Date : 11th April 2023.

Market Update – April 11 – Stocks & USD Mixed as Inflation & Earnings Loom.

Trading Leveraged Products is risky

US #stockmarkets closed mixed – Industrials higher – Tech lower (#Samsung said they will cut chip production – lifting Western Digital & Micron +8%). USD continued to recover, (USDIndex topped at 102.50), Treasuries slipped again (10 yr 3.41%) and #BTC breached $30k for the first time in 10mths. In the Asian session stocks are higher (ASX +1.3% after Easter break & Nikkei +1.4% after a Dovish outlook from new BOJ Governor Ueda & Buffet said he was planning to add to his Japanese investments. AUD is outperforming.

Overnight Data Chinese #CPI cooled to 0.7% from 1.0% and missed expectations, and #PPI fell further remaining significantly deflationary at -2.5% from -1.4%.

*FX – USDIndex rallied to 102.50 yesterday and hold at 102.00 today. EUR tested down to 1.0850 but is back to test 1.0900 today.  JPY breached 133.00 yesterday & rallied to 133.88 as BOJ Governor Ueda, confirmed there will be no immediate policy change from the BOJ.   Sterling’s decline from the key 1.2500 stalled at 1.2350 and now trades back at 1.2400 today.
*Stocks – US markets closed mixed (+0.30% to -0.03%) after a very weak open. #US500 closed at 4109 – US500 FUTS are higher today at 4140.  Q1 Earnings Season kicks off with the big Wall Street Banks on Friday & FRC today.

*Commodities – USOil – Futures tested under the key $80.00 level but holds at $80.50 now. Gold – tests the vital  $2000, level again today having been as low as $1982, yesterday.
*Cryptocurrencies – BTC rallied over 8% from the $28k level and breached $30k earlier today spiking to $30.7k on speculation that interest rates may have peaked. Additionally, a major revamp to the Ethereum ($1.917k) blockchain is due this week “that is set to allow them to gain access to more than $33 billion of ether currency. Dubbed Shapella, the software upgrade will let market players redeem their “staked ether” – coins they have deposited and locked up on the network over the past three years in return for interest.” – Reuters

Today - EZ Retail Sales and Sentix Index, EIA STEO, speeches from Fed’s Goolsbee & Harker. IMF Meetings Continue.  Earnings – First Republic (#FRC), which was hit hard by client withdrawals in the aftermath of Silicon Valley Bank’s collapse.

Biggest FX Mover @ (07:00 GMT) AUDUSD (+0.46%). Rallied from under 0.6620 yesterday to test 0.6680 today. MAs aligned higher, MACD histogram & signal line positive & rising, RSI 61.00 & rising, H1 ATR 0.00092, Daily ATR 0.00701.

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 HFM 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
HFMarkets

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 : 13th April 2023.

Market Update – April 13 – CPI & FED “One more hike & done?”

Trading Leveraged Products is risky

The US CPI report was good news for bulls as it suggests the FOMC can start easing off the brakes, though this is not likely in May (69% chance of another hike). Some market participants believe one more 25bp and they will be done, others remain Hawkish and that moving CORE CPI & CPE from the 5% to the 3-2% range will prove problematic and this could mean hikes in May and June too.

FOMC minutes showed considerable discussions over the banking turmoil, as indicated in Chair Powell’s press conference. The “banking sector” was the literally the lead paragraph of the report and was mentioned 24 times overall, compared to zero in February. There was some overall softening in outlooks, which also “increased the already-high level of uncertainty associated with the outlooks on economic activity.” However, ultimately “all” participants supported the 25 bp rate hike. A mild recession is expected from the FOMC.

The Bank of Canada left its target rate at 4.50%, as expected, unchanged from March after the 25 bp tightening in January. But it was a “hawkish” pause as inflation and economic activity have not really evolved as expected. CAD gained on the news.

