FXCM US Automobile Basket Declines as UAW Sets New Deadline
The United Auto Workers may extend strike action.
Senior Market Strategist
Russell Shor is a Senior Market Strategist at FXCM, having been promoted to the role in 2025 in recognition of his depth of insight and consistent delivery of high-impact market analysis. He originally joined FXCM in October 2017 as a Senior Market Specialist.
Russell holds an Honours Degree in Economics from the University of South Africa, is a certified FMVA®, and a full member of the Society of Technical Analysts (UK). With over 20 years of experience in financial markets, his work is renowned for its clarity, precision, and strategic value across asset classes.
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The United Auto Workers may extend strike action.
The US 10-year real yield continues to climb higher and is currently at 2.286%, largely due to the Federal Reserve’s narrative of “higher for longer.” This is adding headwinds to the risk market and driving money towards the safety of the dollar. This, in turn, is impacting on gold. The precious metal is moving inversely to the real yield. To this end, the correlation coefficient (bottom indicator) between gold and…
Hollywood writers have agreed to end their strike action. The strike ended in the early hours of Wednesday morning.
Similar to yesterday’s article, the NAS100 is also showing worrying signs of technical weakness. Like the SPX500, the NAS100 has charted a lower peak followed by a lower trough. This puts the growth index into a defined downtrend. Its weekly RSI has also dipped below 50, which is on the bearish side of the indicator. If it maintains below 50 for an extended period, the NAS100 will be under pressure.
As we head towards the conclusion of Q3 at the end of the month, the SPX500 has flashed a serious warning sign. The index has charted a lower peak followed by a lower trough on the weekly times frame. This is a defined downtrend.
Pullback may set up a "dip in the uptrend" scenario.
The US 10-year real rate has supported FXCM’s USDOLLAR basket. As the real rate has moved up, so has the USDOLLAR. The correlation coefficient between the two is a robust 84%. This is not surprising. The higher real yield is likely to exert pressure on the risk side of the market, with the dollar benefitting as a safe-haven.
Bitcoin is down about 1.8% today due to concerns about risky investments following the Federal Reserve's statement and press conference. In the last 24 hours, the price of Bitcoin has dropped to trade at $26,660. This decline was driven by the Fed's decision to keep interest rates the same but hinted at possible rate increases. As a result, Bitcoin has returned to the familiar range around $26,000, which has been…
Weakness is starting to seep into the NAS100, with the index charting a lower peak.
The Federal Reserve's policy committee decided to keep its interest-rate target unchanged yesterday and expressed confidence in the ongoing strength of the economy. They conveyed a hawkish message regarding the near and medium term.
Today’s FOMC statement and press conference will affect financial markets, with its tone being of particular importance. The market wants to know how long rates will be at elevated levels.
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