Key releases

The USD today is moderately strengthening against the pound and the euro, but weakening against the yen.

Investors continue to prepare for the symposium in Jackson Hole and expect today's publication of data from the US construction market. On Friday, the chairman of the US Fed is to comment on the current situation in the economy and further actions of the regulator in the field of monetary policy. Most experts believe that despite the slowdown in inflation in July from 9.1% to 8.5%, Powell will confirm the need for further interest rate hikes until prices slow to 2.0%. He is likely to oppose slowing down the current rate of adjustment in value, as the problem of high retail prices has not yet been resolved and is considered by officials to be the most serious in the US economy. Also today, July data on new home sales in the USA will be released, which may add anxiety to investors: it is expected that the figure will decrease from 590.0K to 575.0K. Recall that other results of the sector last month turned out to be weak: the number of permits issued for construction decreased by 1.3%, the volume of construction of new houses – by 9.6%, sales in the secondary housing market – by 5.9%. The implementation of the forecast may put pressure on the dollar, as it will confirm the deterioration of the US construction industry.

The euro is weakening today against its main competitors – the yen, the pound and the USD.

The focus of investors is the publication of preliminary August data on business activity in the eurozone countries, which turned out to be weak: the index in the manufacturing sector and the composite index are in the stagnation zone for the second month, while growth continues only in the service sector, but it is also very insignificant. The index of business activity in manufacturing decreased from 49.8 points to 49.7 points, the composite index – from 49.9 points to 49.2 points, and in the service sector – from 51.2 points to 50.2 points. For the economic leader of the eurozone, Germany, the indicator in the service sector decreased from 49.7 points to 48.2 points, the composite indicator – from 48.1 points to 47.6 points, and in manufacturing increased slightly – from 49.3 points to 49. 8 points, but still remained in the slowdown zone. Overall, the stats continue to deteriorate as the high cost of living reduces consumer demand and disruptions in the supply of energy and components slow down production. According to experts, the continuation of the current dynamics makes a recession in the winter months more likely.

The pound is weakening against the USD today, strengthening against the euro and has ambiguous dynamics paired with the yen.

The pressure on the pound is exerted by weak preliminary data on business activity in the British economy: in the industrial sector, the indicator corrected from 52.1 points to 46.0 points and found itself in a stagnation zone for the first time since May 2020 against the backdrop of lower consumer demand, a shortage of personnel and instability since supplies of components and energy carriers. According to experts, these reasons will lead to a further slowdown in the sector in the coming months. Services are also slowing down, dropping from 52.6 points to 52.5 points as inflation continues to rise sharply, forcing citizens to lower spending levels, while the composite business activity index reached 50.9 points from 52.1 points earlier, which increases the risks of a recession, the onset of which the Bank of England predicts by the end of this year.

The yen is weakening against the USD, strengthening against the euro and has ambiguous dynamics paired with the pound.

Today, preliminary July data on business activity in the Japanese economy were published: the index in industry fell from 52.1 points to 51.0 points, and in the service sector – from 50.3 points to 49.2 points and for the first time since April of this year was in the zone of stagnation. In general, Japanese businesses are also under pressure from high fuel and electricity prices and weak demand. On the positive side, it is worth noting that, according to local media, the government is discussing the possibility of easing quarantine requirements for citizens. In particular, testing at the border of vaccinated travelers should be canceled, as well as the daily limit of those entering the country should be increased from 20.0K to 50.0K. These decisions will increase the influx of tourists and have a beneficial effect on the state of the national economy.

The Australian dollar has ambiguous dynamics paired with its main competitors – the euro, the pound, the yen and the USD.

Today, preliminary July data on business activity in the Australian economy were published: the index in the industrial sector fell from 55.7 points to 54.5 points, and in the service sector – from 50.9 points to 49.6 points and ended up in a stagnation zone. In general, the dynamics repeats those in other developed economies. The service sector is shrinking due to high inflation and reduced spending by citizens, and the industry is supported by high prices for coal and other raw materials exported from Australia, but it could come under pressure in the event of a serious downturn in the global economy.

