Fundamental and Technical Analysis Report – 22 September 2022
22 Sep 2022
DOLLAR AT 20-Yrs High ON HAWKISH FED
Asian Pacific stock stocks hits a two-year low on Thursday. The Shanghai Composite is down 0.13% at 3,113.81. Overall, the Singapore MSCI is down 0.53% at 288.50. Over in Hong Kong, the Hang Seng Index is down 1.85% at 18,106.00. In Japan, the Nikkei 225 is down 0.66% at 26,940.00, while the Topix index is down 0.34% at 1895.50. South Korea’s Kospi is down 0.67% at 2,331.51. Australia S&P/ASX 200 down 1.56% at 6700.20.
Top News of the Day:
The U.S. dollar jumped to a new 20-year high against a basket of currencies on Thursday, extending gains after the Federal Reserve raised interest rates and struck a more hawkish than the expected tone in its latest meeting.
The dollar index rose as much as 1% to 111.47, its highest level since June 2002, while dollar index futures rose 0.3% to 111.427. Both indicators rallied on Wednesday after the Fed. 10-year U.S. Treasury yields surged to an 11-year high.
Market Summary as per 21/09/2022:
European equities Wednesday closing. The DAX futures contract in Germany traded up 0.76% at 12,767.15, CAC 40 futures up 0.87% at 6031.34 and the UK 100 futures contract in the U.K. up 0.63% at 7,237.63.
In the U.S. on Wall Street, the Dow Jones Industrial Average closed down 1.70% at 30183.79. The S&P 500 down 1.71% at 3789.94 and the Nasdaq 100 down 1.80% at 11637.79, NYSE closes down 1.65% at 14236.60.
Top Market News Today:
In the Forex market, GBPUSD down 0.22% at 1.1239. The USDJPY up 0.65% at 145.00. The USDCHF flat at 0.9660. EURUSD down 0.10% at 0.9826, EUR/GBP up 0.16% at 0.8741. The USD/CNY up 0.53% at 7.086 at the time of writing.
In the Commodity market U.S. Gold futures down 0.65% at $1,662.39. Elsewhere, Silver futures down 0.68% at $19.416 per ounce, Platinum down 0.20% at $905.97 per ounce, and Palladium down 0.69% at $2139.03.
Crude Oil up on Thursday; Brent Crude Oil up 0.61% at $90.50 per barrel while U.S. West Texas Intermediate (CLc1) up 0.69% at $83.46.
In the Cryptocurrency Markets, Bitcoin at 18640.00 down 1.79%, Ethereum down 4.77% at 1257.50, Litecoin at 52.03 up 1.84%, at the time of writing.
Top Market Segment to Watch Out Today:
HSBC Holdings: HSBC Holdings (NYSE:HSBC) said on Thursday it raised its best lending rate in Hong Kong by 12.5 basis points to 5.125% effective Sept. 23 after the city’s central bank raised the base rate charged through its overnight discount window by 75 basis points.
The Hong Kong Monetary Authority earlier on Thursday raised the base rate charged through its overnight discount to 3.50% from 2.75%.
US: The U.S. dollar surged to a new 24-year high against the yen after the Bank of Japan stuck to ultra-easing stimulus on Thursday, just hours after the Federal Reserve surprised markets with hawkish interest-rate projections.
The greenback had already pushed to a new 37-year peak to sterling ahead of the Bank of England’s policy announcement later in the day, and to a two-decade top versus the euro.
It also notched new highs against regional currencies from the Australian and New Zealand dollars to the offshore Chinese yuan and the Korean won, as well as the Singapore dollar and Thai baht.
The yen went for a wild ride in the immediate aftermath of the BOJ’s decision to keep short-term rates negative and continue to pin the 10-year government bond yield near zero, reinforcing market expectations that Japan’s central bank will continue to swim against a global tide of monetary tightening, despite a weaker currency.
Euro Zone: The euro zone is facing an economic downturn but inflation is still far too high, so interest rates need to keep going up, European Central Bank board member Isabel Schnabel said.
“A looming downturn would have a dampening effect on inflation,” Schnabel told German news website t-online in an interview. “However, the starting point of interest rates is very low, so it is clear that we need to continue raising rates.”
While Schnabel did not yet consider a recession the base case for the euro zone, she warned that it may be unavoidable in Germany, the 19-country bloc’s biggest economy.
Market expectations are split between a 50 and a 75-basis-point rate hike in October. Schnabel did not hint which way she was leaning but merely said the ECB would do whatever is needed to get inflation under control.
Top Economic Releases Today:
- U.S. Initial Jobless Claims today at 8:30 this time estimated 218K, previously which was 213K.
- previously which was 0.1%.
- RUSSIA Industrial Production (YoY) (Aug) today at 12:00 this time estimated -0.9%, previously which was -0.5%.
- U.K. BoE Interest Rate Decision (Sep) today at 07:00 this time estimated 2.25%, previously which was 1.75%.
- JAPAN BoJ Press Conference today at 02:30.
GBPUSD TECHNICAL ANALYSIS
TRADE SUGGESTION- SELL AT 1.1224, TAKE PROFIT AT 1.1200 AND STOP LOSS AT 1.1243
EURUSD TECHNICAL ANALYSIS
TRADE SUGGESTION- SELL AT 0.9816, TAKE PROFIT AT 0.9805 AND STOP LOSS AT 0.9826
GBPJPY TECHNICAL ANALYSIS
TRADE SUGGESTION- SELL AT 163.029, TAKE PROFIT AT 161.778 AND STOP LOSS AT 163.559
CHFJPY TECHNICAL ANALYSIS
TRADE SUGGESTION- BUY AT 150.358, TAKE PROFIT AT 150.437 AND STOP LOSS AT 150.324
CAC 40 TECHNICAL ANALYSIS
TRADE SUGGESTION- SELL AT 5935.50 TAKE PROFIT AT 5908.00 AND STOP LOSS AT 5949.90
WTI CRUDE OIL TECHNICAL ANALYSIS
TRADE SUGGESTION- SELL AT 83.06 TAKE PROFIT AT 81.62 AND STOP LOSS AT 83.41
GOLD TECHNICAL ANALYSIS
TRADE SUGGESTION- SELL AT 1658.10, TAKE PROFIT AT 1653.50 AND STOP AT 1660.14
ETHEREUM TECHNICAL ANALYSIS
TRADE SUGGESTION- SELL AT 1260.70 TAKE PROFIT AT 1183.19 AND STOP AT 1305.98