<p style=““ class=“text-align-justify“>The pair is trading at the lows for the day now, with the dollar holding in a decent spot in trading today. Only the kiwi can really have anything to shout about against the dollar and that owes to higher-than-expected inflation data as noted <a target=“_blank“ href=“https://www.forexlive.com/news/kiwi-holds-higher-after-higher-than-expected-inflation-20221018/“ target=“_blank“>here</a>. As for the pound, the recent relief bounce is looking to fade now in a push back to 1.1260 against the dollar.</p><p style=““ class=“text-align-justify“>As the UK gilts crisis dies down, the focus for the currency turns towards the economic outlook and BOE outlook again. As for politics, Truss is facing daunting odds to stay in charge as prime minister. In a bizarre twist, the latest YouGov Tory members poll show that Boris Johnson is the top choice to replace Truss. I mean, what else can you say to that.</p><p style=““ class=“text-align-justify“>Going back to the chart above, cable is now being pressured close to the 100-hour moving average (red line) and a fall below that will see the near-term bias turn more neutral instead. The 1.1200 mark and the 200-hour moving average (blue line) will be the next area to watch for support and a further drop will exacerbate any further decline towards 1.1000 again.</p><p style=““ class=“text-align-justify“>Outside of politics, the pound is also struggling for comfort as the BOE came out to deny that it was going to delay QT – which is scheduled for 31 October. That’s not offering too much assurance for gilts as well, which are still at elevated levels even though newly appointed UK finance minister, Jeremy Hunt, ripped up the mini-budget yesterday.</p><p style=““ class=“text-align-justify“>On the balance of things, it’s still tough to look at the pound with much confidence and the daily chart also points to some technical resistance via a trendline from the recent highs:</p><p style=““ class=“text-align-justify“>That suggests that the technicals are also supporting a consideration for limited relief in the latest bounce for the pound, adding to the already bleak fundamental outlook.</p>

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

<p style=““ class=“text-align-justify“>Sure, sure. The endorsement continues after US last week said that the OPEC+ decision to cut oil output was engineered for political reasons instead. Given such a pushback, one can expect the bloc to keep with the latest path and to reduce supplies further in the coming months.</p>

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

<p class=“MsoNormal“>Are you trying to keep up with the
constantly fluctuating markets? You’re not alone. 2022 has been extremely
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do to boost your trading strategies. Keep reading to find out more!</p><p class=“MsoNormal“>What
is market volatility?</p><p class=“MsoNormal“>It’s a common misconception that
volatility is only about prices falling rapidly, when in reality it has to do
with any sudden price movement, including an unexpected rise in prices. In
simple terms, an indicator of market volatility is the frequency and magnitude
of price movements, whether upward or downward. Therefore, market volatility
increases when price swings are larger and more frequent.</p><p class=“MsoNormal“>It’s helpful to keep in mind that
volatility is a normal part of the cycle of online trading. In this way, you
can be more prepared to take control of your trading positions.</p><p class=“MsoNormal“>What
causes volatility in the markets</p><p class=“MsoNormal“>Volatility is often a result of
economic factors, such as financial news, interest rate changes, and fiscal
policy. More recently, a leading factor has been political developments. As
volatility reflects investor sentiment, any factor influencing investor behavior
will influence market volatility. Markets are typically considered volatile if
they rise or fall more than 1% over a long period of time. </p><p class=“MsoNormal“>The
current state of the markets</p><p class=“MsoNormal“>2022 has been full of ups and downs for
<a target=“_blank“ href=“https://ellandroadcapital.com/product-specifications/“ target=“_blank“>CFDs in every asset class</a>, including
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some of the most prominent examples of market volatility this year:</p><p class=“MsoNormal“>Forex: Some of the most powerful currencies, such as the EUR, JPY,
and GBP, experienced record-breaking lows, while on the other hand, the USD has
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even higher by the end of the year.</p><p class=“MsoNormal“>Stocks and Indices: The S&P 500 witnessed one of its worst
performances in decades, reflecting a bearish market sentiment.</p><p class=“MsoNormal“>Cryptocurrency: The crypto
market is facing one of its most challenging years as the uncertainty of the
economic outlook has made traders turn to safe havens rather than
cryptocurrencies. For example, Bitcoin dropped by 56% during the Q2 of 2022 and
is still struggling to remain above average levels.</p><p class=“MsoNormal“>The
bottom line</p><p class=“MsoNormal“>An essential trader trait is being
aware that online trading entails high risk as there are many factors that can
impact the markets and affect your trading positions.</p><p class=“MsoNormal“>What can you do to be more prepared?
Staying up to date with economic events is always a good idea so you can be in
a better position to understand what is happening in the markets, while also practicing
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the volatile markets.</p><p class=“MsoNormal“>Risk
Warning: Contracts for Difference (‘CFDs’) are complex financial products, with
speculative character, the trading of which involves significant risks of loss
of capital. </p><p class=“MsoNormal“>Disclaimer:
This
material is considered a marketing communication and does not contain and
should not be construed as containing investing advice or a recommendation, or
an offer of or solicitation for any transactions in financial instruments or a
guarantee or a prediction of future performance. Past performance is not a guarantee
of or prediction of future performance.</p>

This article was written by ForexLive at forexlive.com.

<p style=““ class=“text-align-justify“>This relates to the earlier report <a target=“_blank“ href=“https://www.forexlive.com/centralbank/boe-reportedly-to-further-delay-qt-to-ensure-gilts-market-stability-20221018/“ target=“_blank“>here</a>. I think it would depend on what exactly they will define as being ‚inaccurate‘ but the pound did retreat a little on the news to a low of 1.1286 before keeping back around 1.1315 now – down 0.3% on the day.</p><p style=““ class=“text-align-justify“>There was also a brief jump in gilt yields, with 30-year yields moving up to 4.48% before keeping around 4.42% now – up 5 bps on the day.</p><p style=““ class=“text-align-justify“>Delaying QT is surely the right approach considering the recent fiasco and the damage to <a target=“_blank“ href=“https://www.forexlive.com/terms/l/liquidity/“ target=“_blank“ id=“633aaf0b-b4a1-40c5-8fbe-bf158af520a1_1″ class=“terms__main-term“>liquidity</a> in gilts. As such, trying to portray otherwise is a bit of a head scratcher. Mind you, 30-year yields are still some 92 bps higher than before the mini-budget announcement by Truss and Kwarteng last month.</p>

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

<ul><li>Prior -60.5</li><li>Economic sentiment -59.2 vs -65.7 expected</li><li>Prior -61.9</li></ul><p>The economic situation has worsened again compared to the previous month, with ZEW noting that the probability that real GDP will decline in the course of the next six months has also increased considerably.</p>

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