Oil quotes are trying to grow today.

The rise in oil prices was supported by fears of a new production cut by the OPEC cartel and its allies. The day before, Saudi Arabia's energy minister told the national SPA news agency that the organization has the means to deal with the current downturn, including cutbacks in production. This comment made investors suggest that a decision on this issue could be discussed at the next meeting of the countries participating in the OPEC + agreement. During the day, investors are also waiting for the publication of a weekly report from the American Petroleum Institute (API). The last time oil reserves in the USA fell by 0.448M barrels. The continuation of this trend may put additional pressure on quotes.

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Morning Market Review

EURUSD
The European currency shows weak growth, trying to recover from updating record lows on Tuesday and testing 0.9990 for a breakout. At the same time, activity on the market remains subdued, as market participants prefer to wait for the appearance of additional instrument movement drivers. In particular, today Germany has published revised data on the dynamics of Gross Domestic Product (GDP) for the second quarter, as well as a block of statistics on the level of Business Confidence from the Institute for Economic Research (IFO) for August. In addition, during the day the European Central Bank (ECB) will release the Monetary Policy Meeting Accounts, in which traders expect to find forecasts for further rate hikes in the autumn. With the opening of the US session, investors' attention will switch to US GDP statistics for the second quarter. Also starting today is the two-day annual symposium of world central bankers at Jackson Hole, which is scheduled to feature US Federal Reserve Chairman Jerome Powell on Friday.

GBPUSD
The British pound is trading with an uptrend, retreating from record lows updated on Tuesday. At the moment, the growth of the instrument is due to technical factors, as well as a drop in market activity ahead of the start of the annual symposium of central bankers in Jackson Hole. Meanwhile, investors remain worried about rising inflation in the UK, fearing that the energy crisis will only get worse as the cold weather approaches. At the beginning of the week, investment bank Citi published a forecast that assumes inflation in the country will rise to a record high of 18.6% in January, which will force the Bank of England and the new Prime Minister to urgently look for ways to save the economy. Meanwhile, official London continues its course towards a decisive refusal to supply energy from Russia: experts note that their imports in July fell to zero for the first time since 1997.

AUDUSD
The AUDUSD pair shows a short-term uptrend against the background of the closing of part of long positions on the US currency, as traders prepare for the start of the annual symposium of central banks representatives in Jackson Hole and the speech of the Chair of the US Federal Reserve, Jerome Powell, in particular. In addition, today the markets are waiting for the publication of updated data on the dynamics of the US Gross Domestic Product (GDP) for the second quarter. Forecasts suggest some improvement compared to the previous estimate from –0.9% to –0.8%, which, however, is unlikely to noticeably affect the upcoming decision of the US Federal Reserve on interest rates in September. The American economy shows resilience, and also does not suffer from interruptions in energy supplies as much as the European one. It is possible that this will allow the regulator to maintain a record pace of 75 basis points of rate hikes to further combat high inflation.

USDJPY
The US dollar is declining, retreating from local highs, updated earlier in the week. Investors are in no hurry to open new trading positions in anticipation of the speech of US Federal Reserve Chairman Jerome Powell as part of the symposium starting today in Jackson Hole, hoping to get hints on further actions of the regulator in the field of monetary policy. To date, analysts estimate the likelihood of an interest rate hike in September by 50 basis points and by 75 basis points about the same. In addition, market participants hope that the Fed Chairman will comment on the prospects for tightening the existing parameters in the face of worsening forecasts for the energy crisis. Macroeconomic statistics from Japan published today does not have a significant impact on the dynamics of the instrument. Meanwhile, Corporate Service Price Index corrected from 2.0% to 2.1% in July from a forecast of 2.2%, Foreign Bond Investment fell by 79.2 billion yen for the week ended August 19 after a record increase of 1154.7 billion yen over the previous period, and Foreign Investment in Japan Stocks for the same period fell from 45.3 billion yen to 28.5 billion yen.

