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HFblogNews
  • Posts: 1534
  • Joined: 28/05/2017
Date: 19th September 2023.

Market Update – September 19 – Slow markets before 5 Major Central Banks decisions.

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Trading Leveraged Products is risky

US Stocks barely budged yesterday, with all indices ending the session with tiny gains; volumes were muted too. On the other side of the ocean, we witnessed substantial losses among European indices, probably also weighed down by the ECB’s decision last week. The worst of all was the FRA40 after one of the largest domestic investment banks, Societe Generale, pledged to cut costs and tumbled 12.05%. It is not the first major investment bank to make similar pronouncements lately, with Goldman and Morgan Stanley planning to adjust their workforce next.

Back to America, strikes are hitting the economy with 4.1 million labor hours lost in August, the most in 23 years: perhaps another reason why the indices’ rally has come to a standstill with the Nasdaq – for instance – remaining at the level of three months ago. To be fair, yesterday the good performance of Apple and Meta helped it to gain +0.15%. Technology was the best sector for the day, along with Energy: however, it is striking to see how the latter has been the star performer in recent months – led by the oil rally – with the ETF tracking the sector (XLE) up 14.92% in three months versus a paltry +1% for the US500.

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The RBA minutes this morning held few surprises and the AUD, like the USD, is little moved. Rates continue to push slowly upwards and the 2-year is close to its March high of 5.066%. The market believes that the Fed will not move tomorrow – 99% odds – but the Dot Plot predicts another hike this year: GS is convinced that this is just a ”bluff”. We shall see.

*FX – USDIndex flat at 104.86; AUDUSD -0.04% @ 0.6433, GBPUSD < 1.24 (1.2377, EURUSD -0.12% @ 1.0679. USDJPY just shy of 148 and USDCNH back at 7.30.
*Stocks – US Futures are inching lower (US500 -0.12%, US100 -0.25%, US30 -0.09%); EU futures are adding to yesterday’s losses. AAPL +1.69%, Square’s and Lonza’s CEOs to depart the companies (latter one -14%), second interesting IPO in a couple of days with Instacart valued $10B, 75% less than the previous Private VC valuation.
*Commodities – USOil +0.08% at $92.27, UKOil hit $95, now trading at $94.69, Wheat, Corn close to 2023 lows.
*GOLD – -0.13% @ $1931.

Today: Highlights include European HICP, Core HICP, US Housing Starts, Canadian CPI.

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Key Movers: FRA40 -1.39% @7276 after testing the top of the channel with a perfect spinning top on high volumes, fell hard yesterday led by the slump of one of the largest French banks (SocGen -12%).

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. 

Marco Turatti
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.
HFblogNews
  • Posts: 1534
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Date: 20th September 2023.

Market Update – September 20 – FED will stay on hold; Dot Plot, SEP are key.

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In a day that will be centred around the Fed’s deliberations this evening, and above all the quarterly economic projections, the new dot plot and Jerome Powell’s press conference, we start with China where the PBoC just now left its benchmark rates unchanged, with the one-year and five-year loan prime rates at 3.45% and 4.2% respectively. The Central Bank touted the strength of the national economy and said it has ample policy room as analysts bet on future rate cuts. Still in Asia, the Japanese trade balance fell 66.7% in August, coming in at 930.5 billion yen compared with the 2.79 trillion yen deficit a year ago: a smaller-than-expected but still 17.8% drop in imports contributed to this improvement. Yesterday saw the USD suffer badly up to the US open, with the USDIndex at -0.4% at one point and particularly weak against currencies such as the CAD, before recovering most of its losses and closing flat: the EURUSD was back below 1.07 as was the Cable below 1.24. US yields returned to new highs across the curve, on the 2, 5 and 10 year, the latter two being the highest levels since 2007. Stocks and indices closed in the red, led by the US30.

Another extremely interesting movement was that of oil, which saw Brent crude come within a hair’s breadth of $96 and Crude above $92, at very strong resistance levels tested several times last year, before falling back profusely: at the moment, the US blend is trading at $90.35.

FED’s current Dot Plot, representing Members’ rates forecasts
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Tonight is the Fed meeting and there is a 99% probability that the official rate will remain in the 5.25%-5.50% range. But September is also the meeting where the Summary of Economic Projections (SEP) will be renewed and the new Dot Plot will be released: these will be key points to understand what will happen next. On the other hand, it is possible that Powell will do everything he can during the conference to reiterate to the markets that they should not think they know what he and the other board members will do in the coming months.

*FX – USDIndex flat at 104.82; EURUSD +0.05% @ 1.0685, GBPUSD -0.30% @ 1.2355, USDCAD +0.06% @ 1.3456, USDJPY flat @ 147.88, USDCNH 7.308.
*Stocks – US Futures are lower to flat (US500 -0.04%, US100 -0.10%, US30 +0.01%); GER40 is +0.10%, FRA40 -0.09%. EV maker TIO tumbled -12%.
*Commodities – USOil -1.11% @ $90.44, UKOil is trading at $93.44 after getting close to hitting $96 last night.
*GOLD – flat @ $1931.

Today: Highlights include UK CPI, PPI, Retail PI (JUST OUT, much better than expected), German PPI, US Mortgage applications, EIA Weekly Oil Stocks Change, FED INTEREST RATE DECISION, FOMC ECONOMIC PROJECTION & PRESS CONFERENCE.

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Interesting Mover: USOil -1.11% @ $90.44, perfectly pulled back after reaching a key resistance level at the $92.20 area, drew a spinning top and is dumping overbought levels on the RSI.

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. 

Marco Turatti
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.
HFblogNews
  • Posts: 1534
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Date: 21st September 2023.

Market Update – September 21 – Stocks fade, USD up as CBs spring on.

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It was Fed Day and it did not disappoint. As universally expected, the result of the FOMC was a “hawkish hold.”

But we and the markets got a little more than bargained for as Chair Powell and the FOMC revealed an even more restrictive policy stance than anticipated, and clearly signaled a higher for longer stance. The markets got the message loud and clear. Stocks and bond markets are under pressure, after the Fed decision hit risk appetite. The FOMC kept rates on hold yesterday, but signalled that another hike is in the cards later in the year.

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Switzerland’s SNB surprised by keeping rates on hold. Expectations had been for another 25 bp hike, but after the recent drop in inflation, the SNB decided to keep policy settings unchanged. The statement stressed that “the significant tightening of monetary policy over recent quarters is countering remaining inflation pressure”, although it left the door open to another hike by saying that “it cannot be ruled out that further tightening of monetary policy may become necessary”. The central bank’s new forecasts put inflation at 2.2% in 2023 and 2024, before a drop to 1.9% in 2025.

*FX – USDIndex has lifted to 105.35 on the Fed outlook and also support from haven demand. It holds above the 105 mark for a fifth straight session. EURUSD extended to 1.0616 lows, while GBPUSD broke 1.2300, breaching its 6-month support level, ahead of BOE rate decision. The Yen struggled and USDJPY lifted to 148.45. It has currently pulled back down to 148.15.
*Stocks – JPN225 and ASX lost -1.4% overnight, after a lower close on Wall Street and European as well as US futures are also in the red. The US100 closed -1.53% in the red, with the US500 down -0.94% while the US30 was off -0.22%.
*Commodities – USOil under $89 per barrel, as the changed rate outlook weighed on demand expectations.
*Gold has continued to trade lower at day’s low $1924.10 as markets wait for the BOE announcement.

Today: BOE Interest Rate Decision and Press Conference, US Initial Jobless Claims, Existing Home Sales, ECB President Lagarde speech.

Interesting Mover: CHFJPY has lost -1.03% so far today after the SNB announcement.

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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.
HFblogNews
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Date: 22nd September 2023.

Market Update – September 22 – A Sideways Friday?

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Wall Street closed with broad losses, but sentiment stabilised somewhat overnight, with China bourses outperforming. Japanese markets didn’t benefit from the BoJ’s ongoing commitment to its ultra-accommodative policy settings and the Yen sold off as the BoJ kept monetary policy parameters unchanged. European futures are in the red, US futures slightly higher, as markets continue to digest this week’s policy announcements. The 10-year Treasury yield is down -0.4 bp, the 10-year JGB rate has corrected -0.2 bp, while yields nudged higher across Australia and New Zealand.

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BoJ kept monetary settings unchanged – as expected. Japan’s central bank offered no clear sign of a shift in its policy stance. The negative interest rate and the settings of the yield curve control program were left unchanged. The BoJ also maintained the pledge to add further stimulus if needed. The Yen weakened on the policy statement and yen bears will continue to test the officials’ resolve to stabilise the currency.

*FX – USDIndex has remained supported above 105 but off 105.48 highs. EURUSD and GBPUSD steady above 1.0640 and 1.2265 respectively. The Yen sold off and USDJPY lifted again to 148.40. Sterling weakened against the USD to a session low of 1.2250 after data showed retail sales in Britain rose less than expected in August.
*Stocks – US100 slumped -1.82%, with the US500 down -1.64%, and the US30 off -1.08%. Hang Seng and CSI 300 rallied 1.4% and 1.6% respectively. JPN225 ended the day down 0.52% at 32,402.41.
*Commodities – Oil prices have started to stabilise, after being knocked back by the hawkish Fed. USOil is trading at $90.28 per barrel now, Brent at $93.75 per barrel.
*Gold rebounded to $1924.80.

Today: PMIs from Germany, Eurozone, UK and US. Canadian Retail Sales also on tap.

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Interesting Mover: NZDJPY has rallied by 0.65% post BoJ announcement and Ueda’s comments.

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.
HFblogNews
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  • Joined: 28/05/2017
Date: 25th September 2023.

Market Update – September 25 – Yen breached 11-month low.

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Stock markets traded mixed across Asia, with China bourses underperforming as concern over the health of the property sector resurfaced. Evergrande -20.91% -Sales not as expected, unable to issue new notes under its debt restructuring plan. European futures and US futures are lower. The “higher for longer” message continues to weigh on sentiment and while the US may be heading for a soft landing, Europe is clearly struggling. The rise in energy prices is not helping. The 10-year Treasury yield is currently up 2.8 bp, the 10-year Bund yield 1.0 bp. EU escalates China tensions with probe to ward off cheap EPS and warns China it will be more assertive on ‘fair trade’. Republicans struggle to unite around a plan to avert shutdown.

A full, lengthy shutdown of the US government is “likely” at the end of the month and could leave the Fed reluctant to raise interest rates in November.

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*FX – USDIndex has lifted 105.30. EURUSD and GBPUSD are 1.0640 and 1.2245 respectively. The Yen sold off and USDJPY lifted again to 148.45.
*Stocks – JPN225 and ASX lifted 0.9% and 0.1%. Wall Street pared its modest early gains and closed in the red. The US30 was off -0.31% to 33,964, with the US500 lower by -0.23% to 4320, and the US100 down -0.09% to 13,212. All were sharply lower for the week too with respective declines of -1.9%, -2.9%, and -3.6%. In fact, it was the worst week for the S&P since the March 10 week that included the SVB collapse.
*Commodities – Oil rose this morning at $90.07 as expectations of tight supply and signs of stronger economic performance in China and the US boosted prices. Russia last week banned the export of diesel and petrol, adding to supply pressures after the country joined Saudi Arabia in extending oil production cuts to the end of this year. Hedge Funds join bullish bets on oil.
*Gold rebounded to $1927.15 but overall remains sideways.

Today: ECB President Lagarde speech.

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Interesting Mover: BTCUSD is down for a 4th day in a row, retesting $26,000.

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.
HFblogNews
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Date: 26th September 2023.

Market Update – September 26 – Bears in control!

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Asian stock markets sold off, with Hang Seng and CSI 300 extending yesterday’s slide, as concern about China’s property sector deepened. Evergrande Group’s mainland unit said it failed to repay an onshore bond, which added to uncertainty over the future of the developer. Attempts to get restructuring plans back on track are ongoing, but investors are worrying about the risk of a potential liquidation.

European and US futures are also in the red, as Treasury yields continue to rise. The hawkish, higher for longer stance from the FOMC and most major central banks has put bears in control. Fears over sustained inflationary pressures, largely thanks to the resilient economy and higher oil prices weighed. The advent of supply is adding to the rise in rates too.

Moody’s also noted that a government shutdown, which is possible at the end of the month, would be a “negative” for ratings. Wall Street also reversed opening losses with the bump in risk appetite also hurting Treasuries.

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*FX – USDIndex has cleared the 106 mark as risk aversion picks up. EURUSD and GBPUSD both broke below 1.06 and 1.22 support levels respectively. The USDJPY firmed to an intraday high of 149.18.
*Stocks – JPN225 slipped 1.0% to 32,054, ASX dipped 0.5% to 7,044.90, Hang Seng shed 0.9% to 17,576.83, while the Shanghai Composite fell 0.2% to 3,109.69. Amazon rose 1.7% and was the strongest single force pushing up the US500. US500 fell 0.4% as of London open, while US100 futures fell 0.6%.
*Commodities – Oil slipped below 88.00, with next support level at 86, due to US Dollar strength, which looks to outweigh supply tightness.
*Gold- retested 200-day SMA at 1909.

Today: BoE Governor Bailey’s meeting of the central bank’s Financial Policy Committee and US CB Consumer Confidence & New Home Sales.

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Interesting Mover: VIX (+5.5%) extending to 1-month resistance at 18.20.

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.
HFblogNews
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  • Joined: 28/05/2017
Date: 27th September 2023.

Market Update – September 27 – Temporary Optimism?

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Chinese indexes stabilised after a 2-day decline amid fresh optimism that official measures will be able to boost the recovery. Industrial profits improved for the first time in a year and the People’s Bank of China said it would step up policy adjustment and implement monetary policy in a “precise and forceful” manner to support the economy. Confidence in China’s recovery has been going up and down for so long now, that investor confidence could take lasting damage.

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The omnipresent fear of the FOMC’s higher-for-longer policy stance (and indeed that of the ECB, BoE, and BoC) remains a major worry and was exacerbated after JPMorgan’s Dimon noted the potential for a 7% rate as a worst case scenario. Additionally, the threat of a US government shutdown this weekend and Moody’s warning of the potential negative impact on ratings rattled too and left buyers sidelined. Technicals have played a part as well with key levels in stocks, bonds, and the USD having been broken. The drop in September consumer confidence, manifested the anxieties and added to the selloff.

*USDIndex continued to rally and firmed to its 2023 and 10-month high as it benefited from a haven bid, along with the relative outperformance of the US economy and rate differentials.
*EURUSD and GBPUSD posted fresh lows at 1.0554 and 1.2134. The USDJPY is steady at 149.15.
*Stocks – Hang Seng and CSI300 rose 0.7% and 0.4% respectively. Futures are mixed across Europe and slightly higher in the US, after Wall Street dragged down to the lowest levels since early June. The US100 tumbled -1.57% to 13,063.6. News that the FTC was suing Amazon helped knock big tech sharply lower. The US500 was down -1.47% to 4273 with 90% of the index and all sectors in the red. The US30 slid -1.14% to 33,618, slumping below its 200-day moving average.
*Commodities – Oil rebounded to 90.80 as API reported a fall in inventories in Oklahoma.
*Gold – broke 1900 and currently settled to 1895.50 as haven demand favors the Dollar rather than the precious metal. China jitters have flared up & expectations that central banks are sticking with the “higher for longer” messages have added to pressure on bullion.

Today: US Durable Goods.

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Interesting Mover: Gold broke 1900, with next Support levels at 1885 & 1870.

