- The USD Index dived to a six-month low of 103.50, from 105.00 following the cooler CPI data and trades at 104.00 now. US Stocks rallied on open as high as +3.85% but lost most of their gains by close (+0.30-1.01%). Yields tanked (10-yr lost 11 bp) as Treasuries rallied but closed at 3.501%. Commodities rallied (Gold & Copper hit 6-mth highs and Asian markets remain bid and the USD down 1.5% vs Yen, and 6-mth lows vs Euro, Sterling & Kiwi and 3-mths lows vs. Aussie. BTC spiked to 18k before, news that Binance withdrawals had hit $1.9 bln in 24 hours.
UK CPI also weakens (10.7% vs 10.9% & 11.1% last month) more than expected but the wider RPI (which is what many wage settlements use and a cause of the wide spread strike action) dipped but was hotter than expected at 14%.
- EUR – rotates over 1.0600 at 1.0625 now, ahead of ECB on Thursday.
- JPY – sank to 134.60 lows from over 137.70 yesterday and 150.00 in late October. Strong Tankan data and Machinery Orders help JPY strength.
- GBP – Sterling rallied over 1.2400, and traes at 1.2350 following good Inflation data and ahead of an expected 50 bp rate hike from the BoE tomorrow.
- Stocks – Wall Street rallied closed higher again yesterday but gave up most of their opening gains. – US500 +29 (+0.73%) 4019, and retakes 4000. Big movers included MRNA +19.63%, META +4.74%, GooG & AMZN +2.5%. FUTS trades at 4029 now.
- USOil – Rallied to $76.00 and trades at the key $75.00 now after a surprise build in US crude inventories against forecasts of a decline.
- Gold – Spiked as high as $1824.45 and trades at $1808. Can the $1800 handle hold?
- BTC – Sentiment woes continue from Binance & SBF but the weaker USD saw a peak over $18k, before a crash to 17.3k and bounce to 17.7k now. More FTX collapse fallout – Canada bans crypto leverage, crypto margin trading.
Today – “nothing else matters” FOMC Policy Decision & Press Conference. Before that – EZ Ind. Prod., US Export/Import Prices, NZD GDP. Speech from ECB’s Elderson.
Biggest FX Mover @ (07:30 GMT) NZDJPY (-0.37%) fell from highs over 88.00 yesterday to test the 87.00 tzone today. MAs aligned lower, MACD histogram & signal line negative and falling. RSI 38.10 & falling, H1 ATR 0.163, Daily ATR 0.879.
Click here to access our Economic Calendar
Head Market Analyst
Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in Leveraged Products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.