Daily Technical Analysis Report Today By Capital Street Fx – 18 October 2021

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FUNDAMENTAL AND TECHNICAL ANALYSIS REPORT – 01 NOVEMBER 2022​

RBA HIKES INTEREST RATES BY 25 BPS, CUTS GROWTH OUTLOOK​

Asian shares rose and bond yields firmed in early trade on Tuesday. The Shanghai Composite is up 1.18% at 2,927.71. Overall, the Singapore MSCI is up 0.97% at 280.70. Over in Hong Kong, the Hang Seng Index is up 4.26% at 15,266.00. In Japan, the Nikkei 225 is up 0.33% at 27,640.00, while the Topix index is up 0.49% at 1935.50. South Korea’s Kospi is up 1.61% at 2,330.44. Australia S&P/ASX 200 up 1.65% at 6976.90.

TOP NEWS OF THE DAY:​

The Reserve Bank of Australia (RBA) raised interest rates as expected on Tuesday, but also hiked its inflation forecast and trimmed its GDP outlook as it flagged more headwinds for the economy from increased price pressures and rising rates.

The RBA raised its target cash rate by 25 basis points (bps) to 2.85%, bringing interest rates to their highest level in nine years.

Market Summary as per 31/10/2022:

European equities Monday closing. The DAX futures contract in Germany traded up 0.08% at 13,253.74, CAC 40 futures down 0.10% at 6266.78 and the UK 100 futures contract in the U.K. up 0.66% at 7094.52.

In the U.S. on Wall Street, the Dow Jones Industrial Average closed down 0.39% at 32732.96. The S&P 500 down 0.75% at 3871.97 and the Nasdaq 100 down 1.22% at 11405.57, NYSE closes down 0.33% at 14747.02.

TECHNICAL SUMMARY​

GBPUSD TECHNICAL ANALYSIS

TRADE SUGGESTION- BUY AT 1.1532, TAKE PROFIT AT 1.1596 AND STOP LOSS AT 1.1493

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FUNDAMENTAL AND TECHNICAL ANALYSIS REPORT – 02 NOVEMBER 2022​

ENERGY CRISIS ERODES EUROPE’S INDUSTRIAL STRENGTH​

Asian shares climbed on Wednesday. The Shanghai Composite is up 1.33% at 3,008.59. Overall, the Singapore MSCI is down 0.66% at 279.40. Over in Hong Kong, the Hang Seng Index is up 2.48% at 15,824.00. In Japan, the Nikkei 225 is down 0.18% at 27,640.00, while the Topix index is down 0.15% at 1937.00. South Korea’s Kospi is up 0.20% at 2,339.89. Australia S&P/ASX 200 up 0.14% at 6986.70.

TOP NEWS OF THE DAY:​

Europe needs its industrial companies to save energy amid soaring costs and shrinking supplies, and they are delivering – demand for natural gas and electricity both fell in the past quarter.

It is far too early to rejoice, though. The drop is not just because industrial companies are turning down thermostats, they are also shutting down plants that may never reopen.

Market Summary as per 01/11/2022:

European equities Tuesday closing. The DAX futures contract in Germany traded up 0.64% at 13,338.74, CAC 40 futures up 0.98% at 6328.26 and the UK 100 futures contract in the U.K. up 1.29% at 7186.17.

In the U.S. on Wall Street, the Dow Jones Industrial Average closed down 0.24% at 32653.21. The S&P 500 down 0.41% at 3856.11 and the Nasdaq 100 down 1.02% at 11288.98, NYSE closes up 0.30% at 14790.70.
GBPUSD TECHNICAL ANALYSIS

TRADE SUGGESTION- BUY AT 1.1502, TAKE PROFIT AT 1.1598 AND STOP LOSS AT 1.1456


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FUNDAMENTAL AND TECHNICAL ANALYSIS REPORT – 18 November 2022​

OIL REBOUNDS FOLLOWING SHARP DROPS​

Asian stock market closed green on Thursday. The Shanghai Composite is up 0.95% at 3115.53 Overall, the Singapore MSCI is down 0.35% at 300.12. Over in Hong Kong, the Hang Seng Index is up 0.14% at 18,045.66. In Japan, the Nikkei 225 is down 0.11% at 27930.57, while the Topix index is up 0.43% at 1966.28 South Korea’s Kospi is up 0.06% at 2,442.90. Australia S&P/ASX 200 up 0.23% at 7135.70.

