Market Update – August 26/2022

Written by Andria Pichidi
  • USDIndex – back in demand ahead of Powell at Jackson Hole and as markets speculated on 100 bps in ECB hikes by October, though it recovered some to finish at 108.64.
  • EUR – Remains under parity. German GfK consumer confidence plunged to -36.5, which could keep Euro underpinned.
  • JPY has lifted to 137.00, GBP steady below 1.1800.
  • AUD fell 0.4% below the psychological level of $0.7 & NZD fell 0.5%, giving up some of the strong gains in the previous day. The AUD has been performing better against the battered European currencies.
  • Stocks: US stocks are in the red with concern over aggressive tightening and a rise in yields capping gains (USA100 rallied 0.41%, with the USA500 up 0.29%, and the USA30 0.18% higher). Nikkei and ASX are up 0.8% and 0.5% after a strong close on Wall Street. GER40 and UK100 futures have lifted 0.4% and 0.3% respectively.
  • Oil slumped by about $2 a barrel on the possible return of sanctioned Iranian oil exports and on worries about the impact on fuel demand from rising USinterest rates. Down to $92.08.
  • Gold – bounced from support at $1751.80  to $1758.70.

Today – US PCE, Michigan Consumer Sentiment, Jackson Hole Symposium and Fed Chair Powell Speech. 

Biggest FX Mover @ (06:30 GMT) NZDUSD (0.45%). Dropped to 0.6195 from 0.6250. MAs aligning lower, MACD histogram negative & signal line falling, RSI 36.74 & dropping, H1 ATR 0.00089.

About the author

Andria Pichidi

Having completed her five-year-long studies in the UK, Andria Pichidi has been awarded a BSc in Mathematics and Physics from the University of Bath and a MSc degree in Mathematics, while she holds a postgraduate diploma (PGdip) in Actuarial Science from the University of Leicester.