Volatility dominated the newsflow yesterday. USD dived and remains pressured, EUR, Sterling & AUD all benefitted. US Stocks markets all closed lower, and this fed through to mixed Asian markets and European & US Futures. Treasury markets caught an extra bid and yields finished lower, led by the 2-year’s 6.5 bp slide to 3.958% & the 10-year’s +3.5 bp to 3.395%, remaining 56 bp inverted. Gold and Oil both benefited from a weaker USD and BTC continues to hold at $30k.

Overnight Data  China March Trade – big beat – (USD) Exports +14.8% y/y (expected -7.1%) & Imports -1.4% y/y (expected -6.4%). AUD Jobs beat (53k vs 20k), Unemployment (3.5% vs 3.6%) & CPI (4.6% vs 5.3%) both fell significantly too. German Final CPI in line at 7.8% and UK GDP (Feb) missed again (0.0% vs 0.1% & 0.4%) last time.

*FX – USDIndex declined to test April lows at 101.05 and remains anchored well below 102.00 today at 101.20. EUR spiked to 1.1000 yesterday and again today and trades at 1.0988. The 2023 high is 1.1032.  JPY dived from 134.00, tested below 133.00 and trades at 133.25 now.  Sterling rallied from 1.2400 but remains under the key 1.2500 once again at 1.2490.
*Stocks – US markets closed lower (-0.11% to -0.85%) as the rate sensitive Tech sector led the declines once again. #US500 closed down 17pts. at 4091. – US500 FUTS are also lower today at 4124 from highs of 4177 yesterday. #LVMH rallied after surging sales in China.

*Commodities – USOil – Futures have tested the $83.50 level today despite official EIA  inventories showing weaker demand as a build (+0.6m vs -1.0m and -3.7m last week) for both gasoline and petroleum products was recorded.  Gold – has broken the $2020, level again today having been to a low of  $2001, and a high of $2028 yesterday.
*Cryptocurrencies – BTC holds the $30k  level spiking to $30.4k and $29.6k extremes yesterday.

Today - EZ Industrial Production, US PPI, US Weekly Claims, OPEC MOMR, speeches from BoC’s Macklem, BoE’s Pill.

Biggest FX Mover @ (06:30 GMT) AUDJPY (+0.38%). Continued to rally from under 88.00 on Monday to test 89.50 today. MAs aligned higher, MACD histogram & signal line positive & rising, RSI 63.00 & rising, H1 ATR 0.187, Daily ATR 1.526.

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 HFM 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
HFMarkets

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 : 17th April 2023.

Market Update – April 17- Expectations of FED May hike increase lifting USD.

Trading Leveraged Products is risky

There is now (CME marketwatch) an 83% chance of a 25 bp FED HIKE in May, from 74% on Friday, as mixed US data (a Big miss fro Retail Sales, and minor beats for Ind.  Production & Consumer Sentiment) saw USD rally 1 big number from 12-mth lows, & GOLD crash below $2000. US Stocks closed lower (-0.35% to -0.72%) despite big Earnings beats from the Banks, JPM +7.6%, but Boeing tanked -5.6% as fault from supplier Spirit (-20.7%) halted deliveries of 737 MAX. Asian markets were higher (Nikkei hit a 6-week high) to start the week before cooling.

Weekend (IMF Meeting) & Overnight Data – Ueda had more dovish comments, Yellen said bank credit tightening could be a substitute for further Fed rate hikes, Lagarde warned of a “narrow path” for global economic recovery and Dimon expects rates to be “higher for longer”. NZD Performance Services Index misses at 54.4 vs. 55.8 but Food Inflation cooled to 0.8% from 1.5% &  China’s New Home prices rose at their fastest pace in 21 months.

