JPY continued to weaken in the FX market against the USD, EUR and GBP, in a signal of a wider weakness of the Japanese currency. The weakening occurs despite BoJ hiking rates on Friday, and reports surfaced that Japanese authorities checked rates on Friday. Such checks tend to predate a possible market intervention operation, and given the steep rise of USD/JPY we may see Japan coming to the Yen’s rescue, once again.

US equities rally  on AI hopes

US equities enjoyed substantial support yesterday, with Meta’s AI agent, Muse, enhancing market expectations for increased demand of semiconductor chips. A potential easing of worries regarding the US tariffs and high oil prices and enhanced hopes for AI, tend to be supportive for US equities. On the flip side, worries for AI going rogue and the Fed’s hawkish intentions tend to weigh on US stock markets. 

Oil prices correct higher

Oil prices edged higher, ahead of potential negotiations between the US and Iran. Threats were exchange between the US and Iran over the weekend, yet US President Trump expressed his openness in meeting Iranian President Pezeshkian, while the Iranians set its conditions to re-enter negotiations, both easing market worries for an escalation of tensions in the region. 

Bitcoin rallies

Bitcoin’s price rallied yesterday, at some point even breaking the $86k threshold.  It should be noted that the crypto market is on the upside despite the US Senate failing to pass the Clarity Act. Yet the crypto market’s hopes about an easing of regulation tends to reside in the Trump-Xi meeting on Thursday at the White House.

Other highlights for today

Today we get the UK’s CBI orders figure for September and the Eurozone’s preliminary consumer confidence figure for September. In tomorrow’s Asian session, we note Australia’s preliminary services, composite and manufacturing PMI figures for September. On a monetary policy level, we note the speeches today by NY Fed President Williams, ECB Buch, Fed Vice Chair Jefferson and Richmond Fed President Barkin.

Charts to keep an eye out

USD/JPY continued to rise and during today’s Asian session tested the 157.50 (R1) resistance line. We intend to maintain a bullish outlook for the pair as long as the upward trendline guiding it remains intact. Yet, the RSI indicator remains near 50, implying a rather indecisive market, thus a stabilisation or an easing of the bullish tendencies is possible. Should the bulls remain in charge over the pair, we may see USD/JPY breaking the 157.50 (R1) line and start aiming for the 160.50 (R2) resistance level. Should the bears regain control over the pair, we may see USD/JPY initially breaking the prementioned upward trendline in a first signal that the upward motion has been interrupted and continue lower to break the 155.00 (S1) support line and start aiming for the 152.10 (S2) support level.

USD/JPY Daily Chart

Bitcoin’s price rallied yesterday at some point teasing the $86500 (R1) resistance level, before correcting lower. We maintain a bullish outlook for the crypto’s price as long as the upward trendline guiding it remains intact. At the same time we issue a warning for a  possible correction lower as the RSI indicator remains above the reading of 70, implying a possibly overcrowded long position. Should the bulls continue to push Bitcoin’s price higher, we expect the crypto’s price to break the 86500 (R1) resistance line, taking aim of the 90500 (R2) resistance level. Should the bears take over, we may see Bitcoin’s price breaking the prementioned upward trendline, in a first signal of an interruption of the crypto’s upward movement and continue lower by breaking the 81450 (S1) support line clearly, aiming for the 76800 (S2) support level.

BTC/USD Daily Chart

Disclaimer:

This information is not considered as investment advice or an investment recommendation, but instead a marketing communication. IronFX is not responsible for any data or information provided by third parties referenced, or hyperlinked, in this communication.

The post JPY risking Japan’s market intervention appeared first on Complete Turnkey Introducing Brokers (IB) Solution at IronFX.

US-Iran takes the stage once more

The US and Iran exchanged verbal threats over the weekend. In particular, President Trump threatened Iran that if they did not agree to a deal, they could face economic destruction or even a wipe of their leadership. As expected, Iran responded by stating that it would retaliate harshly to any fresh attack. However, despite the strong language being used, the US President signalled that he would be open to meeting with Iran’s President during the UN General Assembly, which is taking place this week in New York.

Therefore, the possibility of the US and Iran discussing a possible framework on the easing of tensions in the region could possibly weigh on gold’s price should such a discussion take place and prove to be fruitful. Therefore, any talks which appear to be making progress on the front of de-escalating the tensions in the Middle East could weigh on gold’s price as a result of safe haven outflows.

Fed hiked by 25 basis points as was expected last week

We would like to recap last week’s interest rate decision by the Federal Reserve despite the market impact having occurred. The Fed hiked rates by 25 basis points as was expected, yet in the bank’s accompanying statement it appeared to be relatively hawkish in nature, with the following being stated that “for more than five years, inflation has been running above….The plain fact is that inflation is too high and has been for too long.” The comments showcase that the bank is prepared and willing to hike rates in order to achieve their goal.

Moreover, it was stated that “This summer’s inflation readings do not tell me that underlying trends have meaningfully improved”, further adding that inflation may need to be brought back under control. In turn, the commentary may have aided the dollar whilst weighing on gold’s price given the inverse relationship between the two assets. Overall, should Fed policymakers adopt a more hawkish stance in their public engagements up until the bank’s next meeting, it could weigh on the precious metal’s price.

Trump’s calls for Ukraine-Russia war to end President Trump on a TruthSocial post stated that “Russia has unfortunately lost control of its diesel oil industry due to its War with Ukraine….This ridiculous and never-ending war with Ukraine must be ended”. The comments by the President could lead to increased political pressure on Ukraine to reach some form of agreement with Russia in the near future or at least lay down some groundwork for peace talks. In turn any indication of such a scenario could weigh on gold’s price. However, considering how long this war has been going on for and the numerous attempts to de-escalate the situation, gold’s price may not be influenced until meaningful discussions are held.

