Home Forex Market Update – September 23rd

Market Update – September 23rd

by SuperiorInvest

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  • USDIndex – applies above 111.
  • Revenues: The 10-year rose 18 bps to 3.71% but ended at 3.69%. The 2-year was 9 basis points higher at 4.15% before the decline. According to Bloomberg, it was the 11th consecutive losing session, the longest in history (data going back to 1976). The 10-year has fallen for 13 consecutive days. The curve inverted to -54 bps early and rose to -42 bps later in the day.
  • euros – broke down 0.9800.
  • JPY – remained supported after officials stepped in and intervened in forex markets yesterday. USDJPY is on 142.20.
  • GBP – remains in the doldrums with Cable at 1.1200.
  • Stocks were mired in the red, at two-year lows, with weak consumer discretion and finances. Some bargains lifted the indices from the lows and saw US30 edge temporarily slightly higher, but eventually fell and finished down -0.35%. The US100 lost -1.37% and 500 USD was off -0.85%.
  • USOil – hovering in the 80-82 area.

OvernightGlobally high inflation rates have led to historically tough action by nearly all central banks around the world this week and throughout the month. In the last 24 hours, rates have increased by a total of 250 bps. Many emerging market central banks were also in action, forced to keep pace with the Fed and defend their currencies. South Africa raised rates by 75 bps, Indonesia and the Philippines by 50 bps. The BoJ remained the odd man out even as it intervened in the currency market to support the JPY. While a 75 basis point FOMC hike was expected, upward revisions in dots to the 4.6% terminal rate estimate and Chairman Powell’s hawkish stance caused much of the repricing in the markets. In addition, Powell’s warning that there will be more pain in the housing market and that recession risks are on the rise added to investor anxiety. That and the rise in earnings sent the mega-tech plummeting. Still, many doubt the FOMC will push through with its planned policy, while some have found buying opportunities amid the decline in stocks.

Today UK, German, EU and US preliminary PMIs, along with Canadian retail sales and Fed Chair Powell.

The biggest FX Mover @ (06:30 GMT) GBPUSD (-0.63%) MA aligned below, MACD histogram and signal lines reaching well below 0, RSI 30.62, H1 ATR 0.00175, daily ATR 0.01282.

Click here to access our economic calendar

Andria Pichidi

Market analyst

Disclaimer: This material is provided as general marketing communication for informational purposes only and does not constitute independent investment research. Nothing in this communication contains or should be considered to contain investment advice or an investment recommendation or a solicitation to buy or sell any financial instrument. All information provided is collected from reputable sources and any information containing an indication of past performance is not a guarantee or a reliable indicator of future performance. Users acknowledge that any investment in leveraged products is characterized by a degree of uncertainty and that any investment of this nature involves a high level of risk for which users are solely responsible and liable. We shall not be liable for any loss arising from any investment made based on the information provided in this communication. This communication may not be reproduced or redistributed without our prior written consent.

Previous articleShort bonds sell off as central banks target inflation

After completing five years of study in the UK, Andria Pichidi obtained a BSc in Mathematics and Physics from the University of Bath and an MSc in Mathematics, while holding a Postgraduate Diploma (PGdip) in Actuarial Science from the University of Bath. University of Leicester.

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