Market Update – November 21 – USD continues to recover

The USD Index continues to recover, back over 107.00 to 107.45, next resistance today 107.70 and the 200-hrMA as risk appetite sours in Asia with more COVID cases in Beijing and a rise in deaths. Stocks lower & Oil at 2-mth lows to start the week. Chinese PBOC kept rates unchanged at 3.65%. More Hawkish talk from Fed officials (Bostic believes that another 75bps-100bps tightening will be warranted and sufficient to rein in inflation) – helped the USD sentiment. 
EUR – declined from 200- day resistance at 1.0385, ao Friday and is under 1.0300 today at 200-hr MA at 1.0270. 
JPY – moves away from 140.00 zone to 140.75 next resistance 141.00. 
GBP – Sterling dips to test 1.1800 today down from 1.1950 highs on Friday and a rejection of 1.2000 last week. 
Stocks – Wall Street closed flat on Friday, TSLA -1.63%. on product recalls and worries over MUSK workload. US500 was best performer +18.78 (+0.48%) at 3965,  FUTS trades at 3960 now. 

USOil – fell significantly again to $77.75 Friday before recovering over $80.00. But is subdued today under  $80.00, following risk off mood to start the week. 
Gold – continued to decline from last week’s $1780 highs, trades at $1745 now at the 200-hr MA support.     
BTC Sentiment woes continue – FTX owes $3bln to top 50 creditors (no.1 reportedly owed $222m). Trades down to $16k.  

Today German PPI much weaker than expected at -4.2% vs 0.9%, Speech from BOE’s Cunliffe and NZD trade data.

Biggest FX Mover @ (06:30 GMT) EURUSD (-0.64%) declined again today under 1.0300 and down to next support (200-Hr MA) at 1.0270. MAs aligning lower, MACD histogram & signal line negative & falling,  RSI 32.060 & falling, H1 ATR 0.00171, Daily ATR 0.01430.74, Daily ATR 0.02113.

 

Click here to access our Economic Calendar

Stuart Cowell

Head Market Analyst

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 Leveraged 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.