TOP NEWS OF THE DAY:​

Oil prices rose on Friday after a series of bruising sessions and were set to end the week lower as hawkish signals from the Federal Reserve and rising COVID-19 cases in China brewed concerns over slowing global demand.

Crude markets plummeted on Thursday after hawkish comments from St. Louis Fed President James Bullard suggested that the bank intends to raise interest rates by at least another 150 basis points, citing a limited impact on inflation from recent hikes. This ratcheted up fears that U.S. economic growth will slow dramatically in the coming quarters, amid pressure from high-interest rates and stubborn inflation.

Oil prices were also dented by news of rising COVID-19 cases in China, which raised the prospect of more disruptive lockdown measures in the country.

TECHNICAL SUMMARY​

GBPUSD TECHNICAL ANALYSIS

TRADE SUGGESTION – BUY AT 1.19475, TAKE PROFIT AT 1.20388, SL AT 1.18407


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FUNDAMENTAL AND TECHNICAL ANALYSIS REPORT – 23 NOVEMBER 2022​

AS U.S. INVENTORIES DECLINE, OIL PRICES RISE, BUT GAINS ARE LIMITED BY CHINA’S COVID WORRIES.​

Asian stock market closed green on Tuesday. The Shanghai Composite is up 0.13% at 3088.94 Overall, the Singapore MSCI is up 0.14% at 295.88. Over in Hong Kong, the Hang Seng Index is down 1.31% at 17424.41. In Japan, the Nikkei 225 is up 0.61% at 28115.74, while the Topix index is up 1.12% at 1994.75 South Korea’s Kospi is down 0.59% at 2,405.27. Australia S&P/ASX 200 up 0.59% at 7181.30.

TOP NEWS OF THE DAY:​

Oil prices rose further on Wednesday after data indicated that U.S. crude inventories shrank substantially in the past week, although the introduction of new anti-COVID curbs in major Chinese cities put a lid on gains.

Data from the American Petroleum Institute showed that U.S. crude stockpiles fell a bigger-than-expected 4.8 million barrels in the past week, likely heralding a similar decline in official government figures due later today. The focus will also be on the pace of the U.S. government’s drawdown from the Strategic Petroleum Reserve, which is at an over 38-year low.

Weakness in the dollar, amid uncertainty over the path of U.S. interest rates, also helped support prices.

But gains were muted as rising COVID-19 cases in China saw the introduction of more curbs in major cities, particularly Beijing and Shanghai. The country is now struggling with a record-high increase in daily infections, which markets fear could trigger a slowdown in the world’s largest oil importer.

TECHNICAL SUMMARY​

GBPUSD TECHNICAL ANALYSIS

TRADE SUGGESTION – BUY AT 1.18850, TAKE PROFIT AT 1.20295, SL AT 1.17712

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FUNDAMENTAL AND TECHNICAL ANALYSIS REPORT – 25 NOVEMBER 2022​

U.S. YIELDS FALL ALONG WITH THE DOLLAR ON DOVISH-FED WAGERS, WHILE HK EQUITIES DECLINE.​

Asian stock market closed green on Thursday. The Shanghai Composite is down 0.25% at 3089.31 Overall, the Singapore MSCI is up 0.19% at 294.43. Over in Hong Kong, the Hang Seng Index is up 0.78% at 17660.90. In Japan, the Nikkei 225 is up 0.95% at 28383.09, while the Topix index is up 1.21% at 2018.80 South Korea’s Kospi is up 0.96% at 2,441.34. Australia S&P/ASX 200 up 0.14% at 7241.80.

TOP NEWS OF THE DAY:​

U.S. long-term Treasury yields sank to a more than seven-week trough on Friday while the dollar dropped back toward recent lows against major peers as markets continued to digest dovish signals from the Federal Reserve.

Expectations of a less aggressive pace of U.S. monetary tightening from as soon as next month continued to support some stock markets in Asia, but Hong Kong’s Hang Seng dropped as record COVID-19 infections in China dimmed the outlook.

