Date : 8th October 2021.

Market Update – October 8 – Yields Drive Higher Pushing USD & Stocks too.

Trading Leveraged Products is risky

* USD (USDIndex 94.30) holds at highs, Stocks & Oil move higher testing  key technicals – Yields the driver (5yr at 1.0416% – Feb 2020 high) US debt ceiling extended by $480bn, Weekly Claims and Challenger Job cuts both better than expected. China back at work & big beat for Services PMI (returning to growth at 53.4 from 46.7) – adding to the bid but Taiwan tensions increase. No Evergrande update.

* US Yields (10yr closed 1.571%) now at 1.596% in Asian trades.

* Equities moved higher into close.  USA500 +36.0 (+0.83%) at 4399 (testing 20-day MA) USA500.F higher for 4th day – but below cash close 4386.  Asian equities higher supported by China.  VIX closed at 20.00 – trades up at 20.17 now. 

* USOil back to test highs, trades at  $79.12, despite inventory surprise on Wednesday.
* Gold slipped on higher yields down to $1752 now back to $1759; 20-day MA $1765.   
* FX markets USD remains bid – EURUSD  1.1546 Cable holds 1.3600, & USDJPY higher again ( todays biggest mover)  at 111.90 from 111.20 lows yesterday.
Overnight  – Mixed JPY data (Earnings Higher, Econ. Sentiment & Spending lower), GER – trade balance; a big miss (exports lower imports higher) +13.0b vs +17.9bn

European Open – December 10-yr Bund future down -22 ticks, slightly underperforming versus Treasury futures, after EZ bonds outperformed yesterday. Markets will now be focusing on the NFP this afternoon, as markets adjust their rate expectations. UK Inflation warnings saw Gilts underperforming yesterday & while Asian stock markets managed to mostly move higher, DAX & FTSE 100 futures are down -0.2% & -0.1% respectively, while US futures are narrowly mixed, with the NASDAQ underperforming.

Today – US & Canadian labour market reports, ECB’s Panetta & BoE’s Tenreyro.
   

Biggest FX Mover @ (06:30 GMT) USDJPY (+0.28%) Rallied from 111.20 lows yesterday to eye 111.95 once more. Faster MAs aligned higher, MACD signal line & histogram trending higher & over 0 line, RSI 71 OB zone & moving higher. H1 ATR 0.068, Daily ATR 0.606.

Always trade with strict risk management. Your capital is the single most important aspect of your trading business.

Please note that times displayed based on local time zone and are from time of writing this report.

Click HERE to access the full HotForex Economic calendar.

Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE!

Click HERE to READ more Market news.

Stuart Cowell
Head Market Analyst
HotForex

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 FX and CFDs 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.

Date : 12th October 2021.

Market Update – October 12 – Risk off sentiment dominates!

LONDON

* Risk off sentiment dominated the Asian part of the session & European bourses are also set to open lower.
* GER30 and UK100 futures currently down -0.6%. US futures are posting losses of -0.3 to -0.4% as markets fret about rising yields, the spike in oil prices and stagflation risks amid ongoing supply chain constraints that are increasingly keeping a lid on the manufacturing outlook
* Equities down. JPN225 -0.9%, ASX corrected -0.3%.
* Oil prices continued to rise to the highest since 2014 currently $81.06. UKOIL to $84.58 – adding to inflationary pressures in recovering economies.
* Gold prices could reach $1,850 before retreating in 2022 – ANZ Research.
* US Yields held above 0.6%, yields continued to rise in Australia and New Zealand, although China’s 10-year rate dropped back slightly.
* News: South Korea’s central bank left its Base Rate unchanged, as expected, while in data Japan’s PPI rate jumped higher, and the UK’s unemployment rate was unchanged at 4.5% in the 3 months to August.
* FX markets – USD and GBP remain bid, Yen splits– Sterling is benefiting from rate hike speculation.
* EURUSD, 1.1565, Cable stuck at 1.3600, USDJPY broken 113!

European Open – The December 10-year Bund future is up 10 ticks, US futures are also slightly higher, while in cash markets the US Treasury yield is holding above the 1.6% mark.  Central banks seem split on how to react and while the BoE is clearly laying the ground for an earlier than expected lift off on rates, ECB officials continue to do their best to keep rate hike speculation under control. The latter is keeping a lid on the EUR, while so far Sterling is benefiting from rate hike speculation, although that could change if the focus turns to growing supply chain and delivery disruptions and the impact of the spike in gas prices, which is also causing problems in areas such as food and drink production.

