The latest GDT price index was down 2.8%, following a 3.8% decline in the final December auction. NZD/USD is surging back today, trimming the decline to 31 pips at 0.6281. This article was written by Adam Button at www.forexlive.com.
The first trading day of the year highlights a few opportunities in the market this year. I’m skeptical that price action this early is telling but some news items are notable and fit into themes I highlighted in the video below. 1) China reopening The China PMI today was awful.
The US dollar is sizzling today even as Treasury yields fall. It’s a reminder that intermarket correlations don’t matter on Day 1 as flow-driven trade dominates. The rally in the dollar speaks only to demand for liquidity and the world’s reserve currency — I wouldn’t take it as any kind.
Prior +10.0% CPI -0.8% vs -0.3% m/m expected Prior -0.5% HICP +9.6% vs +10.7% y/y expected Prior +11.3% HICP -1.2% vs -0.5% m/m expected Prior 0.0% The steeper fall in German inflation was already predicated by the state readings earlier today, and surely owes much to lower energy prices once.
Headlines: Not quite the 2022 theme this one Bavaria December CPI +9.2% vs +10.9% y/y prior Saxony December CPI +8.7% vs +9.9% y/y prior Germany December unemployment change -13k vs 15k expected UK December final manufacturing PMI 45.3 vs 44.7 prelim Switzerland December manufacturing PMI 54.1 vs 53.3 expected SNB.
After the Fed delivered a more hawkish than expected stance, the market sold off pretty heavily. The Fed once again had to repeat to the market that they are solely focused on bringing inflation back to their 2% target and they are ready to go above market expectations and risk.
I posted earlier on TSLA: Tesla’s Q4 2022 deliveries fell short of Wall Street estimates but up from Q4 a year ago Its no secret that CEO Musk has been MIA at Tesla since he has indulged himself with populist plays on Twitter, rally letting down his shareholders. Reports today.