- Dollar creeps higher as market moves are scattered
- Eurozone September preliminary CPI +10.0% vs +9.7% y/y expected
- France September preliminary CPI +5.6% vs +5.9% y/y expected
- Japan spent ¥2.8 trillion on currency intervention in the past month – MOF
- UK Q2 final GDP +0.2% vs -0.1% q/q prelim
- The fine print to today’s UK Q2 GDP report
- UK September Nationwide house prices 0.0% vs +0.3% m/m expected
- OPEC+ talks said to narrow range of potential oil output cut to 0.5 to 1.0 mil bpd
- USD leads, NZD lags on the day
- European equtiies larger; S&P 500 futures up 0.1%
- US 10-year yields down 5 bps to three.695%
- Gold up 0.2% to $1,663.33
- WTI crude down 0.1% to $81.15
- Bitcoin down 0.2% to $19,468
With month-end and quarter-end in focus, the market strikes have been scattered in European buying and selling because the preliminary push and pull within the greenback finally result in the dollar now shifting larger with early positive aspects in shares slowly dissipating. However the bid in bonds is staying the course as yields are dragged decrease once more, retaining the momentum after the BOE intervention earlier within the week.
By way of information, Eurozone annual inflation hit double-digits coming in at a document 10% studying with the core studying additionally leaping to 4.8% – paving the way in which for the ECB to be extra aggressive subsequent month.
The pound was additionally in focus as Truss and Kwarteng met with the OBR however didn’t ask the fiscal physique to change its plans, suggesting that the federal government is not backing down from its financial plan. The quid was initially larger with cable shifting as much as 1.1235 earlier than falling again all the way down to 1.1030 now as greenback positive aspects additionally issue into the equation amid risky buying and selling.
After some pushing and pulling early on, EUR/USD is settling decrease being down 0.7% to 0.9740 – pushing again beneath its 200-hour shifting common at 0.9759. That retains the near-term bias extra impartial now.
USD/JPY is little modified usually regardless of the greenback’s advance elsewhere, as patrons are nonetheless pensive in chasing a transfer too near 145.00. One thing, one thing Icarus flying too near the Solar.
In opposition to the commodity currencies, the greenback’s positive aspects are extra profound with USD/CAD up 0.5% to 1.3745 and AUD/USD down 0.6% to 0.6460 at the moment. That comes regardless of a barely higher urge for food within the equities area, with shares holding slight positive aspects on the day. That stated, the optimism has been watered down with S&P 500 futures now simply up 0.1% after having been up by as a lot as 0.8% earlier.
Month-end and quarter-end buying and selling will maintain issues a bit difficult earlier than the weekend, alongside US PCE information and the UoM survey in a while.
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