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.
HFblogNews
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  • Joined: 28/05/2017
Date: 29th September 2023.

Market Update – September 29 – Dollar off 10-months high; Yen regains ground.

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Stock as well as bond market are moving higher at the end of the quarter. GER30 and UK100 are up 0.7% and 0.8% respectively, after the Hang Seng bounced 2.7%. US futures are also posting gains, and yields are coming down. The German 10-year rate has corrected -5.1 bp, the 10-year Gilt yield is down -3.9 bp and the US 10-year rate has dropped -2.4 bp.

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The omnipresent fear of the FOMC’s higher-for-longer policy stance (and indeed that of the ECB, BoE, and BoC) remains a major worry and was exacerbated after JPMorgan’s Dimon noted the potential for a 7% rate as a worst case scenario. Additionally, the threat of a US government shutdown this weekend and Moody’s warning of the potential negative impact on ratings rattled too and left buyers sidelined. Technicals have played a part as well with key levels in stocks, bonds, and the USD having been broken. The drop in September consumer confidence, manifested the anxieties and added to the selloff.

*USDIndex reverted to 105.54 from 106.50 giving the Yen some breathing room amid intervention concerns. The USDJPY slide to 148.50 has put investors on high alert for the risk of intervention. But Japanese authorities could find propping up their currency both difficult to achieve and hard to justify. (Reuters)
*Stocks up on the last trading day of the Q3 amid optimism over spending during China’s Golden Week holiday and on talks of a possible meeting between US and China leaders.
*UK: Q2 GDP was confirmed at 0.2% q/q & German retail sales unexpectedly correct again coupled with weak consumer confidence readings.
*US: Tight reading on jobless claims, a mixed GDP report & US mortgage rates at the highest level since 2000, as elevated interest rates and climbing bond yields push up borrowing costs.
*Gold at $1858, braced for their biggest monthly fall since February.

Today: The key US PCE but a partial government shutdown is looming, which could affect the release of any economic data.

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Interesting Mover: USDJPY (-0.40%) pulled back to 148.50, after a rally closed to the 150 level. However, key support remains at 148.00.

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.
HFblogNews
  • Posts: 1534
  • Joined: 28/05/2017
Date: 2nd October 2023.

Market Update – October 2 – Shutdown postponed as Q4 kicks off.

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Just a few hours before the Saturday midnight deadline, Democrats and Republicans passed a short term bill (45 days) to keep the government funded into November and avoid a shutdown which would have put the paychecks of some 3 million Americans in the public sector and the military at risk. This is certainly not an optimal and confidence-inducing solution in the long term: however, the markets are increasingly accustomed to such events, which have occurred over 20 times in the last 50 years, including 4 in the last decade. It may be this, it may be the start of the new quarter, it may be the good data from Asia, but this morning there is a slight risk on, with the US and European indices up by an average of +0.3% and oil also rising after two bad sessions that saw it pulling back from previous annual highs. The good news came from Asia, where manufacturing in China bounced back into the expansion zone for the first time since last April – as witnessed by the Caixin – and also in Japan, the Tankan Survey saw optimism grow in this side of the productive tissue. This morning we are also seeing very different calls from 2 major US investment banks, with GS seeing demand for both oil and copper booming in China while CITI is taking the opposite view and sees weakness in industrial metals – with possible falls in the range of 5-10% – and Crude falling to $70 in early 2024. However, after September proved to be a particularly negative month with falls of up to 5.8% in the case of the Nasdaq, investors want to start off on the right foot and celebrate the agreement reached in Washington at the same time as they anticipate Federal Reserve Chairman Jerome Powell’s remarks later today.

UKOil – USOil spread is narrowing
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*FX – USDIndex just shy of 106, +0.15% @ 105.97; AUDUSD is the laggard among majors -0.30% @ 0.6414, *USDJPY is trading at 149.65 after having hit a new 2023 high at 149.82. EURUSD flat, GBPUSD @ 1.22.
*Stocks – US Futures are inching higher (US500 +0.40%, US100 +0.50%, US30 +0.39%%); EU futures are up as well (GER40 +0.35%, FRA40 +0.41%). September was a grim month: US30 -3.5%, US500 –4.9%, US100 -5.8%. Performances were negative for the whole Q3: -2.6%, -3.7%, -4.1% respectively.
*Commodities – USOil +0.64% at $91.32, UKOil is trading at $92.65 and their spread has narrowed to just $1.33, in the lower bound of this year’s range.
*GOLD – -0.19% @ $1845, XAGUSD adds another -1.44% to its recent prolonged drop, trading at $21.88.

Today: Highlights include Spanish, Italian, German, French, EZ, UK & US PMIs, US ISM Manufacturing, Fed’s Powell & Williams.

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Interesting Mover: XAGUSD (-1.44% @ $21.88) had a wild session on Friday with a sharp reversal and an excursion of 6.16%. The trendline that originated in August 2022 has been broken, but there is another longer-term one currently passing through the $20.50 area, while $21.50 is a strong static support; the price is below its 50d and 200d MAs.

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. 

Marco Turatti
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.
HFblogNews
  • Posts: 1534
  • Joined: 28/05/2017
Date: 3rd October 2023.

Market Update – October 3 – Risk off bites across asset classes.

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Starting with APAC, the RBA has just unsurprisingly kept rates steady in Governor Bullock’s inaugural meeting with the statement largely a carbon copy from the Lowe era (”inflation is coming down, the labour market remains strong and the economy is operating at a high level of capacity utilisation”): AUD continues to decline this month and is -0.76% against the USD right now, followed by the KIWI which marks -0.63%. The JPY, which is one step away from 150, is surprisingly strong this morning, flat against the USD, as the rhetoric about the possibility of intervention continues, this morning from Japan’s Finance Minister Suzuki. The JPN225, for its part, is down -1.85% and back to last June’s levels, but the whole of APAC is suffering: Hong Kong and China are back to trading and the former is down -3.04%, weighed down by developers and the energy sector. Moreover, the IMF has lowered growth expectations for the area.

US Yield Curve
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More broadly, we are seeing a series of risk-off movements, evident in the strength of the USD which, after +0.75% yesterday, is now within touching distance of 107. Yesterday afternoon’s decent US ISM data helped long end yields continue to rise (10-Year at 4.691%) while continued weakness in Eurozone manufacturing sank the EURUSD below 1.05. European stock markets suffered more than American ones, which showed more indecision and ended the day mixed. But while the mega-cap filled Nasdaq finished at +0.83%, the RUSSELL 2000 index of small to mid-cap companies is now negative YTD. Finally, the weakness in precious metals was significant, with Silver plummeting -5.81% below $21; energy also sold off, with OIL down for four consecutive sessions and UKOIL down 8% from last Thursday’s high.

*FX – USDIndex +0.24% @ 106.86 after +0.75% yesterday; AUDUSD -0.73% @ 0.6316, NZDUSD -0.56%. YEN strengthens 0.03%, 149.82, USDCNH steady at 7.32. EURUSD -0.08% @ 1.0469 and CABLE at 1.20 handle after yesterday’s heavy session.
*Stocks – US Futures fractionally negative (US500 -0.12%, US100 -0.17%, US30 -0.11%). RUSSELL 200 turned negative YTD. EU futures -0.2% on average after both GER40 and FRFA40 lost -0.9% yesterday. APAC heavy: HK -3%, CHINA50 -1.53%, JPN225 -1.90%.
*Commodities – USOil -0.28% at $88.35, UKOil -0.44%, Wheat -0.13%, Corn -0.61%.
*Metals – Gold -0.27% @ $1822, XAGUSD @ 21.03, Copper -1.03%, Palladium -0.35%.

Today: highlights include US IBD/TIPP & JOLTS, Swiss CPI, Australian PMI (Final), Fed’s Bostic, ECB’s Lane & Valimaki.

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Interesting Mover: Copper -1.0% @ $3.6065, is clearly losing the $3.70 area and below the $3.62 support, has been rejected by its 50MA and lost 1yr long uptrend, $3.53 is its next relevant support.

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. 

Marco Turatti
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.
HFblogNews
  • Posts: 1534
  • Joined: 28/05/2017
Date: 4th October 2023.

Market Update – October 4 – On the way to old normal.

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Yesterday at 08:30 am ET (New York Time), JOLTS job openings for August again showed an incredibly buoyant labour market with 9.61m new available vacancies versus the 8.8m analysts were expecting. Even though the main target is inflation, this is not what the Fed wants to see and the voice saying ”higher for longer” immediately resonated in traders’ minds. Bonds immediately sold off and the 10-year Treasury yield surged to its highest level since 2007, up 11 bps to 4.80%; Futures on 30y at the same time slid as much as 1.58% with the yield up to 4.924% and 30y mortgage rate approached. There are certainly deeper fundamental reasons, such as the continuing large US deficit at the same time that China and Japan have stopped being net buyers of US debt, with the former selling $40B a month since April and having already dumped $300B since 2021. However, it is not the current levels of rates that are abnormal, but rather those of the last 10 years. The current situation is actually back to the old normal.

10Y US Future
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More than anything else, another thing caught the eye: after the data, USD immediately surged and broke 150 against the JPY, touching 150.16. And this is where the BOJ finally INTERVENED and caused the pair to fall 290 pips (or nearly 2%) in less than 5 mins. That doesn’t seem to be enough and now the USDJPY is trading back at 149.22: the Japanese currency’s structural weakness is still great at the moment, although the 1-year overnight swap is over 1% and the 3m-10y curve has never been steeper. The intervention has not been confirmed by the Ministry of Finance, and there is some rumour that it may actually have been just a Request For Quote that made primary dealers remove all bids and then triggered stop losses in minor players accounts.

Obviously this is not a good environment for equities and yesterday US equities underperformed their European peers with the US100 down 1.83% and the US30 ending in negative YTD territory (a day after the Russell). The US500 is now testing its 200 MA. The VIX flew above 20 and – some potentially good news – the inversion that can be seen between the spot and 3-month futures has indicated a market bottom in the past. But beware, history – when it repeats itself – almost never does so in exactly the same way.

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At least commodities breathed easy and silver rebounded after the previous day’s sell-off.

*FX – USDIndex +0.18% @ 106.93; USDJPY hedging up +0.08% at 149.17, Aussie at 2023 lows (0.6307), Kiwi is today’s laggard, -0.44% at 0.5883.
*Stocks – US Futures negative again and heavy: US500 -0.57% and testing its 200 MA, US100 -0.78%, US30 -0.40% further into negative territory YTD. DAX future is testing 15k right before the cash open. Yesterday AMZN -3.66%, TSLA -2.02%, NVDA -2.82%, MSFT -2.61%.
*Commodities – USOil resumes its decline -0.76% at $88.72, UKOil -0.67%.
*Metals – Gold -0.17% @ $1819.64, XAGUSD @ 21.03, Palladium -1.21% below its ST floor.

Today: highlights include EZ, UK, US Services and Composite PMIs, EZ PPI, Retail Sales, US MBA, ADP, ISM, Durable Goods, OPEC+ JMMC, ECB’s Lagarde.

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Interesting Mover: USDJPY -0.03% @ 149 after the shock of the intervention has recovered 2 handles and set 2 levels to be watched, 150 and 147.25 approx, while the trend is still clearly rising.

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. 

Marco Turatti
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.
HFblogNews
  • Posts: 1534
  • Joined: 28/05/2017
Date: 5th October 2023.

Market Update – October 5 – Markets try to take a breather, oil slumps.

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Rebounding from some pivotal, psychological levels, the vast majority of world equity indices rose yesterday, helped by a decrease in yields. Buying in the US intensified in the last minutes of trading led by large-cap techs such as TSLA (+5.93%), MSFT & AMZN. US500 was up 0.8%, its largest rise in 3 weeks and US100 settled +1.5% at the end of the day. As mentioned above, after reaching a high of 4.88% during the Asian session, the 10Y benchmark was lower later in the day, ending the day almost 15 bps lower. Part of this was due to the rather worse-than-expected ADP jobs data, which helped consolidate expectations of a further Fed pause in November (now at 80%). One aspect that the financial media are somewhat glossing over as they are concentrating on the gigantic -46% drawdown on the long end of the US curve – is the great steepening of the 2y-10y, now at 32bps (it was -1% at the end of July). Also on the US side, while we anxiously await tomorrow’s NFP data, it should be noted that today marks the end of the suspension of student debt payments decreed after Covid which will probably weigh heavily on many households. In Europe and the UK, better-than-expected composite PMI data helped the respective currencies to do well, while the USDIndex is also near overbought levels.

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The big mover of the day was Oil, with crude very heavy (-5.6%) on the day of the OPEC+ JMMC, characterised first by Russia and Saudi Arabia’s apparent willingness to continue with production cuts, then by Novak’s (Russia) statements that ”OPEC+ may tweak its decisions if needed… as we see a record-high global oil demand”.

*FX – USDIndex -0.09% @ 106.43; GBPUSD & EURUSD flat today (1.2137/1.0506) after rising +0.5% & +0.36% respectively yesterday, USDJPY 148.78, USDCAD is -0.06% @ 1.3736 after rising approx. 2.65% since 20/09. Swiss Franc is strengthening, USDCHF-0.08% @ 0.9165.
*Stocks – US and EU futures fractionally negative this morning, -0.1% and -0.2% on average respectively. Yesterday TSLA +5.93%, MSFT +1.78%, GOOGL +2.23% AMZN +1.83%.
*Commodities – USOil rebounded this morning +0.44% at $84.79, UKOil +0.52% @ $86.40.
*Metals – Gold flat @ $1821.47, XAGUSD +0.57% @ 21.12.

Today: highlights include GE Trade Balance, US Jobless Claims, Fed’s Mester, Barkin, Daly, ECB’s Lane & de Guindos.

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Interesting Mover: USOil ($83.50) has lost its 3m long uptrend, is below its 50MA and testing a strong support level at the $83.50 area, with RSI (14) at 39.72.

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. 

Marco Turatti
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.
HFblogNews
  • Posts: 1534
  • Joined: 28/05/2017
Date: 6th October 2023.

Market Update – October 6- Wait and see: NFP ahead.

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It has been a quiet day in the markets with subdued volumes and small changes: in America US30 ticked down 0.03% while both US500 & US100 lost around 0.1% and volumes have been 15% lower than the 30-day average. But European indices and other asset calls such as metals also showed a lot of indecision, drawing what in candlestick analysis is called a Doji. The situation was somewhat different for the USD and Oil, which fell, in the case of the latter strongly.

The market awaits the September NFP data today after the picture that has emerged so far this week from the labour data has been mixed: we had a strong JOLTS report while ADP payrolls disappointed; yesterday’s Claims varied very little leaving room for indecision. Investors are worried about the possibility of a very positive NFP which could put new pressure on bonds and equities: yesterday the 10Y weakened to 4.73% but there are some market watchers – including bond king Bill Gross and Jamie Dimon – who see the possibility of quite higher levels in the future. Anyway, back to NFP, the average expectations are for +170k new jobs created, down from +187k in August and estimates range from +145k to +240k with the big US banks (Citi, BOFA) skewed to the upside.

NFP Readings
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A note on the various speeches the central bankers are giving these days: yesterday both NY Fed’s Davy and ECB’s Villeroy empathized that the current monetary levels are appropriate, and expectations are correctly pricing future 2023 moves (no more hikes). Finally, Oil keeps falling and that is good news: Russia is lifting its Diesel exports ban but Curve is still in backwardation.

