Date : 11th November 2022.
Market Update – November 11 – Gigantic day in stocks and bonds.
Trading Leveraged Products is risky
*The USD Index was the big loser on the day, plunging 3 big figures to a low of 107.67 from an intraday high of 110.99 before the data. Though it recovered marginally to close at 108.20, that is the lowest close since mid-September. Stocks skyrocketed significantly adding to expectations for a stepdown in Fed rate hikes and a paring in projections for the terminal rate. Yields dived 30 bps in the belly to 3.938% on the 5-year. The 10-year was down 27 bps to 3.813%. It was the first close under 4% since October 27. The 2-year yields had their biggest drop since 2008.
*EUR – rally above parity and currently at 1.0230.
*JPY – drifted to 140.19 from 146.50 high. Biggest fall since 1998.
*GBP – Sterling spiked to 1.1736 post US CPI data. This morning, GDP showed that the UK economy contracted less than expected in the third quarter.
*Stocks – Wall Street broke 2-month resistance. US100 rocketed 7.35% higher to 11,114, with the US500 surging 5.54% to 3,956, while the US30 was up 3.70% to 33,715. This was the strongest percentage pop in over two years.
*USOil – higher at $88.60 from $84.73.
*Gold – had its best week since March, spiking to 1760, has risen 4.2% so far in the week.
*BTC – Crypto crisis continues, however yesterday Bitcoin reverted some losses turning at 17940.
Today – European Commission releases Economic Growth Forecast, Michigan Sentiment, ECB’s Panetta, Guindos & Lane Speech.
Biggest FX Mover @ (06:30 GMT) AUDJPY (+0.82%) rallied from 0.6390 low yesterday to 0.6659 now, next resistance 0.6700. MAs aligning higher, MACD histogram & signal line positive & rising, RSI 72 & flat, H1 ATR 0.0025, Daily ATR 0.0118.
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.
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