Weak data (Retail Sales & PPI) from the US added to recession worries – More Hawkish comments from a raft of FED speakers talking 5.25-5.5% terminal rates added to a safe haven bid for the USD, caused Stock markets to collapse (-1.24% to -1.81%) under key technical levels and speculators to back the YEN and push the BOJ once more. Bonds rallied, the US 10-yr yield dropped to 3.75%. Asia markets are lower and rangebeound & European FUTS are also mixed. NZD unmoved from surprise PM Ardern will step down in February ahead of October elections.
- The USD Index hit a new 7-mth low at 101.25, before the data and a recovery of the 102.00 handle.
- EUR – holds at 1.0800 now, following a new 8-mth high over 1.0870.
- JPY – Rip roaring day from 131.60 highs yesterday completely reversed and back to test 128.00 now.
- GBP – Sterling has breached 1.2400, following the US data and currently trades at 1.2335.
- Stocks – The US markets were weak into close (-1.24% to +1.81%). US500 -1.56% to 3928 and below 200 EMA and testing the 50MA. PNC -6.04%, UAL -4.57%, US500 FUTS trade at 3937.
- USOil – rallied again to test $82.50 before the US economic data and inventories took it lower to $79.00 where it holds now.
- Gold – has tested $1900 again today from highs of $1922 yesterday, trades at $1912 now.
- BTC – Continues to hold over $20k this week but has relinquished the $21k today to trade at $20.7k.
Today – Building Permits/Housing Starts, Weekly Claims, Norges Bank & CBRT Announcements, ECB Minutes, Speeches from Fed’s Williams, Brainard & Collins, ECB’s Lagarde, Schnabel & Knot, Earnings – Procter & Gamble and Netflix.
Biggest FX Mover @ (07:30 GMT) AUDJPY (+1.41%). Rejected & reversed the post BOJ rally to 92.00, tanking close to 400 pips to test 88.00 lows. MAs aligned lower, MACD histogram & signal line negative & falling. RSI 22.87, OS & falling, H1 ATR 0.239, Daily ATR 1.278.
Click here to access our Economic Calendar
Stuart Cowell
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.
