Market review:

Last Friday, as data once again showed the strength of the U.S. economy, the U.S. dollar index fell to an intraday low of 104.66 during the U.S. session and then strongly recovered all losses and turned higher. Finally, it closed up 0.01% at 105.05, achieving 8 consecutive weeks. rose, setting a record for the longest weekly rise in nine years.

Last Friday (September 8), the pound hovered slightly above the three-month low on Friday and closed at the recent low of 1.2470. Therefore, the recent strength of the US dollar also forced the pound to retreat and there was a sustained trend. Downward trend.

Spot gold was on a rollercoaster ride. It once rose to an intraday high of $1,929.25 during the U.S. trading session, then gave up all its gains and fell below the $1,920 mark. It finally closed down 0.03% at $1,919.07 per ounce.

Spot silver fell for nine consecutive trading days, finally closing down 0.19% at $22.91 per ounce.

Crude oil continued to rise sharply, reaching a new high in the past nine months, and finally closed up 0.52%.

Market analysis:

Events this week centered on a speech by Bank of England chief economist Pierre, the euro zone and Germany. ZEW Economic Sentiment Index in September, U.S. CPI and PPI in August, U.S. retail sales in August, European Central Bank interest rate decision, China’s industrial production, consumer goods retail sales and urban fixed asset investment annual rate from January to August, U.S. industrial output in August monthly Data, preliminary value of University of Michigan consumer confidence index in September.

The European Central Bank appears to be stuck in stagflation. The region’s economy is slowing significantly, with downward revisions to second-quarter GDP revising fears of a recession. The latest Purchasing Managers Index (PMI) also showed that the recession deepened further in August due to weak demand in Europe’s main export markets. But the multiple reasons for keeping the deposit rate unchanged at 3.75% are likely to be outweighed by core inflation, which remains well above the ECB’s 2% target of 5.3%. Some policymakers have said they would rather do too much than too little in fighting inflation, meaning this could be the last appearance by hawks on the ECB policy committee before agreeing to a longer pause.

Sterling traders will keep a close eye on UK employment data, which is expected to be released mid-week. The Bank of England is widely seen as one of the major central banks that needs to raise interest rates further. However, members of the Monetary Policy Committee (MPC) have made increasingly dovish comments of late, including Governor Bailey suggesting the central bank is “close” to the end of its rate hike cycle. The pound has suffered as a result, becoming one of the worst-performing major currencies this month. GBP/USD has fallen for four consecutive days, with investors expecting some support above the 200-day moving average of 1.24.