European Open: RBA hint at a pause, EUR/GBP continues higher

Asian Indices:

Australia's ASX 200 index fell by -36.7 points (-0.52%) and currently trades at 6,962.60
Japan's Nikkei 225 index has fallen by -280.04 points (-1.02%) and currently trades at 27,433.77
Hong Kong's Hang Seng index has fallen by -304.81 points (-1.86%) and currently trades at 16,053.71
China's A50 Index has fallen by -108.48 points (-0.91%) and currently trades at 11,804.37

UK and Europe:

UK's FTSE 100 futures are currently down -27.5 points (-0.38%), the cash market is currently estimated to open at 7,268.75
Euro STOXX 50 futures are currently down -27 points (-0.72%), the cash market is currently estimated to open at 3,701.03
Germany's DAX futures are currently down -88 points (-0.64%), the cash market is currently estimated to open at 13,578.32

US Futures:

DJI futures are currently up 54 points (0.17%)
S&P 500 futures are currently up 42.25 points (0.39%)
Nasdaq 100 futures are currently up 7.75 points (0.21%)

RBA hint at a pause

Answering questions to parliament, RBA’s Deputy Governor Michelle Bullock gave a strong hint that the central bank is approaching pause in regards to their tightening cycle. Noting that rates have already been raised “substantially”, she said that they could be nearing a level where there “might be an opportunity to sit and wait”. Rates are currently at 2.85% after seven consecutive hikes, and we’re now left wondering if the RBA will deliver a Christmas present to the people by not hiking interest rates until February.

EUR/GBP hits a 4-week high

We noted EUR/GBP’s breakout last week and, after pulling back to the monthly pivot, has turned higher once more. A bullish wedge is in play which projects a target near the patterns base around 0.9060. For today, we’d like to see prices hold above 0.8780 high and break back above the monthly R2- but if we see a low volatility pullback beneath this level then we’d still consider bullish setups on lower timeframes for a potential bullish swing trade. The 0.8866 high is now likely in focus for bulls.

The EUR/AUD analysis from Monday is playing out nicely, with the daily chart making a clear breakout to confirm the bullish channel and now within 1-2 day’s ATR away from the 1.5706 high. The daily chart may not offer the adequate reward to risk ratio around current levels, but if it can pullback then perhaps it could become of interest for bullish intraday traders.

FTSE 350 – Market Internals:

FTSE 350: 4033.95 (0.66%) 09 November 2022

229 (65.43%) stocks advanced and 112 (32.00%) declined
3 stocks rose to a new 52-week high, 1 fell to new lows
12.57% of stocks closed above their 200-day average
50.57% of stocks closed above their 50-day average
5.43% of stocks closed above their 20-day average

Outperformers:

+ 4.35% - Ferrexpo PLC (FXPO.L)
+ 4.10% - BBGI Global Infrastructure SA (BBGIB.L)
+ 3.55% - Smiths Group PLC (SMIN.L)

Underperformers:

-9.92% - FirstGroup PLC (FGP.L)
-6.31% - J D Wetherspoon PLC (JDW.L)
-5.76% - Petrofac Ltd (PFC.L)

Economic events up next (Times in GMT)

How to trade with City Index

You can easily trade with City Index by using these four easy steps:

Open an account, or log in if you’re already a customer

• Open an account in the UK
• Open an account in Australia
• Open an account in Singapore
Search for the company you want to trade in our award-winning platform
Choose your position and size, and your stop and limit levels
Place the trade

From time to time, StoneX Financial Pty Ltd (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material.

As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed.

City Index is a trading name of StoneX Financial Pty Ltd.

The material provided herein is general in nature and does not take into account your objectives, financial situation or needs.

While every care has been taken in preparing this material, we do not provide any representation or warranty (express or implied) with respect to its completeness or accuracy. This is not an invitation or an offer to invest nor is it a recommendation to buy or sell investments.

StoneX recommends you to seek independent financial and legal advice before making any financial investment decision. Trading CFDs and FX on margin carries a higher level of risk, and may not be suitable for all investors. The possibility exists that you could lose more than your initial investment further CFD investors do not own or have any rights to the underlying assets.

It is important you consider our Financial Services Guide and Product Disclosure Statement (PDS) available at www.cityindex.com/en-au/terms-and-policies/, before deciding to acquire or hold our products. As a part of our market risk management, we may take the opposite side of your trade. Our Target Market Determination (TMD) is also available at www.cityindex.com/en-au/terms-and-policies/.

StoneX Financial Pty Ltd, Suite 28.01, 264 George Street, Sydney, NSW 2000 (ACN 141 774 727, AFSL 345646) is the CFD issuer and our products are traded off exchange.