Daily Market Analysis By FXOpen

What Is Systematic Risk and How May It Affect Markets?


Systematic risk affects all traders, no matter the strategy or asset class. It comes from market-wide forces?like interest rates, inflation, or geopolitical shifts?that influence entire sectors at once. Unlike unsystematic risk, it can?t be avoided through diversification. This article breaks down what systematic risk is, how it?s measured, and how traders may incorporate it into their analysis.

What Is Systematic Risk?
Systematic risk refers to the kind of risk that affects entire markets or economies, rather than just individual assets. It?s the result of large-scale forces?like inflation, interest rates, central bank policy, geopolitical conflict, or economic slowdowns?that ripple through multiple asset classes at once.

A sharp rise in interest rates, for example, tends to push bond prices lower and can drag down equity valuations as borrowing costs climb and consumer spending slows. Similarly, during a global event like the 2008 financial crisis or the COVID-19 shock in 2020, almost all sectors saw simultaneous drawdowns. These events weren?t tied to poor management or bad earnings reports?they were macro-level shifts that hit everything.

Because it?s a largely undiversifiable risk, systematic risk is a key consideration for traders assessing overall market exposure. It often drives correlation between assets, particularly in times of stress. This is why equities, commodities, and even currencies can start to move in the same direction during periods of heightened volatility.

TO VIEW THE FULL ANALYSIS, VISIT FXOPEN BLOG

Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Dollar in Balance: Correction or the Start of a New Impulse?


The major dollar pairs, particularly USD/JPY and USD/CAD, remain in a zone of uncertainty. On Friday, the US currency came under pressure following the dovish rhetoric of Federal Reserve Chair Jerome Powell at the Jackson Hole symposium, where he effectively opened the door to a potential rate cut as early as September. On Monday, the market saw a technical correction, though the move has yet to show resilience ? the dynamics will largely depend on incoming data. An additional factor weighing on the greenback is concern over the Fed?s independence amid criticism from President Donald Trump, which further limits investor confidence in the dollar.

In the coming sessions, market participants will closely monitor US releases: consumer confidence index, regional Fed indices, as well as the updated GDPNow forecast from the Atlanta Fed. These figures could determine the short-term trajectory: confirmation of economic weakness might strengthen expectations of an imminent rate cut, while stronger data might support the dollar and trigger a continuation of the corrective move.

USD/JPY

The USD/JPY pair continues to trade within the previously identified range of 146.60?148.60. On Friday, sellers attempted to break support at 146.60, but by Monday the price had stabilised above 147.00. Technical analysis of USD/JPY indicates a sideways trading pattern. A firm move below 146.60 could open the way for a test of the nearest support levels at 145.80?146.20.

TO VIEW THE FULL ANALYSIS, VISIT FXOPEN BLOG

Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Nvidia (NVDA) Upcoming Earnings Report


Tomorrow after hours, Nvidia will release its quarterly report, attracting heightened attention given its position as:
→ the world?s largest company (market capitalisation of around $4.39 trillion);
→ a leader in the development of AI-related industries;
→ strong stock price performance ? approximately +33% year-to-date, +108% from the yearly low.

Bullish Expectations
Analysts anticipate Nvidia will report revenue of around $46 billion, more than 50% higher than the same period last year.

Investors are counting on confirmation of robust demand for Nvidia?s chips from tech giants such as Microsoft, Google, Amazon, and Meta, all of which continue to expand capital expenditure on data centres to power AI workloads.

Further support for NVDA?s share price could come from positive news about demand for the new Blackwell chips and the resumption of sales in China following a recent agreement with the US government.

Bearish Concerns
Even strong results may fall short of ?sky-high? optimistic expectations, potentially triggering profit-taking and a decline in Nvidia?s (NVDA) stock price. The stock trades at a high P/E multiple (price-to-earnings ratio), making it vulnerable to any negative news or even a minor miss against forecasts.

The primary concern is that Nvidia?s forward guidance might point to a slowdown in AI infrastructure spending growth by its key clients. Any hint of this could negatively affect not only Nvidia?s shares but also the broader technology sector.


TO VIEW THE FULL ANALYSIS, VISIT FXOPEN BLOG

Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

XTI/USD Chart Analysis: Oil Price Falls 2.8% from This Week?s High


As the XTI/USD chart shows, this morning (27 August) WTI crude oil is trading around the $63 level, although on Monday it climbed above $64.70. This means the price has retreated by approximately 2.8% from this week?s high.