*FX – USDIndex bounced from under 100.50 and 12-mth lows over 100 pips to 101.50 but still registered a seventh consecutive week of declines and trades at 101.25 now. EUR declined from 1.1075 to 1.0970 and trades at 1.0990 now testing 1.1000.  JPY tested 132.00 on Friday before rallying to over 134.00 today. Sterling rallied to breach 1.2545 on Friday before declining under 1.2400 earlier but trades at 1.2415 now.
*Stocks – US markets closed down across all sectors (-0.35% to -0.72%) as the rate sensitive Tech sector led the rally. #US500 closed -8.58 pts. at 4137. – US500 FUTS are flat today at 4169 having been as high as 4188 on Friday and above the key  resistance at 4175. #CITI, +4.8%  & #Blackrock +3.1%.

*Commodities – USOil – Futures continue to rotate around $82.50 today. Gold – tanked from a test of the $2050, level on Friday to under $1995. The key metal is back over $2000 today and trades at $2010.
*Cryptocurrencies – BTC holds under the $30k level today from a brief spike over $31k on Friday.

Today - Empire State Manu. Index – speeches from BOE’s Cunliffe, ECB’s Lagarde and Bundesbank’s Nagel.

Biggest FX Mover @ (06:30 GMT) AUDJPY (+0.31%). Continued to rally and is now 7 days higher from under 88.00 to test 90.00 once again today. MAs aligned higher, MACD histogram & signal line positive & rising, RSI 58.65 & rising, H1 ATR 0.155, Daily ATR 0.9200.

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 HFM 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
HFMarkets

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 : 19th April 2023.

Market Update – April 19 – USD Holds gains , UK CPI very hot.

Trading Leveraged Products is risky

The USD rotated (USDIndex at 101.50) as Bonds lead with Yields higher too. Expectations for a 25 bp May Fed rate hike continued to rise on more hawkish Fedspeak, Bullard even talked of two more 25bp after May, Bostic sees 25bp in May and then a pause for the rest of the year. Stocks closed flat, BoA and J&J big beats, GS strong EPS but revenue missed. After hours Netflix missed subscriber numbers and shares tanked -12% on poor Q2 outlook – but full year offered better numbers and the losses were reversed completely. ECB’s Lane sees 3 more hikes for the common currency area and remains Hawkish, despite talk of FED pause.
Overnight strong  UK CPI disappointed, headline missed and remained over 10% at 10.1%, the key CORE number is 3 x times the BoE target at 6.2%, RPI 13.5% and the Food & Non-Alcoholic  Component a staggering 19.2%. Service Inflation also rose to 5.7%

*FX – USDIndex rotates at 101.50, EUR holds through 1.0970 and JPY pushes  higher again breaching 134.50. Sterling got a big boost from the inflation data and trades at  1.2470. 
*Stocks – US markets closed flat again (-0.04% to 0.09%) #US500 closed +3.55 pts. at 4154. – US500 FUTS are at 4167 and below the key  resistance at 4175.

*Commodities – USOil – Futures declined into $80.00 yesterday but has recovered to $80.40 day. Gold – continued to slip, testing $1986, before recovering to trade at $1994.0
*Cryptocurrencies – BTC rallied from the $30k level yesterday to $30.5k and back to $30.0k today.

Today - EZ HICP (Final), New Zealand CPI, Speeches from ECB’s Lane & Schnabel, Fed’s Goolsbee, BoE’s Mann,  UK & US, Earnings from ASML, (big beat)  Heineken, (beat)  Just Eat (mixed), American Airlines, IBM, Tesla, Morgan Stanley.

Biggest FX Mover@ (06:30 GMT) GBPJPY (+0.67%). Rallied from 0166.75 pre Inflation data to 167.65.  MAs aligned higher, MACD histogram & signal line positive & rising, RSI 80.30, OB but still rising, H1 ATR 0.187 Daily ATR 1.34.

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 HFM 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
HFMarkets

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 April 2023.

Market Update – April 27 – Technology Bid, Banks remain a worry.

