18.08.22 Macro Morning
Chris Becker | Aug 18, 2022 10:02
Risk sentiment stumbled overnight with strong UK inflation numbers offset by the release of the latest FOMC minutes later in the session but it still resulted in falls on both sides of the Atlantic with the USD rising against the major currencies again. Euro escaped any further selling while the Australian dollar slumped well below the 70 cent level as traders weigh up today’s unemployment print. Bond markets saw more round-tripping of yields with 10 year Treasuries eventually finishing just below the 2.9% level while interest rate futures also still showing 120bps in rate rises factored in by the end of 2022 with at least 50bps coming in September’s meeting. Commodity prices continued to deflate with WTI and Brent crude slipping while gold remains unable to get back above the $1800USD per ounce level, making a new daily low.
Looking at share markets in Asia from yesterday’s session, where mainland Chinese share markets are finally finding some buyers Shanghai Composite lifting 0.4% into the close at 3292 points while the Hang Seng Index has bounced back, up 0.5% to 19942 points. The daily chart is still showing considerable overhead resistance and daily momentum readings remaining quite negative as the moving average channel moves sideways without any upside pressure however. The May lows could come under pressure soon if there is another break below the low moving average:
Get The App
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.