Today – German ZEW Sentiment
   

Biggest FX Mover @ (06:30 GMT) USDJPY (-0.14%) Retreating from 113.47 and currently back to 113 border.  Faster MAs aligned lower, MACD signal line & histogram trending lower but well above 0, RSI 43 slowing down, all indicating a correction after OB condition. H1 ATR 0.123, Daily ATR 0.669.

Always trade with strict risk management. Your capital is the single most important aspect of your trading business.

Please note that times displayed based on local time zone and are from time of writing this report.

Click HERE to access the full HotForex Economic calendar.

Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE!

Click HERE to READ more Market news.

Andria Pichidi
Market Analyst
HotForex

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 FX and CFDs 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.

Date : 14th October 2021.

Market Update – October 14.

* Traders continue to mull recovery hopes and central bank policies, after the Fed minutes yesterday signaled tapering could start as early as November.

* The market is starting to price in a Fed rate liftoff into September 2022 from December previously.
* BoE officials no longer seem concerned that the spike in inflation will be temporary and markets are concerned that an early move would stifle a still fragile recovery, especially as Brexit Britain is facing severe delivery problems and shortages of staff in key areas that could have longer lasting economic consequences.
* Yields: US Treasury yield has lifted 1.6 bp to 1.55%. A stellar, record-setting 30-year bond reopening evinced continued strong demand for yields.
* China: Record high PPI number & a slight drop in headline CPI readings.
* Equities up. JPN225 managed a 1.4% gain. GER30 and UK100 futures are still up 0.4% and 0.5% respectively and US futures are also higher, led by a 0.5% rise in the USA100, which already outperformed yesterday.
* Earnings season got off to a very strong start after a big beat by JPMorgan.
* Oil lifted above $81.00.
* FX markets – USD dropped, Yen corrected.
* EURUSD is eyeing the 1.1400 mark, Cablerebounds to 1.3668, USDJPY 113.30–113.60.
* TRYslumps over Central banks shuffle – USDTRY at 18. Erdogan dismissed three central bank monetary policy committee members and named replacements.

European Open – The December 10-year Bund future is down -10 ticks and US futures are also lower, while in cash markets the US Treasury yield has lifted 1.6 bp to 1.55%. EGBs rallied yesterday, led by Gilts, although yields closed up from session lows yesterday, as the move was mainly fueled by stagflation concerns with money markets increasingly pricing in an early liftoff on rates, especially in the UK.

Today – Today’s data calendar includes US PPI and US jobless claims.

Biggest FX Mover @ (06:30 GMT) NZDJPY (+0.70%) Breached 79.45. Currently faster MAs keep pointing up, MACD signal line is at 0 & histogram trending higher. RSI 73 and sloping up, all indicating further upwards move. H1 ATR 0.107, Daily ATR 0.748.

Always trade with strict risk management. Your capital is the single most important aspect of your trading business.

Please note that times displayed based on local time zone and are from time of writing this report.

Click HERE to access the full HotForex Economic calendar.

Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE!

Click HERE to READ more Market news.

Andria Pichidi
Market Analyst
HotForex

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 FX and CFDs 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.

Date : 18th October 2021.

Market Update – October 18 – China Slows – Risk-Off to start the week.

* USD (USDIndex 94.10) holds at highs, Weak data from China (Q3 GDP 0.2% vs 0.5% & Ind. Production 3.1% vs 4.5%) Big misses, Risk-Off tone to start the week. Oil continues to move higher testing  key technicals – Yields the driver (again) US 10yr at 1.6%. NZD moves higher – (CPI 2.2% vs. 1.4% & Services PMI’s 46.9 vs 35.6) Auckland lockdown extended.
* PBOC breaks silence on Evergrande -“can contain contagion”: Risks are (1) other Real Estate Co’s & (2) Wider Economy.
* US Yields (10yr closed 1.576%) now at 1.60% in Asian trades.
* Equities moved strongly higher into close. USA500 +33.0 (+0.75%) at 4471 (Dow +1.0%) – Big movers AMZN & MasterCard +3.3%, TSLA +3.0% & BAC +2.8%, FB -1.15%, MRNA -2.31%. USA500.F dips to 4446.  Asian equities lower on China news.  VIX closed -2.56% at 17.00 (8 week low) – trades up at 17.35 now. 
* USOil back to test new 7-yr highs, trades at $82.75.
* Gold slipped on higher yields down to $1763 now from Thursday’s test of $1800.
* FX markets USD remains bid – EURUSD  1.1573 Cable holds 1.3720 (Bailey ‘will have to act’ to curb inflation) & USDJPY higher again at 114.25.

