USDIndex – Slumped to under 110.00 to
109.40. US new home sales dropped -10.9% in September, in line with expectations and BOC
surprised markets with only a 50
bp interest rate hike to 3.75%. Macklem
had suggested more concern over risks from higher inflation following the rise in the latest CPI data. However, it will continue to tighten, sees terminal rate at 4.5%, there is still “excess demand,” in the economy and that a technical recession is just as likely as modest growth, cutting 2022 growth forecast to 3.3% from 3.5%, 2023 to 0.9% from 1.8%, and 2% in 2024 from 2.4%.
Stocks sank (NASDAQ +2.25%
) underperformed. Poor earnings and guidance from big tech (Google
), and then Meta
) missed and sank -20%
after hours, wiping $67
billion off its market cap. Concerns over Apple
markets rose initially but closed mixed. (Nikkei –0.32%,
Hang Seng 1.60%
), European FUTS also mixed. AUD
imports prices 3 x higher than expected, but German
GfK Consumer Climate not as bad as expected.
– leaped over parity 1.0000, land topped at 1.0093 earlier, now ahead of the ECB at 12:15 GMT.
– Cooled again, under 146.00
to 145.40 lows,
ahead of the BOJ rate announcement later tomorrow. Friday’s pre-BOJ intervention peak took the pair to 152.00.
Sterling rallied again (another 150+ pips) yesterday to test 1.1600
and trades to 1.1645
today. UK’s mid-term Fiscal statement was postponed from Monday to Nov. 17
as Gilts continue to recover with tax rises and spending cuts expected.
Wall Street were mixed with big moves for Tech stocks in particular. US500 closed -28.5 (-0.74%) at 3830, FUTS trades at 3850 now.
rallied from $84.35
lows again yesterday to test $88.40 after inventories showed draw downs, back to $87.60 now. IEA Oil Inventories – big build 2.588M vs 1.029M.
weaker USD helped a rally to $1675, yesterday before moving back to $1662 now.
rallied again to test $21.0k, back to $20.7k now and holding
the important $20k.
Today – ECB Announcement & President Lagarde’s PC, US Quarterly PCE Advance, GDP Advance and Durable Goods. EARNINGS – Amazon, Apple, Intel, Caterpillar, McDonalds, Gilead, AB InBev, Credit Suisse, (in-line), Deutsche Lufthansa, and more.
Biggest FX Mover @ (06:30 GMT) GBPJPY (-0.71%) Tank from over 170.00 yesterday to 168.80 now. MAs aligned lower, MACD histogram & signal line negative & falling, RSI 28.05, OS but still falling, H1 ATR 0.299, Daily ATR 2.762.
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