Here’s what you need to know for Friday, November 11:
Stock market sentiment remained subdued in the final trading day of the week as investors cheered soft data from the US and subdued China news. the restrictions related to Covid. The US Dollar Index continues to fall below 108.00 after losing more than 2% on Thursday and pushing global stock indexes higher. U.S. bond markets will be closed for the Veterans Day holiday but Wall Street will be open for normal business hours. The US economic docket will feature the University of Michigan’s (first) consumer sentiment survey for November and investors will be keeping a close eye on bank speakers center before the end of the week.
The US Bureau of Statistics announced on Thursday that inflation in the United States, as measured by the Consumer Price Index (CPI), decreased to 7.7% year-on-year in October from 8 % in September. Core CPI, which excludes food and energy costs, fell to 6.3% from 6.6% in the same period. With both readings coming in below market expectations, the CME Group FedWatch Tool’s probability of a 50 basis point Fed rate hike in December jumped to more than 80%. from 50% at the beginning of the week. In response, major US financial indices registered impressive gains, the US dollar suffered heavy losses and the 10-year US Treasury bond fell to 3.8%, losing almost 7%. in the day.
US Inflation Survey: Travel is tough in the fog, dollar weakens (until next CPI).
Earlier in the day, China’s National Health Commission announced that it had decided to reduce the quarantine period for travelers and people who have been in close contact with Covid cases. The Shanghai Composite Index was last seen up nearly 2% on the day and Hong Kong’s Hang Seng Index was up 6.8%. Reflecting the risk market environment, US stock futures rose between 0.5% and 0.7%.
The UK’s Office for National Statistics (ONS) reported on Friday that gross domestic product (GDP) grew at an annual rate of 2.4% in the third quarter, compared to expectations. of the market 2.1%. Other data from the UK showed that industrial production increased by 0.2% month-on-month in September. GBPUSD the most recent data was ignored and was last seen moving above 1.1700.
EURUSD registered impressive gains on Thursday and continued to move higher during the Asian trading hours on Friday. The pair was last seen trading at its highest level since mid-August above 1.0200.
USDJPY it lost more than 400 pips on Thursday and touched its weakest level in seven weeks near 140.00 before rebounding on Friday. At the time of writing, USDJPY was up 0.5% on the day at 141.65.
Due to the decline in US Treasury funding, gold The price rose nearly 3% on Thursday and registered one of the biggest gains of the year. XAUSD is currently trading above $1,750 and is up almost 5% since the beginning of the week.
Bitcoin It gained 10% on Thursday after losing more than 20% in the first half of the week. BTCUSD, however, appears to be struggling to rally early Friday as the market closely monitors developments surrounding the FTX story. As of writing, Bitcoin is down almost 2% on the day at $17,250. Ethereum trading in negative territory around $1,250 on Friday morning after Thursday’s 17% gain.
California’s financial regulator announced the FTX investigation.
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