The 10-year Treasury yield dipped to 3.65% in Tokyo trading, the lowest since Oct. 5, following Thursday’s U.S. Thanksgiving holiday. The two-year yield slipped to a one-week bottom at 4.424%.

The dollar index, which measures the greenback against the euro, yen and four other rivals, retreated 0.11% to 105.76, heading back toward Thursday’s low of 105.62.

Market Summary as per 24/11/2022:

European equities Thursday closing. The DAX futures contract in Germany traded up 0.78% at 14539.56, CAC 40 futures up 0.42% at 6707.32. UK 100 futures contract in the U.K. up 0.02 at 7466.60

In the U.S. on Wall Street, the Dow Jones Industrial Average closed up 0.28% at 34194.06. The S&P 500 up 0.53% at 4024.28 and the Nasdaq 100 also up 0.99% at 11285.32, NYSE closes 0.41% up at 15545.52.

TECHNICAL SUMMARY​

GBPUSD TECHNICAL ANALYSIS

TRADE SUGGESTION – BUY AT 1.21534, TAKE PROFIT AT 1.22772, SL AT 1.20511

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FUNDAMENTAL AND TECHNICAL ANALYSIS REPORT – 28 November 2022​

CONFLICTS IN SHANGHAI AS COVID DEMONSTRATIONS SPREAD THROUGHOUT CHINA​

Asian stock market closed red on Friday. The Shanghai Composite is up 0.40% at 3101.69 Overall, the Singapore MSCI is flat by 0.00% at 293.95. Over in Hong Kong, the Hang Seng Index is down 0.49% at 17573.58. In Japan, the Nikkei 225 is down 0.35% at 28283.03, while the Topix index is down 0.040% at 2018.00 South Korea’s Kospi is down 0.14% at 2,437.86. Australia S&P/ASX 200 is up 0.24% at 7259.50.

TOP NEWS OF THE DAY:​

Hundreds of demonstrators and police clashed in Shanghai on Sunday night as protests over China’s stringent COVID restrictions flared for the third day and spread to several cities in the wake of a deadly fire in the country’s far west.

The wave of civil disobedience is unprecedented in mainland China since President Xi Jinping assumed power a decade ago, as frustration mounts over his signature zero-COVID policy nearly three years into the pandemic. The COVID measures are also exacting a heavy toll on the world’s second-largest economy.

Protesters also took to the streets in the cities of Wuhan and Chengdu on Sunday, while students on numerous university campuses around China gathered to demonstrate over the weekend.

Market Summary as of 25/11/2022:

European equities Friday closing. The DAX futures contract in Germany traded up 0.01% at 14541.38, and CAC 40 futures up 0.08% at 6712.48. UK 100 futures contract in the U.K. is up 0.27 at 7486.67

In the U.S. on Wall Street, the Dow Jones Industrial Average closed up 0.45% at 34347.03. The S&P 500 is up 0.08% at 4027.72 and the Nasdaq 100 is down 0.52% at 11226.36, NYSE closes 0.39% up at 15605.68.

TECHNICAL SUMMARY​

GBPUSD TECHNICAL ANALYSIS

TRADE SUGGESTION – BUY AT 1.20980, TAKE PROFIT AT 1.21917, SL AT 1.20229


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FUNDAMENTAL AND TECHNICAL ANALYSIS REPORT – 01 DECEMBER 2022​

POWELL SAID THERE IS STILL TIME BEFORE PEAK RATES BUT THAT THE DECEMBER HIKE WILL BE SLOWER​

Asian stock market closes in green on Wednesday. The Shanghai Composite is up 0.59% at 3151.34 Overall, the Singapore MSCI is up 0.15% at 299.75. Over in Hong Kong, the Hang Seng Index is up 2.16% at 18597.23. In Japan, the Nikkei 225 is up 1.43% at 28368.78, while the Topix index is up 0.61% at 1997.64 South Korea’s Kospi is up 1.08% at 2,499.13. Australia S&P/ASX 200 up 0.95% at 7353.60.

TOP NEWS OF THE DAY:​

Federal Reserve Chairman Jerome Powell said that the pace of rate hikes is likely to slow, but the peak level of rates will be higher than previously expected as there is a long way to go to curb above-trend inflation.