*FX – USDIndex +0.17% @ 106.26; USDJPY < 149, EURUSD -0.11% @ 1.0542, Cable -0.15% @ 1.2174. The once mighty MXN peso is falling hard vs USD, this morning +0.20% and +7.49% from 20/09. USDZAR flat not far from 2023 highs 19.51.
*Stocks – Equity futures are slightly negative this morning, US500 -0.1%, Europe is mostly flat with FRA40 outperforming +0.05% at 7020.
*Commodities – USOil +0.05% at 82.58$ pauses its drop close to a mild support level.
*Metals – Gold flat @ $1820.78, XAGUSD -0.20 @ $20.92, Palladium -0.67% and Copper $3.56 are still weak and below their recent floors.

Today: highlights include German Industrial Orders, US NFP, Labor Force Participation and Unemployment rate, Canadian Employment, Fed’s Waller.

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Interesting Mover: USDMXN is up 7.49% since 20/09 lows, shows higher highs and trades above 50-200 MAs. 18.40 – 18.55 is a mild resistance area, RSI14 marks 72.24.

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. 

Marco Turatti
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.
HFblogNews
  • Posts: 1534
  • Joined: 28/05/2017
Date: 9th October 2023.

Market Update – October 09 – “Long and Difficult war”.

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Rising geopolitical tensions fueled a rise in risk aversion at the start of the week. Oil prices spiked amid escalating tensions in the Middle East and the Dollar picked up haven demand. The surprise Hamas attack on Israel boosted Gold and US currency. The USDIndex is trading at 106.12. USOil prices rose in early Asian trading on Monday amid concerns that Hamas’s attack on Israel will increase tensions across the Middle East and affect output from leading producers. The White House confirmed deaths of ‘several’ US citizens in Hamas attacks.

Germany: The industrial production corrected -0.2% m/m in August. If oil prices rise further, the risks to growth will pick up, also because a fresh pick-up in inflation will weigh on consumer demand and complicate the situation for the ECB.

Japan and Hong Kong were closed for holidays. In the US only equity markets are open today, with bond markets and Fed closed for Columbus Day. Chinese stocks declined on Monday morning, as markets returned from a week-long holiday that prompted disappointing levels of spending and travel.

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US NFP: Nonfarm payrolls blew past estimates, surging 336k in September, with a net 119k upward revision to the prior two months. That put a November Fed rate hike back on the table and the markets responded as would be expected with Treasury rates surging, the USDIndex popping, and stocks sagging. But other parts of the report were more mixed which helped alleviate Fed fears while dip buyers, short covering, and technical buying ahead of the long weekend helped trim bond losses.

*USDIndex edged up to 106.13 from 105.82 while the Yen steadied at 149 lows. The EURUSD slide back to 1.0540 lows indicating a potential resumption of the long term downtrend while Cable settled at 1.2190. The Australian Dollar, seen as a proxy for risk appetite, slid to 0.6347, while the Kiwi edged lower to 0.5968.
*Stocks: The CSI300 corrected -0.2% as mainland China markets returned from the Golden Week holiday. The ASX managed to nudge 0.2% higher. GER40 and UK100 are in the red, as are US futures.
*Oil: USOil and UKOil gapped up to 85.95 and 87.81 respectively a day after Israel’s PM, Benjamin Netanyahu, warned of a “long and difficult war”.
*Gold at $1855.50, as traders flocked to safer assets.

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Interesting Mover: USOil and UKOil both retest 38.2% Fib. from September’s downleg, with USOil posting a death cross in the 4-hour chart.

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.
HFblogNews
  • Posts: 1534
  • Joined: 28/05/2017
Date: 10th October 2023.

Market Update – October 10.

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Stock markets have stabilised and mostly moved higher overnight, after a largely stronger close on Wall Street. Markets continue to assess the impact of the Israel-Hamas war, but the JPN225 rallied 2.4% on its return from the extended holiday weekend. General uncertainties and fears of an escalation of the conflict weighed on sentiment but strength in defensive shares helped support. European futures are higher, with indexes set to pare yesterday’s losses. US futures are narrowly mixed. Treasuries rallied in catch up trade and the US 10-year rate has corrected -14.6 bp to 4.66%. Treasuries jumped and shares advanced after comments by Federal Reserve officials fueled speculation the US central bank may stand pat until year-end.

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Oil prices as well as Gold benefited from a spike in risk aversion prompted by the escalating conflict in the Middle East. Gas prices also spiked as investors weigh the risk of widening geopolitical tensions.

*USDIndex has lifted to 105.95, after correcting on dovish leaning Fed comments yesterday. The USDJPY recovered to 148.92 from 148.16 lows.
*China: The largest private real estate developer, Country Garden, said it might not be able to meet all of its offshore payment obligations when due or within the relevant grace periods. Meanwhile, Kaisa Group said creditors would get less than 5% of their money back if it is forced into liquidation
*Stocks: JPN225 rallied 2.4%, while Hang Seng and ASX also moved higher.
*Oil: USOil have come down and it is currently trading at $84.17 per barrel.
*Gold ended at $1861, the highest since late September, from a low of $1844.25.

Today: BOE releases minutes of financial policy meeting & ECB President Christine Lagarde participates in session at IMF/World Bank meeting.

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Interesting Mover: AUDUSD has breached the 61.8% fib. resistance line, indicating a potential move to 0.6471 if there is a confirmation of a breakout. Currently it`s in a correction mode.

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.
HFblogNews
  • Posts: 1534
  • Joined: 28/05/2017
Date: 11th October 2023.

Market Update – Asia stocks hit 2-week high as Fed talk turns dovish.

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Stock markets moved higher overnight, as jitters over the Israel-Hamas war continued to ease and traders trimmed expectations for further rate hikes in the US. There were also reports of further and more comprehensive stimulus measures for China, although while the Hang Seng rallied, the CSI 300 managed only fractional gains. European futures are in the red, after a broad rally yesterday. US futures are narrowly mixed.

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Germany: HICP is still nowhere near the 2% target and with oil prices already backing up again, and wage growth still high, inflation is likely to continue to overshoot target for the foreseeable future.

*USDIndex: At 105.95, after correcting on dovish leaning Fed comments yesterday. The USDJPY recovered to 148.92 from 148.16 lows.
*Stocks: Treasury yields continued to drop and Wall Street extended recent gains amid rising expectations the FOMC is done. A haven bid has helped support Treasuries too. Wall Street climbed with the US100 rising 0.58% while the US500 advanced 0.52%. The US30 improved 0.4%. Gains were broad-based.
*Oil prices have continued to nudge down from the high of $87.24 per barrel seen early on Monday as markets continue to weigh the impact of Hamas’ attack on Israel over the weekend. USOIL is currently at $84.50, UKOIL at $87 per barrel. The direct impact may be limited, but there remains concern of a widening of the conflict and escalating tensions across the Middle East. If evidence of direct involvement from Iran is found, US sanctions on Teheran could also be tightened. Iran has raised production to a five-year high, but most oil is being shipped to China. Meanwhile, Reuters reported that Venezuela and the US have made progress in talks that could provide sanctions relief to Caracas by allowing at least one additional foreign oil firm to take Venezuelan crude oil – under certain restrictions.
*Gold gained more than 2% yesterday and another 0.39% so far today, at $1868 as haven flows spiked.

Today: US PPI & FOMC Minutes.

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Interesting Mover: COCOA up by 1.25% to 3473 retesting the upper line of 12-day channel.

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.
HFblogNews
  • Posts: 1534
  • Joined: 28/05/2017
Date: 12th October 2023.

Market Update – October 12 – The key US Inflation.

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Stock markets moved higher across Asia, with the Hang Seng outperforming again as tech stocks strengthen. China stimulus hopes are also helping, and the CSI300 lifted 0.9%. The JPN225 bounced 1.8% after a stronger close on Wall Street yesterday. Last night, FOMC minutes were largely in line with expectations and what came out of the September policy meeting and dot plot. Expectations the FOMC and likely the ECB and BoE were at peak rates continued to keep a bid in bonds. Most Treasury yields richened for a fourth day out of the last five as haven demand and dovish Fed expectations underpinned. The long end outperformed in a curve flattener after a hotter than expected PPI report weighed on the front end. Bunds are outperforming in early trade and Eurozone spreads are narrowing. The short end continues to underperform, but 2-year rates are also down in Germany and the US.

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US CPI Forecast: It is expected to show gains of 0.2% for the headline and 0.3% for the core after respective increases of 0.6% and 0.3%. CPI gasoline prices look poised to pop 1.4% in September. However, we expect dissipating upward pressure on core prices into 2024 as disruptions from global supply chain bottlenecks and the war in Ukraine subside. As-expected September CPI figures would see the y/y headline decelerate to 3.5% from 3.7% in August, and down from a 40-year high of 9.1% in June ’22. We expect the core y/y gain to slow to 4.1% from 4.3%, and versus a 40-year high of 6.6% in September. Though still well above the 2% target, the further signs of slowing could be sufficient for all but the most hawkish on the Committee, to favor no change in rates next month, especially given the tightening in financial conditions through early October.

*USDIndex eased further on the softer Fed view, but ranged narrowly between 105.80 and 105.20.
*UK: GDP rose 0.2% m/m in August, while the July reading was revised down to -0.6% m/m from -0.5% m/m reported initially. The visible trade deficit widened and apart from the rebound in services, the report still signals a weakening economy. If latest surveys are anything to go by, September will look worse, as the bounce in services doesn’t seem to have lasted long. The September Services PMI was firmly in contraction territory, with no sign of a quick recovery. The outlook then is not great.
*Stocks: Wall Street caught a bid into the close and finished in the green after a choppy session as investors gauged the potential spread of hostilities from the Israel-Hamas war. The US100 advanced 0.71%, while the US500 and US30 were up 0.43% and 0.19%, respectively. Defensive-related sectors in the US500 outperformed.
*USOil prices down for the third day in a row, with key resistance at $83.

Today: US Inflation & Jobless claims.

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Interesting Mover: Gold broke $1880 (20 DMA & 50% Fib.) as markets scale back US rate hike expectations and the USD corrects. Haven demand amid raised geopolitical risk in the Middle East also continues to underpin demand for the precious metal.

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.
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Date: 13th October 2023.

Market Update – October 13 – OIl & Gold rise, USD falls.

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Stock markets sold off across Asia, after a weaker close on Wall Street. Rate hike concerns picked up again in the wake of the hotter than expected US inflation print yesterday and still tight jobless claims numbers and put stocks on the back foot. The reports saw the market price back in risk of another Fed rate hike this year of about 38%, though the probability was briefly as high as 50-50. The data, the threat of another Fed hike, and geopolitical risks soured investor sentiment.

European futures are also in the red, while US futures show signs of stabilisation. The 10-year Treasury yield is down -3.3 bp at 4.664%, as the curve shifts lower. In the Eurozone, the short end is outperforming, but the 10-year Bund yield is also down -1.0 bp at 2.71%, while spreads are coming in.

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*USDIndex has moved off the highs seen in the wake of yesterday’s data and is at 106.20. USDJPY is hovering below 150 as the yield gap with the US widened on hotter-than-expected inflation data.
*Yields: Yields cheapened further on the back of the poorly subscribed bond auction. The bearish action in Treasuries has given an excuse to take profits. Treasury yields rose to their highest levels of the week.
*Stocks: Wall Street slipped and closed with a -0.63% drop on the US100, -0.62% on the US500, and -0.51% on the US30.
*UKOIL is set for a weekly gain of over 2%, while USOIL is set to climb about 1% for the week as investors keep an eye on the Middle Eastern exports due to the Gaza crisis. USOIL up to $83.70.

Today: ECB President Lagarde, FOMC Member Harker & BOE Gov Bailey speak.

Interesting Mover: US500 (-0.62%) reversed in the upper part of the trend channel, touching both the 50- and the 100- DMA, which have bearishly crossed, indicating a return to 4100 lows.

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.
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Date: 16th October 2023.

Market Update – October 16 – Stocks Sideways, Bonds Drift & Middle East in Focus.

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Stock markets sold off across Asia, with the JPN225 underperforming and losing more than -2%. US futures are higher, as are European futures, as markets watch efforts to prevent a further escalation and widening of the Israel-Hamas conflict. Asian markets were still weighed down by heightened risk aversion, but European and US markets show signs of stabilisation. Treasury yields have backed up 5.8 bp to 4.67% and the 10-year Bund yield jumped 2.6 bp, after JGB rates climbed 1.2 bp as haven flows receded. Eurozone spreads are narrowing.

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*USDIndex has declined to 106.54 but is currently on a pull back to 106.20. The Kiwi rose 0.71% to 0.5926.
*The ECB is expected to keep rates steady through the first half of 2024. According to the latest Bloomberg survey, the central bank won’t start cutting rates until the second half of next year, with the first cut seen in September, followed by another in October. Compared to the previous survey respondents have pushed out rate cut expectations, which ties in with recent ECB comments suggesting that the outlook may not become clearer until March.

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*Stocks: The UK100 added 0.1%, FRA40 and GER40 both lost 0.1%. US500 and those tracking the tech-heavy US100 both advanced 0.2% ahead of the New York open. Tech stocks led declines in Europe’s Stoxx 600 index after Bloomberg reported that the US is considering further restrictions to curb China’s access to advanced semiconductors. Polish stocks jumped the most since May 2022 and the zloty rallied as a bloc of pro-European opposition parties appeared on track to unseat the nationalist government.
*USOIL steadied within $85.60- $86.75, as the US ratchets up efforts to prevent the crisis from becoming a full-blown, regional conflagration.
*Gold corrected to 1908 (PP), after it climbed 3.17% to $1990, the highest since mid-September as implied Fed funds futures repriced for about a 30% risk of another hike, after spiking briefly to 50/50 after hotter CPI.

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Interesting Mover: BTCUSD (+2.11%) jumped to 27957, on USD pullback. Next resistance is at October’s upper swings, 28100 and 28500.

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.
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Date: 17th October 2023.

Market Update – October 17 – Could Conflict be Contained?

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The focus remained on the Middle East and the Israel-Hamas war. Attempts to contain the hostilities and prevent the conflict from escalating throughout the region provided some support for risk appetite to start the week. The VIX slipped to 17.45 after surging to 19.45 to end last week. Fed’s Harker says Fed should not be considering more rate increases. Expectations for more good earnings results also boosted Wall Street, as did some softening in the US Dollar, even as Treasury yields climbed.

New Zealand inflation slowed more than economists expected in Q3, adding to signs that the RBNZ has come to the end of its tightening cycle. The annual inflation rate fell to 5.6%, a 2-year low, from 6% in the second quarter, Statistics New Zealand said Tuesday in Wellington.

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*Reduced demand for haven assets – Oil & Treasuries fall as efforts to ease conflict intensify with Biden’s visit in Israel. President Joe Biden will travel to Israel tomorrow, in a visit designed to signal US solidarity with its closest Middle East ally and help prevent the conflict from engulfing the region.
*Final Hours for Country Garden as it is on the brink of a possible offshore default. This could highlight the depth of the confidence crisis gripping the sector.
*USDIndex dipped to 105.95 and GBPUSD failed to cross 1.2200.
*Morgan Stanley’s Michael Wilson: A rally in the USA500 in the fourth quarter of 2023 “is more likely than not”.
*Stocks: Boosted by Fed Harker dovish comments, the AI euphoria and expectations that the FED will not raise interest rates further and speculation of a good earnings season.
*USOIL reversed to $85 and Gold dropped back to $1912 on the back of heightened risk aversion against the background of escalating tensions in the Middle East.
*vBTCUSD settled at 28200. A brief 10% surge in Bitcoin yesterday gave traders a glimpse into the possible impact of a looming the US SEC decision on whether to allow exchange-traded funds investing directly in the token.

