USDIndex pushed to 20-yr highs over 109.00 (August low 104.5) and pressured EUR (beneath parity with Power considerations weighing) & GBP (beneath 1.1750 with political and vitality considerations weighing too). Shares tanked throughout the board (NASDAQ -2.55%) and Yields rallied (+1.78%) with the 10yr holding over 3%, and the yield curve nonetheless 30+bp inverted. Asian markets adopted via too, (Grasp Seng -0.81%, Nikkei -1.20%) and European FUTS are decrease. Oil gyrated over $4.70, after Saudi Power minister stated they might need to CUT manufacturing. Gold down once more, holds at $1735 and BTC broke beneath $21k now.
In a single day – PMIs miss – AUD Providers beneath 50.0 and contracting at 49.6 vs 54.0, JPY Manufacturing 51.0 vs 52.1, BOJ Core CPI, hotter 1.8% vs 1.5%.
Week Forward – Jackson Gap 25-27, International PMIs from 23/8, US Sturdy Items 24/8, US & German GDP 25/8 & US PCE 26/8. Wednesday (24/8) – 6-mths. since Russia’s invasion of Ukraine.
- USDIndex continued to rally; above late 2002 highs, and trades at 109.15. EUR and GBP weaken as winter vitality disaster looms.
- Equities – USA500 closed down 90.50pts (-2.14%) to 4137, US500FUTS at 4122 now Tech main the decline & Meme shares in play once more (AMC -41.95%, NFLX -6%, Ford -5.04%).
- Yields 10-year yield rallied to 3.037% into shut and commerce at 3.0165% now. The two/10yr. yield curve cooled however stays inverted by 29.95 bp.
- Oil – dropped to $86.24, earlier than recovering to $90.95 now, following feedback from SA Power minister.
- Gold – stays beneath $1750 right this moment at $1736 now, having examined into $1725 help space yesterday.
- Bitcoin pressured and right down to $21k now.
- FX Markets – EURUSD down beneath parity at 0.99040 now. USDJPY rallied to 137.70 earlier and trades at 137.20 now. Cable tanked beneath 1.1750 and trades at 1.1725 now.
At this time – UK & US Flash PMIs, EZ Shopper Confidence, US New House Gross sales, Fed Low cost Fee Minutes, Speech from ECB’s Panetta.
Greatest FX Mover @ (06:30 GMT) EURJPY (-0.57%). Rejected 138.00 yesterday and beneath 136.00 now. MAs aligning decrease, MACD histogram detrimental & sign line falling, RSI 23.36 OS & falling, H1 ATR 0.212, Day by day ATR 1.37.
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Stuart Cowell
Head Market Analyst
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