Date: 12 September 2023. Market Update – September 12 – Greenback rebounds ahead of US Inflation. 
Trading Leveraged Products is risky Wall Street closed slightly higher amid strength in big tech. Tesla climbed 10% after Morgan Stanley boosted its outlook on the stock based on expectations on the impacts of the “Dojo†computer. Treasuries posted small losses amid a lack of buyers. Bloomberg suggested it was the smallest range on the 10-year in over 2 years. The 10-year was up 2.5 bps to 4.295%. It was generally contained by the 4.30% level as well as the 4.34% cycle peak from August 21, the highest since late 2007. Today, European futures are higher, US futures slightly lower, as markets wait for US inflation numbers. 
This morning: UK wage growth higher than expected – a bit of a negative surprise for the BoE. The ILO unemployment rate was unchanged, jobless claims nudged up 0.9K in the more up to date August report and the July reading was revised down. Mixed signals for the BoE about the overall situation in the labour market, but it seems payroll growth is slowing, which ties in with survey data from the PMI reports. Despite this, wage growth remains uncomfortably higher and the data would back at least one more rate hike from the BoE this month. BoE’s Mann warns against early end to tightening cycle. *FX – USDIndex lost a little ground, albeit after 8 straight weeks of gains, currently at its lows at 104.63 from 104.37. EURUSD drifted to 1.0725 from 1.0768 and GBPUSD higher after the data at 1.2529. USDJPY higher at 146.85 but Yen holds yesterday’s gains. *Stocks – The US100 rallied 1.14% on the back of a surge in big tech. The US500 was 0.67% and the US30 was 0.25% firmer. JPN225 also jumped nearly 1%, but elsewhere across Asia the move higher was muted and China bourses traded narrowly mixed, with the CSI 300 down -0.1% and the Hang Seng rising a mere 0.1%. European futures are higher. *Disney and Charter gained. Both stocks climbed after reports of a deal to restore channels including ESPN and ABC to the cable operator’s subscribers. Warner Bros. Discovery also rose. *Nvidia fell. The chipmaker edged lower, extending a rocky September. Advanced Micro Devices also declined. J.M. Smucker shares fell after the snack giant agreed to buy Twinkies owner Hostess. *Commodities – USOil higher as attention shifts to outlooks from OPEC & US. *Bitcoin rose after dropping to the lowest since June on Monday TODAY: The Apple product event, German ZEW Economic Sentiment. OPEC and US EIA will both publish monthly market reports later. 
Key Movers: BTCUSD rallied by +2.77% today. Always trade with strict risk management. Your capital is the single most important aspect of your trading business. Please note that times displayed based on local time zone and are from time of writing this report. Click HERE to access the full HFM Economic calendar. Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE! Click HERE to READ more Market news. Andria Pichidi Market Analyst HFMarkets Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
Trading Leveraged Products is risky Wall Street closed slightly higher amid strength in big tech. Tesla climbed 10% after Morgan Stanley boosted its outlook on the stock based on expectations on the impacts of the “Dojo†computer. Treasuries posted small losses amid a lack of buyers. Bloomberg suggested it was the smallest range on the 10-year in over 2 years. The 10-year was up 2.5 bps to 4.295%. It was generally contained by the 4.30% level as well as the 4.34% cycle peak from August 21, the highest since late 2007. Today, European futures are higher, US futures slightly lower, as markets wait for US inflation numbers. This morning: UK wage growth higher than expected – a bit of a negative surprise for the BoE. The ILO unemployment rate was unchanged, jobless claims nudged up 0.9K in the more up to date August report and the July reading was revised down. Mixed signals for the BoE about the overall situation in the labour market, but it seems payroll growth is slowing, which ties in with survey data from the PMI reports. Despite this, wage growth remains uncomfortably higher and the data would back at least one more rate hike from the BoE this month. BoE’s Mann warns against early end to tightening cycle. *FX – USDIndex lost a little ground, albeit after 8 straight weeks of gains, currently at its lows at 104.63 from 104.37. EURUSD drifted to 1.0725 from 1.0768 and GBPUSD higher after the data at 1.2529. USDJPY higher at 146.85 but Yen holds yesterday’s gains. *Stocks – The US100 rallied 1.14% on the back of a surge in big tech. The US500 was 0.67% and the US30 was 0.25% firmer. JPN225 also jumped nearly 1%, but elsewhere across Asia the move higher was muted and China bourses traded narrowly mixed, with the CSI 300 down -0.1% and the Hang Seng rising a mere 0.1%. European futures are higher. *Disney and Charter gained. Both stocks climbed after reports of a deal to restore channels including ESPN and ABC to the cable operator’s subscribers. Warner Bros. Discovery also rose. *Nvidia fell. The chipmaker edged lower, extending a rocky September. Advanced Micro Devices also declined. J.M. Smucker shares fell after the snack giant agreed to buy Twinkies owner Hostess. *Commodities – USOil higher as attention shifts to outlooks from OPEC & US. *Bitcoin rose after dropping to the lowest since June on Monday TODAY: The Apple product event, German ZEW Economic Sentiment. OPEC and US EIA will both publish monthly market reports later. Key Movers: BTCUSD rallied by +2.77% today. Always trade with strict risk management. Your capital is the single most important aspect of your trading business. Please note that times displayed based on local time zone and are from time of writing this report. Click HERE to access the full HFM Economic calendar. Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE! Click HERE to READ more Market news. Andria Pichidi Market Analyst HFMarkets Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.
