<p>The US dollar is higher across the board in the countdown to CPI.</p><p>Yesterday, the strong dollar foreshadowed a rout in risk assets but I’m not (yet) sure that’s what we’re also seeing today. It does warrant some caution.</p><p>The Eurozone data calendar was basically vacant so far today except for a mixed Italian industrial production report so the moves are primarily a follow-through from yesterday.</p><p>In any case, CPI could quickly upend the narrative. This one is a particularly important report with the market no longer feeling confident that 5% will be the Fed’s top. The consensus is +8.0% y/y on the headline and +6.5% y/y on the core. </p><p>Risks are two sided with any kind of miss likely to spark a big reaction in risk assets. Dollar longs are a crowded trade so you wouldn’t expect to see strength into the report but that’s what is happening and, I think reflects lingering fallout from yesterday’s risk rout and the ongoing disaster in crypto.</p><p>h/t <a target=“_blank“ href=“https://twitter.com/BeaglierCap/status/1590611613933252608?t=FiNlKtBfzB-_iMP8-GWDSQ&s=03″ role=“link“ tabindex=“-1″ class=“css-4rbku5 css-18t94o4 css-1dbjc4n r-1loqt21 r-1wbh5a2 r-dnmrzs r-1ny4l3l“>@BeaglierCap</a> for the meme.</p>

This article was written by Adam Button at forexlive.com.

<p>Credit Agricole CIB Research maintains a cautious bias on GBP in the near-term.</p><p>“The GBP has become a far less volatile currency since the election
of PM Rishi Sunak: the currency has settled to trade in relatively tight
ranges vs both the USD and the EUR of late. Abating UK
sovereign credit risks, receding Brexit fears and easing UK financial
conditions could continue to push GBP volatility lower in the very near
term. The latest developments should not mean that the GBP is out of
woods just yet, however. Indeed, we think that the very weak UK
economic outlook would be made even worse by the aggressive fiscal
austerity measures that Chancellor Jeremy Hunt will announce next week,“
CACIB notes.</p><p>“In the near term, however, the prospect for a sharp
economic downturn could mean that the BoE would disappoint the still
relatively hawkish market rate hike expectations. We therefore maintain a cautious outlook on the GBP,“ CACIB adds. </p><p>Barclays Research is also cautious in the near term but thinks the pound’s range against the euro will hold.</p><p>“GBP received little support from the BoE last week which yet again
pushed against what they see as excessive market pricing. Accordingly, the recent 0.86-0.89 range will likely continue to define the sterling path versus the EUR in the near-term,“ Barclays notes. </p><p>“We expect 3Q GDP to print at – 0.5% q/q, echoing the Bank’s forecast.
This week, however, we expect GBP to be more driven by the broad
dollar, with focus on US CPI. While near-term China reopening signals
will bring pause in the broad dollar, the gloomy outlook and the
monetary divergence still caps sterling from a long-term perspective,“
Barclays adds. </p><p>For bank trade ideas, <a target=“_blank“ href=“https://plus.efxdata.com/ad/track/4655172E54F06040571CD0AB083845AD“ rel=“nofollow“ target=“_blank“ data-saferedirecturl=“https://www.google.com/url?q=https://plus.efxdata.com/ad/track/4655172E54F06040571CD0AB083845AD&source=gmail&ust=1668167234677000&usg=AOvVaw1evnAzczmYeBXIOSdSnnEu“>check out eFX Plus</a>. For a limited time, get a 7 day free trial, basic for $79 per month and premium at $109 per month. <a target=“_blank“ href=“https://plus.efxdata.com/ad/track/4655172E54F06040571CD0AB083845AD“ rel=“nofollow“ target=“_blank“ data-saferedirecturl=“https://www.google.com/url?q=https://plus.efxdata.com/ad/track/4655172E54F06040571CD0AB083845AD&source=gmail&ust=1668167234677000&usg=AOvVaw1evnAzczmYeBXIOSdSnnEu“>Get it here</a>.</p>

This article was written by Adam Button at forexlive.com.

