Fundamental and Technical Analysis Report – 14 September 2022
14 Sep 2022
BOJ PREPARING FOR INTERVENTION IN FX RATES
Asian Pacific stock markets logged sharp losses on Wednesday. The Shanghai Composite is down 1.08% at 3,228.63. Overall, the Singapore MSCI is down 1.94% at 293.45. Over in Hong Kong, the Hang Seng Index is down 2.46% at 18,842.00. In Japan, the Nikkei 225 is down 2.71% at 27,630.00, while the Topix index is down 1.79% at 1951.07. South Korea’s Kospi is down 1.60% at 2,410.42. Australia S&P/ASX 200 down 2.41% at 6841.40.
Top News of the Day:
The Bank of Japan has conducted a rate check-in apparent preparation for currency intervention, the Nikkei newspaper reported on Wednesday, as policymakers stepped up warnings about sharp falls in the yen.
The yen rose slightly from a near 24-year low against the dollar after the report, which cited unidentified sources, and was trading around 143.89 at 0520 GMT.
Market Summary as per 13/09/2022:
European equities Tuesday closing. The DAX futures contract in Germany traded down 1.59% at 13,188.95, CAC 40 futures down 1.39% at 6245.69 and the UK 100 futures contract in the U.K. down 1.17% at 7,385.86.
In the U.S. on Wall Street, the Dow Jones Industrial Average closed down 3.94% at 31104.98. The S&P 500 down 4.32% at 3932.68 and the Nasdaq 100 down 5.54% at 12033.62, NYSE closes down 3.46% at 14820.79.
Top Market News Today:
In the Forex market, GBPUSD up 0.12% at 1.1503. The USDJPY down 0.45% at 143.884. The USDCHF up 0.03% at 0.9612. EURUSD up 0.16% at 0.9981, EUR/GBP up 0.03% at 0.8674. The USD/CNY up 0.55% at 6.9624 at the time of writing.
In the Commodity market U.S. Gold futures up 0.03% at $1,701.96. Elsewhere, Silver futures down 0.06% at $19.313 per ounce, Platinum up 0.74% at $884.41 per ounce, and Palladium down 0.95% at $2080.50.
Crude Oil down on Wednesday; Brent Crude Oil down 0.64% at $92.61 per barrel while U.S. West Texas Intermediate (CLc1) down 0.85% at $86.35.
In the Cryptocurrency Markets, Bitcoin at 20310.00 up 0.35%, Ethereum up 2.50% at 1614.10, Litecoin at 59.72 up 1.10%, at the time of writing.
Top Market Segment to Watch Out Today:
GOOGLE: Alphabet Inc’s Google (NASDAQ:GOOGL) must face all but one antitrust allegation about its online advertising business brought in a lawsuit by attorneys general for Texas and 16 other states or territories, a federal judge ruled on Tuesday.
Google won its motion to dismiss an allegation that a cooperation agreement it struck with Meta Platforms’ Facebook (NASDAQ:META) in 2018 was an unlawful restraint of trade, with U.S. District Judge P. Kevin Castel saying the companies had valid business reasons for the deal.
US: U.S. Treasury yields surged and a recession warning – the yield curve inversion – widened on Tuesday after monthly U.S consumer prices unexpectedly rose in August, signalling to the market that the Federal Reserve will crack down further on inflation.
The yield on two-year Treasury notes, which typically reflects interest rate expectations, spiked to an almost 15-year high of 3.794%. The jump significantly widened the yield curve gap with the benchmark 10-year Treasury note.
Market rates were declining before the consumer price report on expectations headline inflation had peaked and that even though the Fed was expected to hike rates another 75 basis points next week, policymakers would soon pull back.
The consumer price index rose 0.1% last month after being unchanged in July, while the CPI edged up 8.3% in the 12 months through August. Economists polled by Reuters had forecast the monthly CPI dipping 0.1% and year-over-year rising 8.1%.
Eurozone: Germany will step up lending to energy firms at risk of being crushed by soaring gas prices, it said Tuesday, as Europe readied proposals to help households and industry cope with an energy crisis.
The European Commission will on Wednesday announce targets to cut electricity consumption and a revenue cap for non-gas fuelled plants. Energy ministers will hold an emergency meeting on Sept. 30 to discuss them.
Separately, the EU’s securities watchdog is considering measures to help energy firms struggling to meet rocketing collateral demands. Firms were caught out by surging prices after Russia cut gas supplies to Europe to counter Western sanctions following Moscow’s invasion of Ukraine.
The crisis is weighing heavily on Europe’s economy, even before winter when industrial users could face rationing if gas reserves prove inadequate. Industry sentiment in the bloc’s economic powerhouse, Germany, has tumbled.
Germany’s finance ministry wants to boost state loans for energy firms using facilities set up to offer relief during the COVID-19 pandemic, it said. The German cabinet is expected to approve draft legislation on Wednesday. The loan guarantees could amount to 67 billion euros ($68 billion)
Top Economic Releases Today:
- U.K. CPI (YoY) (Aug) today at 02:00 this time estimated 10.2%, previously which was 10.1%.
- U.S. PPI (MoM) (Aug) today at 08:30 this time estimated -0.10%, previously which was -0.50%.
- CANADA Manufacturing Sales (MoM) (Jul) today at 08:30 this time estimated -0.90%, previously which was -0.80%.
- JAPAN Exports (YoY) (Aug) today at 19:50 this time estimated 23.60%, previously which was 19.00%.
- AUSTRALIA Employment Change (Aug) today at 21:30 this time estimated 35.00K, previously which was -40.90K.
GBPUSD Technical Analysis
TRADE SUGGESTION- SELL AT 1.1482, TAKE PROFIT AT 1.1457 AND STOP LOSS AT 1.1521
EURUSD Technical Analysis
TRADE SUGGESTION- SELL AT 0.9967, TAKE PROFIT AT 0.9944 AND STOP LOSS AT 0.9997
TRADE SUGGESTION- BUY AT 164.880, TAKE PROFIT AT 165.345 AND STOP LOSS AT 164.471
CHFJPY Technical Analysis
TRADE SUGGESTION- BUY AT 149.238, TAKE PROFIT AT 149.425 AND STOP LOSS AT 148.857
NIKKEI 225 Technical Analysis
TRADE SUGGESTION- SELL AT 27680.00 TAKE PROFIT AT 27400.00 AND STOP LOSS AT 27743.00
WTI CRUDE OIL Technical Analysis
TRADE SUGGESTION- SELL AT 86.83 TAKE PROFIT AT 85.16 AND STOP LOSS AT 87.68
GOLD Technical Analysis
TRADE SUGGESTION- SELL AT 1703.59, TAKE PROFIT AT 1696.81 AND STOP AT 1707.40
ETHEREUM Technical Analysis
TRADE SUGGESTION- SELL AT 1597.90 TAKE PROFIT AT 1485.03 AND STOP AT 1661.54
Read More Technical Analysis
- US Housing Market Makes a Comeback: Home Prices Rise in July and August
- Oil Prices Dip Amidst Fed and China Economic Concerns
- Bitcoin Gains Legal Status Amidst China’s Crypto Ban
- AUD/USD Faces Pressure as it Nears 0.6400 Amidst Economic Uncertainty
- Dow Futures Slip Amid Federal Reserve’s Hawkish Outlook