Week Ahead  – Inflation and PMI data dominate the economic releases, Earnings highlights include:  Johnson & Johnson, Procter & Gamble, Netflix, (Squid Games to add $900m in Revenue?) Verizon, IBM, Intel, Tesla, (Musk joined 200+ VW exec’s over weekend) & AT&T.

European Open – The December 10-year Bund future is down -53 ticks at 169.05, underperforming versus Treasury futures and pointing to another sharp rise in cash yields at the start of the session. Comments from BoE’s Bailey, will add to pressure in the European part of the session. UK money markets are increasingly pricing in a move from the BoE this year, which is leaving bond market traders worrying about stagflation risks. DAX and FTSE 100 futures are currently down -0.1%.

Today – US Industrial Production, Fed’s Quarles, BoC’s Lane, & BOE’s Cunliffe.

Biggest FX Mover @ (06:30 GMT) USDCAD (+0.28%) Rallied from 1.2335 lows on Friday to test 1.2400 now. Faster MAs aligned higher, MACD signal line & histogram trending higher & over 0 line, RSI 64.00 & moving higher, Stochs. 95 and OB. H1 ATR 0.0012, Daily ATR 0.00826.

Always trade with strict risk management. Your capital is the single most important aspect of your trading business.

Please note that times displayed based on local time zone and are from time of writing this report.

Click HERE to access the full HotForex Economic calendar.

Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE!

Click HERE to READ more Market news.

Stuart Cowell
Head Market Analyst
HotForex

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 FX and CFDs 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.

Date : 20th October 2021.

Market Update – October 20 – USD bounces from 2-week low, Stocks & Yields higher.

* USD (USDIndex 93.70) recovers from test of 2-week low (93.47) Yields stronger, Equities closed strongly on good Earnings, Netflix beat big time (Subs 4.38m vs 3.86m. – globally now 213.6m) Squid Game watched in 142 million households in 94 countries.  Biden expects a deal on infra budget, Chinese housing prices slow, and NK fired more missiles (non-ballistic today) into S. China Sea.
* US Yields (10yr closed higher at 1.6350) & touched 1.662 earlier – now 1.6495%
* Equities moved higher gaining momentum USA500 +33 (+0.74%) at 4519 (NASDAQ +0.71%) – Big movers – J&J +2.34% & APPL 1.18% – USA500.F higher into 4503.  Asian equities higher (Nikkei +0.76%) VIX closed down again at 15.57 (a new 8-week low – VXN – (which measures Nasdaq volatility) – at lowest since February 2020)
* USOil down from 7-yr high, at $83.00 after private inventories – trades at $81.00
* Gold holds at $1775 now from yesterday’s high of $1785 and low of $1767.
* FX markets – a recovering USD has – EURUSD 1.1640, Cable down from 1.3800+ after CPI data at 1.3785 & a weaker YEN,  USDJPY – 4-year highs – 114.70.

Overnight – UK CPI a tick weaker than expected (3.1% vs 3.2%) PPI in line. German PPI much stronger than expected @ 2.3% vs 1.1%.

European Open – The December 10-year bund future is down 35 ticks, underperforming versus Treasury futures. Yields moved broadly higher across Europe yesterday and while ECB officials are doing their best to keep rate hike speculation at bay, they are fighting an uphill battle, especially as the BoE is preparing for an early lift off on rates. The surprise misses for UK CPI could dull the expectation.

Today – EZ Final CPI, Canadian CPI, ECB’s Elderson, Fed’s Bullard, Earnings – Verizon, Tesla, IBM, Abbot, AMSL, Nestle (already out – a  big beat especially for Pet food Division)

Biggest FX Mover @ (06:30 GMT) NZDCHF (+0.40%) 5th consecutive day higher today (from 0.6425) breached 0.6600 earlier, and testing 0.6630 now. Faster MAs aligned higher, MACD signal line & histogram trending higher, RSI 65.00 OB but still moving higher, H1 ATR 0.0008, Daily ATR 0.0054.

