This is what you need to know to trade today Wednesday October 19:
The US dollar finds demand among its main competitors, amid mixed sentiment in the markets at the start of European trading this Wednesday. Investors value strong US corporate earnings, China’s resurgence and aggressive rate hike expectations from the ECB and Fed. Therefore, Asian equities remain a mixed bag, with Chinese indices leading the way. stragglers. The S&P 500 futures they follow widespread risk appetite on Wall Street after earnings reports from Goldman Sachs, United Airlines Conglomerates and Netflix beat expectations. US Treasury yields extended their advance, building on hawkish comments from Minneapolis Fed President Neal Kashkari and Atlanta Fed President Raphael Bostic. At the moment, US 10-year benchmark rates are trading above 4.05%, approaching weekly highs.
However, a cautious sentiment prevails amid looming recession fears, especially as Beijing reports the highest number of Covid cases in four months and markets bet on steeper global rate hikes to combat runaway inflation. The UK’s annualized Consumer Price Index (CPI) rose 10.1%, vs. 10.0% expected and 9.9% previously, putting pressure on the BoE to act tough amid the UK’s fiscal policy reversal. United. The GBP/USD trades under pressure below 1.1300, hitting daily lows near 1.1265. Markets are focused on the UK political scene, with many Tories supporting the replacement of Prime Minister Liz Truss.
Attention now turns to the final Eurozone CPI reading, due later at 0900 GMT. The data is likely to have a limited impact on the euro as this is the latest revision, and the EUR/USD it will keep its range around 0.9850. Rising expectations of a 75 basis point rate hike by the ECB next week offer no encouragement to euro buyers.
The USD/JPY it is resistant to pressure attempts by the Japanese authorities over and over again. However, BoJ Governor Haruhiko Kuroda and Board Member Seiji Adachi continue to advocate easy monetary policy, adding to the yen’s pain against the dollar. The USD/JPY pair is moving towards 149.50, in an attempt to refresh 32-year highs.
Meanwhile, antipodean currencies again lost traction to the upside as risk-on trades soured and dollar bulls re-entered the bids. Although losses remain limited by expectations of large rate hikes by central banks in the euro zone. The AUD/USD is pressured around 0.6300, while the NZD/USD faces rejection just above 0.5700.
The USD/CAD trades above 1.3750, benefiting from a broad rebound in the US dollar and falling oil prices, pending Canadian inflation data. The WTI it is fading a bit of a bounce, holding onto lower ground just above the $82 level. Concerns about Chinese demand and the increase in the supply of crude oil in the US weigh negatively on US oil.
The Prayed is extending its decline towards the critical $1,640 support, opening lower towards 2022 lows at $1,615 amid firmer returns.
The price of Bitcoin is attacking the $19,000 support as a new wave of selling sweeps crypto markets. Ethereum yields the threshold of $1,300.
Source: Fx Street
With 6 years of experience, I bring to the table captivating and informative writing in the world news category. My expertise covers a range of industries, including tourism, technology, forex and stocks. From brief social media posts to in-depth articles, I am dedicated to creating compelling content for various platforms.