TECHNISCHE ANALYSE

XAU/USD Daily Chart

Gold’s price appears to be moving in a sideways fashion. The precious metal’s price has resurfaced above our 4335 (S1) support level. Moreover, the RSI indicator below our  For our sideways bias to be maintained we would require the precious metal’s price to remain confined between our 4335 (S1) support level and our 4520 (R1) resistance line. On the other hand, for a bearish outlook, we would require a clear break below our 4335 (S1) level, with the next possible target for the bears being our 4180 (S2) support line. Lastly, for a bullish outlook, we would require a clear break above our 4520 (R1) resistance line with the next possible target for the bulls being our 4695 (R2) resistance level.

Disclaimer:

This information is not considered as investment advice or an investment recommendation, but instead a marketing communication. IronFX is not responsible for any data or information provided by third parties referenced, or hyperlinked, in this communication.

The post Gold Outlook: Middle East in the spotlight once again appeared first on Complete Turnkey Introducing Brokers (IB) Solution at IronFX.

With the Fed’s interest rate decision out the calendar for USD traders becomes lighter in the coming week, as not major financial releases are scheduled, maybe with few exceptions. Overall though, we expect fundamentals to lead the greenback in the coming week.

On a monetary level the Fed proceeded with its first rate hike since 2023, as was widely expected. It should be noted that the bank hiked rates against US President Trump’s wishes. It’s characteristic that Fed Chair Warsh stated that ‘Inflation is too high and has been for too long’, signalling his hawkish intentions. Overall Fed Chair Warsh seems to be ready to differentiate the bank’s monetary policy from Trump’s wishes.

The bank’s new dot plot indicated that Fed policymakers currently expect another rate hike until the end of the year. The decision renewed support for the USD in the FX market, also weighing on US equities and gold’s price. Should we see Fed policymakers reiterating the bank’s hawkish intentions we may see the USD getting additional; support in the coming week.

On a deeper fundamental level, we note the Trump-Xi meeting next Thursday in Washington. Despite not expecting agreements being announced we expect clues regarding geopolitics and international trading conditions to emerge that could affect the markets.

GBP – BoE remained on hold as was expected

On a macro economic level, we note that inflationary pressures in the UK economy seem to have intensified in August. The release tended to add more pressure on BoE to tighten its monetary policy. Yet BoE remained on hold as was expected, and may have sounded less hawkish than expected, keeping the vote count unchanged, implying that there was no shift in the balance of power within the bank.

Nevertheless, the market expects a rate hike in the bank’s next meeting near the end of October. Should the market’s hawkish expectations intensify over the coming week, we may see the pound getting some support.

On a fiscal level, UK bond yields have risen which raised some eye brows, as the spectre of higher servicing costs for the UK national debt emerged, providing a reality check for the UK government mid week. Also we note that UK PM Burnham vowed to “deepen relationships” with the EU, which could be somewhat supportive for the EU.

JPY – BoJ hiked rates yet was unconvincing for its hawkish intentions

JPY lost ground across the board, making it the weakest link for the week. On a monetary policy BoJ’s interest rate decision on Friday also contributed to JPY’s weakness. JPY weakened across the board yesterday, despite BoJ hiking rates as expected.

The bank raised rates, yet the vote count revealed that two BoJ policymakers dissented and favouring keeping rates unchanged. The vote count tended to raise doubts about future rate hikes, as it underscored the bank’s difficulty in continuing to raise rates. The market had to reposition itself, selling JPY, as its hawkish expectations eased. Nevertheless, we still view the bank as maintaining a tightening bias.

BoJ Governor Ueda in his press conference hit a more hawkish tone underscoring the bank’s commitment to price control at the bank’s 2% target. Should such doubts intensify, we may see JPY short sellers, renewing carry trade, which in turn could weigh on JPY.

On fiscal level, UK PM Takaichi’s government seems to have strong intentions to take measures supporting growth for the Japanese economy, a scenario that could theoretically provide support for the JPY. Yet given the enormous Japanese national debt, an expansionary fiscal policy could imply increased borrowing, which in turn may weigh on the JPY. Overall we see the case for fundamentals to lead the JPY traders give the low number of high impact financial releases.

EUR – Euro Zone’s preliminary September PMI figures in focus

On a macro level we note that Euro Zone’s inflationary pressures for August accelerated beyond market expectations which may have been supportive for the common currency.

EUR traders in the coming week, keep a close on the release of the Germany’s, France’s and the Euro Zone’s preliminary PMI figures for September. A rise of the indicator’s readings, possibly beyond market expectations, we may see the common currency getting some support as the release would imply a faster than expected expansion of economic activity in the Zone ion a time where besides inflation growth is the next big issue.

On a fundamental level, we maintain our worries for the political situation in Germany and the elections in the state of Berlin and Mecklenburg Vorpommern may prove to be crucial for German Chancellor Mertz. Another possible wide defeat of his part the Christian Democrats, could prompt them to switch Mertz with someone else and alter their government policies especially regarding immigration.

AUD – August’s employment data due out

AUD is about to end the week in the reds against the USD for a second week in a row. In the coming week, we highlight for Aussie traders, the release of Australia’s employment data for August.

