FUNDAMENTAL AND TECHNICAL ANALYSIS REPORT – 08 November 2022

FUNDAMENTAL AND TECHNICAL ANALYSIS REPORT – 08 November 2022

Technical Analysis

Japan foreign reserves fall for 3rd month

Asian shares held recent gains but lost momentum on Tuesday. The Shanghai Composite is down 0.88% at 3,050.41. Overall, the Singapore MSCI is up 0.66% at 281.05. Over in Hong Kong, the Hang Seng Index is down 1.07% at 16,482.00. In Japan, the Nikkei 225 is up 1.20% at 27,880.00, while the Topix index is up 1.11% at 1958.00. South Korea’s Kospi is up 1.08% at 2,396.90. Australia S&P/ASX 200 up 0.36% at 6958.90.

Top News of the Day:

Japan’s foreign reserves extended declines in October, following the previous month’s record drop, the Ministry of Finance said on Tuesday, reflecting the largest ever amount of yen-buying, dollar-selling intervention.

The data comes alongside separate figures that confirmed Japan did not conduct stealth intervention in September and only entered the market to buy yen for U.S. dollars on Sept. 22 as announced, its first foray into the market to prop up the Japanese currency since 1998.

Market Summary as per 07/11/2022:

European equities Monday closing. The DAX futures contract in Germany traded up 0.55% at 13,533.52, CAC 40 futures flat at 6416.62 and the UK 100 futures contract in the U.K. down 0.48% at 7300.00.

In the U.S. on Wall Street, the Dow Jones Industrial Average closed up 1.31% at 32827.01. The S&P 500 up 0.96% at 3806.79 and the Nasdaq 100 up 1.11% at 10977.00, NYSE closes up 0.72% at 14808.62.

Top Market News Today:

In the Forex market, GBPUSD down 0.17% at 1.1490. The USDJPY up 0.03% at 146.664. The USDCHF up 0.39% at 0.9914. EURUSD down 0.14% at 1.0005, EUR/GBP up 0.11% at 0.8707. The USD/CNY up 0.26% at 7.2451 at the time of writing.

In the Commodity market U.S. Gold futures down 0.34% at $1,669.89. Elsewhere, Silver futures down 1.05% at $20.551 per ounce, Platinum down 0.56% at $976.00 per ounce, and Palladium down 0.76% at $1886.50.

Crude Oil down on Tuesday; Brent Crude Oil down 0.51% at $97.46 per barrel while U.S. West Texas Intermediate (CLc1) down 0.63% at $90.52.

In the Cryptocurrency Markets, Bitcoin at 19700.00 down 5.44%, Ethereum down 6.00% at 1474.20, Litecoin at 63.23 down 6.19%, at the time of writing.

Top Market Segment to Watch Out Today:

RENAULT: Renault SA (OTC:RNLSY) and China’s Geely said on Tuesday they have agreed to launch a new, equally held joint venture that will supply gasoline engines and hybrid technology to the brands they own as well as to other automakers. The agreement represents an important benchmark in a months-long effort by the French automaker to carve out its gasoline car business as a separate company.

Economic News:

US: US consumer borrowing rose in September by less than expected, reflecting a smaller advance in credit-card debt outstanding.

Total credit increased $25 billion from the prior month, Federal Reserve figures showed Monday. The median forecast in a Bloomberg survey of economists called for a $30 billion advance. The figures aren’t adjusted for inflation.

Revolving credit outstanding, which includes credit cards, rose $8.3 billion, the smallest increase in four months. Non-revolving credit, such as loans for school tuition and vehicle purchases, increased $16.7 billion, the most in three months.

Inflation has surged across the economy, driving up the costs of everything from necessities like electricity to more discretionary purchases like airfares.

As a result, some households are beginning to tighten their belts. Visa Inc (NYSE:V). and Mastercard Inc (NYSE:MA). both noted recently that spending growth had slowed. More broadly though, American households have proved to be largely resilient amid rapid price increases.

Euro Zone: British businesses fear a gloomy Christmas ahead, as almost half of households plan to cut festive spending due to the soaring cost of living and sales are already falling sharply in inflation-adjusted terms.

Payments processor Barclaycard said 48% of people it surveyed over Oct. 21-24 plan to spend less this Christmas, with 59% intending to buy less generous gifts and 42% cutting back on socialising.

The British Retail Consortium said spending at major stores in October was 1.6% higher than a year earlier, slowing from 2.2% in September and representing a big fall in the volume of purchases once inflation was taken into account.

“Christmas will come later than last year for many and there may be more gloom than glitter as families focus on making ends meet, particularly as mortgage payments rise,” BRC chief executive Helen Dickinson said.

British consumer price inflation returned to a 40-year high of 10.1% in September and the Bank of England last week forecast it would peak at around 11% during the current quarter.

Top Economic Releases Today:

  1. U.S. 3-Year Note Auction today at 9:00 previously which was 4.318%.
  2. 00 this time estimated 0.40%, previously which was -0.30%.
  3. GERMANY Buba President Nagel Speaks today at 02:15.

4. JAPAN Adjusted Current Account today at 18:50 previously which was -0.53T.

5. U.K. BoE MPC Member Pill Speaks today at 11:00.

TECHNICAL SUMMARY

GBPUSD TECHNICAL ANALYSIS

TRADE SUGGESTION- BUY AT 1.1464, TAKE PROFIT AT 1.1560 AND STOP LOSS AT 1.1404

EURUSD TECHNICAL ANALYSIS

TRADE SUGGESTION- BUY AT 0.9993, TAKE PROFIT AT 1.0027 AND STOP LOSS AT 0.9953

USDJPY TECHNICAL ANALYSIS

TRADE SUGGESTION- SELL AT 146.855, TAKE PROFIT AT 145.985 AND STOP LOSS AT 147.497

USDCHF TECHNICAL ANALYSIS

TRADE SUGGESTION- SELL AT 0.9913, TAKE PROFIT AT 0.9868 AND STOP LOSS AT 0.9931

HANG SENG TECHNICAL ANALYSIS

TRADE SUGGESTION- BUY AT 16591.00 TAKE PROFIT AT 17019.00 AND STOP LOSS AT 16452.00

WTI CRUDE OIL TECHNICAL ANALYSIS

TRADE SUGGESTION- BUY AT 91.36 TAKE PROFIT AT 92.31 AND STOP LOSS AT 90.44

GOLD TECHNICAL ANALYSIS

TRADE SUGGESTION- BUY AT 1670.00, TAKE PROFIT AT 1680.07 AND STOP AT 1659.71

BITCOIN TECHNICAL ANALYSIS

TRADE SUGGESTION- SELL AT 19672.760 TAKE PROFIT AT 19462.850 AND STOP AT 19909.660

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