Trading Leveraged Products is risky

The USD steadied lower at close to 101. Risk appetite improved, amid positive signs in earnings reports. Wall Street finished mixed but near the lows of the day, while US100 managed a modest gain asbetter than expected results from META and robust results from European banks helped to counterbalance lingering jitters at some US banks. Asia stocks all moved higher overnight. GER40 & UK100 are in the red though, as hawkish central bank comments suggest further rate hikes next month. Yields have moved higher overnight. The curve steepened to -49 bps from -55 bps Tuesday and -60 bps Monday. This is the least inverted since April 5.
*FX – USDIndex at 101 as EUR and GBP rise slightly. But JPY held below 134.
*Stocks – #DeutscheBank up 3.5% pre-market, as reported highest pre-tax profit in a decade on strong inflows. #Barclays +1.58% profit rises 27% on back of rising interest rates. #Meta +11.61% after hours, as it reported its first increase in sales in nearly a year due to continued improvements in its advertising business, as the company continues to pare back spending during what Chief Executive Mark Zuckerberg has called a “year of efficiency.” #AstraZeneca beats forecasts as cancer drugs sales pick up.

*Commodities – USOil drifted, falling under $75 per barrel and now down -3.56% to fresh intraday lows of $74.33. The EIA reported a -5.1 mln barrel drop in oil inventories which boosted prices, but only temporarily. Angst over a recession is building again amid concerns over regional banks and tightening credit conditions. And even though the markets are pricing in the end of Fed rate hikes after next month’s 25 bp hike, upcoming data on Q1 GDP and ECI may not give the FOMC the opportunity to pause, and that is adding to the threat of a slowing/contracting economy. There are also concerns over the strength of China’s recovery. Concurrently, Russian supplies are reportedly hitting the market via Asian ports. Additionally, Bloomberg reported a deterioration in oil-refining profits over the last few weeks, which has companies considering lower processing rates. And one more thing today, the USD is recovering into the afternoon and that is pressuring prices.
*Gold – at $2001.
*Cryptocurrencies – BTC closed unchanged reversing all gains up to $30K. Currently stettled to $28900.

Today - EU Confidence, US GDP & Earnings: Amazon, Intel, Mastercard etc.

Biggest FX Mover @ (06:30 GMT) NZDJPY (+0.65%) up to 82.30. MAs aligned higher, MACD histogram & signal line rising, RSI 65, OB 89 but flat.

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 HFM 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
HFMarkets

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 : 1st May 2023.

Market Update – May 1 – Bullish End & Bullish Start?

Trading Leveraged Products is risky

It was a very bullish end to April with Treasuries and Wall Street ending in the green on the month. Better than expected earnings news from most of big tech, and data reflecting a still resilient economy helped propel the major indexes higher.

Today, USD to the upside, extending to 101.60. Wall Street is firmer in spite of upcoming Fed hike, while all the attention is on First Republic. The Wall Street Journal reported that: “Federal regulators were poised to seize the First Republic Bank (-43.34% Friday) and sell it to a larger lender.  JPMorgan Chase (JPM), Bank of America (BAC) and PNC Financial Services Group (PNC), Citizens Financial Group (CFG) and US Bancorp (USB) were also reportedly invited for bidding” –  this would mark the third US bank failure this year. China’s manufacturing activity unexpectedly contracted in April.

*FX – USDIndex rose to a high of 101.60. USDJPY keep extending gains to 136.98, amid market uncertainty and on the BoJ’s commitment to an uber-accommodative stance.
*Stocks – The US500 up at +0.13% to 4193.75, the US30 muted to 34209 and US100 +0.27% at 13356.

*Commodities – USOil falls to $75.80 after data from China reignited concerns about a patchy recovery in the world’s biggest crude importer.
*Gold – at $1979.
*Cryptocurrencies – BTC has slipped back to $28173 from $30K highs.

Today - US ISM Manufacturing PMI.

