VOT Research Report
Market Analytics and Considerations
As investors wait for the October Consumer Price Index (CPI) data, the US Dollar (USD) remains reasonably quiet early on Thursday compared to its key competitors. The USD was supported by the risk-averse market environment, and on the European early hours, the market was flat with US stock index futures trading even for the day. Later in the session, the European Central Bank (ECB) is expected to deliver its Economic Bulletin. The US economic agenda will include the weekly Initial Jobless Claims data in addition to the inflation numbers.
Markets are prepared to seize on the declining Core CPI and relaunch the pivoted play.
Following the risk rally initially in the week, Wall Street’s key indexes suffered significant losses as a consequence of the negative change in risk sentiment. In the meantime, the reference 10-year US Treasury bond yield continues to move sideways over 4% after recording slight falls on
On a risk rally spurred by the CPI, the US dollar will decline.
Republicans hold 207 House seats, compared to 184 held by Democrats, and 48 seats in the Senate, as reported by the Associated Press. To achieve a majority in the Senate and the House, respectively, you need 51 senators and 218 seats. As the control of the Senate is anticipated to be decided following a runoff election in Georgia, the results of the US midterm elections are unlikely to be settled in the near future.
On Wednesday, the EURUSD broke a three-day unbeaten run, but it still succeeded in closing just above crucial parity level. The two were last seen travelling diagonally.
On Wednesday, the EURUSD broke a three-day undefeated streak, but it still was able to close above the crucial parity level. The two were last observed swaying little above 1.0000.
The GBPUSD saw a loss of about 200 pip on Wednesday but staged a minor recovery on Thursday during Asian trading hours. Nevertheless, because of continued market pressure on the US Dollar, the pair continues to trade below 1.1400.
The USDJPY ended Wednesday’s trading session in favorable zone, helped by the recovering USD strength. On Thursday, the pair trades very quietly at 146.50. Governor of the Bank of Japan (BoJ), Haruhiko, stated earlier in the day that he had informed Prime Minister Fumio Kishida that monetary easing would be used to attain the price target concurrently with wage growth.
Despite the US Dollar’s stellar performance, gold only slightly declined on Wednesday as US yields moved in the right direction. Ahead of the US CPI report, the XAUUSD remains above the crucial $1,700 level.
Bitcoin seeks to mount a comeback after the sharp selloff in cryptocurrency markets on Wednesday. BTCUSD, which late on Wednesday reached its lowest level in almost two years at $15,500, was last seen increasing 5% on the day at $16,700. On Wednesday, Ethereum experienced a loss of around 18% and dropped under $1,100 for the first time since July. At $1,200, ETHUSD was last observed climbing 8% for the day.
