09-30-2023, 10:31 AM
SEPTEMBER HARVEST
![[Image: 3769d1cdef46ad80ca5c6657daeb5c07.png]](https://freshforex.com/netcat_files/Image/3769d1cdef46ad80ca5c6657daeb5c07.png)
Dear clients,
September has come to an end, so it's time to share the results and recall the results of the first weeks of autumn.
So, here is what this month has brought to our traders:
GBPCAD, GBPNZD (Sell) and WTI, NZDCHF, CADCHF (Buy) ended up as the most profitable instruments.
![[Image: 3d584ebbd68424f60556a038f4dbde10.jpg]](https://freshforex.com/netcat_files/Image/3d584ebbd68424f60556a038f4dbde10.jpg)
The Heatmap will tell you more about these and other instruments.
September, though traditionally quiet, was not without events:
Autumn was greeted with summer mood and double profit with Cashback+101% promotion.
Double minus yield a plus for clients who traded bitcoin with a 50% discount on spread and swap.
Metatrader 5 terminal has got an update, now with more efficient and visual statistics.
And of course, our regular promotions — +10% for cryptocurrency deposit and 101% bonus.
October is a special month for us, so stay tuned: the company's birthday is just around the corner.
QUARTERLY RETORT
![[Image: c3f1685f5dc8518f9c369d12f37b308b.png]](https://freshforex.com/netcat_files/Image/c3f1685f5dc8518f9c369d12f37b308b.png)
Dear clients,
Budgetary concerns and fears of a prolonged period of higher interest rates caused government bonds to fall in the third quarter, and some investors believe more weakness lies ahead.
US and German government bond yields were set to end September with their biggest quarterly gains in a year. Fund managers had already hoped for relief after the historic losses suffered by bonds in 2022, when the US Federal Reserve and other central banks raised interest rates to curb soaring inflation.
While bond yields, which move inversely to prices, seemed to have peaked earlier this year, renewed hawkish sentiment from central banks has led to a fresh rise in recent weeks.
In the US, for example, the benchmark yield on 10-year Treasuries is currently at a 16-year high of 4.55% and some investors believe it could rise to 5%, a level not seen since 2007. According to Bank of America Global Research, Treasuries have posted their third consecutive year of losses, an event without precedent in U.S. history.
The jump in yields is having a negative impact on equities, which in the U.S. and Europe are poised for their first quarterly decline of the year. Monetary policy expectations have been a key factor: last week, the Fed surprised investors with its hawkish rate forecasts, according to which borrowing costs will remain at current levels for most of 2024.
Investors had to quickly readjust: traders are now betting that the Fed Funds rate, currently at 5.25%-5.50%, will fall to 4.8% by the end of 2024, well above the 4.3% they forecast in late August.
Similarly, investors have pushed back expectations of a rate cut by the European Central Bank as policymakers stick to their course of keeping rates high for a long time. Prices in currency markets indicate that traders see the ECB deposit rate at around 3.5% by the end of 2024, up from 3.25% at the end of August.
Rising yields have not only hit bond investors, but also hurt equities, creating investment competition while raising the cost of borrowing for corporations and households.
The S&P 500 index (.SPX) fell 3.4% in the current quarter, its worst drop in a year, though it is up 11.3% since the beginning of the year. Europe's Stoxx 600 index (.STOXX), meanwhile, is up 5.6% this year but has lost 2.9% over the past three months.
OIL BOIL: A POWERFUL SURGE IN FUEL PRICES
![[Image: 016287b6d16d7891a596a4d3b9c15eaf.png]](https://freshforex.com/netcat_files/Image/016287b6d16d7891a596a4d3b9c15eaf.png)
Dear clients,
Oil prices hit one-year highs on Thursday, while global equities faced their longest losing streak in two years as fears of continued high interest rates intensified. This is causing investors to seek shelter under the influence of a rising US dollar.
Currency markets saw a brief respite from the dollar's strength, but it was a significant drop in US crude oil inventories on Wednesday that shook nerves over fears of another supply shock just when the global economy needs it least.
The price of U.S. crude hit $95 a barrel for the first time since August 2022, while Brent crude prices rallied again in early trading in London after hitting a one-year high of $97.69.
The yield on ten-year US Treasuries, the benchmark for global borrowing costs, topped 4.6% for the first time since 2007, having started September at 4%.
Germany's AAA bond yields went up again, while Italy's announcement on Wednesday that its budget deficit was widening again drove its short-term two-year bond yield to a new 11-year high. Traders were also watching U.S. lawmakers try to avoid another government shutdown in Washington.