“Moderating the pace of rate increases may come as soon as the December meeting,” Powell said in a speech on Wednesday at the Brookings Institution event in Washington. He added that the Fed’s monetary policy was approaching “the level of restraint that will be sufficient to bring inflation down.”

About 70% of traders expect the Fed to slow rate hikes to 50 basis points in December, down from 75 basis points seen in the prior four Fed meetings.

“We continue to expect the FOMC to slow the pace of rate hikes to 50bp in December and to 25bp in February, March, and May, raising the funds rate to a peak of 5-5.25%,” Goldman Sachs said in a note ahead of Powell’s remarks.

Market Summary as per 30/11/2022:

European equities Wednesday closing. The DAX futures contract in Germany traded up 0.29% at 14397.04, CAC 40 futures up 1.04% at 6738.55. UK 100 futures contract in the U.K. up 0.81 at 7573.05.

In the U.S. on Wall Street, the Dow Jones Industrial Average Closed up 2.18% at 34589.77. The S&P 500 up 3.09% at 4080.11 and the Nasdaq 100 up 4.41% at 11468.00, NYSE closes 2.25% up at 15780.02.

TECHNICAL SUMMARY​

GBPUSD TECHNICAL ANALYSIS

TRADE SUGGESTION – BUY AT 1.21516, TAKE PROFIT AT 1.22607, SL AT 1.20531

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FUNDAMENTAL AND TECHNICAL ANALYSIS REPORT – 14 DECEMBER 2022​

INFLATION IN THE UK DECREASED MORE THAN ANTICIPATED IN NOVEMBER, RELIEVING PRESSURE ON THE BOE.​

Asian stock market closes in green on Tuesday. The Shanghai Composite is down 0.14% at 3176.33 Overall, the Singapore MSCI is up 0.40% at 298.00. Over in Hong Kong, the Hang Seng Index is up 0.69% at 19596.20. In Japan, the Nikkei 225 is up 0.72% at 27954.85., while the Topix index is up 0.60% at 1965.68 South Korea’s Kospi is up 1.13% at 2372.40. Australia S&P/ASX 200 up 0.67% at 7251.30.

TOP NEWS OF THE DAY: –​

U.K. inflation fell by more than expected in November, easing the pressure on the Bank of England to keep raising interest rates against the backdrop of a recession.

The consumer price index rose by 0.4% on the month, down from an alarming 2.0% in October that was caused by the adjustment of regulated household energy prices. Analysts had expected an increase of 0.6% ahead of time.

That brought the year-on-year rate down to 10.7% from 11.1%.

Stripping out volatile fuel and energy components, the core CPI rate also eased by more than expected, rising only 0.3%, rather than the 0.5% forecast. In annual terms, core inflation is now running at 6.3%, down from 6.5% last month.

The figures come only hours before the Bank of England is set to announce its latest policy decisions.

Market Summary as per 13/12/2022:

European equities Tuesday closing. The DAX futures contract in Germany traded up 1.34% at 14497.89, CAC 40 futures up 1.42% at 6744.98. UK 100 futures contract in the U.K. up 0.76 at 7502.89

In the U.S. on Wall Street, the Dow Jones Industrial Average Closed up 0.30% at 34108.64. The S&P 500 up 0.73% at 4019.65 and the Nasdaq 100 up 1.01% at 11256.81, NYSE closes 0.61% up at 15562.54.

TECHNICAL SUMMARY​

GBPUSD TECHNICAL ANALYSIS

TRADE SUGGESTION – BUY AT 1.23730, TAKE PROFIT AT 1.24870, SL AT 1.22966


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FUNDAMENTAL AND TECHNICAL ANALYSIS REPORT – 15 DECEMBER 2022​

HONG KONG CENTRAL BANK RAISES RATES AFTER FED HIKE​

Asian stock market closes in red on Wednesday. The Shanghai Composite is down 0.25% at 3176.53 Overall, the Singapore MSCI is down 0.09% at 298.40. Over in Hong Kong, the Hang Seng Index is down 1.42% at 19673.45. In Japan, the Nikkei 225 is down 0.37% at 28156.21., while the Topix index is down 0.18% at 1973.90 South Korea’s Kospi is down 1.60% at 2399.25. Australia S&P/ASX 200 is down 0.64% at 7204.80.

