- USDIndex – Rallied again following strong NFP data (263k vs 250k & Unemployment falling to 3.5% from 3.7%) on Friday and expectations of no FED pivot any time soon and unified central bank action. Trades at 112.80. Yields are firmer and stocks on the back foot. US CPI key this week. Putin reaction to Bridge attack potentially Nuclear, Xi Ping looks to cement more power for another 10 years and NK have simulated attacks on SK – all under-mining sentiment. US moves to curb US chip technology to China hits Chinese hi-tech companies. Asian (thin markets due to holidays and weak Chinese Service PMI data 49.3 vs 55.0) & European stocks are lower following the very weak close (NASDAQ -3.8% ) on Wall St.
- EUR – closed Friday at 0.9730, and trades at 0.9720 now.
- JPY – rallied Friday and again today spiked to 145.60 and holds over the key 145.00 now. Signs of more BOJ intervention.
- GBP – sterling sank again too, Cable back to 1.1075 with the pressure on new PM Truss showing no signs of waning.
- Stocks – US stocks, were extremely heavy on Friday and closed down –2.11% to -3.8%. US500 -105.00 at 3639. AMD -13.87%, TSLA -6.32%, NVDA -8.03%. US FUTS at 3635.
- USOil rallied again to $93.00 and trades at $92.20 now.
- Gold – declined again as strong USD and high Yields weigh, from $1710 on Friday ahead of NFP to $1685 now.
- BTC – also weighed by weak sentiment and a strong USD sank from 20k pivot on Friday to trade at 19.3k now.
Today – EZ Sentix Index, Speeches from Fed’s Evans & Brainard, ECB’s Lane, US Columbus Day (Treasury markets closed).
Biggest FX Mover @ (06:30 GMT) GBPAUD (+0.64%) Continued to rally from Friday’s low at 1.7350 to test 1.7500 now. MAs aligned higher, MACD histogram & signal line positive & rising, RSI 66.52 & rising, H1 ATR 0.00347, Daily ATR 0.03100.
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Stuart Cowell
Head Market Analyst
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