers Index rose to 58.7
• The yield on 30-year US Treasuries rose to 5.44%, the highest level since 2004

Fundamental analysis

The combination of two factors — a sharp rise in long-term US Treasury yields and a much stronger-than-expected services business activity index — is creating a primarily negative backdrop for US Tech. This does not point to a deterioration in the US economy.

This is particularly important for US Tech. Technology companies are valued to a large extent on the basis of expected cash flows and profits to be generated many years into the future.

RoboForex Market Analysis & Forex Forecasts

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

Sincerely,
The RoboForex Team

 

[RoboForex Team]

EURUSD loses ground amid hawkish Federal Reserve expectations

The EURUSD pair has resumed its decline, with traders focusing on the 1.1360 support level. The rate currently stands at 1.1380.

EURUSD forecast: key takeaways

• US consumer inflation expectations rose in September
• The market estimates the likelihood of a Federal Reserve rate hike in October at 69.2%
• Key US inflation and labour market data will be released this week

Fundamental analysis

The EURUSD rate is declining after a correction that lasted for two consecutive trading sessions. The price is actively testing the 1.1360 support level; a breakout below this mark could accelerate the downward move and strengthen bearish momentum.

Meanwhile, Friday’s data showed a smaller-than-expected deterioration in US consumer confidence in September. The final University of Michigan Consumer Sentiment Index came in at 48.1 points.

RoboForex Market Analysis & Forex Forecasts

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

Sincerely,
The RoboForex Team

 

[RoboForex Team]

Gold (XAUUSD) plunges 4% as market tests the 4,110 USD level

Gold (XAUUSD) prices remain just above 4,100 after falling by around 4% in the previous session, with virtually every factor currently weighing on the precious metal.

XAUUSD forecast: key takeaways

• Uncertainty surrounding US-Iran negotiations is supporting oil prices and increasing inflation risks
• The market estimates the likelihood of another Federal Reserve rate hike in October at around 70%
• Treasury yields are also reaching new multi-year highs

Fundamental analysis

Gold (XAUUSD) is trading around 4,100 after falling by approximately 4% in the previous session. Pressure on XAUUSD persists due to high oil prices and the associated inflation risks, which are fuelling expectations of further Federal Reserve monetary policy tightening.

Oil prices have resumed their rise following reports that Iranian representatives doubt an agreement with the US can be reached before the November midterm elections.

RoboForex Market Analysis & Forex Forecasts

Attention!
Forecasts presented in this section only reflect the author’s private opinion and should not be considered as guidance for trading. RoboForex bears no responsibility for trading results based on trading recommendations described in these analytical reviews.

Sincerely,
The RoboForex Team