XAUUSD
Gold prices show a weak growth, testing the level of 1755.00. Activity on the instrument remains quite low, as market participants are waiting for comments from the Chair of the US Federal Reserve, Jerome Powell, regarding monetary policy. In addition, investors would like to hear updated agency forecasts regarding the economic outlook, as the situation with inflation remains quite difficult. Moreover, the energy crisis, which is particularly visible in Europe, seems to be getting worse. With the approach of cold weather, it becomes obvious that the price of energy is unlikely to start to decline, which will cause increased consumer dissatisfaction. In turn, gold is gaining support in the market as a safe asset.

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Morning Market Review

EURUSD
The European currency is falling, again testing the level of 0.9900 for a breakdown and returning to the previous local lows, updated at the beginning of last week. The euro is again under pressure from the rising dollar, which received an impetus to grow on Friday after the speech of the Chair of the US Federal Reserve, Jerome Powell. The official emphasized the regulator's resolute readiness to continue the policy of high interest rates, even if this leads to a slowdown in the national economy. Thus, the majority of analysts (approximately 75%) are again counting on a correction of the value by 75 basis points during the September meeting of the Fed. In turn, the euro reacts negatively to the prospects for the European economy in the face of a sharp rise in energy costs. Natural gas quotes are once again updating record highs, and electricity suppliers are warning consumers about higher prices for their services. In Germany, the basic electricity tariff for 2023 exceeded 800 euros per MWh, a new record high. In addition, the country is still experiencing a sharp drop in consumer confidence: the September Gfk Consumer Confidence index fell from –30.9 points to –36.5 points, while analysts had expected a decline to –31.8 points.

GBPUSD
The British pound is trading down, building on the "bearish" momentum that was formed last Friday. The GBP/USD pair is making new 40-year lows, testing 1.1650 for a breakdown, below which the instrument last traded in March 2020. The pound, like many other risky assets, is reacting to a noticeable strengthening of the US currency after the "hawkish" comments of the Chair of the US Federal Reserve, Jerome Powell, who spoke in favor of further raising interest rates at a record pace. The official urged to maintain a tight monetary policy, seeking to bring under control the high inflation rates that are still observed in the US economy. Thus, traders have revised their forecasts for the September meeting of the regulator: at the moment, most analysts expect a 75 basis point increase in interest rates, while earlier the chances of adjusting the value by 50 basis points and 75 basis points were estimated to be about the same. Meanwhile, the pound remains under pressure amid record inflation in the EU and the UK due to a sharp rise in energy prices. Ahead of the cold weather and the beginning of the heating season, politicians are trying to prepare their voters for an increase in tariffs for heat and electricity, which leads to a noticeable decrease in consumer activity and the level of confidence.

AUDUSD
The Australian dollar is noticeably declining, developing the downward momentum formed at the end of last week. The instrument showed active negative trend, having reacted to the speech of the Chair of the US Federal Reserve Jerome Powell at the annual symposium in Jackson Hole. As expected, the official advocated further tightening of monetary policy in order to control the inflation rate in the country. In addition, despite receiving the first evidence of some slowdown in consumer prices in the US, the Fed is clearly concerned about the current situation. This is an extremely negative signal for the entire global economy, as the overall picture is complicated by a further rise in energy prices and the onset of cold weather in the northern hemisphere. Today, the instrument practically does not react to the publication of optimistic macroeconomic statistics from Australia. Thus, Retail Sales in July increased by 1.3% after an increase of 0.2% a month earlier, although analysts' forecasts suggested a slight correction of the indicator by 0.3%.