With European stocks down 0.4% (.STOXX) and U.S. futures on the S&P 500 index, MSCI's main global index tracking 45 countries was on track for a 10th straight day of declines not seen since 2021.
MSCI's index for Asia-Pacific shares hit a 10-month low and Japan's Nikkei index fell 1.5% as investors preparing for the end of Q3 got rid of stocks that have run out of dividends.
Dear clients,
September has come to an end, so it's time to share the results and recall the results of the first weeks of autumn.
So, here is what this month has brought to our traders:
GBPCAD, GBPNZD (Sell) and WTI, NZDCHF, CADCHF (Buy) ended up as the most profitable instruments.
The Heatmap will tell you more about these and other instruments.
September, though traditionally quiet, was not without events:
Autumn was greeted with summer mood and double profit with Cashback+101% promotion.
Double minus yield a plus for clients who traded bitcoin with a 50% discount on spread and swap.
Metatrader 5 terminal has got an update, now with more efficient and visual statistics.
And of course, our regular promotions — +10% for cryptocurrency deposit and 101% bonus.
October is a special month for us, so stay tuned: the company's birthday is just around the corner.
QUARTERLY RETORT
Dear clients,
Budgetary concerns and fears of a prolonged period of higher interest rates caused government bonds to fall in the third quarter, and some investors believe more weakness lies ahead.
US and German government bond yields were set to end September with their biggest quarterly gains in a year. Fund managers had already hoped for relief after the historic losses suffered by bonds in 2022, when the US Federal Reserve and other central banks raised interest rates to curb soaring inflation.
While bond yields, which move inversely to prices, seemed to have peaked earlier this year, renewed hawkish sentiment from central banks has led to a fresh rise in recent weeks.
In the US, for example, the benchmark yield on 10-year Treasuries is currently at a 16-year high of 4.55% and some investors believe it could rise to 5%, a level not seen since 2007. According to Bank of America Global Research, Treasuries have posted their third consecutive year of losses, an event without precedent in U.S. history.
The jump in yields is having a negative impact on equities, which in the U.S. and Europe are poised for their first quarterly decline of the year. Monetary policy expectations have been a key factor: last week, the Fed surprised investors with its hawkish rate forecasts, according to which borrowing costs will remain at current levels for most of 2024.
Investors had to quickly readjust: traders are now betting that the Fed Funds rate, currently at 5.25%-5.50%, will fall to 4.8% by the end of 2024, well above the 4.3% they forecast in late August.
Similarly, investors have pushed back expectations of a rate cut by the European Central Bank as policymakers stick to their course of keeping rates high for a long time. Prices in currency markets indicate that traders see the ECB deposit rate at around 3.5% by the end of 2024, up from 3.25% at the end of August.
Rising yields have not only hit bond investors, but also hurt equities, creating investment competition while raising the cost of borrowing for corporations and households.
The S&P 500 index (.SPX) fell 3.4% in the current quarter, its worst drop in a year, though it is up 11.3% since the beginning of the year. Europe's Stoxx 600 index (.STOXX), meanwhile, is up 5.6% this year but has lost 2.9% over the past three months.
OIL BOIL: A POWERFUL SURGE IN FUEL PRICES
Dear clients,
Oil prices hit one-year highs on Thursday, while global equities faced their longest losing streak in two years as fears of continued high interest rates intensified. This is causing investors to seek shelter under the influence of a rising US dollar.
Currency markets saw a brief respite from the dollar's strength, but it was a significant drop in US crude oil inventories on Wednesday that shook nerves over fears of another supply shock just when the global economy needs it least.
The price of U.S. crude hit $95 a barrel for the first time since August 2022, while Brent crude prices rallied again in early trading in London after hitting a one-year high of $97.69.
The yield on ten-year US Treasuries, the benchmark for global borrowing costs, topped 4.6% for the first time since 2007, having started September at 4%.
Germany's AAA bond yields went up again, while Italy's announcement on Wednesday that its budget deficit was widening again drove its short-term two-year bond yield to a new 11-year high. Traders were also watching U.S. lawmakers try to avoid another government shutdown in Washington.
With European stocks down 0.4% (.STOXX) and U.S. futures on the S&P 500 index, MSCI's main global index tracking 45 countries was on track for a 10th straight day of declines not seen since 2021.
MSCI's index for Asia-Pacific shares hit a 10-month low and Japan's Nikkei index fell 1.5% as investors preparing for the end of Q3 got rid of stocks that have run out of dividends.