TOP NEWS OF THE DAY: –​

The Hong Kong Monetary Authority (HKMA) said on Thursday it would raise its base rate charged through the overnight discount window by 50 basis points to 4.75%, hours after the U.S. Federal Reserve delivered a rate hike of the same margin.

The U.S. central bank raised interest rates by half a percentage point. It projected at least an additional 75 basis points of increases in borrowing costs by the end of 2023, as well as a rise in unemployment and a near-stalling of economic growth.

“Rate hike in the U.S. will not affect the financial and monetary stability of Hong Kong,” HKMA Chief Executive Eddie Yue told reporters. “Our monetary and financial markets continue to operate in a smooth and orderly manner. The Linked Exchange rate system (LERS) continues to work well.”

Hong Kong’s monetary policy moves in lock-step with U.S. policy as the city’s currency is pegged to the greenback in a tight range of 7.75-7.85 per dollar.

Market Summary as of 14/12/2022:

European equities Wednesday closing. The DAX futures contract in Germany traded down 0.26% at 14460.20, and CAC 40 futures were down 0.21% at 6730.79. UK 100 futures contract in the U.K. is down 0.09 at 7495.93

In the U.S. on Wall Street, the Dow Jones Industrial Average closed down 0.42% at 33966.35. The S&P 500 is down 0.61% at 3995.32 and the Nasdaq 100 is down 0.76% at 11170.89, NYSE closes 0.43% down at 15494.98.

TECHNICAL SUMMARY​

GBPUSD TECHNICAL ANALYSIS

TRADE SUGGESTION – BUY AT 1.22900, TAKE PROFIT AT 1.24074, SL AT 1.22443


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Fundamental News And Technical Analysis Report – 19 December 2022​

OIL INCREASES ON EXPECTATIONS OF CHINESE DEMAND AND U.S. SPR REPLENISHMENT​

Asian stock market closes in red on Friday. The Shanghai Composite is down 0.02% at 3167.86 Overall, the Singapore MSCI is down 1.82% at 289.40. Over in Hong Kong, the Hang Seng Index is up 0.42% at 19450.67. In Japan, the Nikkei 225 is down 1.87% at 27527.12. While the Topix index is down 1.20% at 1950.21 South Korea’s Kospi is down 0.04% at 2360.02. Australia S&P/ASX 200 is down 0.78% at 7148.70.

TOP NEWS OF THE DAY: –​

Oil prices rose on Monday, recovering from steep losses in the prior session as markets bet on a demand recovery fuelled by China’s economic reopening, while the Biden administration’s pledge to begin refilling its strategic reserve also brightened the outlook for prices.

Crude markets were buoyant as several Chinese officials, including President Xi Jinping, vowed to shore up economic growth after a year of COVID-19 lockdowns battered the world’s second-largest economy.

The country has now begun relaxing several anti-COVID measures, with recent road and air transport metrics showing that fuel demand is already picking up.

But China is also grappling with a large spike in COVID-19 infections, which analysts warn could spur market volatility amid conflicting signals over an economic reopening.

An announcement by the U.S. Energy Department on Friday that it will begin repurchasing crude oil for the Strategic Petroleum Reserve also supported the outlook for stronger prices.

This will be the United States’ first purchase since this year’s record 180-million-barrel release from the stockpile.

Market Summary as of 16/12/2022:

European equities Friday closing. The DAX futures contract in Germany traded down 0.67% at 13893.07, and CAC 40 futures were down 1.08% at 6452.63. UK 100 futures contract in the U.K. is down 1.27 at 7332.12

In the U.S. on Wall Street, the Dow Jones Industrial Average closed down 0.85% at 32920.46. The S&P 500 is down 1.11% at 3852.36 and the Nasdaq 100 is down 0.97% at 10705.41, NYSE closes 1.08% down at 15018.17.

TECHNICAL SUMMARY​

GBPUSD TECHNICAL ANALYSIS

TRADE SUGGESTION – BUY AT 1.22183, TAKE PROFIT AT 1.23384, SL AT 1.21159

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