Always trade with strict risk management. Your capital is the single most important aspect of your trading business.

Please note that times displayed based on local time zone and are from time of writing this report.

Click HERE to access the full HotForex Economic calendar.

Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE!

Click HERE to READ more Market news.

Stuart Cowell
Head Market Analyst
HotForex

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 FX and CFDs 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.

Date : 25th October 2021.

Market Update – October 25 – Big Earnings Week Ahead, USD Cooler.

* USD (USDIndex 93.50) cools a tad & again tests 4-wk low (93.44). PMIs biased to the upside as Powell talked taper but no rate rises yet, Democrats narrowed their differences on the $3.5b infra bill & Yellen talked new taxes. Yields hold up, Equities mixed Friday, FUTS down. Big week for Earnings – Oil up again on supply concerns, gold back to $1800.
* Evergrande – Restarted 10 building projects over weekend, announced move away from real estate towards EV production.
* US Yields (10yr closed higher at 1.665) & – now 1.6500%
* Equities mixed – USA500 -4.88 (-0.11%) at 4544 (NASDAQ –0.82%) – Big movers – SNAP -26.59% & INTEL -11.68%; Big Earnings misses, FB -5.05%, GOOGL & AMZN –3%, TSLA +1.75% – USA500.F back to 4540. Asian equities weaker.
* USOil up again on supply concerns & trades close to 7-year highs at $83.00
* Gold very volatile Friday ($1782-$1813-$1793 on close) Back to pivot at $1800 now.
* FX markets – EURUSD 1.1650, Cable 1.3770, &   USDJPY – (after a strong day on Friday (113.40 low) now at 113.60.

Week Ahead: Earnings from 5 x tech giants (FB today), plus major European Banks. Policy meetings from the ECB, BoJ & BOC, economic data includes US Q3 GDP & PCE. Plenty of CB speak, the UK Budget and month end too.

European Open December 10-yr Bund future up 23 ticks at 168.51. DAX & FTSE 100 futures up 0.15% & 0.25% respectively. Inflation risks remained in focus as oil prices continue to climb higher while bottlenecks in supply chains lead to rising cost pressures. The combination already weighed on manufacturing PMIs last week & are likely to also depress the German Ifo confidence reading today ahead of Thursday’s ECB meeting. Fed Chair Powell signalled on Friday that inflation could stay higher for longer & that the taper is coming. ECB by contrast has pushed decisions on PEPP & APP back to the December meeting, which means this week’s ECB will be watched mainly for signals from Lagarde at the press conference.

Today – German IFO and BoE’s Tenreyro. Earnings: Michelin, Facebook, Restaurant Brands. HSBC surprises with 74% rise in Q3 profit and $2bln buyback.

Biggest FX Mover @ (06:30 GMT) AUDJPY (+0.45%)  Recovering from a strong day run fro JPY last week. Up from 84.50 tlow on Friday to test 85.00 now.  Faster MAs aligned higher, MACD signal line & histogram rising,  RSI 51 & neutral. H1 ATR 0.189, Daily ATR 0.817.

Always trade with strict risk management. Your capital is the single most important aspect of your trading business.

Please note that times displayed based on local time zone and are from time of writing this report.

Click HERE to access the full HotForex Economic calendar.

Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE!

Click HERE to READ more Market news.

Stuart Cowell
Head Market Analyst
HotForex

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 FX and CFDs 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.

Date : 27th October 2021.

Market Update – October 27 – Yields up,Robust USD.

