FXTM information and reviews
FXTM
95%
OctaFX information and reviews
OctaFX
94%
XM information and reviews
XM
93%
FXCC information and reviews
FXCC
92%
Libertex information and reviews
Libertex
91%
HFM information and reviews
HFM
89%

Wild, Wild Swings following US CPI, Risks in London Rise


14 October 2022 Written by Stuart Cowell  HF Markets Head Market Analyst Stuart Cowell

USDIndex – Spiked to 113.80 following hot reading for CORE CPI and then reversed sharply into 112.20 as Stocks staged a record reversal (from -3% to +over 2%)  on short covering, technical floors being tested and ? perhaps assumptions that the top is finally in for inflation (Headline fell for 3rd consecutive month). Yields also whipsawed, with at one point, all major maturities above 4%. (US 10yr closed 3.902% &  the 2/10 year rate inversion {a sign of recession} sits at 51bp).  75 bp fro Nov 2 fully priced in, and a 71% chance of a further 75bp in December. (This will take hikes since March to 450 bp). 

The UK’s new  fiscal policy remains squarely under threat as Chancellor Kwarteng returns from the IMF meetings a day early (last person to do that was the Greek Fin. Min. in 2011 and many are predicting a similar outcome both politically and economically). The BOE’s Bond-Buying programme ends today, uncertainty swirls as tax U-turns become priced in. Sterling rallied and then rallied again, but Gilts remain  fragile. Asian markets follow Wall Street higher (Nikkei +3.25% Hang Seng +2.64%) & European FUTS also higher.

Today – US Retail Sales, US University of Michigan Prelim Survey, Speeches from BOE’s Bailey, Fed’s George, Cook & Waller. Earnings from Wall Street banks JPM, Citi, MS Wells Fargo. Biggest FX Mover @ (06:30 GMT) NZDJPY (-0.96%) rallied from sub 81.20 lows yesterday to 83.75 highs today.  MAs aligned higher,  MACD histogram & signal line positive & rising,  RSI 70.00, OB & rising, H1 ATR 0.186, Daily ATR 3.201. 

#source

Share: Tweet this or Share on Facebook


Related

China unrest as Covid lockdowns ramp up
China unrest as Covid lockdowns ramp up

Oil prices have dropped to an 11-month low at the start of the week as protests escalate in China in response to the strict zero-COVID restrictions...

28 Nov 2022

Global risk appetite
Global risk appetite

The USDIndex held fractionally lower below 106.00 following a short week and a hit in risk sentiment and stoked uncertainty. USDJPY drifted by 0.80% to 138 in a blow to risk appetite...

28 Nov 2022

The market mood improves after less hawkish Fed minutes
The market mood improves after less hawkish Fed minutes

Oil fell sharply on Wednesday, recording its largest daily drop in two months as the G7 consider capping oil prices at $65-$75 per barrel. Discussions on the price cap...

25 Nov 2022

How Do The Black Friday and Cyber Monday Impact Financial Markets?
How Do The Black Friday and Cyber Monday Impact Financial Markets?

Black Friday and Cyber Monday are two of the most highly anticipated days of the year for consumers, with businesses slashing prices and promoting attractive deals on what is essentially...

24 Nov 2022

Why Is Bitcoin Tanking: Crypto Winter And Future Of The First Cryptocurrency
Why Is Bitcoin Tanking: Crypto Winter And Future Of The First Cryptocurrency

The year 2022 was rich in major shocks and bankruptcies of cryptocurrency projects - after each such event, all assets fall in price simultaneously. The current crisis was no exception...

23 Nov 2022

The supply of soybeans is rising while demand is fragile
The supply of soybeans is rising while demand is fragile

After two straight sessions of falling prices, soybeans prompt-month futures contract traded on the Chicago Board of Trade (CBoT) went up 0.8% on Friday and settled at 14.28 USD per bushel...

22 Nov 2022


Editors' Picks

FXCM information and reviews
FXCM
87%
ActivTrades information and reviews
ActivTrades
86%
RoboForex information and reviews
RoboForex
85%
MultiBank Group information and reviews
MultiBank Group
84%
FxPro information and reviews
FxPro
83%
Vantage information and reviews
Vantage
83%

© 2006-2022 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.