- USDIndex – Rallied again (113.40) as US moves to curb US chip technology to China hit Chinese hi-tech companies. UK GILTS lead US Yields higher. BOE – Widening the scope of its daily Gilt buying operations from 11-14 October. Cable tests 1.1000. Stocks remain on the back foot (-1%). Asian markets hit by US Chip move (TSMC -8.33% & $240b wiped off wider market value) & European FUTS lower. PUTIN reacts to bridge attack with attacks on 13 Ukraine cities further undermining confidence. RISK OFF Tuesday.
- EUR – trades as low as 0.9670, today under pressure from safe haven bid for USD.
- JPY – rallied as high as 145.85 today and the “BOJ intervention” levels of September 20-22.
- GBP – Sterling sank again too as UK Gilts rallied, Cable back to 1.0996 with the pressure on new PM Truss & Chancellor Kwarteng showing no signs of waning.
- Stocks – US stocks, were heavy again on Monday and closed down -1.04% to -0.32%. US500 -27.7 at 3612. AMD -1.08%, Ford -6.89%, NVDA -3.36%. US FUTS tested the key 3600 level on Monday and trades at 3613 now.
- USOil – declined into $90.00 from $93.00 highs as USD accrued and sentiment waned.
- Gold – declined again as strong USD and high Yields weighed, October lows of $1661 have been tested today.
- BTC – also weighed by weak sentiment and a strong USD sank under $19k to trade at $18.9k.
Today – UK JOBS beat expectations, US IBD/TIPP, Speeches from ECB’s Lane, Fed’s Harker & Mester, BOE’s Bailey & Cunliffe, SNB’s Jordan, RBA’s Ellis, Astana Summit
Biggest FX Mover @ (06:30 GMT) AUDUSD (-0.54%) Continued to decline as risk off took hold. Down to test 0.6250 today. MAs aligned lower, MACD histogram & signal line negative & falling, RSI 36.52 & falling, H1 ATR 0.00149, Daily ATR 0.01109.
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Stuart Cowell
Head Market Analyst
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