Trading Leveraged Products is risky Wall Street succumbed to further profit taking as concerns over tech weighed. This morning, stock markets headed south across Asia, as markets wait for the key US CPI numbers due to be released today. The USDindex tumbled into the close with the index sliding to 104.573 from the day’s high of 104.918 after a Reuters report said the ECB saw inflation holding over 3% in 2024. European and US futures are in the red and yields are moving higher with Eurozone markets underperforming after the Reuters source story. 
Today so far: UK GDP contracted -0.5% m/m in July, more than expected and wiping out the 0.5% gain in the previous month. The three month trend rate remained steady at 0.2%. Industrial production contracted -0.7% m/m, services fell -0.5% m/m and construction output declined -0.5% m/m. The visible trade deficit narrowed somewhat, but that will also be due to lower energy prices. Wet weather and strikes are partly to blame, but the numbers also tie in with weaker survey numbers and a wider weakness in activity, with the UK economy set to move essentially sideways over the next quarter, after what was a quicker bounce back from the pandemic than initially reported. For the BoE that means further hikes after the likely move this month seem increasingly less likely. *FX – USDIndex at 104.742, up from a session low of 104.515. EURUSD dipped to 1.0730 from 1.0764 and GBPUSD retested its 1.2440 low. USDJPY higher at 147.30. *Stocks – The US100 led the declines with a -1.04% drop, while the US500 fell -0.57% and the US30 slipped -0.04%. A lot of the weakness stemmed from Apple and Oracle with the former hit by more fallout from China’s restrictions on iPhones, while the latter suffered from a poor earnings report. Apple’s iPhone 15 launch did not provide much support. *Commodities – Oil prices have remained supported ahead of the CPI report and on forecasts by OPEC and the US that output cuts will tighten the market in the months ahead. USOIL is at $88.50. *Gold has corrected to $1908 as the USDIndex has nudged up from early lows and is starting to eye the 105 mark again, which is keeping a lid on the precious metal, although gold is still up more than 12.5% over the year. 
Key Movers: AUDUSD (H1 chart) in a 3-day downchannel with key Resistance intraday at 0.6410 and 0.6420. Always trade with strict risk management. Your capital is the single most important aspect of your trading business. Please note that times displayed based on local time zone and are from time of writing this report. Click 
Trading Leveraged Products is risky CPI was a little hotter than expected, but not enough to alter expectations that the FOMC will skip hiking rates at its meeting next Wednesday. And the report did not change views that the door is open for a tightening in November, but it still not any more than a 50-50 bet. Treasuries went into the CPI data priced for upside risks and Yields spiked on the 0.6% jump in headline and the 0.3% gain in the core, which resulted in respective y/y rates of 3.7% and 4.3%. However, yields quickly dropped back and closed richer on the session amid short covering. Today, Asian stocks inched higher as investors shrugged off stronger than expected US inflation figures and anticipate the ECB decision. 
The ECB meeting takes place today with reports that the updated staff projections will push the 2023 inflation forecast above 3% having boosted bets of another 25 bp hike. A hawkish pause would not be a surprise, but we think there is a slightly higher chance that the ECB will move again this week, especially considering the likely upward revision to the inflation forecast and the most recent rise in energy prices. *FX – USDIndex is at 104.60. EURUSD mixed but lower in EU session at 1.0733 from 1.0754 and USDJPY holds above 147.00 floor, eyeing 148. *Stocks – The JPN225 surged 1.4% to 33,168.10, US500 edged up to 4534, US100 jumped to August ceiling and the US30 failed to extend above 35k, as Stocks and bonds were supported ahead of ECB and US data. Stocks of airlines were some of the biggest losers in the US500 after a couple warned of the hit to profits they’re taking because of higher costs. United Airlines sank by 3.8% and 2.8% for Delta Air Lines. On the flipside, Amazon climbed 2.6%, Microsoft gained 1.3%, and Nvidia rose 1.4%. Moderna rallied 3.2% after it reported encouraging results from a flu vaccine trial. *Commodities – Oil well supported as markets focused on the prospect of sustained supply tightness this year. USOIL is at $88.60, recovering from $87.60 lows. Today: ECB rate decision & Press Conference, US Retail Sales and PPI. 