*Today: Earnings reports from Goldman Sachs & Bank of America. US Retail Sales and Canadian CPI.

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Interesting Mover: GBPAUD (-0.56%) broke 1.9150, which coincides with breakout of ascending triangle and May-June Resistance. This could be a possible Head and Shoulder formation.

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.
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Date: 18th October 2023.

Market Update – October 18 – Data Fuels Higher-for-Longer Bets.

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Asian equities followed US stocks lower after strong retail data. Treasury yields continued to shoot higher, reaching new cycle peaks. Data revived fear of an even higher Fed rate stance for an even longer period of time. Implied Fed funds futures climbed and priced in a 53% chance for a hike by the end of January. However, the market still shows only a small, less than 20% chance, for a move on November 1 since many policymakers have advocated a wait-and-see stance for now. China’s economy grew 4.9% in the third quarter. A largely positive report that confirms that China’s economy has bottomed out, even if the recovery may not be quite as strong as some had hoped.

UK inflation was higher than anticipated, against expectations for a slight deceleration in the annual rate. Core inflation decelerated to 6.1% y/y, the lowest rate since January, but still a tad higher than markets had expected.

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*USDIndex has nudged down to 105.75 from a session high of 106.32.
*Stocks: NVIDIA closed at -4.68%, as the US is restricting the sale of chips that Nvidia designed specifically for the Chinese market, part of sweeping new updates to export curbs. Asian semiconductor stocks declined.
*USOIL broke $87 on renewed concerns in Middle East conflict.
*Gold rises to 4-week high, at 1942.70, as Israel-Hamas conflict drives demand for safe-haven assets. Israel’s military has bombarded Gaza with air strikes in anticipation of a widely expected ground invasion against Hamas.
*Today: US Building Permits & FOMC Waller & Harker Speeches.

Interesting Mover: UK100 retests the neckline of a possible inverse head and shoulder formation, at 7715-7740. A breakout could turn attention to the 7800 area.

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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.
HFblogNews
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Date: 19th October 2023.

Market Update – October 19 – Stock markets pressured, as bond yields rise.

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Stock markets have remained underwater through the Asian part of the session, and European as well as US futures are in the red, as markets eye developments in the Middle East. The Israel-Hamas war continued to shake the markets. The explosion at a Gaza hospital on Tuesday, and the failure of diplomatic efforts to bring all sides together for negotiations, added to the increasingly tense tone and the threat of a widening in the conflict.

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Treasury yields have backed up to 4.958% and the 10-year Bund yield is eyeing the 3% mark, as oil prices remain at high levels. The Fed’s Williams said interest rates will have to stay at restrictive levels “for some time” and the higher for longer message, not just from the Fed, but the BoE and ECB as well, is adding to pressure on stocks and bonds.

*USDIndex has lifted to 106.6, the VIX jumped 8.4% to 19.38.
*Stocks: Wall Street was in decline from the open and tumbled sharply into the close. Poor earnings and/or guidance added to the selling. The US100 closed with a -1.62% loss, while the US500 was -1.34% lower, and the US30 off -0.98%. In spite of the risk-off flows, Treasuries failed to benefit due to worries over the strength in the economy keeping inflation elevated. There are also fiscal policy concerns with the massive, and increasing, deficit and debt.
*USOIL prices are off highs, after the US suspended some sanctions on Venezuelan output, but the front end WTI contract is still at $86.80 per barrel, Brent over $91 per barrel.
*Gold rose 1.38% to $1963, as escalating tensions in the Middle East have boosted haven flows today and the precious metal benefited, while Treasuries and EGBs pared losses.
*Today: Fed Powell speech, US Jobless Claims and Philly Fed.

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Interesting Mover: EURAUD (+0.60%) breaking downchannel and inverse head and shoulder formation at 1.6650, indicating a potential return to 1.69 highs.

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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.
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Date: 23rd October 2023.

Market Update – October 23 – A suspiciously calm day.

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Asian markets sold off after a weaker close on Wall Street on Friday. Mainland China bourses underperformed as investors remain dissatisfied with official support measures and the lack of further rate cuts. Futures are under pressure across Europe and the US, amid signs that war jitters are easing as investors watch diplomatic efforts to contain the Israel-Hamas conflict. The 10-year Treasury yield has backed up 5.1 bp to 4.97%, the German 10-year rate is up 2.9 bp and the 10-year JGB yield jumped 2.6 bp. Oil and gold declined this morning driven by concerns regarding the sustained period of elevated interest rates and tensions in the Middle East.

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*USDIndex turns below 106, EURUSD extends to 1.0593. The VIX climbed to the highest since March and the banking stresses.
*Stocks: China’s tech gauge drifts to record lows since its inception more than three years ago, worn down by concerns over higher US rates’ impact on global liquidity and a weak export outlook. The US100 plunged -1.53% to 12,983, below 13k for the first time since May. The US30 was off -0.86%. A flight to quality boosted demand for Treasuries, especially after the dovish reading on Chair Powell’s comments.
*Earnings season ramps up this week, with a slew of big tech titans slated to report, i.e. Alphabet, Amazon, Meta and Microsoft.
*USOIL corrected to $86.80 per barrel and Gold recovered to $1981 as risk aversion recedes for now.
*BTCUSD saw its biggest weekly gain since June. Currently at 30540.

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Interesting Mover: US500 (-1.53%) to 4236, breaking below the 200-day moving average to add to the sour tone, with immediate support levels at 4200 and 4130.

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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.
HFblogNews
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Date: 24th October 2023.

Market Update – October 24.

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The sell off in Treasuries abated in the later part of Monday as low prices attracted buyers. Stock markets are also looking somewhat more stable and most Chinese stock gauges improved after the country’s sovereign wealth fund bought exchange traded funds to boost prices. Stock futures are higher across Europe and the US, although the UK100 is struggling. Early data releases in Europe were far from stellar, with German consumer confidence falling again, Eurozone Composite PMI falling to a 35 month low and jobless claims rising in the UK. Bonds have continued to find buyers and the 10-year Treasury yield has corrected a further -5.0 bp to 4.80%, while the 10-year Bund yield is down -5.3 bp at 2.82%, after the 10-year JGB corrected -2.5 bp.

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*USDIndex found some ground at 105.46, GBPUSD extended to 1.2287 well above PP and 1.22 lows.
*RBA Governor Michele Bullock: risks inflation would prove more stubborn than expected and that interest rates might have to rise further to bring it to heel.
*Stocks: Chinese stock gauges improved after the country’s sovereign wealth fund bought exchange traded funds to boost prices. Stock futures are slightly higher across Europe and the US, although the UK100 is struggling. The US500 remains though below the 200-day moving average.
*Oil & Gold face some near term selling pressure, as the subsequent drop in rates provide some support for Equities while the USDIndex slumped. The 5% yield level on the 10-year, the first time with that handle since 2007, helped stop the bleeding in the bond market.

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Interesting Mover: BTCUSD 12% higher breaching April 2022 highs and 35K. Crypto linked stocks followed as well, as speculation about the possibility of a bitcoin ETF approval drove enthusiasm.

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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.
HFblogNews
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Date: 25th October 2023.

Market Update – October 25 – Stocks in Red; Dollar recovers.

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Investors cheered the approval of a trillion-yuan sovereign issue as a harbinger of stimulus, while the Chinese government unveiled new support plans that include issuing additional sovereign debt and lifting the budget deficit ratio to finance fresh measures. Hong Kong reversed a pandemic-increase in stock trade levies and Chief Executive John Lee also announced a plan to halve taxes on home purchases for residents as well as non-residents. That helped to boost property stocks, even as troubled Chinese developer Country Garden Holdings Co. was deemed to be in default on a dollar bond for the first time.

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*Stock markets got a boost from fresh stimulus measures for China. The Hang Seng has pared some of its early gains, but is still up 1.0%, while the CSI300 has lifted 0.6% and the JPN225 0.7%.
*European stocks: In the red today weighed by a flurry of bank results and a mixed batch of US Big Tech earnings ahead of the ECB decision tomorrow.
*Microsoft, Alphabet, and Visa reported their earnings, which indicated strong performance with revenue and net income growth in their respective quarters.
*Alphabet (-6% in after-hours) sales beat damped by cloud computing miss.
*Microsoft’s (+4% in after-hours) unexpected rebound in Azure cloud growth lifted shares.
*Snap Inc. also reported revenue growth but experienced operating and net losses in the same period.
*Santander net profit rose 20% on record-high interest rates.
FED: PMIs kept a Fed rate hike through the January 31 FOMC decision on the table with a 40% probability.
*USDIndex: returned above 106, but held sideways.
*AUDUSD: Aussie Dollar jumped after hotter-than-expected inflation lifted rate hike forecasts for the RBA next month, which would come after four rate pauses.
*USOIL steadied today at key 4-month support trendline after a 3-day sharp decline, amid signs that the Israel-Hamas war will remain contained for the time being at least. $83 is a key hurdle, which could indicate a move to $80.
*Gold holds gains above $1970.
*Bitcoin is up 15% this week amid speculation that ETF applications from BlackRock and others will succeed and drive capital into the asset class.
*Today: Germany IFO business climate, BOC rate decision, US new home sales and IBM, Meta earnings.

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Interesting Mover: USDCAD broken the descending trendline from the draw tops of 1.3977 and 1.3861.


Andria Pichidi
Market Analyst
HFMarkets



Date: 26th October 2023.

Market Update – October 26.

Stocks and bonds were routed midweek. Tech shares were slammed after poor earnings news from Alphabet knocked its shares down nearly -10%, spreading gloom across the sector. A surge in Treasury yields added to the selloff. Meanwhile, ongoing signs of the strength in the economy after a pop in new home sales did not help. Instead, it added to expectations that a big jump in GDP on Thursday will keep a Fed rate hike in the picture later in the year or early 2024. That and fears over other big headwinds ahead added to a negative feedback loop that growth will slow sharply next year, further hurting investor sentiment.

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*Stock markets: The US100 crashed -2.43%, its worst slide since February. The US500 lost -1.43%, falling below the key 4200 level. The US30 slid -0.32%. The JPN225 underperformed and corrected -2.1, amid disappointing big tech earnings.
*Futures are lower across Europe and the US as markets wait for key central bank decisions, with the ECB kicking things off today.
*Alphabet shares logged their worst session since March 2020 overnight, dropping 9.5% as investors were disappointed with stalling growth in its cloud division.
*META fell 4% on Wednesday and another 3% in after-hours trade after publishing results showing better-than-expected revenue but a cloudy outlook, with expenses seen topping Wall Street estimates.
*USDJPY has broken back above the 150.00 mark, hitting 150.80 (highest since October) after finding courage to test the MoF again. The combination of expectations for more evidence of the strong US economy, including GDP, and the potential for another rate hike from the FOMC, are boosting the buck versus JPY, especially with still-fragile Japanese growth, along with rising expectations the BoJ will maintain its uber accommodative stance at its policy meeting next week.
*USDCAD rose to a high of 1.381 after the BOC’s announcement, the highest since early March and the SVB bank failure.
*USOIL recovered to $85 after a fall due to a rise in US crude stockpiles and a climb in US Dollar.
*Gold retests week’s resistance at $1988.
*Today: ECB meeting, US Durable Goods and Advanced GDP.

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Interesting Mover: USDIndex got legs after the BoC left policy unchanged and downgraded its GDP forecasts.

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.
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Date: 27th October 2023.

Market Update – October 27 – Investors poised for weekly profits.

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Stock market sentiment improved, and Asian equities bounced, alongside gains in European and US futures. Earnings reports helped tech stocks to stabilise, ahead of more key US data. The 10-year Treasury yield is up 3.2 bp at 4.88%, after strong GDP numbers yesterday. Eurozone bonds meanwhile continued to find buyers, after the ECB effectively confirmed yesterday that in the central scenario rates have peaked. The schedule for the re-investment of PEPP redemptions was also left untouched, which helped peripherals to outperform and spreads to come in. US economy expanded at its quickest pace in almost 2 years in the latest sign of the country’s economic resilience.

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*Stock markets: Wall Street close in red for a 2nd session. The US100 has cratered -2.05%. The US500 has dropped -1.28% and is -3.2% lower, with the US30 down -0.77% today and -1.9%. Over the past 5 sessions the indexes are posting declines of -4.75%, -3.2%, and -1.9%, respectively. Today, stock sentiment improved.
*Asian shares rose after strong Q3 sales at Amazon helped drive a recovery in investor sentiment following weak results from other technology groups earlier in the week.
*Amazon (+5.36% after hours) sees best profits since 2021.
*Meta (+0.95% after hours) ad revenue (+23%) fuels blowout Q3, $11.6 billion in profits.
*Elon Musk just lost $28 billion as Tesla (+1.25% after hours) took a beating.
*USDIndex has lost altitude slightly to 106.36 after climbing to 106.894, just shy of the 107.000 level from October 3 that was the highest since late 2022.
*USDJPY is holding the 150.00 level, continuing to test the MoF after finance minister Suzuki warned that authorities were closely watching currency moves “with a sense of urgency.”
*EURUSD lost ground on the ECB’s stance, trading at 1.0544, though inside the day’s 1.0574 to 1.0524 range.
*USDCAD remains above at 1.3810 after the BoC’s announcement .
*GOLD flat but close to 1998 (more than 2-months highs).
*USOIL recovered to $85 after a fall due to a rise in US crude stockpiles and a climb in the US Dollar.

Today: US PCE deflator, personal consumption, University of Michigan sentiment (October), Exxon, Chevron earnings.

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Interesting Mover: USDCHF broke descending channel and extends higher for a 4th day in a row.

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.
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Date: 30th October 2023.

Market Update – October 30.

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Stock markets struggled overnight. Mainland China bourses found buyers, but JPN225 and ASX declined, as markets watched developments in the Middle East. Risk sentiment improved during the start of the week as Israel seemed to be moving with more caution than anticipated, which helped to dampen concern about a widening of the conflict. Stock futures are higher across Europe and the US and the 10-year treasury yield has lifted 2.6 bp to 4.86%, with oil and gold also declining as haven flows ease. Treasuries were boosted also after the slowing in the PCE deflators underpinned expectations the FOMC is on hold. Short covering and a flight to safety extended the more bullish tone as Israel began its ground assault on Gaza.

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*Stock markets slightly higher today after Wall Street saw the US30 drop -1.12% with a hefty -6.7% plunge in the energy complex. The US500 declined another -0.48%, with the latter now in correction territory, -10.3% below the July 31 peak. The US100 bounced 0.38%. For the 5 days, the US30, US500, and US100 are down -2.14%, -2.53%, and -2.62%, respectively.
*Morgan Stanley’s Wilson: ‘‘Chances of a fourth-quarter rally have fallen considerably”,“Narrowing breadth, cautious factor leadership, falling earnings revisions and fading consumer and business confidence tell a different story than the consensus, which sees a rally into year-end.”
*Amazon’s pop by 6.8% and Intel’s jump by 9.3% helped soften the blows from big drops in Alphabet, Meta, and Tesla. Ford stumbled 12.2%.
*JGB yields climbed to fresh 10-year peaks today & USDJPY corrected to 149.22, as investors weighed the chances of a possible policy tweak in the BOJ’s monetary policy decision tomorrow. BOJ is widely expected to keep its short-term rate target at -0.1% and that target for long-term rates around 0% as set under its YCC policy.
*USDIndex is at 106.50, down on Friday’s close, but within the previous day’s range.
*GOLD spiked to $2006.40 on the escalation of the war. Currently settled lower at $1990. It’s likely to continue benefiting should tensions increase, alongside the Swiss franc and short-dated US government bonds.
*USOIL lower at $83.70.

