Turkey, located between Europe and Asia, has submitted a formal application to join BRICS. As President Recep Tayyip Erdogan’s administration has said, the geopolitical center of gravity is shifting away from the developed economies. Perhaps this vision of the situation makes sense. It is proven by the fact that German auto giant Volkswagen is considering closing some factories in its home country for the first time in history. It is a serious blow to the European economy and the West as a whole.
The lack of progress in its decades-long quest to join the EU is one of the main reasons for Turkey’s desire to join the BRICS group. It is also partly the result of disagreements with other NATO members after 2022.
“Turkey can become a strong, prosperous, prestigious, and effective country if it improves its relations with the East and West at the same time,” Recep Erdogan said during a speech in Istanbul over the weekend. With inflation in Turkey at 60.2% in July, the country’s president really needs to think about changes.
The attention of global markets is increasingly focused on economic statistics from the US and its impact on the prospects of the Fed rate cut on September 18. The rate cut is now beyond question. In this context, the US dollar index, which measures the greenback’s strength against six rival currencies, is trading lower today in a narrow corridor of 101.5 to 101.7.
At the same time, the situation in the currency market is changing little, since the crucial report on the US labor market will be released only on Friday. All other economic data is of secondary importance. Markets certainly are looking forward to the US nonfarm payrolls for August.
September is traditionally considered the worst month for Wall Street. So far, the US stock market has been showing dismal performance. The S&P 500 index recorded the worst result for the beginning of September since 2015. Moreover, the US stock market experienced its worst day since the collapse on August 5.
To sum up, the S&P 500 index tumbled by more than 2% to 5,174. Investors are again concerned about a recession scenario in the US. This sentiment caused a sell-off of risky assets and kept the S&P 500 index falling within an intraday corridor of 5,504 to 5,624 today.
The stagnation on Forex will continue today, although the reports on open vacancies in the US can add adrenaline to traders. However, the report takes into account the data from a month ago, that is the results of July. Considering that they concern the labor market, the increase in the forecast to 8.1 million can breathe new strength into the US dollar.
On the other hand, their lag of a month will not allow investors to draw the right conclusion regarding the current state of the labor market in the US. We talk in more detail about the impact of economic statistics on forex instruments in our regular Trader’s calendar.
The euro/dollar pair has been going through a downward correction for the third day in a row. Today, the instrument is testing the psychological resistance area of ​​1.1000 to 1.1050. At this stage, this area serves as a crucial level for sellers.
Thus, it restrains a further correction for the euro/dollar pair. To continue the correction cycle, the bears need to go through several stages. First, they have to shift the current channel to the lower level of ​​the psychological area ​​of 1.0950 to 1.1000.
Then, the price has to consolidate below this level. In the case of an upward scenario, the euro might begin its recovery with a rebound from the same area. The euro/dollar pair has to settle above 1.1100 on the daily timeframe.
Interestingly, Bitcoin has wiped out almost all of its growth over the past month over the past 24 hours. This morning, the flagship crypto slumped to its lowest level since early August on the Asian exchange – to 55,625 dollars. Today the number one crypto is trading in an intraday corridor of 55,676 to 57,897 dollars as investors are poised for a wait-and-see approach, unwilling to take risks.

00:00 INTRODUCTION
00:37 TURKEY WANTS TO JOIN BRICS
01:22 USDX
02:08 S&P 500
03:03 NUMBER OF NEW VACANCIES
IN THE USA
03:52 EUR/USD
04:46 BTC/USD
05:22 BRENT
06:30 USD/RUB

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