Market Update – August 10/2022

Written by Stuart Cowell

USDIndex slipped under 106.00, yesterday before again recovering to 106.20. US Stocks traded lower all day – dragged down by Semiconductors (NASDAQ -1.19%). MUSK to sell another $6.9 bn worth of TSLA stock (-2.44%). Intel -2.43%, NVDA -3.97%, Roblox  -3.17%, OXY +3.95%. Asian markets lower too (Hang Seng -2.45%,  Nikkei -0.68%). European FUTS also lower.  Yields rose into close +1.16% (10yr 2.797%),  Oil has declined back under the $90 handle, Gold sank to $1788 support and BTC has moved back $22.7K area. 

Biden announces a $280bn investment in high tech to compete with China; China maintains drills and firing around Taiwan.

  • USDIndex tested down to 105.80 but has recovered the 106.00-20 range today ahead of US CPI later.  AUD underperformed in Asian session.
  • Equities – USA500 closed down -17.59pts (-0.42%) (4122), US500FUTS at 4118 now. 100 MA at 4100.
  • Yields 10-year yield rose into close as USD recovered. The 2/10yr. yield curve moved as much as 45bp inverted yesterday. 10yr trades down -0.25% at 2.79% now. 
  • Oil – rallied to test 200-hr MA at $92.60 before declining to $89.60 now.  
  • Gold – rallied & spiked to $1800 resistance before declining back to support at $1788 again. 20-day MA now $1761.
  • Bitcoin’s surge to $24.2K Monday; declined further today to $22.6 earlier, back to test $23k now.
  • FX Markets – EURUSD holds over 1.02000, at 1.0210, USDJPY continues to pivots around 135.00 and Cable does the same around 1.2080, in thin August markets.  

Overnight – JPY  PPI missed  (8.6% vs 9.4%), China CPI & PPI both weaker too (2.7% vs 2.9% & 4.2% vs 6.1%) respectively. German CPI (Final) in line 0.9% m/m & 8.5% y/y.

Today – US CPI,  Speeches from BoE’s Pill, Fed’s Evans & Kashkari. Earnings from Disney, Honda, Fox, Aviva, Evonik & E.ON.

Biggest FX Mover @ (06:30 GMT) EURAUD (+0.29%). Continued its bounce from 1.4580 support on Monday after declining from 1.4775 highs on Friday. Testing 1.4700 zone now. MAs aligning higher,  MACD histogram now positive & signal line rising, RSI 61.83 & rising, H1 ATR 0.00148, Daily ATR 0.0132.

About the author

Stuart Cowell

With over 25 years experience working for a host of globally recognized organisations in the City of London, Stuart Cowell is a passionate advocate of keeping things simple, doing what is probable and understanding how the news, charts and sentiment work together to provide trading opportunities across all asset classes and all time frames.