FUNDAMENTAL AND TECHNICAL ANALYSIS REPORT – 24 October 2022

FUNDAMENTAL AND TECHNICAL ANALYSIS REPORT – 24 October 2022

Technical Analysis

Japan intervened, buying yen in foreign exchange market

Asia Pacific stock markets were up on Monday morning. The Shanghai Composite is up 0.13% at 3,038.82. Overall, the Singapore MSCI is up 1.84% at 267.85. Over in Hong Kong, the Hang Seng Index is up 1.18% at 16,376.00. In Japan, the Nikkei 225 is up 0.93% at 27,150.00, while the Topix index is up 0.58% at 1896.50. South Korea’s Kospi is down 0.22% at 2,213.12. Australia S&P/ASX 200 down 0.80% at 6676.80.

Top News of the Day:

Japan intervened in the foreign exchange market on Friday to buy yen for the second time in a month after the currency hit a 32-year low near 152 to the dollar, a government official and another person familiar with the matter told Reuters.

Japan has been attempting to shore up the battered currency as the central bank sticks with ultra-low interest rates, countering a global trend of tightening monetary policy and widening the gap between U.S. and Japanese interest rates.

Market Summary as per 22/10/2022:

European equities Friday closing. The DAX futures contract in Germany traded down 0.29% at 12,730.90, CAC 40 futures down 0.85% at 6035.40 and the UK 100 futures contract in the U.K. up 0.37% at 6969.72.

In the U.S. on Wall Street, the Dow Jones Industrial Average closed up 2.47% at 31082.57. The S&P 500 up 2.37% at 3752.76 and the Nasdaq 100 up 2.39% at 11310.33, NYSE closes up 2.19% at 14144.05.

Top Market News Today:

In the Forex market, GBPUSD up 0.56% at 1.1295. The USDJPY down 1.65% at 147.649. The USDCHF down 0.51% at 0.9976. EURUSD up 0.77% at 0.9856, EUR/GBP up 0.13% at 0.8721. The USD/CNY up 0.37% at 7.2399 at the time of writing.

In the Commodity market U.S. Gold futures up 1.82% at $1,656.60. Elsewhere, Silver futures up 4.14% at $19.400 per ounce, Platinum up 1.86% at $930.00 per ounce, and Palladium down 2.38% at $2007.50.

Crude Oil up on Monday; Brent Crude Oil up 0.98% at $93.46 per barrel while U.S. West Texas Intermediate (CLc1) up 0.07% at $84.84.

In the Cryptocurrency Markets, Bitcoin at 19195.00 up 0.87%, Ethereum down 0.12% at 1298.40, Litecoin at 51.70 up 0.15%, at the time of writing.

Top Market Segment to Watch Out Today:

TWITTER: The banks providing $13 billion in financing for Tesla (NASDAQ:TSLA) CEO Elon Musk’s acquisition of Twitter Inc (NYSE:TWTR) have abandoned plans to sell the debt to investors because of uncertainty around the social media company’s fortunes and losses, people familiar with the matter said.

Economic News:

US: The U.S. government on Friday reported that its fiscal 2022 budget deficit plunged by half from a year earlier to $1.375 trillion, due to fading COVID-19 relief spending and record revenues fuelled by a hot economy, but student loan forgiveness costs limited the reduction.

The U.S. Treasury said the $1.400 trillion reduction in the deficit was still the largest-ever single-year improvement in the U.S. fiscal position as receipts hit a record $4.896 trillion, up $850 billion, or 21% from fiscal 2021.

President Joe Biden touted the deficit reductions in remarks at the White House and at Delaware State University, and said the deficit would shrink by another $250 billion over the next decade, given Medicare’s ability to negotiate lower drug prices.

Biden chided Republicans for voting against the deficit reduction. While his administration lowered the deficit, it has boosted spending on infrastructure and expanded benefits for middle- and low-income Americans.

“You know, we’ve gone from an historically strong economic recovery to a steady and stable growth, while reducing the deficit,” Biden said.

Euro Zone: British shoppers cut their spending sharply last month and their confidence is close to record lows, underscoring the challenge facing the next prime minister who must also take painful measures to slow fast-rising public borrowing.

Data published on Friday added to signs that Britain’s economy faces a recession which could be deepened by new finance minister Jeremy Hunt’s plans to stem a crisis in financial markets after the brief term of Prime Minister Liz Truss.

Retail sales volumes fell by 1.4% from August – almost three times the 0.5% fall in a Reuters poll of economists – taking them below their pre-coronavirus pandemic level.

Fuel sales were 10% lower than in February 2020 as high prices prompted people cut back on driving to save money.

A one-off bank holiday to mark the funeral of Queen Elizabeth, when many shops closed, also affected the overall figures.

Top Economic Releases Today:

  1. FRANCE Services PMI (Oct) today at 03:15 this time estimated 51.5, previously which was 52.9.
  2. 00 this time estimated 81.00B, previously which was 79.39B.
  3. U.S. Manufacturing PMI (Oct) today at 09:45 this time estimated 51.0, previously which was 52.0.
  • EURO ZONE Manufacturing PMI (Oct) at 04:00 this time estimated 47.80, previously which was 48.40.
  • GERMANY Manufacturing PMI (Oct) today at 03:30 this time estimated 47.00, previously which was 47.80.

TECHNICAL SUMMARY

GBPUSD TECHNICAL ANALYSIS

TRADE SUGGESTION- BUY AT 1.1296, TAKE PROFIT AT 1.1454 AND STOP LOSS AT 1.1215

EURUSD TECHNICAL ANALYSIS

TRADE SUGGESTION- BUY AT 0.9861, TAKE PROFIT AT 0.9906 AND STOP LOSS AT 0.9843

EURGBP

TRADE SUGGESTION- BUY AT 0.8728, TAKE PROFIT AT 0.8775 AND STOP LOSS AT 0.8709

EURJPY

TRADE SUGGESTION- BUY AT 145.611, TAKE PROFIT AT 146.223 AND STOP LOSS AT 145.049

S&P 500 TECHNICAL ANALYSIS

TRADE SUGGESTION- BUY AT 3771.75 TAKE PROFIT AT 3817.31 AND STOP LOSS AT 3745.36

WTI CRUDE OIL TECHNICAL ANALYSIS

TRADE SUGGESTION- SELL AT 85.05 TAKE PROFIT AT 81.34 AND STOP LOSS AT 86.08

GOLD TECHNICAL ANALYSIS

TRADE SUGGESTION- SELL AT 1656.10, TAKE PROFIT AT 1644.83 AND STOP AT 1660.00

ETHEREUM TECHNICAL ANALYSIS

TRADE SUGGESTION- SELL AT 1294.65 TAKE PROFIT AT 1263.42 AND STOP AT 1309.70

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