* USD (USDIndex 93.84) – topped at 94 before retracing to 93.84 in Asia session.Wall Street rallied to more new highs on the USA500 and USA30, with the USA100 closing in on its peak, before gains faded. Solid earnings continued to underpin optimism, and stronger than expected confidence and housing data helped too. – rekindled Fed tightening fears.
* The long end of the market saw yields dip, overlooking the inflation jump as the longer term outlook is still benign. The 10-year Treasury yield has moved up 1.4 bp to 1.622%. Australia’s 10-year rate moved up and the 3-year jumped nearly 16 bp after core inflation came in higher than anticipated and reached a 6 year high in data for the third quarter.
* FT: Alphabet and Microsoft smash estimates with $110bn revenue haul (+33% from Q3 2020) – surge in cloud computing, and a strong rebound in digital advertising – all eyes on US open. Big misses from Robinhood, tanking its shares – closed at 40.09.
* Evergrande in focus again as authorities called on billionaire Hui Ka Yan to use his personal wealth to support China Evergrande Group. Chinese authorities called on companies to make “active preparations” to meet payments on offshore bonds. – sell-off in seven weeks for Chinese tech shares.
* German import price inflation hit 17.7% in September – The breakdown showed that energy prices remain the main driving factor, & that the shortage of natural gas and the spike in oil prices are not the only problems hitting supply chains, with supply shortages likely to keep prices elevated into next year.
* USOil steadied around $82 – $83.
* Gold dipped on robust USD, higher yields and ahead of central banks, at $1785.
* FX markets – EURUSD 1.1600, Cable bounced 1.3774, USDJPY – 114 from 114.30.

Today – US Durables and BoC rate decision and conference. Earnings:  Thermo Fisher, Coca-Cola, McDonald’s, Sony, ServiceNow, Bristol-Myers Squibb, Boeing, GlaxoSmithKline, ADP, GM, Old Dominion, CME, Edwards Lifesciences, Norfolk Southern, Twilio, Ford, General Dynamics, KLA Corp., eBay.

Biggest FX Mover @ (06:30 GMT) AUDUSD (+40%) – spiked at 0.7535, faster MAs rising and RSI at 60. Fast MACD signal line & histogram keep rising,  implying further rise in the short term.

Always trade with strict risk management. Your capital is the single most important aspect of your trading business.

Please note that times displayed based on local time zone and are from time of writing this report.

Click HERE to access the full HotForex Economic calendar.

Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE!

Click HERE to READ more Market news.

Andria Pichidi
Market Analyst
HotForex

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 FX and CFDs 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.

Date : 29th October 2021.

Market Update – October 29 – USD Lower, Stocks Hit Highs, Apple & Amazon Miss.

* USD (USDIndex 93.45) slipped on Q3 GDP miss & ECB ending PEPP in March but neither ruling out nor confirming rate hikes. Yields remains main driver of sentiment as spreads remain at March 2020 lows. Stocks hit record highs before surprise misses from APPL & AMZN, FB re-branded to META “Meta is moving beyond 2D screens toward immersive experiences like augmented and virtual reality to help build the next evolution in social technology”, & Biden pushed hard for $1.75trn budget plan. Today also week & month end.
* Evergrande – paid another bond dollar coupon (on default day).
* US Yields (10yr closed at 1.568) lifted in Asian now 1.61%.
* Equities – new ATH for USA500 -44 (+0.98%) at 4596 (Nasdaq +1.39%) – Big movers – CAT +4.00%, TSLA +3.78%, APPL+2.5% (then fell -3.4% after hours) – USA500.F back to 4566. Asian equities very mixed.
* USOil up from lows yesterday at $79.40 (again) to $81.40.
* Gold another volatile day (1810-1792) cannot hold $1800 and trades at $1794 now.
* FX markets largely flat at month end – EURUSD rallied post ECB to 1.1692 now at 1.1665, Cable capped by 1.3800 trades at 1.3785, USDJPY 113.60.

Overnight  Signs RBA is ditching attempt at yield control, stronger data from AUD (PPI, Retail Sales) & weak data from JPY (Ind. Prod, Consumer Confidence, Housing Starts). Big beat for French GDP (+3.0% vs 2.2% & 1.1% last time) & CPI a tick stronger.

European Open – – December 10-yr Bund future has lost 61 ticks in early trade, Treasury futures also under pressure. Tapering speculation is back with a vengeance. ECB yesterday confirmed PEPP will end on time in March next year, now has until December to make up its mind. BoE meets next week & chief economist Pill (big Hawk) confirmed that it will be a “live” meeting, which means possibility of a rate hike will be discussed at least. Stocks hit as yields spike higher, DAX & FTSE 100 futures currently down -0.45 and -0.2% respectively.

Today – German GDP, EZ CPI, US PCE Price Index,Chicago PMI, Canadian GDP Earnings: BNP Paribas, Daimler, Danske Bank, Eni, EssilorLuxottica, Safran, Signify, Swiss Re; Exxon, Chevron, Phillips 66, AbbVie, Colgate-Palmolive.

