- USDIndex – pulled back to 109.60 but still highlighting that the USD remains the haven asset of choice for now. Yields are on the rise again and stocks are struggling as the US returns from the holiday and markets keep a close eye on the deepening energy crisis in Europe and China’s Covid situation as the ECB meeting on Thursday comes into view. US 10-year rate at 3.24% 5.3 bp higher than on Friday.
- EUR – weaker than expected German orders numbers at the start of the session, only added to signs that Europe is heading for a recession but EUR trades at 0.9957 now.
- JPY remained under pressure and USDJPY lifted to 24-year highs at 141.20.
- GBP at 1.1587 after on Monday near its weakest level in decades in a sign of faltering investor sentiment in UK markets as Liz Truss prepares to take the reins as prime minister.
- AUD -RBA raised rates by 50 bp and signalled further rate hikes to come but noted that it is not on a pre-set path. AUDUSD is below 0.68 following a spike to 0.6832.
- Stocks – GER40 & UK100 futures are down -0.2% and -0.3% respectively. Asian markets traded narrowly mixed.
- Oil at $88.75. OPEC+ announced an output cut of 100K barrels per day and amid signs that a revival of Iran’s nuclear deal has run into difficulties.
- Gold – rose to $1726.80.
Overnight – RBA raised rates by 50 bp & weaker than expected German factory orders.
Today – UK Industrial and Manufacturing Production and Trade Balance, US ISM Services PMI.
Biggest FX Mover @ (06:30 GMT) GBPJPY(+1.14%). Spiked to 1-month peak at 163.80. MAs aligning higher, MACD histogram positive & signal line rising, RSI 83, H1 ATR 0.3130, Daily ATR 1.28.
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Andria Pichidi
Market Analyst
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