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First Light News: 9 November 2023

First Light News: 9 November 2023, FP Markets

The FP Markets Research Team produces First Light News during the early hours of the European session, a daily Market Briefing that helps ensure traders and investors are up to date in the macro space for the day ahead.

Good morning.

It was another snoozefest in the macro space on Wednesday, with limited tier-1 economic data on the docket which has largely been the case throughout the week. However, we did see Federal Reserve Governor Lisa Cook take the stage at a panel discussion at a conference hosted by the Central Bank of Ireland in Dublin yesterday. Cook commented: ‘The worsening of global political tensions, including those involving Russia, the Middle East, and China, could lead to broad negative spillovers to global markets’.

Overnight, inflation data out of China was released for October and revealed that the second-largest economy in the world remains in a deflationary state with demand still lethargic. Consumer prices (CPI) cooled to -0.2% in the twelve months to October (expected: -0.1%; previous: 0.0%), together with wholesale inflation (PPI) data also easing to -2.6% for the same period (expected: -2.7%; previous: 2.5%).

Moving forward today, we have the weekly jobless claims from the US (for the week ending 4 November) at 1:30 pm GMT. The median estimate heading into the event is for 218,000 new filings, following the prior week’s 217,000 print; the estimate range is between 233,000 and 210,000. The big one for today, of course, though, is Fed Chair Jerome Powell’s participation in a panel discussion titled Monetary Challenges in a Global Economy at 7:00 pm GMT at the Jacques Polak Annual Research Conference in Washington, DC. Fed officials speaking at the event could shed light on the recent FOMC decision/guidance and, consequently, elevate volatility across the financial markets.

In the Markets

The US Dollar Index has responded from resistance on the daily timeframe from 105.76, which saw the index end Wednesday off best levels. The EUR/USD remains reasonably upbeat, rebounding from monthly support at $1.0516 and daily support coming in at $1.0699. Interestingly, the reaction from the latter has seen the currency pair pencil in back-to-back hammer candlestick formations (bullish signal).

Major US equity indexes ended the session mixed. The S&P 500 added 4 points (+0.1%) to 4,382, and the Nasdaq 100 gained 17 points (+0.1%) to 15,313, while the Dow Jones Industrial Average eased 40 points (-0.1%) to 34,112, pausing a seven-session winning streak.

In the commodities space, spot gold in $ terms (XAU/USD) finished a third consecutive day in the red, erasing -1.0% and closing the day at session lows. Similarly, oil prices fell for a third successive day, down -2.0% and touching gloves with support on the daily chart at $75.39, a level complemented by a 61.8% Fibonacci retracement ratio. You will also acknowledge that the Relative Strength Index (RSI) is at its oversold threshold (30.00).

WTI Oil:

First Light News: 9 November 2023, FP Markets(Trading View)

G10 FX space as of 08:30 am GMT:

First Light News: 9 November 2023, FP Markets(Trading View)

Thanks for reading. Have a great day.

DISCLAIMER:

The information contained in this material is intended for general advice only. It does not take into account your investment objectives, financial situation or particular needs. FP Markets has made every effort to ensure the accuracy of the information as at the date of publication. FP Markets does not give any warranty or representation as to the material. Examples included in this material are for illustrative purposes only. To the extent permitted by law, FP Markets and its employees shall not be liable for any loss or damage arising in any way (including by way of negligence) from or in connection with any information provided in or omitted from this material. Features of the FP Markets products including applicable fees and charges are outlined in the Product Disclosure Statements available from FP Markets website, www.fpmarkets.com and should be considered before deciding to deal in those products. Derivatives can be risky; losses can exceed your initial payment. FP Markets recommends that you seek independent advice. First Prudential Markets Pty Ltd trading as FP Markets ABN 16 112 600 281, Australian Financial Services License Number 286354.

 

 

 

 

 

 

 

  • First Light News: 9 November 2023, FP Markets
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