TECHNICAL ANALYSIS REPORT BY OUR EXPERT – 09 SEPTEMBER 2022
09 Sep 2022
ECB KEY RATE HIKE BY 75 basis point
Asian Pacific stock markets rose on Friday. The Shanghai Composite is up 0.79% at 3,261.08. Overall, the Singapore MSCI is up 1.07% at 291.80. Over in Hong Kong, the Hang Seng Index is up 2.62% at 19,342.00. In Japan, the Nikkei 225 is down 0.11% at 28,000.00, while the Topix index is up 0.49% at 1946.00. South Korea’s Kospi is up 0.33% at 2,384.28. Australia S&P/ASX 200 up 0.66% at 6894.20.
Top News of the Day:
The European Central Bank raised its three official interest rates by 75 basis points each, its biggest ever single move in interest rates, and warned of more hikes to come, as it struggles to bring record high inflation back under control.
The Frankfurt-based central bank raised its key deposit rate, which provides the effective floor for money-market rates, to 0.75%, while the refinancing rate rose to 1.25% and the overnight lending rate to 1.50%.
Market Summary as per 08/09/2022:
European equities Thursday closing. The DAX futures contract in Germany traded down 0.09% at 12,904.32, CAC 40 futures up 0.33% at 6125.91 and the UK 100 futures contract in the U.K. up 0.33% at 7,262.05.
In the U.S. on Wall Street, the Dow Jones Industrial Average closed up 0.61% at 31774.53. The S&P 500 up 0.66% at 4006.19 and the Nasdaq 100 up 0.50% at 12321.19, NYSE closes up 0.79% at 14961.76.
Top Market News Today:
In the Forex market, GBPUSD up 0.72% at 1.1584. The USDJPY down 0.78% at 142.978. The USDCHF down 0.61% at 0.9640. EURUSD up 0.69% at 1.0062, EUR/GBP down 0.02% at 0.8685. The USD/CNY down 0.33% at 6.9343 at the time of writing.
In the Commodity market U.S. Gold futures up 0.69% at $1,720.06. Elsewhere, Silver futures up 1.34% at $18.769 per ounce, Platinum up 0.61% at $882.52 per ounce, and Palladium down 1.01% at $2116.02.
Crude Oil up on Friday; Brent Crude Oil up 1.09% at $89.38 per barrel while U.S. West Texas Intermediate (CLc1) up 1.22% at $83.25.
In the Cryptocurrency Markets, Bitcoin at 20690.00 up 7.42%, Ethereum up 4.56% at 1709.80, Litecoin at 60.32 up 4.02%, at the time of writing.
Top Market Segment to Watch Out Today:
U.S. DOLLAR: The dollar recoiled from recent peaks in Asia on Friday as a hawkish rate hike from the European Central Bank lifted the euro and investors looked to U.S. inflation data early next week.
Profit-taking after a sharp extension of the dollar’s long rally also took hold and the pullback was broad. The Aussie, kiwi, sterling and yen were all headed for their best daily jumps in a month and the dollar index looked set for its first weekly loss in four weeks.
US: Germany’s two-year government bond yield jumped to its highest since 2011 on Thursday, after the European Central Bank delivered an unprecedented 75 basis points interest rate hike and took steps to prevent a further squeeze in bonds.
The ECB said on Thursday it would start paying interest on government deposits in a bid to keep that cash from flooding an already replete market facing a squeeze in bonds.
That followed a decision by the central bank to hike its deposit rate to 0.75% from zero. The ECB also signalled further hikes, prioritising the fight against inflation even as the bloc’s economy is heading for a likely winter recession.
Germany’s two-year bond yield soared more than 20 bps to 1.324%, its highest since 2011, while 10-year bond yields were up 14 bps to 1.71%.
Other two and 10-year bond yields also rose, with Italian 10-year yields up 8 bps at 3.95%.
Eurozone: Economic ministers from the United States and 13 Indo-Pacific countries launched negotiations on Thursday on Washington’s first major pan-Asian trade engagement effort in nearly a decade, but this time any deal will not cut tariffs.
U.S. Trade Representative Katherine Tai said the Indo-Pacific Economic Framework talks in Los Angeles were aimed at addressing future challenges and achieving “sustainable and equitable growth” in the Indo-Pacific region.
The effort was first launched by President Joe Biden during a May trip to Tokyo.
Tai, who is leading the talks with Commerce Secretary Gina Raimondo, said the ambitious initiative was making progress, although some critics have questioned its value to participating countries.
The talks include ministers from Australia, Brunei, Fiji, India, Indonesia, Japan, South Korea, Malaysia, New Zealand, Philippines, Singapore, Thailand and Vietnam. Together with the United States the participants represent some 40% of global GDP.
Top Economic Releases Today:
- CANADA Employment Change (Aug) today at 8:30 this time estimated 15.00K, previously which was -30.60K.
- this time estimated -4.00%, previously which was -4.00%.
- U.K. Inflation Expectations today at 4:30 previously which was 4.6%.
- U.S. Wholesale Inventories (MoM) today at 10:00 this time estimated 0.80%, previously which was 1.80%.
- GERMANY Buba Mauderer Speaks today at 15:00.
GBPUSD Technical Analysis
TRADE SUGGESTION- SELL AT 1.1614, TAKE PROFIT AT 1.1493 AND STOP LOSS AT 1.1685
EURUSD Technical Analysis
TRADE SUGGESTION- BUY AT 1.0095, TAKE PROFIT AT 1.0140 AND STOP LOSS AT 1.0029
GBPJPY TECHNICAL ANALYSIS
TRADE SUGGESTION- BUY AT 165.300, TAKE PROFIT AT 165.843 AND STOP LOSS AT 165.032
CHFJPY TECHNICAL ANALYSIS
TRADE SUGGESTION- BUY AT 148.312, TAKE PROFIT AT 148.502 AND STOP LOSS AT 148.177
NASDAQ 100 TECHNICAL ANALYSIS
TRADE SUGGESTION- SELL AT 12421.50 TAKE PROFIT AT 12329.40 AND STOP LOSS AT 12504.70
WTI CRUDE OIL TECHNICAL ANALYSIS
TRADE SUGGESTION- SELL AT 84.48 TAKE PROFIT AT 82.92 AND STOP LOSS AT 86.17
GOLD TECHNICAL ANALYSIS
TRADE SUGGESTION- SELL AT 1727.67, TAKE PROFIT AT 1720.07 AND STOP AT 1732.01
ETHEREUM TECHNICAL ANALYSIS
TRADE SUGGESTION- BUY AT 1699.20 TAKE PROFIT AT 1764.47 AND STOP AT 1647.58