Biggest FX Mover @ (06:30 GMT) AUDJPY (+0.88%) a breath below 91.00. MAs aligned higher, MACD histogram & signal line rising, Stochastics at 93 and flattened.

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 HFM 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
HFMarkets

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 : 3rd May 2023.

Market Update – May 3 – Eyes on Fed.

Trading Leveraged Products is risky

Japan and China bourses were closed for holidays and elsewhere markets were still rattled by the drop in Wall Street and fresh jitters at US regional banks. Asian stocks declined while US futures steadied on Wednesday as markets wait for the Fed announcement. Lingering concern over the health of the financial system should add to the arguments of the cautious camps at central banks, but policy sensitive short term bonds are underperforming this morning. Treasuries are holding a strong haven bid on worries over the regional banking sector. The sentiment is mixed by recent data suggesting an economic slowdown, including the lowest number of job openings in almost two years.

FOMC Preview: FOMC began its 2-day meeting and will announce its policy decision Wednesday at 18:00 GMT. A 25 bp increase is well anticipated. With no new SEP forecasts to guide the outlook, the focus will be on the policy statement and Chair Powell’s press conference. We do not expect any explicit forward guidance as the Fed will want to maintain optionality and leave all doors open. However, we do look for him to continue to push back against rate cut expectations. Implied Fed funds futures have slid lower, along with the drop in Treasury yields, amid heightened concerns over regional banks, and after weaker than expected data.

*FX – USDIndex has corrected to 101.30 while the Yen is picking up haven bids. The EURUSD is also back above the 1.103 mark ahead of the Fed announcement today and the ECB meeting tomorrow.
*Stocks – Hang Seng and ASX lost -1.7% and -0.96% respectively, although European and US Futures are higher. The US500 lost -1.16% while the US30 and US100 declined –1.08%. Jitters increased even after JPMorgan’s purchase of beleaguered First Republic Bank provided some stability Monday. But that did not hold as PacWest and Western Alliance were in the spotlight, dropping -42% and -27%, respectively, on investor angst. That saw the KBW bank index drop -4.4%. Nearly every sector in S&P was in the red.

*Commodities – USOil plunged by -5% to $71.50 as markets priced in expectations for interest rate hikes in the US and Europe and waited for clarity on future policy path.
*Gold – Spiked to $2018.

Today - US ADP, ISM Services and Fed announcement.

Biggest FX Mover @ (06:30 GMT) USOIL (-5%) drifted to 71.29 from 76 area. MAs flattened but MACD histogram & signal line are way below 0, Stochastics is slipping. ATR(H1) at 0.20 & ATR(D) at 2.26.

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 HFM 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
HFMarkets

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 May 2023.

Events to Look Out for Next Week.

Trading Leveraged Products is risky

Welcome to our weekly agenda, our briefing of all the key financial events globally. Even if some of the Central Banks chaos are out of the way for now, jitters over regional banks continued to spread with PacWest, First Horizon, hit hard Western Alliance. Inflation concerns and central bankers speeches are expected to dominate next week. Focal points will be the BOE rate decision and US Inflation.

Monday – 08 May 2023
BOJ Minutes (USD, GMT 23:50)– The BOJ minutes should provide guidance on the pace for further accomodative policy.

Tuesday – 09 May 2023
Trade Balance (CNY, GMT 03:00) – Chinese Trade Balance for April is expected to grow by 74.30 bln from 88.19 bln.

Wednesday – 10 May 2023

Consumer Price Index (USD, GMT 12:30) – The US inflation figures are forecasted to grow by 0.4% for the headline and 0.3% for the core in April, after respective March gains of 0.1% and 0.4%. CPI gasoline prices look poised to climb 2% in April. We expect dissipating upward pressure on core prices through 2023 as disruptions from global supply chain bottlenecks and the war in Ukraine subside. As-expected March CPI figures would result in a steady y/y headline rise from 5.0%in March, versus a 40-year high of 9.1% in June. We expect the core y/y gain to slow to 5.4% from 5.6% in March, versus a 40-year high of 6.6% in September.