A possibly tighter than expected Australian employment market could provide some support for the Aussie as it would allow RBA to toughen its monetary policy stance even further. It should be noted that RBA’s Governor Bullock stated in today’s Asian session, that the central bank’s concerns regarding stubborn inflation are materializing, sending out hawkish signals towards the markets.

Overall a possibly more hawkish stance of RBA, could provide some support for the Aussie. Please note that the markets are currently almost fully pricing in the possibility that the bank will hike rates in the September (29th) meeting.

On a more fundamental level, a possible improvement of the US-Australian trade relationships, given the Trump-Xi meeting, could provide some support for AUD as Australia has high exports towards China. Also a possible improvement of the market sentiment could support the Aussie as it is considered as a riskier asset in the FX market, given its commodity currency nature.

CAD – Canada’s July retail sales to be released

The Loonie continued to weaken against the USD for a second week in a row. On a fundamental level, the tensions in the US-Canadian trade relationships are ongoing and weighing on the Loonie. Canada is trying to redirect its trading, looking for alternative markets.

Canada’s PM Carney in a charm offensive travelled in Europe. Despite his idea for a “middle power” seemingly getting a cold shoulder, the Europeans seem ready for a closer cooperation in trading, given that a full membership of Canada in the EU cannot be achieved. Despite PM Carney’s efforts could provide some success it remain doubtfull that the can substitute for the volume of USCanadian trade. Hence further tensions in the US-Canadian trade relationships could weigh on the Loonie.

On a macroeconomic level, we note that Canada’s CPI rates remained unchanged, within BoC’s inflation target zone of 2±1%yy, yet the release tends to add some pressure on BoC to tighten its monetary policy.

In the coming week, we highlight the release of Canada’s retail sales for July on Thursday, and a possible acceleration of the rate could imply a strengthening demand side in the Canadian economy. Also a higher reading of Canada’s business barometer for September could provide some support for the Loonie.

Disclaimer:

This information is not considered as investment advice or an investment recommendation, but instead a marketing communication. IronFX is not responsible for any data or information provided by third parties referenced, or hyperlinked, in this communication.

The post Fundamentals to lead the markets appeared first on Complete Turnkey Introducing Brokers (IB) Solution at IronFX.

This is where the concept of a liquidity sweep becomes useful. So, what is a liquidity sweep? In simple terms, it is a price movement that pushes into an area where orders are likely clustered, often around previous highs, lows, or clearly visible support and resistance levels. 

Price may briefly move beyond that area before reversing or continuing in another direction. Understanding this concept can help traders read price action with more context instead of treating every breakout as a genuine trend signal.

Now, let’s get started with the importance of the liquidity itself on a trading chart. 

Why liquidity matters on a trading chart

Before identifying a sweep, it helps to understand what traders mean by liquidity.

In financiële markten, liquidity generally refers to the availability of orders that allow transactions to take place. On a chart, traders often use the term when discussing areas where stop orders and other pending orders may be concentrated.

For example, imagine a market has repeatedly found resistance around 1.2500. After several failed attempts to break through that level, traders may place stop-loss orders above it. Others may place breakout orders expecting price to move higher if 1.2500 is decisively broken.

This creates an area of potential liquidity. Price does not necessarily have to respect that level simply because it has been important previously. A move above it can trigger some of those orders, after which price may reverse back below the level.

That type of movement is one reason what is a liquidity sweep? has become an important question in modern price-action discussions.

The basic idea behind a liquidity sweep

A liquidity sweep typically involves three stages. First, the market approaches a recognizable level, such as a previous swing high or swing low. 

Second, the price moves through that level. This can happen quickly, producing a wick or a short-lived breakout.

Third, price either reverses back through the level or begins developing a new move after interacting with the orders around it.

For example, suppose EUR/USD has formed a clear swing high at 1.1050. Several candles later, price rises to 1.1055, briefly trading above the previous high, but then falls back below 1.1050.

A trader studying this movement might view the move above 1.1050 as a potential liquidity sweep.

However, an important distinction is necessary: not every breakout is a liquidity sweep. A market can genuinely break resistance and continue higher. The surrounding price action is therefore just as important as the level itself.

How to spot a liquidity sweep on a chart

The good news is that traders do not need complicated indicators to start looking for these setups. The first step is simply learning to recognize areas where liquidity may be concentrated.

1. Mark obvious swing highs and lows

Start by looking for recent highs and lows that stand out clearly on the chart.

A swing high that has repeatedly stopped price may attract attention from traders. The same applies to a well-defined swing low.

These levels are particularly interesting when they are obvious enough that many market participants could reasonably identify them.

2. Watch what happens when price reaches the level

Once price approaches an important high or low, slow down and observe the reaction. Does price move straight through the level with strong momentum? Does it briefly break the level and then return?

Does a long wick form? Does the candle close back inside the previous range? These details can provide more information than the initial breakout itself.

A potential sweep often becomes more interesting when price moves beyond the previous high or low but fails to maintain that position.

3. Look for rejection

Rejection is one of the most recognizable visual clues. Suppose price trades above a previous high but closes significantly lower, leaving a noticeable upper wick. This tells you that the market explored higher prices but did not remain there during that candle.

The same principle works in reverse. A move below a previous low followed by a strong recovery can indicate that lower prices were rejected.

This is where understanding what is a liquidity sweep becomes more practical. Rather than simply memorizing a definition, traders can begin connecting the concept with actual candle behavior.

Liquidity sweep vs genuine breakout

One of the biggest challenges is distinguishing a sweep from a real breakout.

Consider resistance at 1.3000.

If price moves to 1.3020, closes above 1.3000 and continues building higher highs, the move may represent a genuine breakout.

