FOREX and Asian Markets-Dollar dips ahead of key US data, bitcoin soars
The dollar softened against a basket of currencies on Tuesday, mirroring a dip in Treasuries yields as investors awaited key U.S. economic data before the Federal Reserve's monetary policy meeting next week.
The dollar index last sat around 105.57, having lost over 0.5% in the previous session as U.S. Treasury yields tumbled. The greenback found support last week after Fed Chair Jerome Powell said U.S. economic strength might warrant tighter financial conditions, which pushed the benchmark 10-year yield above 5% to its highest since July 2007.
Bitcoin returned the market spotlight with the virtual currency soaring on speculation that the United States could soon approve a bitcoin exchange-traded fund.
Market attention now turns to some of the last bits of U.S. economic data before the Fed's meeting on Oct. 31 - Nov. 1, with the flash purchasing managers' index (PMI) out later on Tuesday and gross domestic product due on Thursday. The PMI data could set the market expectations ahead of the GDP report, said Matt Simpson, senior market analyst at City Index.
"If the data leans far enough one way it could prompt a strong dollar rally or breakdown with the Fed in a blackout period," he said, referring to the period before the policy meeting in which limits are placed on public communications from central bank officials.
The Fed is expected to hold rates at its meeting next week.
The European Central Bank is also expected to leave interest rates untouched at their meeting on Thursday, after raising its key interest rates 25 basis points in September. Traders see the 150 threshold as a possible line-in-the-sand for Japanese authorities to intervene in the currency market. However, the data out of the United States this week could have the yen inching back into the danger zone if it comes in strong. “The yen will be particularly sensitive to hot U.S. data, especially if it causes Treasuries to blow through what's looking like a key resistance level of 5% or so," said Kyle Rodda, senior financial market analyst at Capital.com.(let’s do Kyles job for him shall we ? the yen will blow through 150 as soon as the BoJ or anyone else sells another shit ton of US Debt because anyone else doing it devalues what everyone else still holds and the rest like a bunch of phaggit sheep panic to do the same but “kyle” won’t tell you that but I will and this guy is a Sr ANALyst
In cryptocurrency markets, bitcoin leapt as much as 14% to a 2-1/2 year high of $34,283.
https://money.usnews.com/investing/news/articles/2023-10-23/dollar-dips-ahead-of-key-us-data-bitcoin-soars
https://tradingeconomics.com/united-states/currency
https://tradingeconomics.com/japan/government-bond-yield
The consolidation completed via ICE in 2012 doesn’t make it easy to be an outlier as you can see ours is bigger by a factor of 3x over Euronext. Even though they are ‘independent’ they are ALL controlled by HFT bots ran through Virtu Financial and a few others but they dominate.
US Still Dominates The World's Largest Stock Exchanges
https://www.zerohedge.com/markets/us-still-dominates-worlds-largest-stock-exchanges
Asia markets mostly fall as key data comes out from Japan, Australia and South Korea
In Australia, the S&P/ASX 200
gained marginally, recovering from three straight days of losses.
Japan’s Nikkei 225 slipped 1.17% and reversed earlier gains, and the Topix fell 1.53% as its October purchasing managers index flash reading saw its first contraction since December 2022.
South Korea’s Kospitumbled 1.03% and the Topix was down 1.09%, also reversing earlier gains.
This comes after the country’s producer price index climbed at a faster pace of 1.3% year-on-year in September, compared to 1% in August.
Hong Kong’s Hang Seng index comes back from a holiday 1.38% lower, while mainland Chinese markets continued to slide, with the CSI 300 index 0.23% down and hitting its lowest level since February 2019.
https://www.cnbc.com/2023/10/24/asia-stock-market-today-live-updates.html
Japan business activity posts first contraction since December 2022
(A 16% drop in energy imports would do that ya think….Kek)
Japan’s business activity contracted in October, the first time since December 2022, according to flash estimates by the au Jibun bank.
The country’s composite purchasing managers index came in at 49.9, compared with 52.1 in September.
The drop was mainly due to a sharper fall in manufacturing activity, with the manufacturing PMI showing a faster rate of contraction at 47.6 against September’s 48.7.