Date : 19th October 2022.
Market Update – October 19 – Inflation hasn’t disappeared.
Trading Leveraged Products is risky
*USDIndex steady below 20-DMA at 112.20. Yields are rising and the rally in stocks is petering out, although ASX and Nikkei still managed to post modest gains and futures are up across Europe and the US. The 10-year Treasury rate has lifted 4.4 bp to 4.05% though and the Bund yield is up 1.1 bp at 2.3%.
*EUR – holds Tuesday’s gains at 0.9830.
*JPY – at 149.42 and eyeing the psychologically important 1.50 mark.
*GBP – slightly below 1.1300 again. UK inflation higher than expected at 10.1% in September, versus 9.9% in August and compared to consensus expectations for a 10.1% y/y reading. RPI, still an important indicator for wage negotiations, lifted to 12.6% from 12.3%. Numbers will add to the arguments in favor of at least a 75 bp hike from the BoE in November.
*Stocks – Stocks surged at the open, rising over 2%, but closed with gains of 1.13% on the US30, 1.16% on the US500 (back over 3700), and 0.90% on the US100. Some decent earnings news and hopes for more of the same (Netflix beat in after-hours release) helped underpin.
*Netflix shares ticked up to the highest at $248.98 following results that beat consensus estimates: EPS: $3.10; Rev: $7.93B; Global Subscribers: +2.41 mil. The management ‘very optimistic’ regarding its new ad-supported plan. But later closed the day lower at $240.74.
*USOil – dropped -2.67% to $83.18 after the White House confirmed additional supply of 10 to 15 mln barrels will be released from the SPR and natgas tumbled -4.77% to $5.71, the lowest close since July 7.
*Gold – dropped to $1642.
Today EU HICP, BoC Inflation and US Housing Starts & Building permits.
Biggest FX Mover @ (06:30 GMT) XAUUSD drifted to 1637. MAs aligned lower, MACD histogram & signal line extend down, RSI 22 but flattened. H1 ATR 3.16, Daily ATR 26.11.
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.
Andria Pichidi
Market Analyst
HFMarkets
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.