Key Movers: XAGUSD (-1.18%) broke 5-day range, extending the September’s downleg, with attention turning to 22 and 21 Support level. Always trade with strict risk management. Your capital is the single most important aspect of your trading business. Please note that times displayed based on local time zone and are from time of writing this report. Click 
Trading Leveraged Products is risky Next week will be one marked by multiple decisions by the world’s major Central Banks, the Fed in the first place. PMI data will then give colour to the expected strength of the economy in the coming months, while we will continue to keep our eyes firmly on prices, after the impromptu rise we saw in the US, for example. Tuesday – 19 September 2023 ->Harmonized / Core Harmonized Index of Consumer Prices (EUR, GMT 09:00) – Next week will be one marked by multiple decisions by the world’s major Central Banks, the Fed in the first place. PMI data will then give colour to the expected strength of the economy in the coming months, while we will continue to keep our eyes firmly on prices, after the impromptu rise we saw in the US, for example. ->Canadian CPI (CAD, GMT 12.30) – Inflation in Canada is at similar levels to the US, even lower: 3.2% and 3.3% in July on the headline and core components respectively. But the former has risen again in the latest report, and consistently from +2.8% in June: will it follow in its neighbour’s footsteps and mark a second consecutive rise? Expectations are for a +3.8% rise in the headline component. Wednesday – 20 September 2023 ->PBoC Interest Rate Decision (CNH, GMT 01:15) – China’s central bank has been very active this year in trying to stimulate the economy with various instruments and has already tweaked various interest rates and margins requirements from banks several times: in August the key one-year loan prime rate was lowered from 3.55% to 3.45% where it now stands. It remains to be seen whether the bank will take a break after the latest vaguely positive data. ->UK CPI, PPI, Retail Price Index (GBP, GMT 06:00) –Prices in the UK continue to grow at the highest levels among advanced economies: in July y/y CPI was +6.8%, Core CPI +6.9%, Retail Prices +9%. The economy seems to be languishing in stagflation but this is not what policy makers would like to see, as they expect to see numbers close to 5% by the end of the year. Expectations are for a rise of the headline component to +7.1% and a slowdown in the core one, to +6.8%, while RPI is forecasted at +9.3% y/y. ->FED Interest Rated Decision and FOMC Press Conference (USD, from GMT 10:00) -Little drama is expected out of next week’s FOMC. The official rate is in the 5.25% – 5.50% range and the market continues to price in very little risk for a hike next week. Chances for a 25 bp rate hike in November are still on the cards amid sticky core inflation and a still tight labor market. Very important will be subsequent comments from the ever-balanced Jerome Powell, who will perhaps explain the bank’s view on prices that have been rising again over the past two months while growth and jobs seem to be holding strong. Thursday – 21 September 2023 ->SNB Interest Rated Decision and Monetary Policy Assessment (CHF, GMT 07:30) –Earlier this month, economists at Credit Suisse/UBS were saying the SNB could raise the current 1.75% level even in the event that the neighboring ECB paused, citing the usual price fight but also the interest rate differential with the eurozone. Instead, Madame Lagarde raised and even though Inflation is actually below 2%, the Swiss bank’s projections suggest caution and that a 25 bps hike could be in the cards. ->BOE Interest Rate Decision, Minutes and Monetary Policy Summary (GBP, GMT 11:00) –SONIA futures data seem to take it for granted that the BOE will raise at this meeting from the current 5.25% to 5.50%: but most important will be to understand the internal divisions and alternatives on the bench for the bank that is perhaps facing the most difficult situation, with a stagnant economy and prices running hot. Economists polled by Reuters think 2 members will vote for keeping the rate unchanged, up from just 1 at the last meeting. ->US Jobless Claims and Existing Home Sales (USD, GMT 12:30, 14:00) –The US labor market has shown that it is still very tight despite some slowdown that was most noticeable in the ADP data and the pickup in the unemployment rate (+3.8% in August from +3.5%), actually due to a rise in the Labor Force Participation Rate. This week, it is expected that Initial Claims will rise by just 5k to +225k. While mortgage demand has sunk to a 28-year low given the high rates, existing home sales are also suffering (+4070k in July down from +4160k in June) in contrast to new home sales, which continue to climb (+714k). Two more data points to see how strong the US locomotive is. Expectations are for 4100k Existing Home Sales. Friday – 22 September 2023 ->BOJ Interest Rated Decision and Monetary Policy Statement (JPY , GMT early morning time, not disclosed) –Yen weakness, a still negative official rate (-0.1%), recent changes to the YCC on the 10-year, Ueda statements, prices and wages that finally seem to be rising consistently toward the bank’s target bring into question whether or not the process of monetary policy normalization from an ultra loose stance has really begun. With the USDJPY in the 148 area, an event definitely not to be missed. No changes are expected for the Official Interest Rate. ->French, German, European HCOB PMIs, UK S&P/CIPS PMIs (EUR, GBP, starting GMT 07:15) – Yen weakness, a still negative official rate (-0.1%), recent changes to the YCC on the 10-year, Ueda statements, prices and wages that finally seem to be rising consistently toward the bank’s target bring into question whether or not the process of monetary policy normalization from an ultra loose stance has really begun. With the USDJPY in the 148 area, an event definitely not to be missed. No changes are expected for the Official Interest Rate. Always trade with strict risk management. Your capital is the single most important aspect of your trading business. Please note that times displayed based on local time zone and are from time of writing this report. Click 
