JASPER’S MARKET SQUAWK 18-09-2023

<h2>Dampened Risk Appetite Weighs on Markets</h2>
<p>Stocks gave back Thursday’s gains on Friday as traders digested a triple witching day and the UAW’s strike against automakers. Gold soared during the relatively harsh environment, backed by a surprising upbeat in the NYES Manufacturing Index that saw ‘price paid’ as non-inflationary.</p>
<p><img decoding="async" fetchpriority="high" class="alignnone wp-image-25679 size-full" src="https://www.keytomarkets.com/blog/wp-content/uploads/2023/09/MarketSquawk-180923.png" alt="" width="1762" height="842" srcset="https://www.keytomarkets.com/blog/wp-content/uploads/2023/09/MarketSquawk-180923.png 1762w, https://www.keytomarkets.com/blog/wp-content/uploads/2023/09/MarketSquawk-180923-300×143.png 300w, https://www.keytomarkets.com/blog/wp-content/uploads/2023/09/MarketSquawk-180923-1024×489.png 1024w, https://www.keytomarkets.com/blog/wp-content/uploads/2023/09/MarketSquawk-180923-768×367.png 768w, https://www.keytomarkets.com/blog/wp-content/uploads/2023/09/MarketSquawk-180923-1536×734.png 1536w" sizes="(max-width: 1762px) 100vw, 1762px" /></p>
<p><strong>Chart: GOLD</strong></p>
<h2>Key Factors for Today</h2>
<ul>
<li>Gold Prices Soar from on NY Manufacturing Component Amidst UAW Strike</li>
<li>Strong US and China Industrial Data Boost WTI to Fresh November High</li>
<li>Post-ECB Reaction Sees Euro Bears Take a Breather Before Next Move</li>
<li>Natural Gas Prices Spike in EU and US Following Chevron LNG Strike</li>
</ul>
<h2>Flat ‘Price Paid’ and UAW Strike Bolster Gold Prices</h2>
<p>The New York Federal Reserve&#8217;s Empire State Manufacturing index rose to 1.9 in September, higher than the -10 expected and in expansionary territory compared to August&#8217;s reading of -19. The report showed that the ‘price paid’ component remained unchanged while ‘prices received’ improved substantially. Coupled with a risk-off appetite from UAW’s strike against the Big Three automakers, gold prices soared 0.70% to $1925/oz on Friday, leaving behind support at $1905/oz to march -potentially- towards $1940/oz.</p>
<h2>Industrial Data Send WTI to Fresh November High</h2>
<p>Industrial production improved in both the US and China, exceeding expectations and suggesting increasing demand. US Industrial production advanced to 0.2% from 0%, while economists had forecasted a -0.5 contraction. China’s release showed a figure of 4.5% compared to the 3.9% expected. WTI has been on an upward spiral, boosted by OPEC+ cut extensions and Storm Daniel affecting Libya’s export terminals, and continued to rise on the improving economic data. The next resistance lies at $93.80 a barrel, with support being the $90/bbl handle.</p>
<h2>Post-ECB Reaction Gives Euro Bears Room for Breathing</h2>
<p>After sliding to a 6-month low following the ECB’s signal to end its hiking cycle on Thursday, EUR/USD bears took a breather on Friday as the broader US index was also seen experiencing a slight drop. Although the currency took a beating following Lagarde’s remarks, traders appeared to be securing some gains ahead of the weekend close and this week’s widely anticipated FOMC. Next support is expected at $1.06, with resistance near $1.0730.</p>
<h2>Natural Gas in the EU and US Spike After AU LNG Strike</h2>
<p>On Friday, Chevron workers in Australia also went on a strike, adding to an appetite for natural gas on disagreements over pay, overtime, security, and schedules. European gas prices rose 9% as leading importers of Australian LNG, with the US counterpart up 2.90% by the session’s end. With Chevron confirming the end of negotiations, prices could accelerate towards or past the $3/cf barrier unless bulls fail to defend $2.40/cf.</p>
<h2>On The Docket</h2>
<ul>
<li>ECB Guindos Speech</li>
<li>Bundesbank Monthly Report</li>
<li>CA Housing Starts, PPI</li>
<li>ECB Panetta Speech</li>
<li>Bundesbank Mauderer Speech</li>
</ul>
<h2>FX 1-Day Relative Performance (USD)</h2>
<ul>
<li>Aussie and Kiwi 0.29% and 0.34% up</li>
<li>Euro 0.11% up, Pound 0.15% higher</li>
<li>Yen 0.12% higher, Franc by +0.09%</li>
<li>Canadian dollar up by 0.09%</li>
<li>Gold and Silver 0.16% and 0.17% in green</li>
<li>Crude and Brent 0.64% and 0.57% higher</li>
<li>Natural gas barely higher at 0.08%</li>
</ul>
<p>The post <a rel="nofollow" href="https://www.keytomarkets.com/blog/analysis/jaspers-market-squawk-18-09-2023-25678/">JASPER’S MARKET SQUAWK 18-09-2023</a> appeared first on <a rel="nofollow" href="https://www.keytomarkets.com/blog">Key To Markets Blog</a>.</p>