But if price briefly trades at 1.3020, quickly falls back below 1.3000 and begins selling off, the move may be interpreted as a potential sweep.

The key difference is what happens after price interacts with the level.

A simple break above resistance does not automatically mean that liquidity has been swept. Traders should consider candle closes, follow-through, market structure and the broader trend rather than relying on one wick.

Common places to look for liquidity sweeps

Potential sweeps can appear in many parts of a chart, but some areas are easier to identify than others. Previous daily highs and lows are commonly watched because they are visible across a broad group of traders.

Equal highs and equal lows can also attract attention. If price forms multiple highs around the same level, traders may view that area as particularly significant.

Range boundaries are another useful location. When a market spends hours or days moving between support and resistance, orders may accumulate around both edges of the range.

Psychological price levels can also matter. Round numbers such as 1.1000 in EUR/USD or 2,000 in a major index may attract additional attention because traders naturally monitor them.

The goal is not to assume that every one of these areas will produce a sweep. Instead, they provide locations worth observing.

What happens after a liquidity sweep?

A sweep does not guarantee a reversal. This is one of the most important points for beginners. Some traders see a wick above a previous high and immediately assume that price must fall. Markets do not work that predictably.

After a potential sweep, price may reverse sharply, consolidate, or continue in the original direction. For that reason, traders often wait for additional confirmation.

That confirmation could include a break of a nearby swing point, a change in short-term market structure, a strong rejection candle, or a move back inside a previous trading range.

The exact confirmation depends on the trader’s strategy and timeframe.

Why timeframe matters in a liquidity sweep

A liquidity sweep on a five-minute chart does not necessarily have the same significance as one occurring on a daily chart.

Lower timeframes contain more short-term market noise. A quick move above a local high may simply be part of normal intraday volatility. Higher-timeframe levels can provide broader context.

For example, a trader may identify a previous weekly high on the daily chart and then move to a lower timeframe to observe how price behaves when it reaches that area.

This multi-timeframe approach can help prevent traders from interpreting every small price movement as a major event.

A simple example

Imagine a market has been trading between 100 and 110 for several sessions. The 110 level has acted as resistance several times. Eventually, price rises to 111, creating a move above the established range.

At first glance, this looks like a breakout. However, the next candle closes back below 110, and subsequent candles continue lower toward the middle of the range.

A trader studying what is a liquidity sweep? might identify the move above 110 as a potential sweep of liquidity around the previous highs.

Notice the wording: potential sweep.

The chart alone cannot tell you with certainty why every market participant bought or sold at a particular moment. Price action provides clues, not a direct view into the intentions of every trader.

Common mistakes when reading liquidity sweeps

One common mistake is treating every wick as a sweep. A wick simply shows that price traded at a certain level during a candle. It does not automatically reveal what caused the movement.

Another mistake is entering a trade immediately after a level is breached. Waiting for the market to show what it does next can sometimes provide more useful information than reacting to the first move.

Traders should also avoid ignoring the broader market structure. A potential sweep against a powerful trend may behave very differently from one occurring at a major higher-timeframe level.

Finally, risk management still matters. Even a well-defined setup can fail, so position sizing and stop-loss planning remain important parts of any trading strategy.

Using liquidity sweeps as part of a bigger picture

The real value of what is a liquidity sweep? is not in turning the concept into a standalone trading signal. Instead, it can become another piece of the market-structure puzzle.

A trader can combine potential sweeps with trend direction, support and resistance, volatility, candlestick behavior and multiple-timeframe analysis.

Think of a sweep as a clue rather than a command to buy or sell.

When price takes a previous high and immediately rejects the area, that behavior may tell you something about the market’s reaction to higher prices. When price takes a low and quickly recovers, it may provide a similar clue on the downside.

The surrounding context determines how meaningful that clue actually is.

Final Thoughts on What is a Liquidity Sweep

So, what is a liquidity sweep? It is a price movement that reaches beyond a recognizable level where orders may be concentrated, often followed by a rejection or a change in short-term price behavior.

Spotting one starts with something surprisingly simple: learn to identify obvious highs, lows, ranges and other areas that traders are likely watching.

From there, focus on what price does when it reaches those levels. Does it break and continue? Does it break and immediately return? Does the candle leave a long wick? Does market structure change afterward?

Those questions are often more useful than trying to predict every move in advance.

A liquidity sweep is therefore best viewed as a way of reading how price behaves around important levels, not as a guaranteed reversal pattern. Used with broader market analysis and sensible risk management, the concept can give traders another useful perspective when studying charts.

The post What Is a Liquidity Sweep – How to Spot One on a Chart appeared first on Complete Turnkey Introducing Brokers (IB) Solution at IronFX.

JPY weakened across the board yesterday, despite BoJ hiking rates as expected. The bank raised rates, yet the vote count revealed that two BoJ policymakers dissented and favouring keeping rates unchanged. The vote count tended to raise doubts about future rate hikes, as it underscored the bank’s difficulty in continuing to raise rates. The market had to reposition itself, selling JPY, as its hawkish expectations eased. Nevertheless, we still view the bank as maintaining a tightening bias. BoJ Governor Ueda in his press conference hit a more hawkish tone underscoring the bank’s commitment to price control at the bank’s 2% target.

US equities gain

US equities gained yesterday as the easing of oil prices was maintained, consequently easing also market worries for inflationary pressures in the US economy. On another front, AI related stocks were supported yesterday with NVIDIA climbing 2.5%, given also that Meta’s Zuckerberg, Nvidia’s Huang and Elon Musk pushed back against AI regulation. On the flip side, OpenAI disclosed six more reports of “unexpected or concerning” behaviour of AI models, allowing for the market’s worries to be maintained. 