Trading Leveraged Products is risky A week that will be marked by meetings and decisions of practically all the world’s most important central banks is off to a slow start, with US futures fractionally up (+0.08% / +0.15%) after Friday’s drubbing. It was a decisive day for the weekly trend, sending both the US500 and US100 into negative territory for the second time in a row: only the US30 managed to close the week at +0.1%. The tech sector was the hardest hit, -2.2%, led by the Oracle debacle, -10%. On the other front, Utilities outperformed, +2.8%. This was on Friday, when the Nasdaq sank -1.75% and the US500 posted -1.22%: two factors contributed to this bad performance. First, the Michigan Consumer Sentiment Index, which came out at 67.7, below expectations and well below its historical average, which is close to 86. This Index accounts for 2/3 of the US economy and is therefore a valuable indicator of the overall state of affairs there. The other major event that certainly helped the declines to be heavy was the UAW strike, for the first time simultaneously at the Ford, GM and Stellantis plants: the demands are for wage increases of up to 40% and the impact of such news on the perception of future inflation can be worrying. Today is poor in data, but from tonight Central Banks Week kicks off with the minutes of the latest RBA meeting and from Wednesday night onwards all the big central banks will cascade. The FED decision will be made on Wednesday evening. Since the 3rd week of August, Antipodeans + CNH have relatively outperformed 
*FX – USDIndex -0.12% at 104.86; Antipodeans are relatively stronger with AUDUSD +0.23% and NZDUSD +0.31%, this comes also on the back of USDCNH -3%, Microsoft -2.50%. *Commodities – USOil is trading close to 10-month high at $91.60, UKOil puts $95 in sight. *GOLD – +0.32% at $1929, XAG +0.73% at $23.20. Today: highlights include US NAHB Housing Market Index, Bundesbank Monthly Report, remarks from Saudi Arabia’s Energy Minister, ECB de Guindos & Panetta. 
Key Movers: XAUUSD (+0.22% @ $1928.09) is in a very tight range between its 50d and 200d MAs and close to the upper bound of a descending channel. Always trade with strict risk management. Your capital is the single most important aspect of your trading business. Please note that times displayed based on local time zone and are from time of writing this report. Click 
Trading Leveraged Products is risky US Stocks barely budged yesterday, with all indices ending the session with tiny gains; volumes were muted too. On the other side of the ocean, we witnessed substantial losses among European indices, probably also weighed down by the ECB’s decision last week. The worst of all was the FRA40 after one of the largest domestic investment banks, Societe Generale, pledged to cut costs and tumbled 12.05%. It is not the first major investment bank to make similar pronouncements lately, with Goldman and Morgan Stanley planning to adjust their workforce next. Back to America, strikes are hitting the economy with 4.1 million labor hours lost in August, the most in 23 years: perhaps another reason why the indices’ rally has come to a standstill with the Nasdaq – for instance – remaining at the level of three months ago. To be fair, yesterday the good performance of Apple and Meta helped it to gain +0.15%. Technology was the best sector for the day, along with Energy: however, it is striking to see how the latter has been the star performer in recent months – led by the oil rally – with the ETF tracking the sector (XLE) up 14.92% in three months versus a paltry +1% for the US500. 
The RBA minutes this morning held few surprises and the AUD, like the USD, is little moved. Rates continue to push slowly upwards and the 2-year is close to its March high of 5.066%. The market believes that the Fed will not move tomorrow – 99% odds – but the Dot Plot predicts another hike this year: GS is convinced that this is just a â€bluffâ€. We shall see. *FX – USDIndex flat at 104.86; AUDUSD -0.04% @ 0.6433, GBPUSD
Trading Leveraged Products is risky In a day that will be centred around the Fed’s deliberations this evening, and above all the quarterly economic projections, the new dot plot and Jerome Powell’s press conference, we start with China where the PBoC just now left its benchmark rates unchanged, with the one-year and five-year loan prime rates at 3.45% and 4.2% respectively. The Central Bank touted the strength of the national economy and said it has ample policy room as analysts bet on future rate cuts. Still in Asia, the Japanese trade balance fell 66.7% in August, coming in at 930.5 billion yen compared with the 2.79 trillion yen deficit a year ago: a smaller-than-expected but still 17.8% drop in imports contributed to this improvement. Yesterday saw the USD suffer badly up to the US open, with the USDIndex at -0.4% at one point and particularly weak against currencies such as the CAD, before recovering most of its losses and closing flat: the EURUSD was back below 1.07 as was the Cable below 1.24. US yields returned to new highs across the curve, on the 2, 5 and 10 year, the latter two being the highest levels since 2007. Stocks and indices closed in the red, led by the US30. Another extremely interesting movement was that of oil, which saw Brent crude come within a hair’s breadth of $96 and Crude above $92, at very strong resistance levels tested several times last year, before falling back profusely: at the moment, the US blend is trading at $90.35. FED’s current Dot Plot, representing Members’ rates forecasts 
Tonight is the Fed meeting and there is a 99% probability that the official rate will remain in the 5.25%-5.50% range. But September is also the meeting where the Summary of Economic Projections (SEP) will be renewed and the new Dot Plot will be released: these will be key points to understand what will happen next. On the other hand, it is possible that Powell will do everything he can during the conference to reiterate to the markets that they should not think they know what he and the other board members will do in the coming months. *FX – USDIndex flat at 104.82; EURUSD +0.05% @ 1.0685, GBPUSD -0.30% @ 1.2355, USDCAD +0.06% @ 1.3456, USDJPY flat @ 147.88, USDCNH 7.308. *Stocks – US Futures are lower to flat (US500 -0.04%, US100 -0.10%, US30 +0.01%); GER40 is +0.10%, FRA40 -0.09%. EV maker TIO tumbled -12%. *Commodities – USOil -1.11% @ $90.44, UKOil is trading at $93.44 after getting close to hitting $96 last night. *GOLD – flat @ $1931. Today: Highlights include UK CPI, PPI, Retail PI (JUST OUT, much better than expected), German PPI, US Mortgage applications, EIA Weekly Oil Stocks Change, FED INTEREST RATE DECISION, FOMC ECONOMIC PROJECTION & PRESS CONFERENCE. 