Today: Central bank meetings: FED, BOE and BOJ. Earnings: Apple, Airbnb, McDonald’s, Moderna and Eli Lilly & Co among the many reporting this week.

Interesting Mover: USDCHF broke descending channel and extends higher for a 4th day in a row.

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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.
HFblogNews
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Date: 31st October 2023.

Market Update – October 31 – Stocks Down & Yen plummets.

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Asian stock markets traded mixed, with China bourses underperforming after weaker than expected PMI reports that signal ongoing weakness, especially in the manufacturing sector. Treasuries meanwhile found buyers and the US 10-year rate is down -5.7 bp at 4.84%, while the 10-year Bund yield has dropped -3.3 bp to 2.79%. Stock futures are higher across Europe, but down in the US.

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*China October PMIs missed expectations as factory orders contracts – CSI300 at -0.31%.
*USDJPY jumped to 150.24, after the Yen fell to 2-month lows as the BOJ made only minor changes to its policy settings, disappointing some in the market who had expected more. The central bank is keeping its cap on long-term yields at 1%, leaving its negative interest rate untouched and adding flexibility to its yield curve control.
*Financial stocks were the biggest winners, insurance and banking indexes rallying more than 2% each to lead gains among the 33 industry sectors. Higher long-term yields and a steeper yield curve improve the outlook for returns from lending and investing.
*Earnings beats from McDonald’s and SoFi provided support ahead of Apple and other key earnings this week.
*USDIndex dipped to 105.85 from a peak of 106.704 after the Nikkei report. Currently settled at 106.10.
**Antipodeans, which are often used as a liquid proxy for the Yuan, were further pressured by Chinese data, i.e. AUDUSD dipped initially to 0.6340.
*GOLD & USOIL: Unwinding of some of Friday’s haven demand saw gold fall about -0.5% to $1990 per oz, with a USOIL slide to $81.50 (Trendline & 200-DMA).

Today: Canadian GDP, EU preliminary GDP and CPI and NZ labor data- Earnings: AMC, BP and Pfizer.

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Interesting Mover: EURJPY (+1.05%) returns 5-day losses and keeps rising with attention turning to 162-162.40 (1998 highs & 2007-2008 highs).

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.
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Date: 6th November 2023.

Market Update – November 06 – The aftermaths of cooler jobs continue.

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Last week’s market reactions underscore the risks associated with central banks discussing data dependence without clarifying their medium-term framework or how they expect policy to impact the real economy.

Both stocks and bonds experienced rallies, boosted by the Treasury’s smaller-than-anticipated increase in longer-term debt auctions. However, Treasury yields dove with an eye-popping speed. The move underpinned a massive rally. The spectacular drop in rates last week saw the 2- and 10-year maturities recover a lot of their losses in October. The catalysts for the reversal were the FOMC’s less than hawkish stance, the cooler jobs report, and the moderation in Treasury supply increases. Geopolitical risks added a haven bid too.

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*FT reported: The markets are wrong to assume an economic slowdown and the peak of interest rates. “Higher for longer” for interest rates was always more of a media catchphrase than policy analysis. However, the Powell Federal Reserve may not start to reverse policy errors with rate cuts before the middle of next year, and reacting forcefully to every single data release between now and then is going to be exhausting.
*USDIndex tanked, however, falling to a low of 104.84 from the early high of 106.95.
*USDJPY at 149.50. BOJ Ueda indicated that policymakers might not have sufficient data by year-end to end negative interest rates, as they continue to monitor the possibility of a wage-inflation cycle.
*Stocks: Wall Street exploded higher on the drop in rates. For the week, the US100 was up 6.6%, with the US500 having its best week since November 2022. The US30 posted a 5.85%, gain, its best week since October 2022. The VIX was off -4.8% to 14.91. Asian equities rose today after weaker than expected US jobs data released last week eased concerns over rising interest rates.
*Ryanair sees record annual profit, first regular dividend as fares soar
*Shares in Chinese brokerages jumped after state media reported that the country’s securities regulator would support buyouts and mergers in the financial sector to help create investment banks.
*Gold and Oil were scuttled too. Gold fell to $ 1992.5 per oz, down from $2004.10, but was as soft as $1983.31. USOIL dropped to $80.10 per barrel, but finished with a -1.95% loss at $80.85 after trading as high as $83.6 overnight. Currently settled at $80.85.

Today: EU, France, Germany, Japan: S&P Global October services PMI, UK October construction PMI. Earnings: BioNTech Q3, Itochu H1, Ryanair H1.

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Interesting Mover: ETHUSD (+3%) jumped this morning breaking 2-week range and extending to $1910 area.

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.
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Date: 9th November 2023.

Market Update – November 09.

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It was another mixed day in the markets as players awaited fresh directional signals, including comments from Chair Powell later today. However, a new narrative is starting to build, one of slowing growth, with a recessionary tilt in Europe. The ongoing chant from the FOMC and ECB and BoE officials that more tightening might be necessary is adding to the angst over economic growth, alongside an effort to push back against speculation of early rate cuts, although it is increasingly clear that in the central scenario rates have peaked.

Concurrently, investors have been encouraged by this week’s auctions, that they have found buyers. And demand for higher yields have helped underscore a curve flattening trade with longer dated Treasuries outperforming. Falling Treasury yields helped launch an explosive rebound in stocks and lifted US government bonds from 16-year lows!

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*Asian stock markets lower on mixed signals of peak US rates and weak Chinese economy.
*China slipped back into consumer price index deflation in October, as data released showed persistently weak demand in the economy. The inflation data is likely to reinforce the weaker-than-expected PMI figures last week.
*10-year Treasury yield falls below 4.5%.
*USDIndex holds gains above 105. EURUSD under pressure as Eurozone retail sales declined.
*Stocks: The US100 and US500 benefited further from the drop in yields. The US100 posted a marginal 0.08% gain, with the US500 up 0.10%. But those were sufficient to give the US100 a 9th straight winning session, and an 8th straight for the S&P. The Dow dipped -0.12%.
*SoftBank adds to shareholder pain with unexpected $6bn loss.
*UK chip designer Arm’s shares fall after disappointing revenue forecast.
*Disney tops profit estimates.
*AstraZeneca raises yearly guidance amid strong sales of oncology treatments.
*Oil slipped to $74.88, but is currently in correction mode. Further pressure was added after the EIA issued the new outlook after Saudi Arabia and Russia extended voluntary production cuts of 1.3 million barrels per day through December as demand concerns weigh. US total petroleum consumption is now expected to fall by 300,000 bpd to 20.1 million bpd this year, compared with an estimated gain of 100,000 bpd in the October forecast.
*Gold at $1949.
*Bitcoin trades past $36,500 on possible ETF investment approval.
*Today: BOE chief economist Huw Pill, Fed Chair Jerome Powell & Fed President Raphael Bostic and Richmond speeches & US initial jobless claims.

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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.
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Date: 10th November 2023.

Market Update – November 10 – Multi-day Win Streak Came To An End.

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Wall Street’s multi-day win streak came to an abrupt end Thursday after one of the worst bond auctions on record sparked a sharp selloff in Treasuries, led by the long end, and reignited concerns over who will be buyers of US debt. Also weighing on the front end were comments from Fed Chair Powell and others who pushed back against expectations for rate cuts by June.

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UK: GDP stagnated in the third quarter of the year. Data for the whole quarter flagged a -4.2% contraction in business activity, and a -2.0% q/q decline in gross fixed capital formation. On top of this, while September numbers look positive, with manufacturing and construction output, survey data suggest that this bounce is not going to last, and as the BoE has admitted as well, the short term outlook is negative.

Fed: Chair Powell stressed that the FOMC will not hesitate to tighten rates further if appropriate. The same message has been sent by every other policymaker in recent sessions. That has been a very consistent message from the Fed and the Chair, whether the markets want to believe it or not. But Powell also reiterated the Fed will continue to move “carefully.” He is not confident yet that the policy is restrictive enough to hit the 2% goal.

*USDIndex stabilised and nudged up to 105.70 as Treasury yields move higher. EURUSD has corrected to 1.0660 from highs over 1.07 and Cable corrected to 1.2227. USDJPY has continued to move higher and is currently at 151.35, as markets test intervention threats.
*Stocks: Stocks tumbled into the close to finish at lows. This broke the 9-day win streak on the US100 and the 8-day streak on the US500. Stock markets remained under water during the Asian hours as well. *European futures are also in the red however US futures are already showing signs of stabilisation, as investors settle for signals that in the central scenario rates have peaked not just in the US.
*Oil slightly higher to 76 area but it is headed for a 3rd weekly drop.
*Gold reverted to 1955 after a recent rally yesterday to the 1970 area as bears have taken a swing to test the resistance at 1964. Central bank officials have been pushing back against expectations of early rate cuts and yields have lifted from recent lows. This is coupled with a stabilisation in the Dollar that has undermined the appeal of non-interest bearing bullion – at least for now.
*Today: ECB Lagarde & Michigan sentiment.

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Interesting Mover: GBPNZD – Down channel identified at 09-Nov-21:30. This pattern is still in the process of forming. Possible bullish price movement towards the resistance 2.0777 within the next 20 hours.

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.
HFblogNews
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Date: 13th November 2023.

Market Update – November 13 – Pivotal week ahead.

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It’s the day before a possible Government shutdown again, and a pretty pivotal week ahead for company reports and a round of significant inflation data. Asian stock markets traded mixed overnight. Wall Street closed with a strong rally last week, but with investors waiting for key US inflation numbers, sentiment was mixed.

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Late Friday, Moody’s trimmed the outlook on the US credit rating to negative from stable. The factors behind the change included the view that downside risks to the country’s fiscal strength have increased and may no longer be fully offset by the sovereign’s unique credit strengths. It did not help that Congress is again battling to prevent a partial government shutdown. Meanwhile, Moody’s also affirmed the AAA rating, noting it expects the US to “retain its exceptional economic strength” and it suggested “further positive growth surprises over the medium term could at least slow the deterioration in debt affordability.”

*USDIndex held at 2-day bottom, at 105.60.
*USDJPY: Hit new 1 year high, at 151.80 amid wider weakness in the Yen.
*Japanese wholesale inflation slowed below 1% for the first time in just over 2-1/2-years in October, a sign that cost push pressures that had been driving up prices for a wide range of goods were starting to fade. The slowdown in commodity-led inflation is in line with the Bank of Japan’s projections, and puts the spotlight on whether wages and household spending would increase enough to generate a demand-driven rise in consumer prices.
*Stocks: The Hang Seng outperformed, and European futures are also making headway, while US futures are in the red. Bonds declined across Asia, but Treasuries have pared overnight losses, and the US 10-year rate is down -1.2 bp at 4.64%, while the German 10-year yield is up 0.4 bp, and the Gilt yield down -0.1 bp.
*Oil gapped down on the open, reversing partial gains from Friday’s rally, but holds above $76. Any further renewed concerns over waning demand in the United States and China could dent market sentiment.
*Gold remains below $1,950 an ounce but is seeing a positive start to the week as investors react to Moody’s negative outlook on US debt but also as focus turns on US inflation for more cues on the Fed outlook.
*Palladium hovering near 5-year lows.

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Interesting Mover: CADJPY – Rising Wedge identified. This pattern is still in the process of forming. Possible bullish price movement towards the resistance 110.5324 within the next 3 days. Supported by Upward sloping Moving Average.

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.
HFblogNews
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Date: 14th November 2023.

Market Update – November 14.

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Stock markets are treading water in Europe, after a largely higher close across Asia. The ASX gained 0.8%, the Nikkei 0.3%, while China bourses traded mixed. In Europe GER40 and UK100 are up 0.1% and down -0.1% respectively, while US futures are posting slight gains, as markets wait for the key US inflation report later today.The DXY dollar index has traded in a relatively narrow range so far and is at 105.674.

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Late Friday, Moody’s trimmed the outlook on the US credit rating to negative from stable. The factors behind the change included the view that downside risks to the country’s fiscal strength have increased and may no longer be fully offset by the sovereign’s unique credit strengths. It did not help that Congress is again battling to prevent a partial government shutdown. Meanwhile, Moody’s also affirmed the AAA rating, noting it expects the US to “retain its exceptional economic strength” and it suggested “further positive growth surprises over the medium term could at least slow the deterioration in debt affordability.”

*Yen’s quick recovery from 151.91 on Monday probably reflected positioning in the options market
*UK wage growth remains high. Hopes that an easing labour market will limit upward pressure on wages were one of the reasons the BoE has stopped the tightening cycle, but today’s round of data will give those who voted for another hike something to argue with.
*USDJPY – 151.60 – Yen traders brace for risk of deeper drop on US Inflation – 33-year high?
*Treasury Yellen ”Beijing’s heavy financial support for certain industries could pose a threat to other nations” – ” downside risk to the chinese economic outlook that could affect . . . many Apec economies”
*Stocks have recovered from opening losses, with small gains registered on the US500 and US30. The former broke 4-month down channel to the upside.
*Asian & EU equities crept higher – GER40 +0.14%, JPN225 +0.34%.
*Treasuries have found a bid with yields a couple of basis points
*USOIL pick to 78.35 post an OPEC report stating Demand is robust, and “overblown negative sentiment” – The American Automobile Association said the US Thanksgiving travel period will be the busiest since 2019.
*Gold steady at 1945 after yesterday’s rally
*TODAY: German ZEW, IEA report, US CPI. Earnings: Home Depot today, Cisco Systems, Target on Wednesday, then Alibaba Group Holding
BABA and Walmart report on Thursday.
*US CPI preview: Headline inflation fell to 3.3% in October, down from 3.7 % in September.

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Biggest Mover: GBPUSD breached 1.2300 – GBP responded strongly post UK jobs data – impressive figures – employment rose (+54K), average weekly earnings up and revised higher.

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.
HFblogNews
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  • Joined: 28/05/2017
Date: 15th November 2023.

Market Update - November 15 - Technicals & FOMO adding to the moves.

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A strong close on Wall Street was followed by a broad rally across Asian markets. An unexpected slowdown in US inflation boosted bets that the Fed’s tightening cycle is over, which brought down yields and benefited equity markets. UK inflation numbers this morning also came in a tad below market consensus, which put pressure on the Pound as investors upped bets that the BoE is also done hiking rates. The markets also brought forward the timing of rate cuts with an 88% probability of a 25 bp easing in May, and 50 bps priced in by July with 100 bps in cuts in 2024. Short covering, FOMO, and the break of technicals added to the gains. The belly of the Treasury curve outperformed on the Fed implications.

