Market Sector Scanner: Fed Rate Cut in Focus as Stocks Reach New Highs and Gold Stays Strong

USD/JPY tested lower last week after softer U.S. inflation data and rising expectations that the Bank of Japan will raise rates this year, but the pair held support and closed near unchanged. Japanese GDP beat forecasts, and optimism over the appointment of a new prime minister following Ishiba’s resignation lifted sentiment and pushed Japanese stocks to record highs. U.S. PPI came in below expectations and CPI matched forecasts, making a 0.25% Federal Reserve rate cut this week highly likely, while jobless claims worsened after weak payroll data. The European Central Bank kept rates at 2.15%, gold hit new record highs on safe-haven demand, and U.S. equities also reached fresh records as the market looks for the next trigger to spark a large move in FX markets.

Scan for opportunities on:

• Forex market (major currency pairs)
• Equities
• Commodities (gold)

Key Events Calendar for September 15 – 19

Market Sector Scanner

Forex Market

USD/JPY

Last Week Recap
USD/JPY tested lower early last week as stronger-than-expected Japanese growth data increased the likelihood of a Bank of Japan rate hike this year. Support held despite softer-than-expected U.S. inflation data, and the pair closed near the middle of its recent range.

Technical Picture
Bollinger Bands remain narrow, and the 10-day moving average is flat, signaling that sideways conditions are likely to persist in the short to medium term.

Outlook This Week
The 146–149 range remains intact, and until the market receives a major surprise it is best to continue range trading. Statements from the U.S. Federal Reserve and the Bank of Japan should be monitored closely as they could trigger the next directional trend.

GBP/JPY

Last Week Recap
The pound recovered as expectations grew that the Bank of England will cut rates more slowly than the U.S., lifting the market slightly above the key 200 resistance and marking a new 14-month high.

Technical Picture
The 10-day moving average is pointing higher, and prices have moved above the upper Bollinger Band, signaling the potential for further short-term strength.

Outlook This Week
With another test of the 200 resistance, bulls may try to push the market higher. A sustained move above 199 this week would open the door for additional gains.

EUR/USD

Last Week Recap
After meeting resistance at the upper Bollinger Band early in the week, EUR/USD closed slightly higher as the ECB kept interest rates unchanged and weak U.S. inflation data made a U.S. rate cut this week highly likely.

Technical Picture
Bollinger Bands remain narrow, indicating that sideways conditions are likely to continue, but with the 10-day moving average pointing higher, another test of the upper band appears more likely.

Outlook This Week
Statements from the U.S. Federal Reserve following this week’s expected rate cut are likely to create volatility as the market looks for clues on the timing of future U.S. cuts. Until then, range trading remains the preferred short-term strategy.

Equities

U.S. Stock Market

Last Week Recap
The Nasdaq hit fresh highs last week as confidence in strong AI demand returned and traders positioned for this week’s U.S. interest rate decision, encouraging broad buying of technology stocks.

Technical Picture
Prices are now above the upper Bollinger Band, signaling short-term overbought conditions. However, with the 10-day moving average still trending higher, it is better to wait to sell on weakness rather than go against the current strength.

Outlook
Demand for stocks remains firm, but profit-taking could emerge ahead of the U.S. Federal Reserve meeting. A drop back below the upper Bollinger Band would trigger a short-term sell signal, while medium-term traders may prefer to wait for a pullback toward the 10-day moving average to buy.

Commodities

Gold

Last Week Recap
Gold climbed to fresh record highs last week ahead of the expected U.S. interest rate cut. The current buying is largely speculative, following a strong uptrend with no clear resistance on the charts.

Technical Picture
Gold has slipped back below the upper Bollinger Band, and with a wide gap remaining down to the 10-day moving average, sideways to lower prices look more likely in the short term.

Outlook This Week
After such a strong recent rise, the chance of a quick reversal is increasing. Selling on signs of fading momentum is the best short-term strategy, while medium-term traders may prefer to stay patient and wait for a retracement toward the 10-day moving average to buy.

This week brings major events, with the Fed expected to cut rates while the BoE and BoJ likely hold steady. How each central bank explains its stance could spark volatility. Key data – U.S. retail sales and Japan’s inflation – may break recent FX ranges or trigger reversals in equities and gold, setting up plenty of trading opportunities.