Interesting Mover: USOil -1.11% @ $90.44, perfectly pulled back after reaching a key resistance level at the $92.20 area, drew a spinning top and is dumping overbought levels on the RSI. Always trade with strict risk management. Your capital is the single most important aspect of your trading business. Please note that times displayed based on local time zone and are from time of writing this report. Click 
It was Fed Day and it did not disappoint. As universally expected, the result of the FOMC was a “hawkish hold.†But we and the markets got a little more than bargained for as Chair Powell and the FOMC revealed an even more restrictive policy stance than anticipated, and clearly signaled a higher for longer stance. The markets got the message loud and clear. Stocks and bond markets are under pressure, after the Fed decision hit risk appetite. The FOMC kept rates on hold yesterday, but signalled that another hike is in the cards later in the year. 
Switzerland’s SNB surprised by keeping rates on hold. Expectations had been for another 25 bp hike, but after the recent drop in inflation, the SNB decided to keep policy settings unchanged. The statement stressed that “the significant tightening of monetary policy over recent quarters is countering remaining inflation pressureâ€, although it left the door open to another hike by saying that “it cannot be ruled out that further tightening of monetary policy may become necessaryâ€. The central bank’s new forecasts put inflation at 2.2% in 2023 and 2024, before a drop to 1.9% in 2025. *FX – USDIndex has lifted to 105.35 on the Fed outlook and also support from haven demand. It holds above the 105 mark for a fifth straight session. EURUSD extended to 1.0616 lows, while GBPUSD broke 1.2300, breaching its 6-month support level, ahead of BOE rate decision. The Yen struggled and USDJPY lifted to 148.45. It has currently pulled back down to 148.15. *Stocks – JPN225 and ASX lost -1.4% overnight, after a lower close on Wall Street and European as well as US futures are also in the red. The US100 closed -1.53% in the red, with the US500 down -0.94% while the US30 was off -0.22%. *Commodities – USOil under $89 per barrel, as the changed rate outlook weighed on demand expectations. *Gold has continued to trade lower at day’s low $1924.10 as markets wait for the BOE announcement. Today: BOE Interest Rate Decision and Press Conference, US Initial Jobless Claims, Existing Home Sales, ECB President Lagarde speech. Interesting Mover: CHFJPY has lost -1.03% so far today after the SNB announcement. 
Always trade with strict risk management. Your capital is the single most important aspect of your trading business. Please note that times displayed based on local time zone and are from time of writing this report. Click 
Wall Street closed with broad losses, but sentiment stabilised somewhat overnight, with China bourses outperforming. Japanese markets didn’t benefit from the BoJ’s ongoing commitment to its ultra-accommodative policy settings and the Yen sold off as the BoJ kept monetary policy parameters unchanged. European futures are in the red, US futures slightly higher, as markets continue to digest this week’s policy announcements. The 10-year Treasury yield is down -0.4 bp, the 10-year JGB rate has corrected -0.2 bp, while yields nudged higher across Australia and New Zealand. 