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*US House voted for a short term funding bill, probably averting a partial government shutdown on Saturday (336 to 95).
*UK: CPI fell to 4.6% y/y from 6.7% y/y in the previous month. It was the lowest since October 2021 and less than half the recent peak of 11.1% y/y in October 2022. Output as well as input prices are already creeping up again and headline numbers for consumer prices remain far too high for the BoE’s liking.
*China: Data was mixed but mostly disappointing, reflecting ongoing sluggish to weak activity heading into the end of the year. Fixed property investment dropped to a -9.3% y/y rate, extending the -9.1% pace of contraction in September. It is disappointing but not surprising given the deepening troubles in that sector. It is the fastest pace of contraction since the -10.0% y/y in December. Residential property sales fell, new property construction & fixed asset investment were down.
*PBoC left its 1-year median lending rate unchanged at 2.50% for a fourth consecutive meeting. The Bank offered 1.45 tln yuan ($200 bln) in cash, the largest net injection since December 2016 as officials try to counter the weakness from the beleaguered property sector.
*EURUSD has soared 2 figures to 1.088, the best since August. It was helped earlier by a better than expected German ZEW investor confidence report.
*USDJPY slumped to 150.25 from the day’s peak of 151.78. It’s been above 150.00 since November 6 and may be able to hold the line there as the BoJ still shows little inclination of normalizing policy this year.
*Stocks surged with the US100 jumping 2.37%, while the US500 climbed 1.9 and the US30 surged 1.43%. Strength was broad based with every S&P sector closing in the green.
*USoil steadied and Gold edged higher to $1971.
*TODAY: US Retail Sales & PPI.

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Interesting Mover: USDIndex plunged the most in a year, dropping 2 big figures intraday to a low of 103.81 before closing at 104.05. Next support is at 102.7-103. area.

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.
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Market Update – November 17.

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Stock markets struggled, and the Hang Seng in particular remained under pressure amid lingering concern over China’s growth outlook and a slump in Alibaba Group Hlds. as the company scrapped a spinoff of its cloud business due to US chip export restrictions.

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European futures as well as most US futures are also finding buyers amid growing conviction that central bank rates have peaked in the US as well as Europe, which leaves markets looking for the timing of the first rate cut. Bonds are benefiting and yields continue to trend lower. European futures as well as most US futures are also finding buyers amid growing conviction that central bank rates have peaked in the US as well as Europe, which leaves markets looking for the timing of the first rate cut.

*US data once again, helped treasuries and add to the bullish sentiment that has prevailed most of the month.
*US Dollar slid higher to 104.36, up from recent lows, but still heading for a weekly loss, while Yields down as markets price in that Fed done with hiking.
*Euro strengthens after Tuesday’s significant 1.69% surge. Sterling (-0.23%) dive to 1.2375 post an unexpected decline in UK retail sales.
*AUDUSD & NZDUSD down for a 2nd consecutive day.
*Stocks: The JPN225 managed to dodge the trend and the wider MSCI Asia Pacific Index is still heading for a solid weekly gain. The US500 up +0.15%, US30 slipped -0.13% and the US100 0.07% higher.
*Alibaba Group Holding Ltd.’s (-9%) market value has slumped to only about half that of rival Tencent Holdings Ltd , as company had cancelled plans to spin off its cloud computing unit and paused a push to list its grocery chain.
*Walmart (-8% ) plunging, even after in-line earnings, as more cautionary outlook with D-word (deflation) rattling investors.
*Energy: USOil drop nearly 5% s below key $73 support level, leaving oil on course for a fourth weekly correction.
*Metals: XAUUSD spiked to 1988, set for a strong weekly close.

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Interesting Mover: USDIndex plunged the most in a year, dropping 2 big figures intraday to a low of 103.81 before closing at 104.05. Next support is at 102.7-103. area.

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.
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NASDAQ: Upcoming NVIDIA Earnings

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The US100 declined during this morning’s futures market and also ended Friday’s session lower. However, the instrument is not witnessing any significant downward pressure or momentum, but continues to honor the established price range. According to the Chicago Exchange the possibilities of another rate hike over the next year are virtually zero and 30% of experts believe the Federal Reserve will cut the Federal Fund Rate by 25 basis points in the first quarter of 2024. With the hiking cycle at an end, the market could experience ideal market conditions for a bullish market.

Another positive factor for the US100 and the stocks market in general is the decline in the Dollar and Bond yields. The US Dollar Index has declined by 3.20% this month and continued to decline further this morning. In addition to this, the US 10-Year Bond yield has dropped to its lowest since September 2023. If the Dollar and Bond yields continue to decline throughout the day, the possibility of investor sentiment increasing grows. As a result, the US100 could potentially rise and break the $15,871 resistance level.

Both Asian and European stocks traded higher at the futures market open. Again, if European and Asian investors show a high-risk appetite, something similar may be witnessed in the US.

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Over the next two days, the price of the US100 is likely to be influenced by two major events: the Federal Reserve Meeting Minutes and NVIDIA’s third quarterly earnings report of 2023. NVIDIA is the 5th most influential stock within the US100 and holds a weight of 4.58%. The company is again expected to make higher earnings and revenue compared to the previous quarters. The US100 will find significant support, if the earnings per share and revenue is higher than expected.

NVIDIA stocks have increased by 19% over the past month and 2% in the past week. The price movement indicates shareholders are confident ahead of the quarterly earnings release.

Currently the US100 remains above major trend lines and the Volume-Weighted Average Price. However, the instrument is trading within a retracement. Therefore, investors will be keen to see it reach $15,831 which will be enough momentum to obtain a potential buy signal on short-term charts.

GBPUSD

The Bank of England Deputy Governor Dave Ramsden advised markets that the central bank will keep interest rates high for at least 6 months to bring inflation back to its 2.0% target over the medium term. Analysts predict that the central bank will begin reducing borrowing costs in May or June 2024, with three 25 basis point adjustments planned by the end of next year, but for now its pressure on mortgage holders will continue. Currently, it is believed the Fed will cut before the BOE, which could support the Cable. According to a survey by consulting company Savanta, 58% of respondents have late payments now versus 49% the same month last year.

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The latest wave on the GBPUSD is a correcting wave aiming for the previous high at 1.24638. However, investors will be monitoring if the exchange rate finds support at this level similar to previous price action patterns.

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. 

Michalis Efthymiou
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.
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NASDAQ Break Resistance to New 23-Month High.

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The US100 broke through a major resistance level, rising to the highest level since January 2022. The instrument rose by 1.20% on Monday forming its fourth consecutive bullish candlestick on a weekly chart. The technology sector in particular witnessed a surge in demand due to its exposure to “growth stocks” which are benefiting from the end to the hiking cycle. In addition to this, the US100 is already pricing in a rate cut as early as March.

The 10 top stocks holding the highest “weight” within the index all rose in value on Monday and from the top 20 stocks only PepsiCo saw a slight decline (-0.14%). From the US100’s components 90% of the stocks ended the day higher. NVIDIA was the best-performing component, rising 2.26% as investors await the release of the third quarter earnings report scheduled for this evening. Analysts expect NVIDIA’s earnings per share to rise 20% compared to the previous quarter. Additionally, the company quarterly revenue is believed to have risen 16%. During this morning’s pre-market hours, the stocks have risen a further 0.30%.

The 10-year bond yields are trading 0.027% lower during this morning’s Asian session and the US Dollar Index is down 0.15%. Both bond yields and the weaker Dollar could potentially prompt investors to increase exposure in the stock market. However, traders should keep in mind investors may look to buy at the discounted price. This could potentially pressure the NASDAQ in the short-term.

Nonetheless, a key influential factor will be tonight’s Federal Reserve Meeting Minutes. The event is still likely to trigger volatility regardless of the fact that the Meeting Minutes is a “lagging” indicator. If the market senses a tone of dovishness or caution, traders will deem the meeting as indicating a potential cut. This is because inflation has declined by 0.5% since the meeting. Indication of a rate cut in the first quarter of 2024 could indicate the continuation of the bullish trend.

A concern for investors was the mini-crisis related to Sam Altman’s sacking as CEO of OpenAI on November 17th. However, Microsoft seems to be emerging as the victor as Mr Altman potentially may join as a Chief Executive of the new research lab. Microsoft stocks, which hold more than 10% of the NASDAQ, rose by 2.05% on Monday and a further 0.28% in pre-market open hours.

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GBPUSD

The Bank of England’s Governor yesterday evening advised markets that the regulator may again consider another interest rate hike. According to Bloomberg, almost all analysts are not taking the comment seriously, but see it as an indication that a rate cut in the UK may be further away than originally thought.

The Cable rose by 0.43% on Monday and is trading 0.30% higher during this morning’s Asian session. Early this afternoon the Governor of the Bank of England will again speak, but this time testifying in parliament. Investors will be closely scrutinizing comments looking for confirmation of yesterday’s point of view. The US Dollar Index is again declining this morning; however, investors will also be monitoring the Dollar’s reaction after this evening’s meeting minutes. The Pound on the other hand is experiencing “mixed” price movement against other currencies.

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Gold

The price of Gold ended the day slightly lower on Monday but saw a surge in buyers towards the end of the day’s sessions. This morning the price of Gold has risen a whopping 0.81% but has risen to a previous resistance level and price range. Therefore, investors will be monitoring if the asset forms a breakout and continues its bullish trend or if the asset moves into a strong price range which remains intact in the medium term.

According to the report of the US CFTC, last week the number of net speculative positions dropped to 155.4 thousand from 166.2 thousand a week earlier. Sellers are actively exiting the asset. Last week, buyers increased the number of contracts by 2.338 thousand, while the sellers closed 6.150 thousand contracts. This is signaling an increase in the upward dynamics but traders question whether Gold can maintain its momentum above $2,000.

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. 

Michalis Eftymiou
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.
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Date: 22nd November 2023.

Market Changes Stance After FOMC Meeting Minutes.

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EURUSD – Dollar Climbs After FOMC Meeting Minutes

The EURUSD ended the day lower for the first time after climbing for 3 consecutive days. The minutes of the November meeting of the US Federal Reserve supported the Dollar but also had factors which concerned Dollar buyers. Certain members of the Fed’s Committee stated they expect the rate to remain at a high level for “quite a long time”, while others would not give a clear indication of a cut and that rates would remain higher for longer. However, some economists view this as dovish considering inflation has now declined. In addition, the regulator does not exclude the possibility of further tightening of monetary conditions if the rate of decline in inflation continues to slow down. This is where the Dollar can potentially benefit. The question is whether the Fed will consider one last 0.25% hike if inflation refuses to drop below 3%.

Economists’ views have already slightly shifted since the Fed’s Meeting Minutes. According to the Chicago exchange there is now a 5% possibility of a hike in the next 3 months. Previously, the only possibility was a pause for the near-term future.

The US Dollar Index is trading 0.17% higher this morning and is increasing in value against all major currencies. However, the Euro is also increasing in value against all major competitors. Therefore, investors should be cautious about an attempted correction back to 1.09225 and 1.09607. The Euro is being supported by the European Central Bank’s stance on keeping interest rates high for “several more quarters”. The Governor of the Bank of France, François Villeroy de Galhau, said that interest rates in the eurozone had reached a plateau, where they were likely to remain. However, if the possibilities of another hike from the Fed rise, the Euro may struggle to hold onto gains.

If the price declines below 1.08995, sell signals are likely to materialize. Whereas, if the price increases above 1.09225, buy signals will gain momentum again. If the exchange rate had fallen a further 0.25%, the instrument would have broken recent support barriers.

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This afternoon investors will be monitoring 3 economic events: The US Unemployment Claims, Durable Goods Orders and Revised Consumer Sentiment. If the Unemployment claims remain stable or lower than expected, while the Goods Orders and UoM Sentiment remain higher, the Dollar could potentially gain momentum.

US100 – NASDAQ Continues Bullish Trend Pattern

The US100 declined 0.75% during yesterday’s trading session but continues to follow the traditional upward trend pattern. Currently the asset is trading above the 60-candlestick trend line and is hovering above neutral on Oscillators. Therefore, a further impulse wave is still possible. However, of the top 5 stocks holding the highest weight within the index, only 1 stock is trading higher during this morning’s pre-market hours (Microsoft +0.12%). Though investors will monitor if this changes when the US open nears.

According to market analysts, there is now a slightly higher possibility of one last interest rate hike, however, the possibility is very slim. According to Bloomberg, if inflation does not rise in December and unemployment remains around the 4% mark, a pause will remain almost a certain outcome. The bond market this morning is significantly declining, dropping 0.022%, which is positive for the US100. Both German and French indices are trading higher in the European market open which is also another positive indication for the US100.

NVIDIA’s Quarterly Earnings Report was significantly higher than expected which is positive “fundamentally”, but so far has not pushed the stock higher. The company’s Earnings Per Share were 19% higher and Revenue rose 25% from the previous quarter. However, the stock has dropped 1.74% in after hours trading. Investors will monitor if demand grows once today’s session opens.

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Interesting Mover: USDIndex plunged the most in a year, dropping 2 big figures intraday to a low of 103.81 before closing at 104.05. Next support is at 102.7-103. area.

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. 

Michalis Eftymiou
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.
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McDonald’s Looks to Double Chinese Presence Boosting the US30!

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US30

The best performing index on Wednesday was the US30 which rose to its highest price since August but is not yet at its peak like the US100. Due to it not breaking previous resistance points and trading at an all-time high, investors may be more comfortable investing in the US30 which is at a lower risk of being overbought.

The US30 was particularly supported by Goldman Sachs and McDonald’s stocks. Goldman Sachs rose 1.26% with investors continuing to purchase the discounted price as the investment banks recover from the 2021-2022 mini-crisis. Investors are also heavily purchasing McDonald’s stocks for similar reasons. McDonald’s stocks dropped 14% in August-October giving investors the opportunity to invest at a more competitive price.

Investors are particularly investing in McDonald’s as the company attempts to enter and control the Chinese Market, similar to Apple in the past. This week the company bought the shares in Chinese company Carlyle Group, bringing its total ownership to 48.0%. The Fund is a joint venture with CITIC Group Corporation Ltd., which owns 52.0% of the shares. The deal is a continuation of the plan to actively capture the Chinese market and increase the number of restaurants in the country. Over the past 5 years, the number of McDonald’s restaurants in China has doubled to 5,500 and it has become its second-largest market. The Board of Directors advises the company to aim to have more than 10,000 restaurants over the next 5 years.

McDonalds is the fifth most influential stock within the US30 and at times has been known as a defensive stock. The company has proven to thrive even during adverse market conditions and recessions.

Bond Yields and the US Dollar Index are trading lower this morning which is also deemed as a positive factor for the US30 and US equities. Investors will be monitoring the price performance of European indices once the European market opens in order to gauge global investor sentiment. However, investors should note that volumes and volatility remain low due to the US bank holiday.

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The US30 is trading within the “trend-zone” of regression channels and continues to form higher highs and higher lows. Therefore, the assets continue to formally trade within a bullish trend. If the instrument breaks above $35,333, buy signals are likely to materialize again.

EURGBP

The Euro has increased in value against all major currencies since the second half of yesterday. However, the price will be largely dependent on today’s Purchasing Managers Index, which is one of the most popular and one of the few “leading indicators”. Leading indicators are based on future conditions rather than previous data such as CPI, NFP and other government statistics.

Both French and German PMIs are expected to increase in value compared to the previous month but still remain within the “economic contraction” zone. However, should the two leading EU economies fail to surpass expectations, the Euro may be unable to hold onto gains. The UK will also release its Services and Manufacturing sector PMI 1 hour after their European partners. The UK’s data will similarly influence the price movement of the EURGBP.

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Medium-term technical analysis leans more towards a decline in the Euro against the Pound. However, the price will need to decline below 0.87167, for short-term signals to point towards an imminent decline.

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. 

Michalis Efthymiou
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.
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Month-end cautious approach.

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A wait-and-see stance is all but assured at the last policy meetings of 2023 for the key central banks, the FOMC, ECB, BoE, BoC, and BoJ. Disinflationary trends in the West have afforded central bankers the opportunity to move to the sidelines to observe. But we and they will have to monitor the data into the new year to assess the length of the “higher” stance, or to determine whether the next action will be up or down.

