<p>Headlines:</p><ul><li><a target=“_blank“ href=“https://www.forexlive.com/news/dollar-continues-to-run-hot-amid-sell-everything-mood-20220923/“>Dollar continues to run hot amid sell everything mood</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/markets-go-back-to-the-regular-scheduled-programming-20220923/“>Markets go back to the regular scheduled programming</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/uk-budget-anything-but-mini-20220923/“>UK budget anything but „mini“</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/uk-finance-minister-says-will-scrap-planned-increase-on-corporation-tax-20220923/“>UK finance minister says will scrap planned increase on corporation tax</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/uk-september-flash-services-pmi-492-vs-500-expected-20220923/“>UK September flash services PMI 49.2 vs 50.0 expected</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/eurozone-september-flash-services-pmi-489-vs-490-expected-20220923/“>Eurozone September flash services PMI 48.9 vs 49.0 expected</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/usdcny-pushes-past-710-as-yuan-decline-extends-further-20220923/“>USD/CNY pushes past 7.10 as yuan decline extends further</a></li></ul><p>Markets:</p><ul><li>USD leads, GBP lags on the day</li><li>European equities lower; S&P 500 futures lower by 1.2%</li><li>US 10-year yields down 5.5 bps to 3.765%</li><li>Gold down 1.4% to $1,647.13</li><li>WTI crude down 3.5% to $80.61</li><li>Bitcoin down 1.8% to $18,893</li></ul><p style=““ class=“text-align-justify“>After a frantic but historic day in markets yesterday, we are back to the regular scheduled programming today. It was pretty much a case of buy the dollar, sell everything else in European trading as markets settle down and stick to digesting the post-Fed narrative.</p><p style=““ class=“text-align-justify“>The pound was a notable mover as it tumbles by 2% at the lows against the dollar, with GBP/USD sliding below 1.1200 to 1.1020 on the day. That came despite the UK announcing its largest amount of tax cuts since 1972, in an effort to bolster the economy. UK rates surged higher but the currency continues to be routed despite the surprise. Emerging market much?</p><p style=““ class=“text-align-justify“>Elsewhere, the dollar is running riot as EUR/USD fell to its lowest in 20 years – down 0.9% to 0.9750. USD/JPY was tentative early on but buyers are feeling a little more confident now, pushing the pair up from 142.20 to near 143.00 on the session.</p><p style=““ class=“text-align-justify“>Meanwhile, USD/CAD is testing waters above 1.3500 while AUD/USD is down 1% on the day to 0.6575 currently with NZD/USD also dropping by 1% to 0.5790 as the rout continues. There’s just no better place than the dollar right now.</p><p style=““ class=“text-align-justify“>In other markets, bond yields shot higher after the UK budget announcement with Treasury yields also pulling higher across the curve. As for equities, the pressure continues with European indices selling off heavily and are down over 2% now while US futures are down over 1% ahead of the Wall Street open.</p><p style=““ class=“text-align-justify“>Commodities were not spared the drop with gold down over 1% to $1,647 while WTI crude is down over 3% and looking towards $80 next.</p>

This article was written by Justin Low at forexlive.com.

<ul><li>Prior 37</li></ul><p style=““ class=“text-align-justify“>That’s a big miss on estimates as the retail sales index tumbles to its lowest since April. Adding to the worries is that expected sales volume for the October month is seen declining to -13 after the jump in September (+31). With a technical recession already in place, it’s going to be a harrowing winter for the UK economy.</p>

This article was written by Justin Low at forexlive.com.

