Forex Today: Fears Grow of Hard Landing for US Economy

Forex Today: Fears Grow of Hard Landing for US Economy

Adam Lemon

 | Created on September 05, 2024

Markets take a more strongly risk-off approach, with stock markets declining almost everywhere. The US Dollar is falling on fears of a recession which will force the Fed to cut rates faster.

  1. There is a growing fear in the markets that the US is approaching an economic recession as economic data continues to show a slowing economy. This is pushing US Treasury Yields lower, and for the first time in two years, the 2-year and 10-year yields have become dis-inverted. This in turn pushes the US Dollar lower, with the Japanese Yen gaining as both a safe haven and as a policy bet on the Bank of Japan’s continuing move away from its old ultra-loose monetary policy.
  2. Stock markets have continued to decline, although at a slower pace. The Nikkei 225 Index stands out as it is down by more than 1.5% on the day. A recovery is possible, but it is likely that markets will await tomorrow’s US non-farm payrolls data before making any firm bullish move, so consolidation today is quite likely to happen in US stock markets.
  3. In the Forex market, the Japanese Yen has again been the strongest major currency since today’s Tokyo open, while the Euro has been the weakest, although the numbers are small so perhaps not significant. Traders wishing to follow the Yen higher will likely do well trading either the AUD/JPY currency cross or the USD/JPY currency pair which is close to new long-term lows and falling with strong bearish momentum. The EUR/USD currency pair remains in focus as trend traders will still be interested in being long of this currency pair above $1.1035.
  4. Most commodities fell strongly yesterday. Crude Oil stands out as it fell to reach a new 9-month low price yesterday.
  5. Trend traders who can access the 2-year US treasury yield should consider a short trade, as we are seeing the price fall near its long-term low.
  6. US JOLTS Jobs data released yesterday was notably lower than expected, reinforcing pessimism over an economic hard landing in the USA.
  7. The Bank of Canada cut its interest rate yesterday from 4,50% to 4.25%, which was widely expected.
  8. There will be three important data releases in the USA today which could affect market sentiment:
  1. The ADP non-farm payrolls forecast.
  2. ISM Services PMI
  3. Unemployment Claims

Ready to trade our Forex daily forecast? We’ve shortlisted the best forex broker list for you to check out.

Top Forex Brokers

1 Get Started 74% of retail CFD accounts lose money Read Review

Subscribe

Sign up to get the latest market updates and free signals directly to your inbox.

Please enter a valid email address

Help me Choose a Broker *By registering you agree to receive communications.

Most Visited Forex Broker Reviews

Latest News

View More Articles

This post is originally published on DAILYFOREX.

  • Related Posts

    Forex Today: S&P 500 Index Trades at Record High – 23 January 2025

    Forex Today: S&P 500 Index Trades at Record High By Adam Lemon Created on January 23, 2025  | Updated on January 23, 2025 The bullish environment continues for global equities, led…

    Inflation Ticks Lower in Canada, Unchanged in New Zealand – 22 January 2025

    Inflation Ticks Lower in Canada, Unchanged in New Zealand By Kenny Fisher Created on January 22, 2025 Canada’s CPI Falls to 1.8% Canada’s Consumer Price Index (CPI) eased to 1.8%…

    Leave a Reply

    Your email address will not be published. Required fields are marked *

    You Missed

    How to Choose the Best Forex Broker for Your Trading Style

    • January 23, 2025
    How to Choose the Best Forex Broker for Your Trading Style

    🏃‍♂️ Runner or 🎯 Gunner? Why Your Trades Are Ghosting You (And How to Stop It!)

    • January 23, 2025
    🏃‍♂️ Runner or 🎯 Gunner? Why Your Trades Are Ghosting You (And How to Stop It!)

    Forex Today: S&P 500 Index Trades at Record High – 23 January 2025

    • January 23, 2025
    Forex Today: S&P 500 Index Trades at Record High – 23 January 2025

    Do Failed Plans Really Lead to Success?

    • January 22, 2025
    Do Failed Plans Really Lead to Success?

    Best Forex Investment Tips to Start Trading in 2025

    • January 22, 2025
    Best Forex Investment Tips to Start Trading in 2025

    Inflation Ticks Lower in Canada, Unchanged in New Zealand

    • January 22, 2025
    Inflation Ticks Lower in Canada, Unchanged in New Zealand
    Copyright © 2024 Managed Accounts Forex | Powered by EdgeForex

    Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. No information or opinion contained on this site should be taken as a solicitation or offer to buy or sell any currency, equity or other financial instruments or services. Past performance is no indication or guarantee of future performance. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you can afford to take the high risk of losing your money. Please read our legal disclaimer.