Biggest FX Mover @ (06:30 GMT) EURUSD (+0.19%) EUR giving up some of the post ECB bid. Faster MAs rolling over lower, 21Hr being tested, MACD signal line & histogram colling but still positive, RSI 54 and neutral. H1 ATR 0.0007, Daily ATR 0.0051.

Always trade with strict risk management. Your capital is the single most important aspect of your trading business.

Please note that times displayed based on local time zone and are from time of writing this report.

Click HERE to access the full HotForex Economic calendar.

Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE!

Click HERE to READ more Market news.

Stuart Cowell
Head Market Analyst
HotForex

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 FX and CFDs 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.

Date : 2nd November 2021.

Market Update – November 2 – Risk Appetite Soured.

* RBA confirms end of yield curve targeting and after abandoning any attempt to defend the 0.1% for the April 2024 yield last week, the bank confirmed today that the yield target has been ditched and opened the door for an earlier interest rate hike.
* Lowe stressed that the bank will see through spikes in the inflation rates, and that unlike elsewhere the RBA sees a further, but gradual increase in core inflation, as there is a lot of inertia in the labour market, which makes it hard to see inflation accelerating too quickly.
* Australian shares fell on Tuesday – Miners and banks worst performers
* AUD tanked as markets adjusted rate hike bets. AUDUSD at 0.7465 from 0.7533.
* US Yields were off their early highs (Currently 10yr fractionally higher at 1.56% compared to the day’s peak at 1.603%).
* USD (USDIndex 93.80) down as US futures in the red after a largely weaker session in Asia despite the strong earnings season. Overnight prices wobbled after the Manchin remarks and mixed data, but all rallied into the close. (A beat from the ISM, but a miss on construction spending, though they still modestly boosted growth prospects).
* The USA100 climbed 0.63% to 15,595, while the USA500 was 0.18% firmer at 4613, while the USA30 advanced 0.26% to 35,913. Treasury revised Q4 borrowings higher to $1,015 bln, with $650 December 31 cash balance, and $476 bln borrowings for Q1 2022. GER30 and UK100 futures are down -0.17% and -0.21%, respectively.
* Senator Manchin continued to oppose a quick vote on President Biden’s massive spending plans, saying he will not vote on a reconciliation package without knowing more about its impacts. He worries over programs that “irresponsibly” add to the debt, which totals over $29 tln, and which risks hurting families that are suffering from “historic inflation.” He said holding the infrastructure bill “hostage” will not get his support for reconciliation.
* USOil topped at $83.05, on slow OPEC oil output increase &  China ramped up operating rates to meet a spike in diesel demand.
* Gold – up to 1796.30 again.
* FX markets – AUD sold off, Yen strengthened – EURUSD little changed at just over 1.1605, GBPUSD dropped back to 1.3630. Markets are concerned that an early lift off in rates could hamper a still fragile economy.

Today – Data releases today focus on final manufacturing PMIs for the Eurozone, which were delayed by the public holiday in parts of the region yesterday and employment data from New Zealand.

Biggest FX Mover @ (06:30 GMT) AUDJPY (-0.94%) dips to 1-week lows from 85.90 to 84.80. Faster MAs steadied, MACD signal line & histogram are sharply lower in negative territory, RSI 20 and neutral. H1 ATR 0.186, Daily ATR 0.806.

Always trade with strict risk management. Your capital is the single most important aspect of your trading business.

Please note that times displayed based on local time zone and are from time of writing this report.

Click HERE to access the full HotForex Economic calendar.

Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE!

Click HERE to READ more Market news.

Andria Pichidi
Market Analyst
HotForex

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 FX and CFDs 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.

Date : 5th November 2021.

Market Update – November 5 – NFP Day.

Receding fears of aggressive policy turns from the Fed and BoE saw shorts scramble to cover with yields plunging as the markets repriced policy outlooks. Although the FOMC announced tapering and the BoE warned of rate hikes down the road, the more patient stance taken by both banks wrongfooted bond bears and forced a repricing of rate expectations.

