OANDA Senior Market Analyst Craig Erlam discusses the latest moves in USDJPY as the pair hits 150 and intervention warnings keep coming.
20-10-2022 12:52 GMT
by Craig Erlam
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Oil settling into a range
Oil prices are higher on Thursday which comes after President Joe Biden confirmed the release of the final 15 million barrels from the SPR, as part of the 180 million previously agreed, and warned more could follow. That was already priced into the markets though and the price has fallen quite heavily over the last week and a half.
20-10-2022 12:48 GMT
by Craig Erlam
An absolute shambles
Another UK Prime Minister has resigned and I've now lost count of how many Chancellors we're going to be up to if Jeremy Hunt is also replaced next week.
Liz Truss' position was hanging by a thread and has been since the mini-budget but that unravelled at a remarkable pace. And now the UK is once again waiting to see who will be the next Prime Minister and how the process will be decided.
Truss has no doubt been an unmitigated disaster and I'm not sure who exactly will make
20-10-2022 12:46 GMT
by Craig Erlam
Despite political tumult in the UK and growing pressure on Japan to defend the yen, risk appetite is running wild as US stocks rally as some investors become more upbeat about this earnings season. Mega-cap tech is starting to look attractive again after IBM posted robust sales results despite the currency headwinds.
20-10-2022 12:37 GMT
by Edward Moya
Energy
US natural gas declined to the lowest levels since March as supply concerns have slightly improved. Over the past week, energy traders have digested a few winter weather forecasts and it seems many are thinking the south will be drier and warmer than usual, while the northern tier, Midwest and Ohio valley could have a colder winter.
Oil prices rallied on hopes that China is starting to pivot with their COVID quarantine guidelines and as energy traders start to price in a hard floor for
20-10-2022 12:27 GMT
by Edward Moya
EUR/USD has posted considerable gains and is back above the 0.98 level. In the North American session, EUR/USD is trading at 0.9828, up 0.57%.
US housing, manufacturing data decline
As the Federal Reserve continues to deliver outsized interest rate hikes, the financial markets are closely monitoring US economic data, looking for signs of a slowdown.
20-10-2022 12:18 GMT
by Kenneth Fisher
Prime Minister Truss resigns
The political soap opera continues in the UK, with Prime Minister Truss playing the part of the tragic hero. Truss resigned earlier today, which was perhaps not all that surprising given the chaos that has engulfed her government from the get-go.
20-10-2022 10:03 GMT
by Kenneth Fisher
AUD/USD dropped close to 100 points in the Asian session but has recovered and is trading in positive territory.
Australia's labour market remains solid
Australia released September's employment report earlier Thursday, which indicated that the labour market remains robust. The economy added 13,300 full-time jobs, with a decline of 12,400 part-time jobs.
20-10-2022 06:10 GMT
by Kenneth Fisher
USD/JPY continues to gain ground
USD/JPY is almost unchanged today but hit a milestone in the Asian session as it briefly darted above the 150 line, which has psychological significance. This marked the yen's lowest level since August 1990 as the currency continues to slide.
20-10-2022 04:51 GMT
by Kenneth Fisher
Jonny Hart discusses what is driving markets today with OANDA Senior Market Analyst Ed Moya in New York. This week they talk about earnings results from Netflix and Procter & Gamble, what is driving oil markets, and crypto resilience.
19-10-2022 14:40 GMT
by Edward Moya
US stocks are weakening as the bond market selloff is picking up again after further signs the Fed is going to remain hawkish. The Fed’s Kashkari said he doesn’t see them stopping raising rate at 4.50-4.75% if they are not making progress with core CPI. He also noted that he sees little evidence the labor market is softening and that they don’t see any evidence that core inflation has peaked. Markets expect the Fed to deliver another 75 basis point increase in November and the odds are rising
19-10-2022 14:06 GMT
by Edward Moya
AUD/USD is considerably lower today, trading at 0.6273, down 0.57%.
Employment data expected to remain strong
Australia releases employment data on Thursday, with the markets expecting that the report will show that the labour market remains robust. The economy is forecast to have created 25,000 jobs in September, following the 35,000 gain in August.
19-10-2022 12:04 GMT
by Kenneth Fisher
USD/CAD pushed higher earlier in the day but has pared most of those gains. In the North American session, the Canadian dollar is trading at 1.3757, up o.17%.
Canada's CPI ticks lower
Headline inflation ticked lower to 6.9% in September, down from 7.0% in August.
19-10-2022 10:33 GMT
by Kenneth Fisher
Trading is mixed in Europe on Wednesday, with Wall Street eyeing a slightly stronger open amid bumper Netflix earnings.
Netflix is a hit
Netflix results are expected to be a hit on Wall Street when the bell rings on Wednesday, with pre-markets pointing to a more than 13% rally in the stock. The streaming company reported revenues and earnings that comfortably surpassed expectations, while subscriber growth more than doubled forecasts.
19-10-2022 07:35 GMT
by Craig Erlam
Oil steadying after falling 10%
Oil prices are trading higher on Wednesday after falling once more a day earlier. Brent was down around 10% from just over a week ago at one stage on Tuesday, a sign of how concerned traders are about the economic outlook and how serious the Biden administration is about using the SPR to drive prices lower ahead of the midterms.
It's such a huge political issue in the US and could swing the midterms one way or another with the margins in the House and the Senate
19-10-2022 07:32 GMT
by Craig Erlam
USD/JPY continues to inch upwards and is trading at 149.69, up 0.31%.
Yen closing in on 150
The yen hasn't managed a winning session since October 4th and it's looking likely to breach the symbolic 150 level, perhaps before the week is over. The yen hasn't traded at such low levels since 1990 and a turnaround from its prolonged slide doesn't appear likely.
The Bank of Japan has been under pressure to rethink its ultra-loose policy, as the yen has plummeted and inflation has climbed above the
19-10-2022 07:22 GMT
by Kenneth Fisher
GBP/USD is in negative territory today. In the European session, the pound is trading at 1.1261, down 0.48%.
Inflation rises to double-digits
UK inflation rose to 10.1% in September, up from 9.9% in August and above the consensus of 10.0%.
19-10-2022 05:12 GMT
by Kenneth Fisher
Back-to-back gains for stocks were powered by another round of strong earnings and a mixed round of economic data that suggests the economy is softening. After the close, traders will pay close attention to JB Hunt earnings as they will provide an update on what shipping trends to expect this quarter.
18-10-2022 16:12 GMT
by Edward Moya
Oil falls on SPR, China fears
Crude prices are sliding on expectations the Biden administration will continue to tap strategic oil reserves and on fears China’s situation is much worse. The Biden administration has one mission right now and that is to ease the inflation pain the American consumer is feeling before the midterm elections. The price at the pump is an important weekly reminder for the consumer and energy traders should not be surprised if Biden continues to be aggressive in tapp
18-10-2022 16:05 GMT
by Edward Moya
NZD/USD was up sharply earlier in the day but has pared most of those gains. In the North American session, the New Zealand dollar is trading at 0.5663, up 0.49%.
New Zealand inflation higher than expected
New Zealand inflation jumped 2.2% MoM in the third quarter, higher than the estimate of 1.6%.
18-10-2022 12:06 GMT
by Kenneth Fisher