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The US30 is trading within the “trend-zone” of regression channels and continues to form higher highs and higher lows. Therefore, the assets continue to formally trade within a bullish trend. If the instrument breaks above $35,333, buy signals are likely to materialize again.

Meanwhile this week, the month’s end and the anticipation of key data releases, have generated some caution, with futures markets slightly lower globally.

Key Events of the Week: US and EU inflation data, Powell event, official China PMI & delayed Opec+ meeting. Meanwhile, ECB President Lagarde speaks at the EU Parliament later today.

*PBOC announced it would encourage financial institutions to support private companies, including tolerance for non-performing loans.
*Global stocks on 4-week rally: US500 futures eased 0.2% & US100 lost 0.4%. The US500 rallied for 4 weeks straight and is up 8.7% on the month so far, which would be its best performance since mid-2022.
*Approximately 55% of the S&P 500’s component shares are trading above their 200-DMA the highest share in nearly two months, according to LPL Financial.
*Asian shares slipped today, ahead of potentially market-moving inflation data from the US & EU and the OPEC+ meeting,prompting them to sell stocks to lock in profits. JPN225 fell 0.53% to close at 33,447.67. CSI300 fell another 0.8% and have missed out on all the global cheer with the market down 1.8% in November so far.
*Reuters: Morgan Stanley bought $300 million worth of protection against losses on some of its loans from Blackstone Group and other investors. The deal is one of several such credit risk transfer transactions that US banks are considering in the aftermath of a March crisis in the sector and as regulators look to increase capital they have to hold, bankers, lawyers and investors said.
*Treasury yields are slightly higher, but that hasn’t helped the US Dollar.
*USDIndex is at 2-month low, i.e. 103.30, EURUSD is up at 1.0952, not far from 4-month high of 1.0965 – Markets priced in 80 basis points of US easing next year, and around 82 basis points for the ECB.
*USDJPY pulled back to 148.77 due to the soft Dollar against a broadly firmer Yen.
*USOIL under pressure at $75 area & UKOIL fell to $80 ahead of Thursday’s meeting, as uncertainty regarding Opec outlook and failure to easy market worries of a deeper supply weighs on the energy markets.
*Reports suggest African oil producers are seeking higher caps for 2024, while Saudi Arabia may extend its additional 1 million bpd voluntary production cut, which is due to expire at the end of December.
*Key Mover: Gold climbs to 6-month high in choppy trade, hit $2,017.82. Spot gold may extend gains into $2,027-$2,030.

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Medium-term technical analysis leans more towards a decline in the Euro against the Pound. However, the price will need to decline below 0.87167, for short-term signals to point towards an imminent decline.

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.
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Market Recap: Bonds up; Stocks weaker; DXY set for the worst month in a year.

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Market Trends:

*Asian stocks fell in response to declines in US and European markets, triggered by hawkish signals from central banks on interest rates.
*Bonds extended gains amid growing conviction that central banks in Europe and the US have concluded rate hikes, with expectations of potential rate cuts next year.
*The US Dollar hovered near three-month lows as investors believed the Federal Reserve had completed its rate-hike cycle, with attention focused on an upcoming crucial inflation report.

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Central Bank Developments:

*ECB President Lagarde noted that the central bank’s efforts to control price growth are ongoing, citing strong wage growth and an uncertain outlook despite easing inflation pressures in the eurozone.
*CME’s FedWatch indicated a 95% likelihood that the US central bank will maintain unchanged interest rates next month, but there is a growing possibility of a rate cut gaining traction in mid-2024.

Global Economic Indicators:

*Australia experienced an unexpected decline in retail sales for October, with consumers cutting spending on everything except food.
*Germany saw a slight improvement in consumer sentiment as the Christmas month approached, but it remained at a very low level, attributed to high inflation, indicating no signs of a sustainable recovery in Europe’s largest economy.

Financial Markets Performance:

*Weaker-than-expected home sales and the Dallas Fed manufacturing index weighed on Treasury yields, with the 10-year yield at 4.396%.
*JPN225 closed 0.12% lower at 33,408.39, despite being up 8% for the month, failing to surpass its highest closing level in three decades reached on July 3 in recent attempts.
*JPY gained momentum as the USDIndex hit a three-month low on weaker-than-expected data, while EURUSD dipped to 1.0937, breaching the bottom of a one-week channel with the next support at 1.0925.
*AUD rose to 0.6630, reaching a four-month high, while NZD touched a seven-week high of 0.6114.
*USOIL eased 0.13% to $74.74, and UKOIL dropped below $80 as oil prices fluctuated ahead of an OPEC+ meeting later in the week.
*Gold reached $2,013.80, hitting a fresh six-month peak of $2,017.89 earlier in the session.

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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.

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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.
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Date: 29th November 2023.

Market Recap: Dollar slumped; Gold & Oil supported on rising Fed rate cut bets.

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Economic Indicators & Central Banks:

*US consumer confidence improved better than expected, but it follows big downward revisions to October. The consumer confidence rise joins a Michigan sentiment decline to a 6-month low. All the surveys face headwinds from elevated mortgage rates, tight credit conditions, and fears about developments in the Middle East.
*Fed’s Waller (the most hawkish Fed) & Goolsbee are “increasingly confident” that policy is well positioned to slow the economy and get inflation back to 2%. BUT Fed Governor Bowman reiterated she favors more rate hikes if the progress on inflation stalls.
*The RBNZ warned this morning that further policy tightening might be needed if price pressures did not ease.
*German import prices unexpectedly rose 0.3% m/m in October. However, annual import price inflation seems to have bottomed out in August and the trend of ever deeper deflation has been reversed now.

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Market Trends

*Fed funds futures rallied on the dovish read. Implied rates popped to suggest about a 70% chance for a rate cut as soon as the May 1 policy meeting, versus about a 55% risk a week ago. However, a significant downturn in growth could spark the more aggressive easing posture as the market is reflecting.
*Treasury bulls took less than hawkish Fedspeak and ran with it. Short term bond yields dropped sharply, to the lowest since July and August.
*Stocks in Asia and US are fractionally higher after a mixed trade most of the session, as Treasury yields and USD hit multi-month lows. JPN225 fell at 33,321 as investors continue their pause in buying.

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Financial Markets Performance:

*The US Dollar bears chased the Buck lower. USDIndex fell to 102.36, the weakest since August. – Its worst monthly performance in a year!
*EURUSD broke 61.8% Fib level on July-September downleg, breaching 1.1016. Cable is at 1.2730.
*USDZAR extended to 18.51 lows, JPY jumped to its strongest point since mid-September at 146.66. The NZD surged more than 1% to July’s high of 0.6207.
*USOIL & Gold climbed to $77 from $74 lows, and to $2051.93 per ounce, the highest since May, respectively. The weaker US Dollar, global uncertainties, and rising Fed rate cut bets supported Gold and Oil.

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.
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Date: 30th November 2023.

Market Recap: Stocks loosing their steam; Oil rallies ahead of OPEC+.

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Economic Indicators & Central Banks:

*The US GDP report implied a Q3 productivity growth boost to a robust 5.1% from 4.7%, after an unrevised 3.6% Q2 clip. There was a Q3 growth rate trimming for the hours-worked index to 1.0% from 1.1% due to weakness in the hours-worked data in the last employment report.
*Fed rate cut bets deepened thanks to the lack of pushback from most Fed officials, and expectations for this pivot continued to drive the markets. There was no impact from the 5.2% GDP print.
*China’s manufacturing sector contracting for a 2nd consecutive month in November and performing worse than forecast indicates weakening momentum despite increasing government efforts to boost growth.
*EU: French inflation dropped sharply & German retail sales bounced in October. It was the first real improvement since May, which is likely also related to the moderation in inflation.

Market Trends

*Treasury yields richened further, and especially at the front end. Fed funds futures brought forward an easing in the policy rate to May from June. The curve dis-inverted to -38 bps on the bull steepener.
*Bonds are set to post the best month ever. Concurrently, the rate cut frenzy has boosted EGBs too, sending the global index to its best since 2008 the financial crisis.
*Stocks traded cautiously and lost steam into the close, as several Big Tech companies offset gains. The US30 gained 0.04%, while the US100 dropped -0.16%, with the US500 off -0.09%. Asian stocks were mixed as well, with CSI300 adding 0.5%.
*Meta fell 2%, Alphabet gave up 1.6% and Microsoft dropped 1%. General Motors surged 9.4% after the company announced a big stock buyback.
*The VIX was up 2.2% to 12.97, recovering from the 12.46 low from last week that had not been challenged since January 2020.

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Financial Markets Performance:

*The US Dollar steadied at 102.80, with a 102 handle for a 3rd straight day. It’s slumped from the October 3 peak of 107.00.
*EURUSD reversed below 61.8% Fib level on July-September downleg, at 1.0945. It remains well above 1.09.
*USDJPY retests a potential break of its 146.70 low for a 2nd day in a row, USDCAD extends below 1.36 confirming an ascending head and shoulders formation in the daily chart.
*Gold edged up 0.16% to $2044.18 per ounce.
*USOIL climbed 2% to $78.79 per barrel ahead of the OPEC+ meeting. The delayed meeting of the expanded OPEC+ group will be held online.
*Bitcoin still hovering near the $38,000-mark.

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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.
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Date: 1st December 2023.

Market Recap: A November to remember!

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A November to remember. The markets were all over the place to end the month. While the FOMC is still the focal point, repositioning after some big moves on the month and positioning into year-end were the main drivers. The FOMC has reached peak rates, according to Fed funds futures, and rate cuts are the next action, now fully priced for May.

Economic Indicators & Central Banks:

*PCE: Data has been mixed but generally reflect progress on the FOMC’s inflation goal and has convinced markets that rate cuts are underway — core PCE fell to 3.5% y/y from 3.7% y/y previously, but is still well above the 2% target. US pending home sales declined.
*OPEC+ announced an additional 1 mln barrels in cuts. The cuts will be announced individually by members, according to delegates. The Saudi Arabia is expected to extend its down voluntary cut of 1 million barrels.

Market Trends

*Best month in 40 years! Treasuries rallied on FOMC expectations. But profit taking ahead of comments from Chair Powell today unwound some of the froth. The curve steepened to -36 bps versus -50 bps Monday.
*Stocks: Wall Street befittingly finished mixed. The US30 rallied 8.9% with the US100 up 10.7%. For the month the US30 was up 8.8%, its second best November since 1980, according to Bloomberg.
*For the S&P, 10 of the 11 sectors are higher on the month.
*Asia Stock markets were under pressure overnight, with the Hang Seng underperforming, despite a better than expected China Caixin manufacturing PMI that managed to lift above the 50 point no change mark again.

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Financial Markets Performance:

*The USDIndex finished at 103.40 recovering from the slide to the 102.36 the prior two days after weaker than expected European and Chinese data.
*EURUSD broke below 1.09, indicating a possible reversal of the 2-month rally, however 1.0830-1.0860 remains the key support area.
*USDJPY rebounds to 148.30, USDCAD dips further into 1-year triangle with immediate support at 1.35, while GBPUSD settles above 1.26 despite US Dollar appreciation.
*Gold slipped about -0.4% to the $2036 area on the rise in yields and some fading of haven trades.
*USOIL slumped 2.9% to $75.59 after spiking 2.2% to $79.60 after OPEC+ announced a further production cut.
*Key Mover: EURCHF down by 1.26%. Next Support levels: 0.95, 0.9440 and 0.9375.

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.
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Date: 4th December 2023.

Market Recap: Cryptos Rise; Oil & Gold Down; Stocks Steady.

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The holidays got a little cheerier amid signs that the major central banks have come to the end of their aggressive tightening postures. Despite protestations from policymakers to the contrary, the markets are now building in the start of rate cuts in 1H 2024. Those hopes underpinned one of the best November’s on record for bonds and stocks, and helped boost gold to a new record high!

Economic Indicators & Central Banks:

*The market sentiment remains uncertain, as Chair Powell did not offer much pushback to expectations that rate cuts are the next move on the agenda or that there was a massive easing in financial conditions in November.
*The US November payrolls report on Friday is crucial for market expectations of rate cuts.
*Analysts anticipate a soft landing for the US economy, with positive but below-potential growth in the next six quarters.
*BofA notes a positive outlook for emerging markets, which are experiencing historically positive returns after the last Fed hike.

Market Trends

*Fed Chair Powell reminded investors the bank is not in a hurry to cut rates and yields are off Friday’s lows.
*Treasuries and Gold declined from session highs. Yields rose across various tenors in Treasuries, with the 10-year trading around 4.23%.
*Asian shares showed mixed results, with gains in Australian and Korean stocks, while Japanese equities fell. JPN225 closed down 0.6% at 33,231.27 after earlier sliding as much as 1.22%. European and US stock futures remained stable.

Financial Markets Performance:

*The USDIndex nudged higher with Treasury yields and is at 103.43.
*EURUSD broke below 1.09, indicating a possible reversal of the 2-month rally, however 1.0820-1.0865 remains the key support area.
*USDJPY dipped to 146.22, reaching a nearly 3-month high against the US Dollar. Currently though, it has reverted some gains, as speculation about an eventual unwinding of the Bank of Japan’s policies added pressure on the Yen.
*Gold down from all-time highs above $2,100, benefiting from lower yields.
*Oil prices faced challenges due to doubts about OPEC+ maintaining output cuts, high US production, and increasing rig counts. UKOIL eased to $78.37 a barrel, while USOIL fell to $73.63. Geopolitical tensions in the Middle East added to market considerations.
*Bitcoin surpassed $41,000, reaching its highest level since April 2022. Bitcoin’s rebound continued, reaching $41,746, with expectations of interest-rate cuts and potential ETF approvals. Smaller tokens like Ether and Dogecoin also experienced gains.
*Key Mover: EURJPY down by 1.92%. Next Support levels: 159 and 158.50.

This week:

*Investors are closely watching economic indicators, including Australian growth, Chinese inflation, and US non-farm payrolls data.
*The Reserve Bank of Australia is expected to maintain a hawkish stance.

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.
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Date: 5th December 2023.

Market Recap: Fears of overbought condition prevail!

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The markets giveth and the market taketh away. Red proliferated the screens as profit taking unwound some of Friday’s aggressive rallies. There were no real catalysts to the move, just fears that markets were overbought and rate cut bets too optimistic.

Economic Indicators & Central Banks:

*RBA held the cash rate steady at 4.35% at the final meeting of the year. The board, flagged, however, that progress in bringing inflation back to target was slower than anticipated. They noted uncertainty over the global outlook due to the Chinese economy and overseas conflicts.
*Aussie: Markets are still pricing in some risk of further tightening from the RBA, and the inflation numbers for the last quarter of the year will likely be decisive for the February 6 meeting.
*China: Services PMI expanded at a quicker pace in November, which was the highest in three months, as demand strengthened in Asia’s largest economy.

Market Trends

*Treasury yields closed just off session highs.
*Asia stock markets sold off, following on from a weaker close on Wall Street. China bourses underperformed, despite a stronger Services PMI.
*Stocks: Wall Street was underwater from the get-go and closed with modest declines. The US100 slumped -0.84% on weakness in big tech, including Meta on news CEO Zuckerberg was selling shares. Microsoft, Alphabet, and Nvidia also declined. Alaska Air dropped after announcing its acquisition of Hawaiian Air. US500 was off -0.54% and the US30 was down -0.11%.

