Fed Holds Off Rate Hike

Wells Fargo Research Team Wells Fargo

U.S. Review

Fed Holds Off Rate Hike

The FOMC voted 7 to 3 to hold off on raising rates in the September meeting. Fed officials noted the strengthened case for a rate hike but decided to wait for more data to confirm that notion. New language added in the statement suggests the committee is priming markets for a near-term move, which we expect will take place at the December meeting.
The housing market dominated the data calendar this week, with housing starts, building permits and existing home sales all coming in softer than expected in August. Tight inventory of available homes continues to grip many U.S. housing markets.

Global Review

Brazil and Argentina in Recession; Better Manufacturing PMI in the Eurozone

The Argentine economy recorded a deep downturn in the second quarter battered by a very weak performance from real investment, one of the sectors the new Macri administration was counting on to boost economic growth. Meanwhile, the Brazilian recession deepened in the first month of the third quarter.
The Eurozone showed a better-than-expected manufacturing sector in September, according to the release of the manufacturing PMI number for the month, even as the service sector PMI was slightly weaker than expected.

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Wells Fargo Research Team

Wells Fargo

EUR/USD remains depressed below mid-1.1800s; downside potential seems limited

The EUR/USD pair attracts some sellers for the second consecutive day on Tuesday and hovers below mid-1.1800s amid a relatively quiet trading action during the Asian session. The broader fundamental backdrop, however, warrants some caution for bearish traders before positioning for deeper losses.

GBP/USD trades with negative bias, eyes 1.3600 ahead of UK jobs data

The GBP/USD pair trades with a negative bias for the second straight day, though it lacks bearish conviction and holds above the 1.3600 mark through the Asian session on Tuesday. Traders now look forward to the release of the UK monthly jobs report, which will influence the British Pound and provide some impetus to the currency pair.

Gold declines as trading volumes remain subdued due to holidays in China

Gold price extends its losses for the second successive session, trading around $4,930 per troy ounce during the Asian hours on Tuesday. Gold price is trading nearly 0.7% lower at the time of writing as trading volumes stayed thin due to market holidays across China, Hong Kong, and other parts of Asia.

Top Crypto Gainers: Stable, MemeCore and Nexo rally test critical resistance levels

Stable, MemeCore, and Nexo are among the leading gainers in the crypto market over the last 24 hours, while Bitcoin remains below $70,000, suggesting renewed interest in altcoins among investors.

The week ahead: Key inflation readings and why the AI trade could be overdone

It is likely to be a quiet start to the week, with US markets closed on Monday for Presidents Day. European markets are higher across the board and gold is clinging to the $5,000 level after the tamer than expected CPI report in the US reduced haven flows to precious metals.

XRP steadies in narrow range as fund inflows, futures interest rise

Ripple is trading in a narrow range between $1.45 (immediate support) and $1.50 (resistance) at the time of writing on Monday. The remittance token extended its recovery last week, peaking at $1.67 on Sunday from the weekly open at $1.43.