BoJ kept monetary settings unchanged – as expected. Japan’s central bank offered no clear sign of a shift in its policy stance. The negative interest rate and the settings of the yield curve control program were left unchanged. The BoJ also maintained the pledge to add further stimulus if needed. The Yen weakened on the policy statement and yen bears will continue to test the officials’ resolve to stabilise the currency. *FX – USDIndex has remained supported above 105 but off 105.48 highs. EURUSD and GBPUSD steady above 1.0640 and 1.2265 respectively. The Yen sold off and USDJPY lifted again to 148.40. Sterling weakened against the USD to a session low of 1.2250 after data showed retail sales in Britain rose less than expected in August. *Stocks – US100 slumped -1.82%, with the US500 down -1.64%, and the US30 off -1.08%. Hang Seng and CSI 300 rallied 1.4% and 1.6% respectively. JPN225 ended the day down 0.52% at 32,402.41. *Commodities – Oil prices have started to stabilise, after being knocked back by the hawkish Fed. USOil is trading at $90.28 per barrel now, Brent at $93.75 per barrel. *Gold rebounded to $1924.80. Today: PMIs from Germany, Eurozone, UK and US. Canadian Retail Sales also on tap. 
Interesting Mover: NZDJPY has rallied by 0.65% post BoJ announcement and Ueda’s comments. Always trade with strict risk management. Your capital is the single most important aspect of your trading business. Please note that times displayed based on local time zone and are from time of writing this report. Click 
Stock markets traded mixed across Asia, with China bourses underperforming as concern over the health of the property sector resurfaced. Evergrande -20.91% -Sales not as expected, unable to issue new notes under its debt restructuring plan. European futures and US futures are lower. The “higher for longer†message continues to weigh on sentiment and while the US may be heading for a soft landing, Europe is clearly struggling. The rise in energy prices is not helping. The 10-year Treasury yield is currently up 2.8 bp, the 10-year Bund yield 1.0 bp. EU escalates China tensions with probe to ward off cheap EPS and warns China it will be more assertive on ‘fair trade’. Republicans struggle to unite around a plan to avert shutdown. A full, lengthy shutdown of the US government is “likely†at the end of the month and could leave the Fed reluctant to raise interest rates in November. 
*FX – USDIndex has lifted 105.30. EURUSD and GBPUSD are 1.0640 and 1.2245 respectively. The Yen sold off and USDJPY lifted again to 148.45. *Stocks – JPN225 and ASX lifted 0.9% and 0.1%. Wall Street pared its modest early gains and closed in the red. The US30 was off -0.31% to 33,964, with the US500 lower by -0.23% to 4320, and the US100 down -0.09% to 13,212. All were sharply lower for the week too with respective declines of -1.9%, -2.9%, and -3.6%. In fact, it was the worst week for the S&P since the March 10 week that included the SVB collapse. *Commodities – Oil rose this morning at $90.07 as expectations of tight supply and signs of stronger economic performance in China and the US boosted prices. Russia last week banned the export of diesel and petrol, adding to supply pressures after the country joined Saudi Arabia in extending oil production cuts to the end of this year. Hedge Funds join bullish bets on oil. *Gold rebounded to $1927.15 but overall remains sideways. Today: ECB President Lagarde speech. 
Interesting Mover: BTCUSD is down for a 4th day in a row, retesting $26,000. Always trade with strict risk management. Your capital is the single most important aspect of your trading business. Please note that times displayed based on local time zone and are from time of writing this report. Click 
Asian stock markets sold off, with Hang Seng and CSI 300 extending yesterday’s slide, as concern about China’s property sector deepened. Evergrande Group’s mainland unit said it failed to repay an onshore bond, which added to uncertainty over the future of the developer. Attempts to get restructuring plans back on track are ongoing, but investors are worrying about the risk of a potential liquidation. European and US futures are also in the red, as Treasury yields continue to rise. The hawkish, higher for longer stance from the FOMC and most major central banks has put bears in control. Fears over sustained inflationary pressures, largely thanks to the resilient economy and higher oil prices weighed. The advent of supply is adding to the rise in rates too. Moody’s also noted that a government shutdown, which is possible at the end of the month, would be a “negative†for ratings. Wall Street also reversed opening losses with the bump in risk appetite also hurting Treasuries. 
*FX – USDIndex has cleared the 106 mark as risk aversion picks up. EURUSD and GBPUSD both broke below 1.06 and 1.22 support levels respectively. The USDJPY firmed to an intraday high of 149.18. *Stocks – JPN225 slipped 1.0% to 32,054, ASX dipped 0.5% to 7,044.90, Hang Seng shed 0.9% to 17,576.83, while the Shanghai Composite fell 0.2% to 3,109.69. Amazon rose 1.7% and was the strongest single force pushing up the US500. US500 fell 0.4% as of London open, while US100 futures fell 0.6%. *Commodities – Oil slipped below 88.00, with next support level at 86, due to US Dollar strength, which looks to outweigh supply tightness. *Gold- retested 200-day SMA at 1909. Today: BoE Governor Bailey’s meeting of the central bank’s Financial Policy Committee and US CB Consumer Confidence & New Home Sales. 
Interesting Mover: VIX (+5.5%) extending to 1-month resistance at 18.20. Always trade with strict risk management. Your capital is the single most important aspect of your trading business. Please note that times displayed based on local time zone and are from time of writing this report. Click 
Chinese indexes stabilised after a 2-day decline amid fresh optimism that official measures will be able to boost the recovery. Industrial profits improved for the first time in a year and the People’s Bank of China said it would step up policy adjustment and implement monetary policy in a “precise and forceful†manner to support the economy. Confidence in China’s recovery has been going up and down for so long now, that investor confidence could take lasting damage. 
