- The USD Index holds under 105.00, currently at 104.80 as the USD consolidates ahead of today’s CPI data. US Stocks rallied on Monday (Dow the strongest +1.58%). Yields rallied over 1.23% with the 10yr closing at and holds today at 3.611%. Asian markets mixed & European FUTS are also lower as Chinese Covid infections continue to rise. Former FTX CEO Bankman-Fried has been in the Bahamas at the “behest of U.S. prosecutors” a day before he was due to testify to Congress. Reuters also reported that Binance is under investigation for possible money laundering and criminal sanctions violations by DOJ, with possible proceedings against executives including CEO Zhao.
- EUR – rotates over 1.0500 at 1.0560 now, ahead of German ZEW data later and ECB on Thursday.
- JPY – rallied from 136.50 lows over 137.00 and trades at 137.70 today.
- GBP – Sterling rallied again to test 1.2300, consistently yesterday, but trades at 1.2285 following mixed UK jobs data and as multiple strikes hit the UK.
- Stocks – Wall Street rallied yesterday (1.26-1.58%) – US500 +56.18 (+1.43%) 3990, Big movers included MRNA -6.89%, TSLA -6.27%, MSFT +2.89%. FUTS trades at 3997 now.
- USOil – Rallied over 6% from 12-month+ lows at $70.05 again on Monday to trade at $74.30 now on supply concerns.
- Gold – Declined to $1780 again, from key support at $1788.
- BTC – Sentiment woes continue, but talk of “rapid rollout of global crypto standards” led by FSB keeps trades over 17k at 17.1k.
Today – UK Unemployment, German ZEW, US CPI, Japanese Tankan.
Biggest FX Mover @ (07:30 GMT) AUDUSD (+0.53%) rallied from lows on Monday at 0.6728 to test 0.6775 today. MAs aligning higher, MACD histogram & signal line negative but rising and testing 0 line. RSI 58.10 & rising, H1 ATR 0.00129, Daily ATR 0.00845.
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Stuart Cowell
Head Market Analyst
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