* USD up (USDIndex 94.40).
* Yields have backed up with the 10-year Treasury yield at 1.53%, but bonds across the Asia-Pacific region still caught up with yesterday’s rally, and the JGB rate is down -1.1 bp at 0.06.
* Equities were mostly firmer Thursday as well, with the USA100, USA500, GER30, and CAC40 all at record highs. – The equity rally started to stall today. Hang Seng and CSI 300 are currently down -1.2 and -0.3% respectively, JPN225 has lost -0.7%.
* China’s rising Covid-19 case numbers and problems in the country’s property sector remained in focus as developer Kaisa Group Holdings Ltd. and its Hong Kong listed units were suspended from trading.
* The RBA’s quarterly policy statement with updated projections sounded upbeat on the recovery, but cautious on wage growth, which backs official assertions that rates won’t rise for a long time to come.
* USOil down at $78 lows after dropping sharply yesterday in the wake of the OPEC+ agreement to stick with the gradual 400K barrels a day increase in production, which boosted speculation that countries will tap their strategic reserves to keep a lid on prices.
* Gold up at 1798 as the falling yields provided support.
* FX markets – USD steady at 94.40 highs, AUD and NZD were under pressure, while the JPY strengthened, leaving USDJPY at 113.61. EURUSD at month low 1.1560 & GBPUSD stabilised at 1.3500.
* USDZAR – dipped early on Friday on elections results, after a volatile week during which it swung back and forth on domestic politics and US monetary policy. – ANC took 46% of the vote, its worst result since taking power at the end of white minority rule in 1994.

Today – The focus turns to the October employment report, where we expect non-farm payrolls to rise 380k versus the 194k in September. Hourly earnings should rise 0.4% after jumping 0.6% previously, while the average work week is seen dipping slightly to 34.7 from 34.8. The unemployment rate is penciled in at an unchanged 4.8%. September consumer credit is due late in the session.

For earnings, reports are due from Berkshire Hathaway, Toyota, Enbridge, Dominion Energy, Johnson Controls, Honda, Sempra, TELUS, Magna International, Ventas, and DraftKings. Next week the refunding auctions are on tap with $120 bln in 3-, 10-, and 30-year paper for sale.

Biggest Mover @ (06:30 GMT) NZDJPY (-0.28%) dipped to 80.43. Faster MAs flattened, MACD signal line & histogram clash but are sharply negative, RSI 38 and neutral, all indicating consolidation for now. H1 ATR 0.133, Daily ATR 0.819.

Always trade with strict risk management. Your capital is the single most important aspect of your trading business.

Please note that times displayed based on local time zone and are from time of writing this report.

Click HERE to access the full HotForex Economic calendar.

Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE!

Click HERE to READ more Market news.

Andria Pichidi
Market Analyst
HotForex

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 FX and CFDs 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.

Date : 9th November 2021.

Market Update – November 9 – USD Cools ahead of Inflation data.

* USD (USDIndex 93.85) down again from Friday’s 1-yr high 94.62, under 94.00. PPI today & CPI tomorrow weigh as equities grind higher & yields slip again. FED Vice-Chair Clarida remained Dovish “a ways away from considering raising interest rates,” although “necessary conditions for raising the target range for the federal funds rate will have been met by year-end 2022.” Bullard & Bowman much more Hawkish; “If inflation is more persistent than we are saying right now, then I think we may have to take a little sooner action in order to keep inflation under control.”
* Evergrande contemporary Kaisa needs “help”, downgraded by Fitch; Fed warns “ailing Chinese real estate sector poses threat to US economy” – FT
* US Yields (10yr closed down again at 1.474%) lifted a tad overnight to 1.497%, below key 1.50 level.
* Equities at all-time highs again but limited gains – USA500 +4.17 (+0.09%) at 4701 – Big movers – TSLA -4.84%, AMD +10.14%, AMC +8.06%. Softbank, PayPal,  Roblox, Tencent and Zynga all beat Earnings expectations  – USA500.F back to 4686. Asian equities weaker.
* USOil – slips below $81.00 to $80.65. Biden may act on high US Gasoline prices – speaking with OPEC+ re output, Private Inventories later today.
* Gold recovers further from Friday’s breach & break of $1800 as yields remain weak,  inflation worries swirl and seasonality looms. Touched $1827 for a 45-day high earlier,   back to $1824 now.
* FX markets – EURUSD up to 1.1600, USDJPY under 113.00, @112.80 & Cable up to 1.3570.

Overnight  –   JPY data mixed; Earnings & Current Account weaker than expected, Lending and Econ. Sentiment significantly higher. JPY recovers recent losses. German Trade Balance missed – Exports declined -0.7%  while Imports nudged up 0.1%, suggesting more weakness.

