3 reasons to jump into the markets this September

September is kicking off fast. In less than two weeks, three major events could significantly increase volatility across the US dollar, gold, Bitcoin and stock indices. Fintokei allows news trading, so you do not have to sit these moves out. Read the events correctly, stick to your plan and you could be one step closer to completing your challenge. Here is what to watch.

3 reasons to jump into the markets this September

For traders, that means one thing: know when the data is coming, understand what the market is watching and be ready for different scenarios.

And as always with fundamental trading, your best friend is the economic calendar.

What is coming to the markets this September?

Date and time (CET)
Event
Markets it could move
US labour market data
USD, gold, BTC, US indices
US CPI inflation
USD, gold, BTC, stock indices
Fed meeting
Pretty much the entire financial market

Three weeks. Three major events. And potentially three very different market reactions.

September 4: US labour market data

The US labour market will be the first major test of the month.

Investors will mainly focus on nonfarm payrolls, the unemployment rate and wage growth. Together, these numbers can show whether the US economy is slowing down or remains strong enough for the Fed to keep interest rates high, or even raise them further.

What should you watch?

  • Nonfarm payrolls: how many jobs the US economy created or lost.
  • Unemployment rate: whether the labour market is getting stronger or weaker.
  • Wage growth: faster wage growth can add further inflationary pressure.

What could happen?

Stronger-than-expected data could increase expectations that the Fed will keep monetary policy tighter.

That could potentially mean:

  • a stronger US dollar,
  • pressure on gold,
  • pressure on Bitcoin,
  • higher volatility or pressure on US stock indices.

On the other hand, significantly weaker data could increase expectations of looser monetary policy and trigger the opposite reaction.

Which markets should you watch?

Especially EUR/USD, USD/JPY, gold, BTC, the S&P 500 and Nasdaq 100.

💡 Fintokei tip

Want to understand US labor market data in more detail? Read the article

September 11: US CPI inflation

One week later comes another major release: US inflation.

CPI has long been one of the most closely watched data points in the market. And when investors are trying to figure out where interest rates are heading next, any major surprise can trigger a sharp move.

What should you watch?

The market will mainly focus on:

  • year-on-year CPI,
  • month-on-month CPI,
  • core inflation, which excludes the more volatile food and energy prices.

The headline number matters, but the key point is often how far the actual result differs from market expectations.

What could happen?

If inflation comes in significantly higher than expected, markets may start pricing in a greater chance of tighter monetary policy.

Possible reactions include:

  • a stronger USD,
  • weaker gold,
  • pressure on BTC,
  • increased volatility across stock indices.

Lower inflation, on the other hand, could ease some concerns about further rate hikes.

Which markets should you watch?

Again, mainly USD currency pairs, gold, Bitcoin, Nasdaq 100 and the S&P 500.

And remember: CPI does not always create one clean move. The market can react sharply in one direction and reverse just a few minutes later.

💡 Fintokei tip

Want to better understand inflation and how traders approach it? Check out the blog

September 16: Fed meeting

And then comes the main event.

A Federal Reserve meeting can move not only the dollar, but practically every major financial market.

And this time, the interest rate decision itself will not be the only thing that matters. Markets will mainly want an answer to one question:

What will the Fed do next?

What should you watch?

  • the interest rate decision,
  • the Fed statement,
  • updated economic projections,
  • comments from the Fed Chair during the press conference.

Sometimes, the tone of the Fed's communication can move markets even more than the rate decision itself.

What could happen?

If the Fed signals that rates may stay higher or rise further, it could support the US dollar and put pressure on markets that are sensitive to higher interest rates.

For example:

  • gold,
  • Bitcoin,
  • technology stocks,
  • Nasdaq 100.

If the Fed sounds more open to easing policy, the market reaction could go the other way.

Which markets should you watch?

Pretty much everything.

But USD, gold, US indices and cryptocurrencies tend to be among the most sensitive.

And because the decision is followed by a press conference, volatility can continue well beyond 8:00 PM.

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How to prepare for trading major news events

Major news can create fast price moves, but it also comes with higher risk. That is why it is better to go in with a plan instead of making decisions on the fly. The most important things are simple: have a plan, know how much you are willing to risk and know when you want to exit the trade. Higher volatility can create interesting market situations, but without preparation it can turn against you just as quickly.

What to keep in mind
What to do
Have a plan
Prepare scenarios for a stronger, weaker and expected result before the data is released. That way, you do not have to improvise once the market starts moving.
Watch market expectations
The number itself is not enough. What matters is how much the actual result differs from what the market expected. Want to understand economic calendar data better? Read the article.
Expect sharp moves
The first reaction may not last. Price can jump sharply in one direction and reverse just seconds later.
Set a Stop Loss
Decide in advance how much you are prepared to lose on the trade. A Stop Loss can help you stick to your plan even when the market moves quickly against you.
Think about your Take Profit
Just like your maximum loss, decide in advance where you want to close the trade if it moves in your favour. During high volatility, conditions can change very quickly.
Do not over-risk
A major news event is not a reason to increase your risk. Using a smaller position and allowing for larger price swings may make more sense.
Do not chase every move
If you miss the first reaction, you do not have to jump in at any price. There will always be another market opportunity.

Why SwiftTrader fits a month packed with major news

If you want to trade during periods of higher volatility, it helps to have a program that does not unnecessarily restrict you around major news events.

That is exactly where Fintokei SwiftTrader comes in.

One phase. Then a virtually funded account.

SwiftTrader is a one-step challenge.

Hit the profit target once and you can move on to a virtually funded account. No second or third phase.

6% profit target

That is right. With the SwiftTrader one-step challenge, there is only a 6% profit target between you and a virtually funded account.

Hit it, and you are through the challenge.

News trading without restrictions

Some prop firms restrict trading around major economic news.

With SwiftTrader and other Fintokei programs, you can trade during news events.

That means the challenge rules do not automatically keep you out of the market when NFP, CPI or a Fed decision hits.

Instant payout approvals

Payouts should be a reason to celebrate, not a reason to wait. At Fintokei, eligible payout requests are approved automatically within seconds, and bank transfer payouts are sent on the same business day.

Want to try SwiftTrader?

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Martin Lukáč

I make sure our support team is always there when traders need it. I trade too: sticking with a classic: EURUSD. I reset after both green and red days, either by keeping a steady breathing rhythm on a run or holding my breath over a historical novel in a café. Favorite platform: MetaTrader 5. Favorite challenge: SwiftTrader.

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