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Oil rises on Russian supply concerns but off session high

“Ideas are easy. Implementation is hard.” — Guy Kawasaki

 

 

 HEADLINES

 

 

  • Sterling surrenders some gains after BoE rate hike
  • Spot gold subdued on strong dollar, yields; hawkish Fed clouds outlook
  • Oil rises on Russian supply concerns but off session high
  • Wall Street drops as mounting growth concerns weigh on tech, financials
  • Analysis: FedEx investors frustrated with new CEO after withdrawn forecast
  • GBP/USD could accelerate the slide towards 1.10 – SocGen
  • AUDUSD Near Term: Upside favored

 

Sterling surrenders some gains after BoE rate hike

 

 

Sterling gave up some improvement against the dollar and the euro on Thursday after the Bank of England raised its key interest rate by less than the money market was predicting.

The BoE raised its benchmark rate by 50 basis points (bps) to 2.25% as it targets consumer inflation near 40-year highs, and vowed to "respond forcefully, as necessary" to rising prices, despite the British economy entering recession.

While economists polled by Reuters were expecting a 50 bps rise, the money market saw a strong possibility of 75 bps.

The pound eased back from earlier highs after the BoE's decision, trading up 0.4% on the day against the dollar at$1.13135 , having briefly traded with a 0.85% gain.

 

 

COMMODITIES

 

 

Spot gold subdued on strong dollar, yields; hawkish Fed clouds outlook

 

 

Gold prices edged lower in choppy trading on Thursday, pressured by a stronger dollar and higher Treasury yields, while the U.S. Federal Reserve’s hawkish policy stance clouded the outlook for non-yielding bullion.

Spot gold was down .3% at $1,669.20 per ounce, after shedding more than 1% earlier in the session.

U.S. gold futures rose 0.1% to $1,677.80.

 

 

ENERGY

 

 

Oil rises on Russian supply concerns but off session high

 

 

Oil rose on Thursday in volatile trading focused on Russian oil supply concerns and as the Bank of England hiked interest rates less than some had expected.

Brent crude futures were up 75 cents, or 0.8%, at$90.58 per barrel by 12:17 p.m. EDT (1617 GMT), after rising by more than $2 earlier in the session.

U.S. West Texas Intermediate (WTI) crude was up 75 cents, or 0.8%, at $83.69, after rising by more than $3 earlier in the session.

 

STOCKS

 

 

Wall Street drops as mounting growth concerns weigh on tech, financials

 

 

Wall Street's main indexes were on course to post their third straight day of declines on Thursday, as traders sold financial and technology stocks on fears the Federal Reserve's aggressive approach to rein in inflation could trigger a recession.

The Fed lifted rates by an expected 75 basis points on Wednesday and signaled a longer trajectory for policy rates than markets had priced in, fuelling fears of further volatility in stock and bond trading in a year that has already seen bear markets in both asset classes.

The U.S. central bank's projections for economic growth released on Wednesday were also eye-catching, with growth of just 0.2% this year, rising to 1.2% for 2023.

 

 

Analysis: FedEx investors frustrated with new CEO after withdrawn forecast

 

 

FedEx Corp (FDX.N) dented investor confidence in the new chief executive's vision to deliver a long-awaited turnaround at the shipping company, sending its shares into a freefall after it withdrew its full-year profit forecast last week.

After Raj Subramaniam succeeded founder Fred Smith in June as FedEx's CEO, the Tennessee company generated goodwill by issuing a stronger-than-expected, full-year profit forecast and boosting its dividend payment.

Investors, already frustrated by last year's overly optimistic estimate for the holiday shopping season, were disappointed with its profit warning on Sept. 15. By the end of trading that week, FedEx's share price had slid more than 28% from where it was on Subramaniam's first day as CEO as investors questioned FedEx's forecasting ability.

 

 

ANALYSIS

 

GBP/USD could accelerate the slide towards 1.10 – SocGen 

 

 

“GBP/USD recently broke the lows of 2020 denoting persistence in downtrend. That low of 1.1410 is expected to be a short-term resistance.” 

“The pair is expected to head lower towards next potential supports at projections of 1.1210/1.1160 and 1.1000 representing the descending trend line connecting lows of 2016 and 2020.”

 

 

CHART

 

 

AUDUSD Near Term: Upside favored

 

 

Technical View: Long position above 0.6611. Target 0.6686. Conversely, break below 0.6611, to open 0.6594.

Comments: The pair is expected to resume advance after correction.

Source: Trading Central 

 

 

CALENDAR

 

 

*Times in GMT

Source: FX Street Economic Calendar


Foodnotes

https://www.reuters.com/markets/europe/sterling-dented-by-modest-boe-rate-hike-2022-09-22/
https://www.cnbc.com/2022/09/22/gold-precious-metals-fed-us-dollar-interest-rates.html
https://www.cnbc.com/2022/09/22/oil-energy-markets-recession-demand-supply.html
https://www.reuters.com/markets/europe/futures-steady-after-fed-driven-selloff-2022-09-22/
https://www.reuters.com/business/retail-consumer/fedex-investors-frustrated-with-new-ceo-after-withdrawn-forecast-2022-09-22/
https://www.fxstreet.com/news/gbp-usd-could-accelerate-the-slide-towards-110-socgen-202209221215

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