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.


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Stuart Cowell

Head Market Analyst

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