The omnipresent fear of the FOMC’s higher-for-longer policy stance (and indeed that of the ECB, BoE, and BoC) remains a major worry and was exacerbated after JPMorgan’s Dimon noted the potential for a 7% rate as a worst case scenario. Additionally, the threat of a US government shutdown this weekend and Moody’s warning of the potential negative impact on ratings rattled too and left buyers sidelined. Technicals have played a part as well with key levels in stocks, bonds, and the USD having been broken. The drop in September consumer confidence, manifested the anxieties and added to the selloff. *USDIndex continued to rally and firmed to its 2023 and 10-month high as it benefited from a haven bid, along with the relative outperformance of the US economy and rate differentials. *EURUSD and GBPUSD posted fresh lows at 1.0554 and 1.2134. The USDJPY is steady at 149.15. *Stocks – Hang Seng and CSI300 rose 0.7% and 0.4% respectively. Futures are mixed across Europe and slightly higher in the US, after Wall Street dragged down to the lowest levels since early June. The US100 tumbled -1.57% to 13,063.6. News that the FTC was suing Amazon helped knock big tech sharply lower. The US500 was down -1.47% to 4273 with 90% of the index and all sectors in the red. The US30 slid -1.14% to 33,618, slumping below its 200-day moving average. *Commodities – Oil rebounded to 90.80 as API reported a fall in inventories in Oklahoma. *Gold – broke 1900 and currently settled to 1895.50 as haven demand favors the Dollar rather than the precious metal. China jitters have flared up & expectations that central banks are sticking with the “higher for longer†messages have added to pressure on bullion. Today: US Durable Goods. 
Interesting Mover: Gold broke 1900, with next Support levels at 1885 & 1870. Always trade with strict risk management. Your capital is the single most important aspect of your trading business. Please note that times displayed based on local time zone and are from time of writing this report. Click 
Stock as well as bond market are moving higher at the end of the quarter. GER30 and UK100 are up 0.7% and 0.8% respectively, after the Hang Seng bounced 2.7%. US futures are also posting gains, and yields are coming down. The German 10-year rate has corrected -5.1 bp, the 10-year Gilt yield is down -3.9 bp and the US 10-year rate has dropped -2.4 bp. 
The omnipresent fear of the FOMC’s higher-for-longer policy stance (and indeed that of the ECB, BoE, and BoC) remains a major worry and was exacerbated after JPMorgan’s Dimon noted the potential for a 7% rate as a worst case scenario. Additionally, the threat of a US government shutdown this weekend and Moody’s warning of the potential negative impact on ratings rattled too and left buyers sidelined. Technicals have played a part as well with key levels in stocks, bonds, and the USD having been broken. The drop in September consumer confidence, manifested the anxieties and added to the selloff. *USDIndex reverted to 105.54 from 106.50 giving the Yen some breathing room amid intervention concerns. The USDJPY slide to 148.50 has put investors on high alert for the risk of intervention. But Japanese authorities could find propping up their currency both difficult to achieve and hard to justify. (Reuters) *Stocks up on the last trading day of the Q3 amid optimism over spending during China’s Golden Week holiday and on talks of a possible meeting between US and China leaders. *UK: Q2 GDP was confirmed at 0.2% q/q & German retail sales unexpectedly correct again coupled with weak consumer confidence readings. *US: Tight reading on jobless claims, a mixed GDP report & US mortgage rates at the highest level since 2000, as elevated interest rates and climbing bond yields push up borrowing costs. *Gold at $1858, braced for their biggest monthly fall since February. Today: The key US PCE but a partial government shutdown is looming, which could affect the release of any economic data. 