Thursday – 11 May 2023

Consumer Price Inflation (CNY, GMT 01:30)  Chinese inflation as measured by CPI is expected to rise y/y from 0.7% to 1.0%. Producer Price Index y/y is likely to decrease to -2.5%.
Event of the Week – Interest Rate Decision & Statement & Press Conference (GBP, GMT 11:00) – Markets speculate that the BoE will be forced to continue hiking rates for longer than ECB and Fed. Markets are speculating that the Fed may be forced to start to cut rates in the second half of the year, while the ECB is expected to deliver two more rate hikes, which means peak rates are coming into sight. The BoE is also set to hike again next week and given that inflation remains in double digits, it will likely keep the door open to additional tightening steps, with markets seeing further hikes down the line.
Producer Price Index (USD, GMT 12:30) – The April PPI could gain of 0.3% for the headline and 0.2% for the core, after respective figures of -0.5% and -0.1% in March. As expected readings would result in the y/y headline PPI metric easing to 2.5% from 3.2%, versus an all-time high of 11.7% in March of 2022. We expect the y/y core measure to fall to 3.2% from 3.4%, versus an all-time high 9.7% in March of 2022. The y/y calculation should fall sharply through mid-2023 as comparisons become much easier.

Friday – 12 May 2023

Gross Domestic Product (GBP, GMT 06:00) – GDP for Q1 is expected at -0.% y/y and headline at 0.5% q/q.

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 HFM 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
HFMarkets

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 May 2023.

Market Update – May 9 – Calm Ahead of US CPI Tomorrow.

Trading Leveraged Products is risky

The USD ticked higher (USDIndex 101.21), with tight credit markets and business loans  weak but not as bad as expected. US Stocks closed flat and Asia is subdued with little data ahead of US CPI tomorrow. Sterling came off 1-year highs but remains supported with BOE later in the week. LinkedIn announced 700 job losses and will close China app. Ueda – YCC will end when price goal achievement “foreseen”. AUD & JPY higher, EUR weighed to start the European session.
Overnight  – Chinese trade balance data exceeded expectations, Japanese household spending missed significantly and a key UK Retail Sales survey beat.

*FX – USDIndex once again found support at 100.88, currently holds over 101.00, EUR has pushed under 1.1000 from 1.1050 yesterday. JPY slips below 135.00 from a technical intra-day resistance at 135.34 earlier. Sterling declined from 1-year highs at 1.2670 yesterday but holds 1.2600 today.
*Stocks- US markets closed flat (-0.17% to 0.18%) (#TSN -16.41%,  #AMD +5.79%) – US500 closed +2 pts 4138, FUTS are trading at 4148 today and still below the key resistance at 4175 & 4150.

*Commodities – USOil – Futures added to Friday’s gains and touched $73.50 and trades at $72.60 today. Gold – tested back into $2000 on Friday, but held $2020 yesterday, trades at $2025 now.
*Cryptocurrencies – BTC tumbled over 5.5% from Friday highs over $29.6k under the key $28k support level, and tested into $27k as BINANCE twice stalled withdraws over the weekend. Trades at $27.4k now.

Today – Speeches from ECB’s Lane & Schnabel, Fed’s Williams & Jefferson. Earnings from Daimler Truck, Ubisoft, Direct Line, Airbnb & Occidental Petroleum.

Biggest FX Mover @ (06:30 GMT) NZDJPY (-0.29%). Has broken a 3-day rally from 83.50 to 85.85 yesterday and is back at 85.30 now.  MAs aligned lower, MACD histogram & signal line positive but declining, RSI 44.21 & falling, H1 ATR 0.140 Daily ATR 0.00621.

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 HFM 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
HFMarkets

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 May 2023.

