Gold & silver snap after US retail sales surprise

“Diversification is protection against ignorance. It makes little sense if you know what you are doing.” - Warren Buffett

HEADLINES

• Dollar on fire, but wait, euro strikes back
• EUR/USD spikes in mid-US session
• Gold posts sharpest daily drop in nearly six weeks as dollar, Treasury yields edge up
• Wall Street slips as tech, energy stocks drop
• Bitcoin Drifts Lower as Altcoins Outperform
• USD/CAD: Election jitters could offer a rally to fade – TDS

FOREX

Dollar on fire, but wait, euro strikes back

The greenback rallied to the highest level in nearly three weeks as measured against a basket of currencies in the DXY index. Data showed US Retail Sales unexpectedly increased in August, easing some concerns about a sharp slowdown in economic growth.

EUR/USD spikes in mid-US session

Meanwhile, the euro got a mid-day boost on Wall Street when hawkish news circulated surrounding an unpublished ECB inflation estimate that raises the prospect of an earlier rate rise.  EUR/USD rallied around 20 pips on the news which out a floor in the downtrend on Thursday. EUR/USD had otherwise been falling from a high of 1.1820 to a low of 1.1750.

COMMODITIES

Gold posts sharpest daily drop in nearly six weeks as dollar, Treasury yields edge up

Gold futures suffered back-to-back losses on Thursday and the sharpest daily decline in bullion in almost six weeks as the dollar and Treasury yields popped higher following data showing a rise in U.S. retail sales last month. Confidence in gold “has been light, vulnerable even, especially with the broad commodity complex enjoying another rally — not to mention bitcoin… Clearly, the unexpectedly strong U.S. retail sales have boosted the dollar and gold has corrected sharply lower,”

STOCKS

Wall Street slips as tech, energy stocks drop

Wall Street indexes fell on Thursday as an unexpected rise in retail sales pointed to resilience in the economic recovery, pushing up yields and spurring a broad move out of heavyweight technology stocks. Economically sensitive sectors fared better than their peers, with financial stocks (.SPSY) falling 0.2% - the least among the S&P sectors. An index of transport stocks (.DJT) - a common gauge of economic optimism - added 0.2%. The energy sector tumbled 1.4% after a recent rally, as crude prices retreated due to the receding threat to U.S. Gulf crude production from Hurricane Nicholas. 

CRYPTO

Bitcoin Drifts Lower as Altcoins Outperform

Bitcoin dipped below $48,000 on Thursday as short-term overbought signals appeared on the charts. Buyers appear to be taking a breather ahead of the $50,000 resistance level, and some analysts expect the price to consolidate before the next option expiration date on Sept. 24. Blockchain data shows large transaction volume in bitcoin, which suggests buyers could remain active at lower support levels. Bitcoin was trading at around $47,000 at press time and is up about 2% over the past week.

ANALYSIS

USD/CAD: Election jitters could offer a rally to fade – TDS

"For USDCAD, the election jitters could offer a rally to fade, reflecting scope for less fiscal support or paper-thin governing mandates. That said, global factors remain the key CAD driver, where we like the prospects of reduced growth worries and a lighter form of reflation to emerge through the fall. The result would be another peak in the broad USD, offering an opportunity to fade USDCAD rallies towards 1.28."

CHART

Spot silver – Daily Candlesticks

Source: GKFX Prime Metatrader 4

XAG/USD fell sharply underneath 23, which has held as support since the August flash crash. 23 and then 23.30 are now resistance to any recovery. - Prepared by Trading Writers*

CALENDAR

*Times in GMT

Source: FX Street Economic Calendar

SOURCE

https://www.fxstreet.com/economic-calendar
https://www.fxstreet.com/news/usd-cad-election-jitters-could-offer-a-rally-to-fade-tds-202109161745
https://www.fxstreet.com/news/forex-today-dollar-on-fire-but-wait-euro-strikes-back-202109162106
https://www.marketwatch.com/story/gold-faces-sharpest-daily-drop-in-over-a-week-as-dollar-rises-11631794726
https://www.coindesk.com/markets/2021/09/16/market-wrap-bitcoin-drifts-lower-as-altcoins-outperform/