. Fundamental and Technical Analysis Report – 28 September 2022

Fundamental and Technical Analysis Report – 28 September 2022

Fundamental and Technical Analysis Report – 28 September 2022

28 Sep 2022

Dollar sweeps to 20-year high

Asian Pacific stock markets slumped on Wednesday. The Shanghai Composite is down 0.86% at 3,067.30. Overall, the Singapore MSCI is down 1.29% at 278.50. Over in Hong Kong, the Hang Seng Index is down 2.16% at 17,447.00. In Japan, the Nikkei 225 is down 1.37% at 25,960.00, while the Topix index is down 0.84% at 1834.50. South Korea’s Kospi is down 2.55% at 2,167.25. Australia S&P/ASX 200 down 0.55% at 6460.60.

Top News of the Day:

Nervous financial markets propelled the safe-haven dollar to a fresh two-decade peak on Wednesday as rising global interest rates fed recession worries, while sterling languished near all-time lows on fears over Britain’s radical tax cut plans.

The relentless upward march of the dollar came as benchmark U.S. 10-year Treasury yields rose to 4% for the first time since 2010, topping at 4.004%. The two-year yields stood at 4.2891%.

Market Summary as per 27/09/2022:

European equities Tuesday closing. The DAX futures contract in Germany traded down 0.72% at 12,139.68, CAC 40 futures down 0.27% at 5753.82 and the UK 100 futures contract in the U.K. down 0.52% at 6,984.59.

In the U.S. on Wall Street, the Dow Jones Industrial Average closed down 0.43% at 29135.00. The S&P 500 down 0.21% at 3647.28 and the Nasdaq 100 up 0.16% at 11271.75, NYSE closes down 0.28% at 13541.76.

Top Market News Today:

In the Forex market, GBPUSD down 0.52% at 1.0675. The USDJPY down 0.05% at 144.727. The USDCHF up 0.41% at 0.9954. EURUSD down 0.29% at 0.9564, EUR/GBP up 0.22% at 0.8957. The USD/CNY up 0.71% at 7.224 at the time of writing.

In the Commodity market, U.S. Gold futures down 0.42% at $1,621.82. Elsewhere, Silver futures down 1.34% at $18.108 per ounce, Platinum down 0.66% at $841.11 per ounce, and Palladium down 0.46% at $2061.53.

Crude Oil down on Wednesday; Brent Crude Oil down 0.64% at $85.10 per barrel while U.S. West Texas Intermediate (CLc1) down 0.66% at $77.14.

In the Cryptocurrency Markets, Bitcoin at 18755.00 down 1.52%, Ethereum down 3.18% at 1285.70, Litecoin at 52.07 down 1.40%, at the time of writing.

Top Market Segment to Watch Out Today:

Sanofi: French drugmaker Sanofi (NASDAQ:SNY) said it expected a positive boost to its third-quarter business results from movements on the currency markets, helped by the strength of the U.S. dollar since Sanofi does much of its business in the United States.

Economic News:

US: The Federal Reserve will hike its key interest rate to a much higher peak than predicted two weeks ago and the risks are skewed towards an even higher terminal rate, according to economists polled by Reuters.

That change in expectations came after the Fed raised rates by 75 basis points last week for the third straight meeting and foresaw going higher than it had previously thought to tame inflation, which is running over four times above target.

Since then, already battered global stocks went much deeper into bear market territory – a decline of 20% or more – on fears of recession and most currencies weakened further against the multi-decade high dollar.

But that is unlikely to push the Fed to switch its policy path anytime soon as Fed Chair Jerome Powell and other policymakers have remained blunt about the “pain” to come.

Indeed, over 70% of economists, 59 of 83, predicted the central bank would hike its fed funds rate by three-quarters of a percentage point for the fourth straight meeting in November, a Reuters poll taken after the Fed meeting last week showed.

Euro Zone: The International Monetary Fund on Tuesday took aim at new British financial plans that have roiled markets, warning that “large and untargeted fiscal packages” would likely increase inequality in Britain and could undermine monetary policy.

In its first comments on plans by Britain’s new finance minister Kwasi Kwarteng, which have sent sterling and bonds into free fall, the IMF urged UK authorities to consider providing more targeted support to families and business instead of sizable tax cuts and sharply higher government spending.

“We are closely monitoring recent economic developments in the UK and are engaged with the authorities,” an IMF spokesperson said, in response to a query from Reuters after the British pound hit an all-time low amid spiking market concerns.

“Given elevated inflation pressures in many countries, including the UK, we do not recommend large and untargeted fiscal packages at this juncture, as it is important that fiscal policy does not work at cross purposes to monetary policy,” the spokesperson said in the IMF’s first public reaction.

Top Economic Releases Today:

  1. U.S. Pending Home Sales (MoM) (Aug) today at 10:00 this time estimated -1.4%, previously which was -1.0%.
  2. , this time estimated 4.10%, previously which was 3.90%.
  3. NEW ZEALAND ANZ Business Confidence (Sep) today at 20:00 previously which was -47.80.
  • U.S. Crude Oil Inventories today at 10:30 this time estimated 0.443M, previously which was 1.142M.
  • EURO ZONE ECB’s Elderson Speaks today at 11:00.

TECHNICAL SUMMARY

GBPUSD TECHNICAL ANALYSIS

TRADE SUGGESTION- SELL AT 1.0663, TAKE PROFIT AT 1.0629 AND STOP LOSS AT 1.0684

EURUSD TECHNICAL ANALYSIS

TRADE SUGGESTION- SELL AT 0.9548, TAKE PROFIT AT 0.9500 AND STOP LOSS AT 0.9596

USDJPY TECHNICAL ANALYSIS

TRADE SUGGESTION- BUY AT 144.751, TAKE PROFIT AT 144.892 AND STOP LOSS AT 144.575

USDCHF TECHNICAL ANALYSIS

TRADE SUGGESTION- BUY AT 0.9940, TAKE PROFIT AT 0.9962 AND STOP LOSS AT 0.9923

EURO STOXX 50 TECHNICAL ANALYSIS

TRADE SUGGESTION- SELL AT 3268.00 TAKE PROFIT AT 3200.00 AND STOP LOSS AT 3273.00

WTI CRUDE OIL TECHNICAL ANALYSIS

TRADE SUGGESTION- SELL AT 77.11 TAKE PROFIT AT 74.95 AND STOP LOSS AT 80.64

GOLD TECHNICAL ANALYSIS

TRADE SUGGESTION- SELL AT 1616.55, TAKE PROFIT AT 1600.00 AND STOP AT 1625.41

LITECOIN TECHNICAL ANALYSIS

TRADE SUGGESTION- SELL AT 51.870 TAKE PROFIT AT 50.197 AND STOP AT 52.362