Oil prices correct lower

Oil prices dropped yesterday as market worries for the supply side of the international oil market tended to ease. Oil traders hope that the disruptions of Saudi oil supply will be limited, which allowed for some relief. Yet the situation is still very fragile and renewed tensions could push oil prices higher once again, while further easing of the market’s worries could weigh on oil prices. 

Gold’s price edges higher

Gold’s price edged higher yesterday as the USD halted its upward trajectory in the FX market. On a fundamental level, easing worries for the path of oil prices and its subsequent effect on inflationary pressures allowed for gold’s price to edge higher. Should we see further USD weakness, we may see gold’s bulls pushing the precious metal’s price even higher and vice versa.  

Other highlights for today

Today we get retail sales for August and the US industrial production for the same month, while Fed Vice Chair Bowman and Kansas Fed President Schmid speak . In Monday’s Asian session we get from China, PBoC’s interest rate decision.

Charts to keep an eye out

USD/JPY stabilised yesterday, yet renewed its upward movement in today’s Asian session. We adopt a bullish outlook for the pair and intend to keep it as long as the upward trendline we drew remains intact. Yet, the RSI indicator rose reaching 50, implying that the market seems to be indecisive about the pair’s direction. Should the bulls remain in charge over the pair, we may see USD/JPY breaking the 157.50 (R1) line and start aiming for the 160.50 (R2) resistance level. Should the bears regain control over the pair, we may see USD/JPY initially breaking the prementioned upward trendline in a first signal that the upward motion has been interrupted and continue lower to break the 155.00 (S1) line and start aiming for the 152.10 (S2) level.

USD/JPY Daily Chart

Goud’s price edged higher yesterday after bouncing on the 4275 (S1) support line. In its upward motion, the precious metal’s price broke the downward trendline guiding it were, forcing us to switch our bearish outlook for gold’s price in favour of a sideways motion bias. Should the bears take over, we may see WTI’s price dropping below the 4275 (S1) support line, aiming for the 3960 (S2) support barrier. For a bullish outlook, we would require WTI’s price to break the 4550 (R1) resistance line clearly and start aiming for the 4890 (R2) resistance level.

XAU/USD Daily Chart

Disclaimer:

This information is not considered as investment advice or an investment recommendation, but instead a marketing communication. IronFX is not responsible for any data or information provided by third parties referenced, or hyperlinked, in this communication.

The post BoJ hiked rates yet seems unconvincing appeared first on Complete Turnkey Introducing Brokers (IB) Solution at IronFX.

The Fed proceeded with its first rate hike since 2023, as was widely expected. It should be noted that the bank hiked rates against US President Trump’s wishes. It’s characteristic that Fed Chair Warsh stated that ‘Inflation is too high and has been for too long’, signalling his hawkish intentions. Overall Fed Chair Warsh seems to be ready to differentiate the bank’s monetary policy from Trump’s wishes. The bank’s new dot plot indicated that Fed policymakers currently expect another rate hike until the end of the year. The decision renewed support for the USD in the FX market, also weighing on US equities and gold’s price. 

BoE expected to remain on hold

In today’s late European session, we highlight the release of UK’s BoE interest rate decision. The bank is expected to remain on hold yet the acceleration of inflationary pressures in the UK economy, dictates the necessity of a more hawkish stance by BoE. Should the bank remain on hold and sound hawkish in its forward guidance, we may see the pound getting some support today.  

BoJ to hike rates

BoJ is expected to hike rates today by 25 basis points. The bank is under pressure given the high oil prices but also the weakening of JPY and US Treasury Secretary Bessent’s hawkish eye. On the flip side, growth seems fragile and the Japanese Government favours low rates. A substantially hawkish rate hike could provide support for JPY, while anything less could weigh on the Yen.

Oil prices correct lower

Reports that Saudi Arabia is to offer additional oil to Asian refiners via Oman, tended to ease the markets for the supply side of the international oil market. Yet the situation in the area remains substantially fragile and any escalation of tensions in the area, could push oil prices once again, while further easing of the markets worries for oil supply, could weigh on oil prices.

Other highlights for today

Today we get Euro Zone’s final HICP rates for August, Canada’s Business barometer for September, the US building stats for August, the US weekly initial jobless claim figure, the US Philly Fed Business index for September and Canada’s producer prices for August. In tomorrow’s Asian session, we Japan’s CPI rates for August and New Zealand’s trade data for the same month

Charts to keep an eye out

USD/JPY rose yesterday breaking the 157.50 (S1) resistance line now turned to support. Yet the RSI indicator remains low implying that there is still a bearish predisposition of the market for the pair’s outlook. We highlight as the next big test for USD/JPY the release of BoJ’s interest rate decision in tomorrows’ Asian session. Should the bears regain control over the pair, we may see USD/JPY breaking the 155.00 (S1) support line and start aiming for the 152.10 (S2) support level. Should the bulls be in charge over the pair, we may see USD/JPY breaking the 157.50 (R1) resistance line and start aiming for the 160.50 (R2) resistance level.

USD/JPY Daily Chart

WTI edged lower yesterday and during today’s Asian session, after failing to break the 101.00 (R1) resistance line. In its drop WTI’s price action has breached the upward trendline guiding it, while the RSI indicator edged lower, signalling an easing of the bullish market sentiment for the commodity’s price. Hence we currently switch our bullish bias in favour of a possible stabilisation of the commodity’s price action. Should the bears take over, we may see WTI’s price dropping below the 94.30 (S1) support line, aiming for the 87.55 (S2) support barrier. For a bullish outlook, we would require WTI’s price to break the 101.00 (R1) resistance line clearly and start aiming for the 108.85 (R2) resistance level.

