Date : 22nd February 2023.
Market Update – February 22 – It has gotten ugly out there!
Trading Leveraged Products is risky
US Stocks recorded their worst day in two months, Yields soared with 10-year Treasuries hitting three-month peak. Vix index, a measure of stock market volatility and often dubbed Wall Street’s “fear gauge”, rose above 23, its second highest level of the year. Fears over a more hawkish FOMC stance for a longer period of time continued to weigh on the markets. More strong data added further to the hawkish Fed case as well with the S&P Global PMIs climbing more than expected, with the services and composite indexes rising back into expansionary territory. US housing market weakened in January for the 12th straight month as continued high mortgage rates kept buyers on the sidelines. RBNZ delivered 50bp hike as expected.
*USDIndex slightly below 104, hovering around 23%. The market has fully priced in further rates hikes with a 25 bp increase on March 22, and another 25 bp on May 3.
*USDEUR– retests 1.06 area once again as markets keep pricing in ECB lifting rates to all-time high.
*USDStocks – Wall Street slumped. US100 (-2.50%), US500 (-2%), US30 (-2.06%). Stocks were also hurt by the disappointing guidance from Walmart (+0.61%) and Home Depot (-7.06%), as well as fears from increased competition from China as it reopens, with some indications of easing restrictions on tech. Tesla (-5.25%), Coinbase (-4.80%).
*USDLithium crashed by 30% – Could affect EV manufacturers!
*USDCommodities – USOil dropped to $75.55.
*USDGold – steady at $1838.
*USDCryptocurrencies – BTC – Slightly lower to $24,050.
*USDCoinbase (-4.80%) beat earnings but net income of $605 million while net income was a loss of $557 million. Coinbase shares, which lost about two-thirds of their value over the last year, have rallied sharply since the start of 2023, up roughly 80%. (Boost from BTC rally.)
Today - FOMC Meeting Minutes in the spotlight.
Biggest FX Mover @ (07:30 GMT) US100. Retests 12000. MAs extend lower, MACD histogram & signal line negative, RSI 29.88.
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.
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.