Market Update – May 11 – BOE & Sterling In Focus Following US CPI.

Trading Leveraged Products is risky

The USDIndex tanked to 101.00 following the cooler CPI reading yesterday and remains pressured as yields also tick lower following gains yesterday. US Stocks closed mixed and  Asian markets are broadly higher.  Sterling came off 1-year highs but remains supported with BOE front and centre today. NZD outperforms in Asian trading. Disney earnings disappointed (Disney+ subscriptions in particular) and shares fell -4.5% after hours. Chinese CPI data fell again (0.1% vs 0.7%) and PPI data worsened and remained deflationary and in contraction (-3.6% vs. -2.5%).

Overnight –  Japanese bank lending ticked higher as the BOJ continued to send the same mixed signals. Yellen opened the G7 meeting saying that a US debt impasse threatens US global leadership, and a default would produce economic, financial ‘catastrophe’ .

*FX – USDIndex declined from 101.50 resistance to 101.00, after US CPI broke below  5% for the first time since May 2021. Trades at 101.30) now. EUR tested and rejected  1.1000 again and trades at 1.0970. JPY slipped from 135.50 below 134.00, before recovering to 134.20 now.  Sterling tested and declined from 1-year highs, again, at 1.2670 yesterday but holds 1.2600 today ahead of the expected 25 bp interest rate hike from the BOE.

*Stocks- US markets closed mixed (-0.09% to +1.04%) with the NASDAQ leading. (GOOGL +4.10%, AMZN +3.35% & #AXP -3.06%,  #PYPL -3.83%) – US500 closed +18pts 4137, FUTS are trading at 4161 today mid-way between key resistance at 4175 & 4150.

*Commodities – USOil – Futures tested over $73.75 and hold $73.00 today. Gold – spiked to $2050 again, reverted to $2020 support and trades at $2030 now.
*Cryptocurrencies – BTC recovered the key $28k, dipped to test $26.75k lows & trades at $27.5k now.

Today – US Weekly Claims & PPI, BOE Policy Announcement & Press Conference, OPEC MOMR, Speeches from US Treasury Secretary Yellen, Fed’s Waller, ECB’s Schnabel & de Guindos.

Biggest FX Mover @ (06:30 GMT) NZDCHF (+0.20%). Continued to rally from the breach of 0.5600 on Monday to 0.5675 highs today, next resistance 0.5700.  MAs aligned higher, MACD histogram & signal line positive & rising, RSI 58.70 & rising, H1 ATR 0.00083, Daily ATR 0.00517.

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 HFM 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
HFMarkets

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 : 24th May 2023.

Market Update – May 24 – NZD Roiled, Sterling in Focus.

Trading Leveraged Products is risky

The USDIndex moved up to 103.50 on safe haven Dollar buying as US debt ceiling talks made little progress, with no new talks scheduled & no deal in view. US stocks lost over -1% and Yields also cooled as Treasuries got a lift. Global PMIs showed weakness but US Services were remarkably robust. Overnight the NZD tanked (-1.45%) as the RBNZ raised rates by 25 bp but signalled the end of the hike cycle.  Asian stocks also fell, particularly in mainland China. Saudi Arabia warning speculators on the future of production and prices.
Overnight –  GBP Inflation Dump – consumer prices hotter than expected,  8.7% vs 8.2% & 10.1% prior, CORE increases to 6.8% from 6.2% and RPI 11.4% vs. 11.1% from 13.5%. PPI shrunk to 6.0% from 8.3%.

*FX – USDIndex spiked to 103.50, back to 103.30 now but holds the bid for a 10th day. EUR tested into 1.0760 again and holds below 1.0800 at 1.0785. JPY breached & holds 138.50, topping at 138.85 (high from November 2022) once again and holds back at 138.50 now. Cable spiked to 1.2466 following the inflation & retail sales data. The pair is back to 1.2450 now up from 1.2375 lows on Tuesday.
*Stocks – US markets closed much lower (-0.69% to -1.26%). TSLA -1.64%, APPL -1.52%, GOOGL -2.00%, MSFT –1.84%. US500 (-1.12%) closed -47.05 pts at 4145, FUTS are trading at 4155, below the key resistance at 4175.
   