WTI Daily Chart

Disclaimer:

This information is not considered as investment advice or an investment recommendation, but instead a marketing communication. IronFX is not responsible for any data or information provided by third parties referenced, or hyperlinked, in this communication.

The post The Fed hawkishly hiked rates appeared first on Complete Turnkey Introducing Brokers (IB) Solution at IronFX.

Market attention today is to be placed on the Fed’s interest rate decision. The bank is widely expected to hike rates by 25 basis points and to deliver another rate hike in the December meeting. Should the bank hike rates as expected, the bank’s forward guidance, including the accompanying statement, the new dot plot and Fed Chair Warsh’s press conference, is to come under the scrutiny of the market. A sufficiently hawkish tone, possibly enhancing the market’s expectations for further rate hikes to come, could provide support for the USD while at the same time could weigh on US stock markets and gold’s price.     

US equities edge lower

US equities edged lower in yesterday, ahead of the Fed’s interest rate decision. Should the bank hike rates as expected and sound hawkish enough we may see the release weighing on US equities. On the flip side, should the bank fail to sound hawkish we may see US equities gaining. On a more fundamental level, we note that market worries for the outlook of AI technology tend to remain and tend to weigh on US stock markets. The calls for a slowdown in the developing of AI technology, comes in to direct contrast to the market’s expectations for high investments. Also, market worries for high oil prices and inflationary pressures in the US economy tend to continue to weigh on US equities as they tend to squeeze the profit margins.

Gold’s price stabilises

Gold’s price tended to stabilise yesterday even edged higher in today’s Asian session. The Fed’s rate decision in the epicenter of gold traders today and a possibly more hawkish Fed could weigh on gold’s price while a less than expected hawkish Fed could allow gold’s price to gain some ground. In a more general comment, we have to admit that we expected gold’s price to come under greater selling pressure until now, given the current hawkish market expectations for the Fed’s intentions.

Other highlights for today

Today we get UK’s CPI rates for August, Euro Zone’s Industrial output for July, Canada’s House Starts and for August and Building Permits for July while BoC is to release the monetary policy deliberations of last meeting and the weekly US EIA crude oil inventories figure. In tomorrow’s Asian session, we get New Zealand’s GDP rate for Q2.   

Charts to keep an eye out

Dow Jones continued to edge lower aiming for the 51700 (S1) support line. The release of the Fed’s interest rate decision could enhance or reverse the current direction. For the time being and in a technical level, we expect the downward motion to continue. The RSI indicator remains at low levels, implying a bearish market sentiment for the index. Should the bears maintain control over the index, we may see the index’s price action breaking the 51700 (S1) support line and start aiming for the 50500 (S2) support level. Should the bulls take control over the index, we may see Dow Jones breaking the 52685 (R1) resistance line and start aiming for the 53500 (R2) resistance level.

US 30 Cash Daily Chart

XAU/USD stabilised hitting the floor at the 4275 (S1) support line yesterday. The RSI indicator remains just below the reading of 50, resembling more neutral stance rather than a bearish market sentiment for the precious metal’s price. For the time being, we maintain yesterday’s bias for a sideways motion, yet issue a warning for any bearish tendencies of gold’s price. Should the bears take over, we may see gold’s price dropping below the 4275 (S1) support line, aiming for the 3960 (S2) support barrier. For a bullish outlook, which we currently view as a remote scenario, gold’s price has to break the 4550 (R1) resistance line, thus opening the gates for the 4890 (R2) resistance level.

XAU/USD Daily Chart

Disclaimer:

This information is not considered as investment advice or an investment recommendation, but instead a marketing communication. IronFX is not responsible for any data or information provided by third parties referenced, or hyperlinked, in this communication.

The post The Fed’s interest rate decision in the epicenter of attention appeared first on Complete Turnkey Introducing Brokers (IB) Solution at IronFX.

What is an Indices Trading Platform?

An indices trading platform is software that lets you trade or speculate on the price movements of stock market indices. Instead of buying individual stocks, you’re trading on the overall performance of a group of companies, like the Dow Jones Industrial Average or Germany’s DAX.

That distinction matters. Index trading can provide broad market exposure through a single instrument, meaning you don’t need to select individual stocks.

Many retail traders access indices through derivatives such as Contracts for Difference (CFDs), depending on their jurisdiction and broker. This allows you to go long or short, depending on your market view, without owning the underlying assets.

Why Traders Choose Indices Trading

Indices attract traders for a few practical reasons.

First, they can respond significantly to macroeconomic events. Central bank decisions, interest-rate expectations, inflation data, employment figures and other economic developments can all influence index prices.

This sensitivity to macroeconomic developments can make indices particularly relevant to traders who follow economic calendars and financial news.

Second, many major indices are highly liquid markets. Liquidity and spreads can vary by index, broker and time of day, but major indices generally attract substantial trading activity during their relevant market sessions.

Third, you can trade both directions. If you expect a market to fall, you can take a short position. If you expect a rally, you can take a long position. Whether these instruments and strategies are available depends on the product and jurisdiction.