<p>itcoin has gained 3.8% in the last 24
hours to $19.4K. Quotes have stabilised near the lower bound of the three-month
range. Ethereum gained temporary support after falling below $1300 and is up 6.7% in
24 hours. </p><p class=“MsoNormal“>XRP jumped 28% overnight and 66% over the
week to $0.54, posting the highest gain among top-100 cryptocurrencies. There
are rumours that crypto whales have switched from ETH to XRP after the SEC and
Ripple Labs asked the court to speed up hearings for their case.</p><p class=“MsoNormal“>Other top altcoins are rising between 4.5%
(BNB) and 7.1% (DogeCoin).</p><p class=“MsoNormal“>Despite this upward move, the technical
picture does not yet point to a break in the downtrend, and widespread monetary
policy tightening leads us to expect further pressure on markets.</p><p class=“MsoNormal“>On the other hand, we see precious metal
prices rising with a 5% increase in crypto market capitalisation over the past
24 hours. This could be the start of a new trend, where investors are looking
at alternatives as a safe haven for capital due to concerns over the solvency
of countries.</p><p>News background</p><p class=“MsoNormal“>Changpeng Zhao, CEO of the world’s largest
cryptocurrency exchange Binance, said bearish trends are common and healthy for
the crypto market. He said the crypto industry still has room to grow, while
inflation and rising energy prices have drawn attention to cryptocurrencies.</p><p class=“MsoNormal“>According to Oklink, the recent drop in
Ethereum resulted from miners‘ activation. Mining pools have dropped almost
17,000 ETH in the last seven days alone.</p><p class=“MsoNormal“>The final version of the European Draft
Crypto Asset Markets Act (MiCA) equates NFTs with securities. Technically, the
MiCA is still open for amendments, but other reports suggest that the European
Union has finalised the bill’s full text.</p>

This article was written by FxPro FXPro at forexlive.com.

<p style=““ class=“text-align-justify“>As mentioned earlier <a target=“_blank“ href=“https://www.forexlive.com/news/markets-go-back-to-the-regular-scheduled-programming-20220923/“ target=“_blank“>here</a>, markets are going back to the regular scheduled programming after the major headlines from yesterday. The dollar is up across the board and pushing to fresh highs on the day now with GBP/USD down 1.5% to below 1.1100, even after the UK announced a massive fiscal package to try and bolster growth conditions.</p><p style=““ class=“text-align-justify“>Elsewhere, EUR/USD is down 0.9% to 0.9740 while USD/CAD is up 0.4% to above 1.3500, going in search of a test of its 61.8 Fib retracement level at 1.3651 next:</p><p style=““ class=“text-align-justify“>AUD/USD is also down 1.1% to 0.6565 as key technical support cracks under the pressure of the surging greenback.</p><p style=““ class=“text-align-justify“>This comes as markets are returning back to the sell everything mood again, with equities falling further on the day. S&P 500 futures are down 0.9% while European indices are down 1.0% to 1.4% across the board. Meanwhile, bonds are also not spared following the surge higher in UK yields. 10-year Treasury yields are now up 6 bps to 3.765% as the rout from yesterday carries over.</p><p style=““ class=“text-align-justify“>In the commodities space, gold is down 0.9% to $1,656.13 while oil is down over 2% to $81.63 at the moment.</p>

This article was written by Justin Low at forexlive.com.

<p style=““ class=“text-align-justify“>In total, the measures <a target=“_blank“ href=“https://www.forexlive.com/news/uk-finance-minister-says-will-scrap-planned-increase-on-corporation-tax-20220923/“ target=“_blank“>announced</a> will amount to £27 billion of tax cuts through the next fiscal year before rising to roughly £45 billion by 2026-27. That’s a huge reach as those tax cuts are the biggest since 1972.</p><p style=““ class=“text-align-justify“>The budget also massively benefits the UK’s wealthiest as the planned increase for corporation tax has been scrapped and bankers‘ bonuses will not be capped. Throw in the fact that those earning millions will also pay the same income tax rate as those on £50k earning, it’s a massive break from tradition for the Tories.</p><p style=““ class=“text-align-justify“>There’s also that 1% tax cut for the lower-to-middle class too but then again saving 1% on £30k earning is not really the same as compared to saving 5% on £150k and above now, is it? But if anything else, it highlights what the government is really focusing on here and that is to really bolster growth conditions – regardless of the cost (which in this case is £161 billion over 5 years).</p><p>UK bond yields are seeing a massive jump, with 2-year gilt yields up over 30 bps to 3.86% – its biggest daily jump since November 2009:</p><p style=““ class=“text-align-justify“>I think this meme captures very well the sentiment UK financial circles at the moment:</p>

This article was written by Justin Low at forexlive.com.