- The USD Index was the big loser on the day, plunging 3 big figures to a low of 107.67 from an intraday high of 110.99 before the data. Though it recovered marginally to close at 108.20, that is the lowest close since mid-September. Stocks skyrocketed significantly adding to expectations for a stepdown in Fed rate hikes and a paring in projections for the terminal rate. Yields dived 30 bps in the belly to 3.938% on the 5-year. The 10-year was down 27 bps to 3.813%. It was the first close under 4% since October 27. The 2-year yields had their biggest drop since 2008.
- EUR – rally above parity and currently at 1.0230.
- JPY – drifted to 140.19 from 146.50 high. Biggest fall since 1998.
- GBP – Sterling spiked to 1.1736 post US CPI data. This morning, GDP showed that the UK economy contracted less than expected in the third quarter.
- Stocks – Wall Street broke 2-month resistance. US100 rocketed 7.35% higher to 11,114, with the US500 surging 5.54% to 3,956, while the US30 was up 3.70% to 33,715. This was the strongest percentage pop in over two years.
- USOil – higher at $88.60 from $84.73.
- Gold – had its best week since March, spiking to 1760, has risen 4.2% so far in the week.
- BTC – Crypto crisis continues, however yesterday Bitcoin reverted some losses turning at 17940.
Today – European Commission releases Economic Growth Forecast, Michigan Sentiment, ECB’s Panetta, Guindos & Lane Speech.
Biggest FX Mover @ (06:30 GMT) AUDJPY (+0.82%) rallied from 0.6390 low yesterday to 0.6659 now, next resistance 0.6700. MAs aligning higher, MACD histogram & signal line positive & rising, RSI 72 & flat, H1 ATR 0.0025, Daily ATR 0.0118.
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Andria Pichidi
Market Analyst
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