What to Look for in an Indices Trading Platform

Not all platforms are built the same. Here’s what actually separates a solid indices trading platform from a frustrating one:

Key Features of an Indices Trading Platform

• Range of indices: Look for access to major global indices, including US, European, and Asian markets, if these are relevant to your strategy.
• Execution: Delays between placing and filling an order can matter, especially in fast-moving markets. Execution quality can depend on the broker, market conditions and order type.
• Charting tools: Clear, customisable charts help you read price action and apply technical analysis.
• Risk management features: Stop-loss and take-profit orders can help you manage positions, although availability and functionality vary between brokers and platforms.

Beyond the checklist, pay attention to how the platform feels under pressure. A clean interface during calm markets can become a liability when volatility spikes.

Charting and Analysis Tools on an Indices Trading Platform

Technical analysis is central to many index trading strategies. A good indices trading platform gives you multiple chart types, drawing tools, and indicators without burying them in menus.

Technical Analysis Tools

Look for platforms that offer customisable timeframes. Watching the S&P 500 on a 1-hour chart tells a different story than a weekly view.

Moving averages, RSI, Bollinger Bands, and volume indicators are standard.

However, the availability of specific indicators and tools varies between platforms, so check the feature set before choosing one.

Mobile Access on an Indices Trading Platform

Markets don’t stop when you leave your desk. A strong indices trading platform should offer a capable mobile experience, with access to pricing, charts and position management where supported.

Mobile Trading Features

That means real-time pricing, full order management, and charts that don’t sacrifice readability on a small screen. A watered-down mobile app isn’t enough if you’re managing open positions throughout the day.

Mobile trading can be convenient, but traders should also consider connectivity, execution conditions and the risks of making decisions on a smaller screen.

Understanding Index Pricing and Spreads

For index CFDs, the price quoted by the broker is generally based on the underlying index. Brokers factor in their spread, which is the difference between the buy and sell price.

Comparing Spreads and Trading Costs

Spreads vary between brokers and between indices. Major indices such as the S&P 500 and DAX often have relatively competitive spreads because of their high trading activity, although actual spreads vary by broker and market conditions.

Spreads can widen during low-liquidity periods. Trading outside of peak hours, or immediately around major data releases, can mean higher trading costs.

Before trading, check whether the quoted spread is fixed or variable and whether additional commissions, overnight financing or other charges apply.

Margin and Leverage

CFD trading on indices uses margin. You control a larger position size with a smaller initial deposit. That amplifies both potential gains and potential losses.

This is not a mechanism to use without a plan. Traders who understand their margin requirements and use appropriate position sizing may be better placed to manage risk than traders who focus only on entry points.

Always check the margin requirements for each index on your chosen platform before placing a trade. They can differ significantly between instruments and may also vary according to the trader’s jurisdiction, account type and applicable regulations.

Leverage can magnify losses as well as gains, so traders should understand the potential loss on a position before opening it.

How Market Events Affect Indices

Index prices can be affected by a wide range of market developments.

Economic Events and Index Prices

Earnings seasons, central bank meetings, geopolitical events, and economic data releases all generate price movement.

Changes to index composition can also affect prices. For example, additions, removals or changes in constituent weightings can influence the supply and demand dynamics surrounding an index.

Geopolitical tension adds another layer. Oil price spikes, for instance, can affect energy-heavy indices differently than tech-heavy ones. A trader following a broad index needs to understand its sector weighting, not just the headline number.

The indices trading platform you use should give you access to an economic calendar and, ideally, some form of market news or analysis. Having access to these tools can help traders monitor events that may affect volatility, although no platform can predict how markets will react.

Getting Started With Index Trading

Trading indices can be accessible to many traders, depending on the product, broker and applicable minimum requirements. What it does require is a clear approach.

Define your strategy before you place a trade. Are you trading around macro events, or are you using technical levels? Both are valid, but mixing them without intention leads to inconsistent decisions.

Use a demo account if the platform offers one. A demo lets you learn the platform mechanics and test your approach in live market conditions without risking capital.

Set your risk parameters from the start. Know your maximum loss per trade and stick to it.

An indices trading platform is only as useful as the preparation behind it. The market will give you opportunities, but how you manage them determines your outcomes.

DISCLAIMER: This information is not considered as investment advice or an investment recommendation, but is instead a marketing communication.

The post Best Indices Trading Platform: A Complete Guide for Traders appeared first on Complete Turnkey Introducing Brokers (IB) Solution at IronFX.

The USD continued rise as the week began and during today’s Asian session, as the market’s expectations for the Fed to tighten its monetary policy tomorrow but also in December, were enhanced. JPY seems to stabilise, and in the Land of the Rising Sun, we get some financial releases in tomorrow’s Asian session, yet the market’s attention is on BoJ. The bank risks disappointing the markets on Friday with its interest rate decision, should it fail to deliver a rate hike and sound sufficiently hawkish. 

US equities edge lower

US equities edged higher yesterday yet futures corrected lower in today’s Asian session. Market worries for the Fed to tighten its monetary policy, high oil prices and warnings for a slowdown in the development of AI technology, tend to keep US stock market participants cautious. A possible further intensification of the market’s worries could force US equities even lower. 

Oil prices remain high

Oil prices edged higher and overall tend to remain at high levels. Iranian allies, the Houthis attacked Saudi Arabian airbases,  highlighting that the conflict is intense in the area. Also, negotiations seem to be dragging on without results and while a threatened outage of Saudi oil production was reported, given the strikes on the Saudi East West pipeline. All of that tends to enhance the oil market’s worries pushing oil prices higher on a fundamental level. 

