- 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.
Overnight –Globally 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.
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