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Financial Markets Performance:

*The USDIndex was one of the few gainers on the day, rebounding to 103.642 (intraday peak of 103.852) following Friday’s drop to 103.268.
*EURUSD declined to 1.08, indicating apotential retest of 1.0760, as the buck is firmer versus all its G10 peers as rate cut speculation is keeping a lid on EUR and GBP.
*USDJPY steady above 146.50.
*Gold has corrected somewhat as the US Dollar found a footing and Treasury yields lifted. It is currently steady at $2030 – $2040 area.
*Oil remained under pressure as USOIL is currently trading below $74 as markets remain distinctly unimpressed by the voluntary output cuts announced by OPEC+. With growth data suggesting subdued demand that is leaving fears of a sizeable supply overhang through 2024 on the table.
*Bitcoin extended higher and breached $42,337 for the first time since early 2022 (roughly 153% higher this year).
*Key Mover: Copper (-0.95%), with next Support at 3.75.

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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.
HFblogNews
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Date: 6th December 2023.

Market Recap: The wait is on for Friday’s jobs report!

Economic Indicators & Central Banks:

*Treasury yields extended lower after the larger than expected decline in job openings. The data added to beliefs that the labor market is cooling and that the FOMC is done hiking, with the next move a cut in the coming months.
*Fed funds futures are reflecting about a 65% bet for a 25 bp March cut, with May fully priced in and then some.
*German manufacturing orders plunged. Orders corrected -4.6% in the three months to October, which is flagging recession risks and ongoing weakness even going into 2024.

Market Trends

*Asian stock markets rallied, with Japanese markets leading the way. Futures are also higher across Europe and the US as markets buy in to hopes that major central banks have reached peak rates and will start to cut interest rates next year.
*GER40 is at all-time highs supported by slowing inflation and the prospect of lower interest rates next year boosting the country’s biggest stocks. It gained 8.8 % over the past month during a stock market rally on both sides of the Atlantic underpinned by growing hopes that major central banks have finished raising rates.

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Financial Markets Performance:

*The USDIndex is to the upside for a 5th day, retesting the 104 level, as it found relative firmness as the markets priced in a more aggressive easing stance from the ECB than the Fed.
*EURUSD below 1.08, extending its 1-week dip, post a sharp correction in German manufacturing orders that added to concerns that growth is faltering. This is coupled with weaker than expected inflation data for November that will add to pressure on the ECB ahead of next week’s council meeting.
*Gold & Oil: The strength in the US Dollar weighed on commodities with USOIL dropping -0.88% to $72.10 and Gold falling -0.48% lower to $2009.97. Profit taking has knocked bullion from the record high of $2072.22 on December 1.
*Bitcoin hit 2022 highs at 44429. Currently it is traded at 43395 in an overbought condition, indicating a near term consolidation.

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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.
HFblogNews
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  • Joined: 28/05/2017
Date: 7th December 2023.

Oil Hits Lowest Levels Since June 2023, Moody Downward China.

Crude Oil – Oil Declines for a Seventh Consecutive Week

The price of Crude Oil has declined to its lowest level since June 2023, marking an almost six-month low. The price of Oil has now declined for a seventh consecutive week. Economists note the decline is also improving the prospects of the stock market. Stocks are taking advantage of the lower oil prices which may trigger lower inflation and a softer monetary policy. This week alone the price has declined by 6.5%, but what is driving the bearish trend?

The main two reasons the market is witnessing a lack of demand in the oil market is China’s latest poor economic data and the latest OPEC meeting. China’s manufacturing and services PMI read significantly lower than expectations and this week Japan also announced weaker data. China is the largest importer of Oil while Japan is the fourth largest. Therefore, poor economic data in these regions are likely to trigger downward pressure for Crude Oil.

To make matters worse for the Oil market, Moody, the credit rating industry, lowered the economic outlook for China from “stable” to “negative”. Since the downgrade, economists have advised the Chinese economy is not likely to witness a recession, but more likely stagnation. OPEC, on the other hand, were unable to come to an agreement on the production levels. Again, this had a negative effect on Crude Oil prices. Lastly, yesterday’s report from the American Petroleum Institute showed inventories rose by 9.594M barrels instead of a decline of 2.267M barrels. The inventories show higher than expected supply.

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In terms of technical analysis, the price of Oil is trading within a downward trend and is currently hovering within a retracement. The retracement is currently measuring 1% in line with previous pullbacks and is currently showing no major upward momentum. Therefore, most indicators continue to signal a downward trend. If the price breaks below $69.69 and $69.59, sell signals will again potentially become active.

USA100 – Only 20% of Stocks Held onto Gains!

The USA100 fell by 0.57% during yesterday’s session and was the weakest of the top 3 most popular US indices. When looking at the NASADAQ’s top ten most influential stocks, only 1 stock stayed in the “green”, this was Tesla which only slightly rose by 0.27%. Out of the top 20 most influential stocks, only 20% retained their value. The stock which saw the largest decline was NVIDIA which dropped 2.28%.

However, fundamental factors continue to point towards a positive outlook for the US tech sector. This morning the US Dollar Index is declining, 52% of market participants believe the Fed will cut rates in March 2024 and most of the components witnessed positive earnings data. The only slight concern for investors is bond yields which have risen over the past 24 hours. However, bond yields continue to remain significantly lower than in the previous months, which is positive for the stock market.

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Technical analysts have pointed out that the index is not within a short-term downward trend and each time the USA100 declines, buyers re-enter the following day to take advantage of the lower price. Investors will again be monitoring if the index rebounds today. The stronger performer in the pre-market hours is Alphabet which has risen 0.82%. Alphabet stocks make up almost 6% of the overall index. Investors are currently balancing the negative effect of a weaker Chinese economy and the positive effect of a rate cut as early as March 2024. If the price increases above $15,873, the USA100 will again experience buy signals. Buy signals can be seen from the regression channel and crossovers.

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. 

Michalis Efthymiou
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.
HFblogNews
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Date 11th December 2023.

US Economy Remains Strong, But All Eyes on Tomorrow’s Inflation!

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December has not failed to surprise investors with the US employment sector outperforming expectations and sending stocks soaring. Additionally, across the Pacific the World’s second largest economy also made public interesting inflation data which is in the spotlight just as much as the US NFP. Both Chinese Consumer and Producer inflation fell below expectations. Consumer prices declined at their fastest pace in more than 3 years. China is now witnessing deflation measuring -0.5% which has not been seen since the banking crisis if we exclude COVID-19.

Last week, Moody’s downgraded China’s credit rating. Moody’s advises the costs of supporting failing local governments, state-owned companies and controlling the property crisis would pressure the economy. But the question is, what does this mean for the US and US Indices?

USA100 – Inflation To Be The Next Price Driver

The USA100 rose during the US trading session by 0.40% on Friday and by the close of day was almost 0.50% higher. The first reaction to the Non-Farm-Payroll data was negative and the instrument fell 0.38% before buyers re-entered the market. During this morning’s Asian session, the index is trading 0.10% lower but is so far forming nothing more than a retracement. Let’s discuss what the employment data means for the index as well as weak Chinese inflation.

The NFP confirms the US has 199,000 more employed individuals compared to the previous month, which is 15,000 higher than expected. However, the main shocks came from the Average Hourly Earnings and the Unemployment Rate. The Unemployment Rate declined from 3.9% to 3.7% which is considerably low considering the restrictive monetary policy. The Hourly Earnings doubled from 0.2% to 0.4%. The employment data has both positives and negatives for the stock market. However, in the past 2 years, higher employment data has meant a poorer stock market, which was not the case on Friday.

The better-than-expected employment data indicates an imbalance within the employment sector which triggered higher wages. These factors can contribute to higher consumer demand, higher investor demand, and a better performing economy. All these factors are positive for the stock market in general. However, there is a negative side also. The positive data has lowered the possibility of a nearer interest rate cut. Previously, market participants predicted a “cut” to come as early as March, but the employment data again points to “higher for longer”. The CME FedWatch Tool now has virtually no possibility of a cut in December, January and February, and now indicates a “pivot” in May 2024.

The question is, is the USA100 overpriced considering the new reality? This is something which will become clearer during Wednesday evening’s Federal Reserve Rate Decision and Press Conference. If the Fed President, Jerome Powell, suddenly becomes more hawkish and pushes a pivot further in the future, stocks can correct. Technical analysts also advise the stock market may fall into a wider price range until further clarity from the Fed.

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Technical analysis shows the USA100 trading within a short-term bullish trend, but also at a significant psychological price. The asset has failed to break above this level on the past four attempts as investors fear the asset is trading above its intrinsic price. Therefore, the USA100 will require a stronger price driver. This potentially could come from tomorrow’s Consumer Price Index (inflation rate). If the CPI reads lower than 3.1%, ideally 2.9% or lower, the index could experience another surge in investor demand. However, if inflation reads 3.1% or remains at 3.2%, investors may be discouraged.

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. 

Michalis Efthymiou
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.
HFblogNews
  • Posts: 1534
  • Joined: 28/05/2017
Date 12th December 2023.

Global Stocks Rise Ahead of Today’s US Inflation Announcement!

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The USA100 is increasing in value for a seventh consecutive week and continues to renew its highs for 2023! The USA100 is only 0.65% lower from fully regaining all of the “lost ground” from 2022. The asset saw a sharp decline after the Ukraine-Russia conflict and the largest rate hiking cycle seen since 2004. However, all eyes are on today’s US inflation and tomorrow’s Central Bank press conference. Therefore, analysts do not expect volatility to cool off any time soon!

USA100

From the 100 stocks in the USA100, only 11 ended the day lower, while 89 stocks were in the green throughout the day. Broadcom, which is the seventh most influential stock, witnessed the largest gain, increasing by 9.00%. Broadcom continues to be one of the best performing stocks due to the latest company earnings which beat expectations. Additionally, the stock is supported by the company advising revenue from AI would double to $8 billion in 2024. The board of directors also advised the growth in AI would counterbalance the current challenges in the semiconductor market.

However, even though the majority of stocks within the USA100 rose in value on Monday, the top five most influential stocks declined. This includes Apple, Microsoft, Alphabet, Amazon, and NVIDIA. Of these stocks, the stocks which saw the largest decline was NVIDIA, dropping 1.85%. However, investors should note that Asian and European stocks are higher this morning, which continues to point to positive investor sentiment towards the asset class.

Today’s price movement will largely depend on the US inflation data. On Monday, investors priced in a weaker than expected Consumer Price Index. This is most probably due to deflation in China and lower producer prices which can also influence global inflation. This is due to the nature of the Chinese economy. For the USA100 to potentially continue its upward trend to previous highs, the CPI will need to read 3.00%. However, to see a stronger trend, investors will need clarity that a rate cut is likely by March 2024. For such an outcome, market participants may need to see a sharper decline in inflation such as a decline from 3.2% to 2.9%.

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USDCHF

The USDCHF is trading higher since the opening of the European session, but remains lower than the open price. The Dollar Index is trading 0.22% lower and bond yields are 0.044% lower, which indicates the USDCHF may also come under further pressure. However, the price of the Dollar will largely be determined by today’s consumer inflation. In addition to this, tomorrow’s producer inflation and the Fed’s press conference will also create volatility.

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The US Federal Reserve meeting will take place on Wednesday, and now, analysts are almost confident that the current interest rate will remain at 5.50%. However, investors and market participants continue to price in an earlier “pivot”. The central bank may again point out the possibility of maintaining high borrowing costs for a long time. Experts have revised their forecasts regarding the timing of an interest rate cut and are predicting May 2024, although previously, most estimated easing would begin in the first quarter.

Representatives of the Swiss National Bank will be convening a meeting on Thursday, and traders expect interest rates to remain at 1.70%. The head of the SNB, Mr Jordan, may indicate abandoning further tightening of monetary conditions which may pressure the Swiss Franc.

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.

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Michalis Efthymiou
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.
HFblogNews
  • Posts: 1534
  • Joined: 28/05/2017
Date 13th December 2023.

The UK Economy Unexpectedly Contracts! US Inflation Remains Stubborn.

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Trading Leveraged Products is risky

The USA100 continues to be the best performing index, increasing by 0.90% and more than 50% in 2023 in total. The main price driver was the US inflation data which more or less read as per expectations. The US inflation rate has declined from 3.2% to 3.1% but the core inflation rate remains stubbornly high. Core Inflation has remained at 4.00% for a second consecutive month. According to analysts, inflation is not low enough to prompt a pivot in the first quarter of 2024. However, investors are increasing exposure to the stock market as a “soft landing” becomes more likely.

US30 Remains in the “Trend Zone” of Technical Analysis!

Even though the best-performing asset by far is the USA100, the asset experiencing the best performance in terms of components is the US30. The USA100 saw 68% of its stocks increase in value whereas 73% of the US30 appreciated. Investors should also note that of the top 20 influential assets within the US30, only 1 stock declined. Chevron fell by 1.28%, and the best performing stock was Salesforce, rising 1.73%. In comparison, of the top 20 influential stocks within the USA100, 5 stocks declined.

As mentioned above, inflation read as most analysts were expecting, however it did not show any real signs of easing significantly over the next 2-3 months. The Federal Reserve policy makers will be able to discuss monetary policy issues tonight at 18:00 GMT. Journalists will without doubt ask Chairman Jerome Powell if he believes interest rates will be cut in the first half of the year. Without a dovish tone or a clear indication of a cut, the stock market may struggle to maintain momentum. However, most buyers are now investing, not due to a dovish policy, but due to the resilient economy and the likelihood of a soft landing.

One of the few stocks within the Dow Jones which have struggled is Procter and Gamble (holds a weight of 2.64%). Analysts expect the company’s revenue and earnings per share to remain stable, but shareholders have taken badly to the company decision to withdraw from certain countries where the Dollar is now too expensive. For example, the products will be withdrawn from Nigeria and Argentina. Furthermore, Berkshire Hathaway has also advised they have recently sold their shares in the company. Warren Buffet explained that the consumer goods market is recovering too slowly after the pandemic.

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In terms of Technical Analysis, the price of the US30 is forming a downward facing retracement but is not showing any signs of strong momentum. Due to the weak momentum, and also bullish impulse waves forming, the instrument continues to remain in bullish territory. The price also continues to trade within the upper side of the Bollinger Bands and Regression Channels, again indicating bullish price movement. However, some traders may be concerned about the high price. These individuals may wait for a lower price or a larger retracement before speculating an increase.

The price throughout the day will be influenced by the Producer Price Index, which looks at inflation at the producer level. If the PPI reads lower than expected (0.2%), the Dow Jones could obtain short-term support. However, the main event will be tonight’s Federal Reserve Press Conference.

GBPUSD – The UK Economy Unexpectedly Contracts!

The price of the GBPUSD came under pressure this morning from the UK’s latest Gross Domestic Product. The UK’s GDP was expected to decline from 0.2% to -0.1%. However, the figure fell to -0.3%, the lowest since September 2023, sparking some doubt as to whether the BoE can hold rates “higher for longer”.

November’s poor GDP figures will not be enough to worry the Bank of England, however, December and January’s GDP figure will now become more vital! If next month’s data also disappoints, investors may start to price in a weaker monetary policy.

The US Dollar Index this morning is slightly higher but has not crossed above yesterday’s highs. However, the Pound is declining against all its main competitors. If the US Producer Price Index reads higher than expected, the Dollar could receive some much-needed support. In this case, the GBPUSD may decline further and break below the support level at 1.25130. In terms of technical analysis, the GBPUSD is trading below the 75-bar exponential moving average and at 42.00% on the RSI. Both indicate sellers are controlling the price movement and a downward trend remains a possibility.

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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. 

Michalis Efthymiou
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.
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