*Commodities – USOil – Futures rallied from $70.70 again yesterday and spiked to test the $74.00 zone following hawkish comments from Saudi Arabia regarding further output cuts. Gold – has moved back to the $1975 level, once again finding buyers at the key $1950 zone.
*Cryptocurrencies–BTC pushed to test $27.5k (21-day EMA) yesterday before rejecting the area and moving to $26.75k now.   

Today – German Ifo, FOMC Minutes (May), Speeches from BOE’s Bailey, ECB’s Lagarde & Fed’s Waller.

   
Biggest FX Mover @ (06:30 GMT) GBPNZD (+2.05%). From Monday’s test of 1.9775 lows the pair has rallied over 2.0250 following the RBNZ.   MA’s aligned higher, MACD histogram & signal line positive & rising, RSI 92.00 very OB & flat, H1 ATR 0.00476, Daily ATR 0.0161.

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 HFM 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
HFMarkets

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 : 26th May 2023.

Market Update – May 26 – 2-year Debt Ceiling Deal Approaching?

Trading Leveraged Products is risky

The USDIndex holds the breach of 104.00 on news the US debt ceiling talks are progressing and a 2-year deal is possible. Strong US data yesterday also added to pressure on the FED to hike at least one more time. Susan Collins from the Boston Fed, suggested that a pause in June “may be appropriate”. Stocks were mixed, NASDAQ (+1.71%) lifted by a record +24% advance for Nvidia. Yields also rallied, with short end of the curve at 10-week highs as the 2-yr yield holds over 4.5%.  Overnight, the Yen remains weighed and the Nikkei 225 outperformed following inflation data and news that the BOJ is likely to maintain the YCC until “at least next year”.

Overnight –  Japan  – Tokyo CPI missed at 3.2% vs. 3.4% but remains much stronger than at any time in recent history, also PPI came in higher than expected  at 1.6% vs 1.4%. AUD  – Retail Sales added to the weak data this week missing at 0.0% vs. 0.4%, UK – Retail Sales beat (0.5% vs 0.3%) but last months data was revised lower to -1.2% from 0.9%.

*FX – USDIndex has rallied to 104.22, another new 2-month high. A stronger USD continues to weigh on EUR which tested down to the 1.0700 zone yesterday, trades at  1.0730 now. JPY breached 140.00 & still holds over 139.50 at 139.65 now. Cable slipped again to 1.2310 lows yesterday, recovering a little to the 1.2350 handle.
*Stocks – Wall Street traded mixed all day and closed that way. (-0.11% to +1.71%). NVDA +24.37%, MRVL +7.6%, DLTR -12.00%. US500 (+0.88%) closed 36.34 pts at 4151, FUTS are trading at 4159, and a third day below the key resistance at 4175.
   

*Commodities – USOil – Futures declined into $71.00 zone from $74.25 following mixed news regarding Saudi output cut threats. Gold – moved lower again, to $1937, tbut has since recovered to the key $1950 handle.
*Cryptocurrencies–BTC pushed to test under $26k yesterday and remain capped at  $26.5k today as USD strength persists.

Today – Core PCE Price Index, Core Durable Goods Orders, Personal Income & Spending, UoM Consumer Sentiment & Inflation Expectations.

   
Biggest FX Mover @ (06:30 GMT) USDJPY (-0.24%) Following a strong rally to 140.22 giving back some gains today. MA’s aligning lower, MACD histogram & signal line positive but slipping, RSI 48.17 & neural, H1 ATR 0.152, Daily ATR 1.096.

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 HFM 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
HFMarkets

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.