The bearish momentum may be linked to the market?s reassessment of geopolitical risks. According to Reuters, US Special Representative Steve Witkoff stated that:
→ he will meet with a Ukrainian delegation in New York this week;
→ the US administration is also in talks with Russia, seeking to bring the war to an end.

He also noted that Washington is striving for de-escalation in the Middle East. We could assume that market participants are pricing in the possibility that these efforts could lead to the easing of sanctions and reduce risks and restrictions in global oil trade.



TO VIEW THE FULL ANALYSIS, VISIT FXOPEN BLOG

Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Boeing (BA) Share Price Could Reach 2025 Highs


As the Boeing (BA) stock chart indicates, the price rose by 3.5% yesterday, while the S&P 500 index (US SPX 500 mini on FXOpen) gained only 0.4%. Boeing?s stronger performance reflects optimism driven by news (and market rumours) reported in the media suggesting that:

→ Korean Air has purchased more than 100 aircraft during the newly elected South Korean president?s visit to the White House;
→ Boeing is negotiating the sale of 500 aircraft to China;
→ the Trump administration may acquire stakes in companies linked to the defence sector (Palantir, Boeing, Lockheed Martin).



TO VIEW THE FULL ANALYSIS, VISIT FXOPEN BLOG

Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

European Currencies Hold Key Levels: Market in Search of New Signals


The major European currencies held their ground near key levels on Thursday. Following Jerome Powell?s dovish remarks at the Jackson Hole symposium, the US dollar first fell sharply, then corrected higher on Monday, only to weaken again by midweek. Market reaction, however, remains uncertain: investors have yet to form a consensus on whether the dollar?s decline marks the continuation of a downtrend or if the current consolidation will develop into a new upward impulse for the greenback. Against this backdrop, the EUR/USD and USD/CHF pairs have once again tested important levels but managed to rebound, maintaining a balance between supply and demand.

Market participants are now focused on the upcoming data releases from Europe and the United States. In the euro area, figures on consumer and business sentiment, inflation expectations, and business climate indices are due, which could adjust short-term forecasts for the euro. In the US, attention will centre on labour market and price dynamics ? jobless claims, the GDP deflator, and the Personal Consumption Expenditures (PCE) index will be key indicators for assessing the Federal Reserve?s future policy trajectory. These publications could determine whether EUR/USD and USD/CHF remain within their current ranges or if the market is preparing for new impulses.

EUR/USD


Yesterday, sellers of the single European currency attempted to break key support at 1.1600. The price set a new August low, but the breakout proved false, and the pair returned to 1.1640. Technical analysis of EUR/USD indicates sideways trading between 1.1580 and 1.1740. A significant fundamental driver would be required to push the pair beyond this range.

TO VIEW THE FULL ANALYSIS, VISIT FXOPEN BLOG

Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

S&P 500 Index Reaches Another All-Time High


On 13 August, we wrote about the S&P 500 (US SPX 500 mini on FXOpen) reaching an all-time high following the release of the CPI report. At that time, we suggested that the price might move towards the upper boundary of the ascending channel (highlighted in blue on the chart).

Since then:
→ the price has set a new record, forming peak 0 near the upper boundary of the channel;
→ it then fell back towards the lower boundary, where block A was formed;
→ and subsequently rose again to a fresh all-time high (F), coming close to the 6500 level.

The resilience of the blue channel underlines the prevailing bullish sentiment, which is supported by expectations of a Fed rate cut in September ? an event seen as positive for the economy and potentially boosting corporate earnings. This optimism is so far outweighing the fact that Nvidia?s shares slipped slightly yesterday after the company?s earnings release (despite results exceeding investor expectations).

But is the outlook entirely cloudless?



TO VIEW THE FULL ANALYSIS, VISIT FXOPEN BLOG

Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Alphabet (GOOGL) Shares Set an All-Time High


As the chart of Alphabet (GOOGL) shares shows, the price in August exceeded the February high. For the first time in history, the close price moved above $210.

The positive market sentiment is being driven by the development of AI technologies, as well as Alphabet?s (GOOGL) ambition to maintain a leading position in this field. Among the latest news, it is worth noting that Meta Platforms (META) has signed an agreement to use Google Cloud?s infrastructure for its AI projects, which is expected to bring Alphabet around $10 billion in revenue.



TO VIEW THE FULL ANALYSIS, VISIT FXOPEN BLOG

Disclaimer: This article represents the opinion of the Companies operating under the FXOpen brand only (excluding FXOpen EU). It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.