DAILY MARKET ANALYSIS 12-09-2022

Ukraine’s surprise counterattack in the northeast of the country has sent shockwaves through the Russian army, with military strategists saying occupying forces have likely been forced to pull out of the entire region around Kharkiv.

Stocks

European stock markets traded higher Monday, helped by the substantial territorial gains made by Ukrainian troops over the weekend, even in the face of weak U.K. growth data.

Currencies

• EUR/USD advances for the second session in a row and flirts with the 1.0200 neighbourhood in response to the intense sell-off in the greenback, which forces the US Dollar Index (DXY) to break below the 108.00 support and record new multi-week lows.

• GBP/USD pair catches fresh bids near the 1.1600 mark on Monday and climbs to a near two-week high during the first half of the European session. The pair is currently trading around the 1.1700 round figure and is looking to build on its recent bounce from the lowest level since 1985 touched last week.

•  USD/JPY pair retreats nearly 90 pips from the daily high and drops back closer to mid-142.00s during the early European session on Monday.

•  AUD/USD has defended the 0.6680/0.6650 support zone on a second attempt, triggering an initial bounce. Economists at Société Générale think the pair could now retest the 0.7130 mark.

Cryptos

Bitcoin price has not only swept key swing lows, as noted in last week’s articles, but it has also reached its first recovery level target. While the recovery rally was as quick as it was a surprise, investors can hope for a minor retracement to get on the next leg-up.

Commodities

Gold: failed to make a convincing move in either direction. August inflation data from the US next week could have a significant impact on gold’s valuation.

Up Ahead – Tuesday 13-09-2022

•          USD   Core CPI m/m          

*The information presented above is intended for informative and educational purposes, should not be considered as investment advice, or an offer or solicitation for a transaction in any financial instrument and thus should not be treated as such. Past performance is not a reliable indicator of future results.