Bearish tendencies for gold’s price remain

The bearish tendencies for gold’s price seem to be maintained in the market. The bearish pressure on the precious metal’s price seems to be fundamentally driven by the strengthening of the USD in the FX market, high bond yields and the market’s expectations for the Fed to hike rates. For the time being we expect fundamentals to continue to weigh on gold’s price.

Other highlights for today

Today we get UK’s employment data for July, France’s final HICP rate for August, Germany’s ZEW indicator for September, US NY Fed manufacturing index for September, Canada’s while sale trade for July, and the US API weekly crude oil inventories figure. On a monetary level we note that ECB’s Buch, Cipollone and Schnabel as well as BoE’s Wilkins speak. In tomorrow’s Asian session, we get New Zealand’s Current account balance for Q2, Japan’s machinery orders for July, trade data and Chain store sales for August.

Charts to keep an eye out

USD/JPY continued to tease the 155.00 (R1) resistance line during today’s Asian session. Also the RSI indicator has bounced on the reading of 50, implying a slight bullish predisposition of the market for the pair. Yet the pair’s price action seems to have some difficulty in breaking the R1, which allows us to maintain our bias for a sideways motion for the time being. For the adoption of a bullish outlook we would require the pair to break the 155.00 (R1) line clearly and start aiming for the 157.50 (R2) level. Should the bears take over we may see the pair dropping, breaking the 152.10 (S1) level and start aiming for the 149.40 (S2) barrier, yet we consider this scenario as remote at the current stage.

USD/JPY Daily Chart

XAU/USD dropped yet seems to have hit the floor at the 4275 (S1) support line. The RSI indicator has edged below the reading of 50, implying some bearish tendencies, yet the precious metal’s price action seems to find it hard to break the S1. For the time being, we maintain a bias for a sideways motion, yet issue a warning for the bearish tendencies of gold’s price. Should the bears take over, we may see gold’s price dropping below the 4275 (S1) line, aiming for the 3960 (S2) barrier. For a bullish outlook, gold’s price has to break the 4550 (R1) line, thus opening the gates for the 4890 (R2) level.

XAU/USD Daily Chart

Disclaimer:

This information is not considered as investment advice or an investment recommendation, but instead a marketing communication. IronFX is not responsible for any data or information provided by third parties referenced, or hyperlinked, in this communication.

The post USD remains strong in the FX market appeared first on Complete Turnkey Introducing Brokers (IB) Solution at IronFX.

Fed decision to shake the markets

The Fed’s interest rate decision is set to take place later on this week and will most certainly garner significant market attention at the time of its release. Specifically, the Fed decision is set to take place this Wednesday, with the majority of market participants currently anticipating the bank to hike rates by 25 basis points. In particular, FFF currently implies an 86.8% probability for such a scenario to materialize; thus attention could turn to the bank’s accompanying statement and Fed Chair Warsh’s press conference following the banks decision. During the speech and within the banks accompanying statement, market participants may be looking for clues which may provide insight into the bank’s next steps moving forward. In particular, our attention will be turned to the comments about the persistently high energy prices stemming from the tensions in the Middle East and as to how the bank may be factoring in these conditions when deciding their monetary policy path. In our view, we wouldn’t be surprised to see a more hawkish sentiment emerging from policymakers post-Fed decision, which could provide support for the dollar whilst weighing on gold’s price given its assumed inverse relationship with the dollar.

US-Iran tensions escalate as other actors increase their involvement

Tensions between the US and Iran continue to be escalating, with Iranian state media claiming that an Iranian commercial vessel was struck on Saturday in the Strait of Hormuz. Per CNN the US has not commented on the reported attack. Furthermore, Iranian backed rebels have attacked Saudi bases and energy installations in the region, thus amping the economic pressure on a global scale. Overall, tensions have risen and should they continue to do so on a much larger scale, we may see gold receiving inflows given its safe haven asset status. Although it should be noted that gold’s aforementioned safe haven status appears to be dormant at this point in time.

US inflation accelerates on a month-on-month basis

The US Inflation print for August was released last Friday. On a headline and core level on a year-on-year basis, the inflation print came in as expected by economists, with the Core CPI rate coming in at 2.4% and the Headline CPI rate come in at 3.4%. However on a month-on-month basis, both figures showcased an acceleration of inflationary pressures, which in turn may have aided the dollar, whilst weighing on gold’s price given their inverse relationship with one another. Moreover, the UoM preliminary inflation expectations for September also came in higher than expected, showcasing worries about a possible acceleration of inflationary pressures which could have further aided the greenback during Friday’s trading session.

TECHNISCHE ANALYSE

XAU/USD Daily Chart

Gold’s price appears to be moving in downwards fashion. We opt for a bearish outlook for the commodity and supporting our case is the break below our support now turned to resistance at the 4435 (R1) level. Moreover, further aiding our hypothesis is the RSI indicator below our chart which currently registers a figure close to 40, implying a bearish market sentiment. For our bearish outlook to continue we would require a clear break below our 4180 (S1) support level with the next possible target for the bears being our 4020 (S2) support line. On the other hand, for a bullish outlook we would require a clear break above our 4435 (R1) resistance line with the next possible target for the bulls being our 4520 (R2) resistance level. Lastly, for a sideways bias we would require gold’s price to remain confined between our 4180 (S1) support level and our 4435 (R1) resistance line.

Disclaimer:

This information is not considered as investment advice or an investment recommendation, but instead a marketing communication. IronFX is not responsible for any data or information provided by third parties referenced, or hyperlinked, in this communication.

The post Gold Outlook: Fed decision week appeared first on Complete Turnkey Introducing Brokers (IB) Solution at IronFX.