Interesting Mover: USDJPY (-0.40%) pulled back to 148.50, after a rally closed to the 150 level. However, key support remains at 148.00. Always trade with strict risk management. Your capital is the single most important aspect of your trading business. Please note that times displayed based on local time zone and are from time of writing this report. Click 
Just a few hours before the Saturday midnight deadline, Democrats and Republicans passed a short term bill (45 days) to keep the government funded into November and avoid a shutdown which would have put the paychecks of some 3 million Americans in the public sector and the military at risk. This is certainly not an optimal and confidence-inducing solution in the long term: however, the markets are increasingly accustomed to such events, which have occurred over 20 times in the last 50 years, including 4 in the last decade. It may be this, it may be the start of the new quarter, it may be the good data from Asia, but this morning there is a slight risk on, with the US and European indices up by an average of +0.3% and oil also rising after two bad sessions that saw it pulling back from previous annual highs. The good news came from Asia, where manufacturing in China bounced back into the expansion zone for the first time since last April – as witnessed by the Caixin – and also in Japan, the Tankan Survey saw optimism grow in this side of the productive tissue. This morning we are also seeing very different calls from 2 major US investment banks, with GS seeing demand for both oil and copper booming in China while CITI is taking the opposite view and sees weakness in industrial metals – with possible falls in the range of 5-10% – and Crude falling to $70 in early 2024. However, after September proved to be a particularly negative month with falls of up to 5.8% in the case of the Nasdaq, investors want to start off on the right foot and celebrate the agreement reached in Washington at the same time as they anticipate Federal Reserve Chairman Jerome Powell’s remarks later today. UKOil – USOil spread is narrowing 
*FX – USDIndex just shy of 106, +0.15% @ 105.97; AUDUSD is the laggard among majors -0.30% @ 0.6414, *USDJPY is trading at 149.65 after having hit a new 2023 high at 149.82. EURUSD flat, GBPUSD @ 1.22. *Stocks – US Futures are inching higher (US500 +0.40%, US100 +0.50%, US30 +0.39%%); EU futures are up as well (GER40 +0.35%, FRA40 +0.41%). September was a grim month: US30 -3.5%, US500 –4.9%, US100 -5.8%. Performances were negative for the whole Q3: -2.6%, -3.7%, -4.1% respectively. *Commodities – USOil +0.64% at $91.32, UKOil is trading at $92.65 and their spread has narrowed to just $1.33, in the lower bound of this year’s range. *GOLD – -0.19% @ $1845, XAGUSD adds another -1.44% to its recent prolonged drop, trading at $21.88. Today: Highlights include Spanish, Italian, German, French, EZ, UK & US PMIs, US ISM Manufacturing, Fed’s Powell & Williams. 
Interesting Mover: XAGUSD (-1.44% @ $21.88) had a wild session on Friday with a sharp reversal and an excursion of 6.16%. The trendline that originated in August 2022 has been broken, but there is another longer-term one currently passing through the $20.50 area, while $21.50 is a strong static support; the price is below its 50d and 200d MAs. Always trade with strict risk management. Your capital is the single most important aspect of your trading business. Please note that times displayed based on local time zone and are from time of writing this report. Click 
Starting with APAC, the RBA has just unsurprisingly kept rates steady in Governor Bullock’s inaugural meeting with the statement largely a carbon copy from the Lowe era (â€inflation is coming down, the labour market remains strong and the economy is operating at a high level of capacity utilisationâ€): AUD continues to decline this month and is -0.76% against the USD right now, followed by the KIWI which marks -0.63%. The JPY, which is one step away from 150, is surprisingly strong this morning, flat against the USD, as the rhetoric about the possibility of intervention continues, this morning from Japan’s Finance Minister Suzuki. The JPN225, for its part, is down -1.85% and back to last June’s levels, but the whole of APAC is suffering: Hong Kong and China are back to trading and the former is down -3.04%, weighed down by developers and the energy sector. Moreover, the IMF has lowered growth expectations for the area. US Yield Curve 
More broadly, we are seeing a series of risk-off movements, evident in the strength of the USD which, after +0.75% yesterday, is now within touching distance of 107. Yesterday afternoon’s decent US ISM data helped long end yields continue to rise (10-Year at 4.691%) while continued weakness in Eurozone manufacturing sank the EURUSD below 1.05. European stock markets suffered more than American ones, which showed more indecision and ended the day mixed. But while the mega-cap filled Nasdaq finished at +0.83%, the RUSSELL 2000 index of small to mid-cap companies is now negative YTD. Finally, the weakness in precious metals was significant, with Silver plummeting -5.81% below $21; energy also sold off, with OIL down for four consecutive sessions and UKOIL down 8% from last Thursday’s high. *FX – USDIndex +0.24% @ 106.86 after +0.75% yesterday; AUDUSD -0.73% @ 0.6316, NZDUSD -0.56%. YEN strengthens 0.03%, 149.82, USDCNH steady at 7.32. EURUSD -0.08% @ 1.0469 and CABLE at 1.20 handle after yesterday’s heavy session. *Stocks – US Futures fractionally negative (US500 -0.12%, US100 -0.17%, US30 -0.11%). RUSSELL 200 turned negative YTD. EU futures -0.2% on average after both GER40 and FRFA40 lost -0.9% yesterday. APAC heavy: HK -3%, CHINA50 -1.53%, JPN225 -1.90%. *Commodities – USOil -0.28% at $88.35, UKOil -0.44%, Wheat -0.13%, Corn -0.61%. *Metals – Gold -0.27% @ $1822, XAGUSD @ 21.03, Copper -1.03%, Palladium -0.35%. Today: highlights include US IBD/TIPP & JOLTS, Swiss CPI, Australian PMI (Final), Fed’s Bostic, ECB’s Lane & Valimaki. 
Interesting Mover: Copper -1.0% @ $3.6065, is clearly losing the $3.70 area and below the $3.62 support, has been rejected by its 50MA and lost 1yr long uptrend, $3.53 is its next relevant support. Always trade with strict risk management. Your capital is the single most important aspect of your trading business. Please note that times displayed based on local time zone and are from time of writing this report. Click
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