USDJPY
The US dollar is actively adding in value during morning trading, testing the level of 138.80 for a breakout. The USD/JPY pair is approaching its previous record highs, updated in mid-July, while the US currency received a new impetus, reacting to the comments of US Federal Reserve Chairman Jerome Powell on the need to maintain a "hawkish" monetary policy. The official is convinced that raising interest rates will help bring record inflation under control, even if it means sacrificing economic growth. In turn, macroeconomic statistics from the US, published on Friday, put some pressure on the dollar. In particular, the Personal Income in July slowed down from 0.7% to 0.2%, which turned out to be noticeably worse than market expectations at the level of 0.6%, and Personal Spending decreased from 1.0% to 0.1%, with the forecast at 0.4%. Additional pressure on the position of the yen today is exerted by statistics from Japan: the Coincident Index in June fell from 99.0 points to 98.6 points, and the Leading Economic Index for the same period fell from 101.2 points to 100.9 points, while forecasts assumed a fall to 100.6 points.

XAUUSD
Gold prices are noticeably declining, developing a "bearish" trend of the end of last week. On Friday, the US dollar received a powerful impetus to growth, reacting to statements by the Chair of the US Federal Reserve, Jerome Powell, about the need to continue high interest rates. In fact, the official confirmed the possibility of an additional 75 basis points correction in the value, which would negatively affect non-interest bearing gold. Recall that the target inflation rate is still at 2.0%. In turn, in July, consumer price growth in the US slowed down somewhat and receded from the record high at around 9.1% to 8.5%, which is still well above the target levels.

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Morning Market Review

EURUSD
The European currency shows moderate growth, developing a weak "bullish" signal formed at the beginning of the week. The EURUSD pair is again trying to consolidate above the psychological level of 1.0000, taking advantage of some weakening of the positions in the US currency. Quotations are also supported by expectations of an imminent tightening of monetary policy by the European Central Bank (ECB), and the rate of increase in interest rates may be higher than planned, given the record level of inflation in the countries of the region. The next meeting of the regulator is scheduled for September 8 and at the moment analysts expect a correction in the value in the range of 25 basis points to 50 basis points. In July, the ECB raised rates by 50 basis points for the first time since 2011. Meanwhile, inflation in Germany, according to data released yesterday, accelerated from 7.5% to 7.9% in annual terms, while the monthly rate slowed down from 0.9% to 0.3%. The Harmonized CPI for the same period increased from 8.5% to 8.8%, which coincided with analysts' forecasts. Some of the decline was due to cheaper gasoline, while food and energy prices continue to rise. Today, investors expect the publication of August statistics on consumer inflation in the eurozone. The annual rate is expected to rise to a new all-time high of 9.0%.

GBPUSD
The British pound shows an uptrend in trading, retreating from record lows, updated the day before. The GBPUSD pair is preparing to test 1.17 for a breakout, taking advantage of the growth of corrective sentiment for the dollar. American investors temporarily cover long positions, waiting for the publication of data on the US labor market for August. On Wednesday, ADP will report on Nonfarm Payrolls, followed by the release of official statistics by the Department of Labor on Friday. The forecasts are quite strong, and therefore the US Federal Reserve is likely to keep its course for a further increase in interest rates at a record pace of 75 basis points. Macroeconomic statistics released yesterday in the UK did not provide significant support to the British currency. Consumer Credit in the country in July slowed down from 1.781 billion pounds to 1.425 billion pounds. Analysts' forecasts suggested a decline to only 1.500 billion pounds. At the same time, the number of Mortgage Approvals in July increased from 63.726 thousand to 63.77 thousand, while investors expected a decrease to 61.725 thousand.

NZDUSD
The New Zealand dollar shows weak growth, recovering from another decline the day before. At the moment, the NZDUSD pair is again testing 0.615 for a breakout, receiving extremely weak support from the macroeconomic background from New Zealand and China. ANZ Business Confidence rose from -56.7 points to -47.8 points in August, with a forecast of only -55.0 points. ANZ Activity Outlook for the same period corrected from -8.7% to -4.0%, while analysts expected the indicator to worsen to -8.9%. The number of Building Permits issued in New Zealand increased by 5.0% in July after falling by 2.2% a month earlier. The real dynamics turned out to be much better than the average forecasts of analysts. In turn, Chinese data reflected a weak increase in NBS Manufacturing PMI in August from 49.0 points to 49.4 points, while the forecast was at 49.2 points. Non-Manufacturing PMI for the same period fell from 53.8 points to 52.6 points, which was only slightly better than the expected 52.2 points.