European Open – Dec 10-yr Bund future up 1 tick, DAX & FTSE 100 futures down -0.2% & -0.3% respectively, US futures also in red, after a largely weaker session across the Asia-Pacific region overnight. Volatility in bond markets has been very high, as markets struggle to find an equilibrium amid the gradual advancing turn in CB cycles. That keeps central bank comments firmly in focus.

Today – EZ ZEW, US PPI, A whole gaggle of CB Speak – ECB’s Panetta, Knot, Lagarde, Schnabel, BOE’s Bailey & Broadbent,  Fed’s Bullard, Powell, Daly. US 10-yr Bond Auction.

Biggest FX Mover @ (07:30 GMT) NZDJPY (-0.39%) RJPY up on overnight data mix. back under 81.00 today to test 81.60.  Faster MAs aligned lower, MACD signal line & histogram falling & under 0 line,  RSI 39 & falling. H1 ATR 0.122, Daily ATR 0.784.

Always trade with strict risk management. Your capital is the single most important aspect of your trading business.

Please note that times displayed based on local time zone and are from time of writing this report.

Click HERE to access the full HotForex Economic calendar.

Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE!

Click HERE to READ more Market news.

Stuart Cowell
Head Market Analyst
HotForex

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 FX and CFDs 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.

Date : 11th November 2021.

Market Update – November 11 – Boom goes the Greenback.

* USD (USDIndex 94.86) spiked to 94.96 (July 2020 high). US Inflation at 30-yr high – USD & Gold rocket, Yields rise and stocks sink. Weekly Claims in-line at pandemic lows. Musk has sold $5bln of #TSLA stock this week, (3% of the 10%) TSLA closed   +4.34% yesterday. US & China agree surprise pact at COP26, Biden has a plan to “reduce high energy costs”. Overnight – AUD jobs & GBP GDP both missed & UK Industrial & manu. data also weak.
* Evergrande $148m interest payment was PAID – avoiding immediate default. Next payment due December 28 – $255m. They have total debts of $300bln ($19bln due outside of China).
* US Yields (10yr rallied to close up at 1.56%, a 7-week high, from the a 6-week low at 1.4150 Tuesday. Treasury markets closed today for Veterans Day.   
* Equities down in worse day in a month. USA500 -38.5 (-0.82%) at 4646 – Big movers; TSLA +4.34%, PFE +3.64%, Ford -3.78% GOOGL -2.03%. Disney missed (DIS+ subscriptions & Theme parks) – 4.5% after hours. USA500.F trades lower at 4650. Asian equities weaker (ASX worst – Nikkei actually +ve on weak JPY) .
* USOil – off 7-year highs on Biden’s comments – Inventories – a smaller build than expected 1.0 m vs 1.6m & 3.3m last week – USOil fell to 79.50. Trades at $80.00 now.
* Gold recovers further testing as high as $1870 yesterday (5-mth high) as Inflation hedge trade builds, back to $1856 now.
* FX markets – EURUSD down to 1.1470, USDJPY back over 114.00, & Cable back to 1.3385. AUD & NZD at 5-wk low.

European Open – December 10-yr Bund future is down -31 ticks at 170.38; That will leave European markets to continue to digest yesterday’s hot US inflation number & continue to adjust rate hike expectations, which have come back with a vengeance. The spike in bond market volatility over the past month highlights that central bankers need to adjust their communication policy as the rate cycle turns & that repeating the mantra that inflation pressures will be temporary are no longer enough to soothe nerves. DAX & FTSE 100 futures currently down -0.2% and up 0.1% respectively.

Today – OPEC MOMR, ECB’s Lane, Schnabel,- US & CAD Veterans Day (Bond markets & Banks closed).

Biggest FX Mover @ (07:30 GMT) NZDUSD (-0.36%)  Collapsed from 0.7100 to 0.7030 so far.  Faster MAs aligned lower, MACD signal line & histogram falling & under 0 line, RSI 25 & still falling. H1 ATR 0.0011, Daily ATR 0.0062.

Always trade with strict risk management. Your capital is the single most important aspect of your trading business.

Please note that times displayed based on local time zone and are from time of writing this report.

Click HERE to access the full HotForex Economic calendar.

Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE!

Click HERE to READ more Market news.

Stuart Cowell
Head Market Analyst
HotForex

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 FX and CFDs 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.