USDJPY
The US dollar shows a slight decline, retreating from local highs, updated the day before. The USDJPY pair is testing 138.4 for a breakdown, reacting to the publication of relatively optimistic macroeconomic statistics from Japan. Retail Sales in July showed a moderate increase of 0.8% after falling by 1.4% a month earlier, while analysts had expected a contraction of 0.5%. In annual terms, sales accelerated from 1.5% to 2.4%, beating market forecasts at 1.9%. At the same time, Industrial Production in July slowed down from 9.2% to 1.0%, while analysts expected a reduction of 0.5%. In annual terms, the dynamics of Industrial Production improved from -2.8% to -1.8%, while the forecast was -2.6%. In turn, the Consumer Confidence index in August strengthened from 30.2 points to 32.5 points, which was slightly better than the expected 31 points.

XAUUSD
Gold prices continue a moderate decline since the end of the last trading week, updating new local lows from July 27. Quotes are testing the level of 1720 for a breakdown, retreating amid expectations of further tightening of monetary policy from leading central banks. First of all, the pressure is exerted by the "hawkish" comments of the US Federal Reserve; however, both the European Central Bank (ECB) and the Bank of England are also preparing to raise interest rates at the next meetings in September. The fight against inflation remains a key issue for leading regulators, while the threat of a recession in the economy is still in the background. This week, macroeconomic statistics on the US labor market for August is expected to be released. The forecasts of analysts and the US Federal Reserve are quite optimistic and assume that the indicators will remain stable. If expectations come true, this will allow the regulator to concentrate on fighting inflation by all available means.

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The second largest cryptocurrency by capitalization, ETH, is trading within a correction to the recent significant decline, consolidating around 1644.

ETHUSD, H4
The four-hour chart of the asset shows that the downward movement is developing within the framework of a possible Step pattern, where the second and last step has almost completed their formation. According to the implementation theory, in this case, the current global trend will continue, and the key support for the price will be the initial Fibonacci 23.6% correction at 1517, the breakdown of which will open the way for quotes to the 1252 area.

ETHUSD, D1
On the daily chart, a corrective upward wave is forming, which has recently consolidated below the support line of the local Flag pattern around 1660. The key support at the initial correction of 23.6% Fibonacci around 1517 has not yet been broken, which allows traders to hope to hold their positions at the current values for some time.

Technical indicators maintain a global sell signal, ignoring the local correction: fast EMAs on the Alligator indicator are below the signal line, and the AO oscillator histogram is in the negative zone.

Resistance levels: 1900, 2200 | Support levels: 1517, 1252

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Refund Policy

There is no perfection in services online, and when funding is involved, we believe that the merchant should have a transparent refund policy. Solid ECN Securities acknowledges customer rights, and for that reason, we drafted the Solid-Refund policy.

There are circumstances when it is essential to return payment. Clients may submit a refund petition if the merchant service was not as described, or the service was not functional or if the client justifies the reason.

We tried to make the money return policy concise, simple, and clear to give our customers a feeling of security. That is why we guarantee our services, and if it wasn’t as described the consumer has the right to apply for a money return.

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Payment Methods

Solid ECN Securities added more than 50 cryptocurrencies to its payment system. Our clients at Solid ECN can manage their account funding by a wide range of cryptos, from bitcoin to Zilliqa, all are available in the Solid-Dashboard > Account funding.

Solid ECN took this step to offer cost-effective payment methods for its customers. The blockchain transfer fee of the major cryptocurrencies have been increasing, therefore, retails are interested in trying the alternatives.

With Solid ECN, any trader can take advantage of +50 crypto payments.

> It is secured;
> It is undisclosed;
> it is decentralized.

Solid ECN brings vital advantages for forex traders in the US, EU, and beyond. High levels of market transparency mean price manipulation is not possible.

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