<p>

The vocabulary,
acronyms, and words used in the forex market are usually strange and might
leave us perplexed. It could already be challenging enough to adjust to trading
on new platforms. </p><p class=“MsoNormal“>Using foreign
terminology and not understanding such trading lingo can seriously hinder a
trader’s progress and profitability. Even if you’re just starting to <a target=“_blank“ href=“https://www.oanda.com/bvi-my/cfds/“ target=“_blank“>trade forex</a> today, keep reading for a primer on some of the key
terms that every forex trader needs to be aware of to improve their
comprehension of the forex market. </p><p>1. Currency Pair</p><p class=“MsoNormal“>There are 180
recognised currencies in use throughout 195 countries. By doing various studies
and research, we traders can anticipate how a specific currency will behave on
the market. </p><p class=“MsoNormal“>How we trade these
currencies or conduct forex trading is <a target=“_blank“ href=“https://www.investopedia.com/terms/c/currencypair.asp#:~:text=our%20editorial%20policies-,What%20Is%20a%20Currency%20Pair%3F,is%20called%20the%20quote%20currency.“ target=“_blank“>based on how one currency
performs in comparison to another</a>. When deciding which
currencies to trade, you’ll see they come in pairs. Let’s use EUR/USD as a case
study. If you were to „buy“ EUR against USD, you would bet that the
euro would do better than the US dollar. </p><p class=“MsoNormal“>To categorise pairs,
there are three basic divisions used: </p><p class=“MsoNormal“>Major Pairings: The
eight widely traded pairings that each contain one of the following currencies:
EUR, CAD, GBP, CHF, JPY, AUD, or NZD, and the US dollar (USD) as the base or
counter currency. </p><p class=“MsoNormal“>Cross Pairs: Any pair
of two prominent currencies that do not use the US dollar as either their base
currency or counter currency is referred to as a cross pair. These are believed
to be less predictable than major pairs. GBP/AUD, EUR/CAD, and NZD/CAD are a
few examples, but there are more as well. </p><p class=“MsoNormal“>Exotics – These are, to
put it simply, less well-known currencies with significant levels of market
volatility. These include the South African rand, the Hungarian forint, and the
Polish zloty. </p><p>2. Leverage</p><p class=“MsoNormal“>Leverage is essentially
borrowing money from a trading account. A trader can open a position with a big
contract size for less money by using leveraged trading. Using high leverage to
trade your chosen forex pairs, cryptocurrencies, and other markets without
needing to make substantial financial commitments is a profitable strategy. </p><p class=“MsoNormal“>Let’s use the
well-known forex pair GBP/USD as an example. Based on a contract size of
100,000 per lot, a trader without leverage would need roughly $130,000.00. A
trader may open a position with only $260, employing leverage of 1:500 (130,000
/ 500). The trader presently has $130,000 in his possession after only
investing $260. </p><p>3. Price ASK and BID</p><p class=“MsoNormal“>The bid price is the
price a trader is willing to sell a currency pair for. At the asking price, a
trader will purchase a currency pair. The difference between the asking price
and the bid price is known as the spread. </p><p>4. PIP</p><p class=“MsoNormal“>PIP is an acronym for
percentage in point. The smallest fluctuation in the exchange rate between two
currencies is known as a PIP. The PIP is the fourth decimal point on a price
quotation for a currency pair. It is a tool for measuring value. </p><p class=“MsoNormal“>For instance, the price
quotation for the AUD/USD pair is 0.6876, meaning that you can acquire around
0.6876 US dollars for every Australian dollar. If the PIP increased by 0.0001
to 0.6877, it would mean that you could buy slightly more US dollars for every
Australian dollar. </p><p>5. Lot Size</p><p class=“MsoNormal“>The term
„lot“ in forex trading refers to the size of the transaction or
position you will open. One lot, or 100,000 units of the base currency of a
currency pair, is the standard unit of trading in the forex market. In the case
of EUR/USD, a trade amount of $100,000 is needed to initiate a transaction. EUR
is the base currency. Since one standard PIP is worth $10 in a buy transaction,
a shift of 10 PIPs would result in a gain of $100. </p><p>6. From Long to Short</p><p class=“MsoNormal“>When a trader buys the
first currency in a currency pair and sells the second, they are said to be
going long on the pair. Going long or short on a currency shows that you
believe its value will rise. </p><p class=“MsoNormal“>Like AUD/USD,
purchasing AUD in the hope that it will gain value against the USD. A trader
who goes short does so by selling one currency and buying another. Going short,
or „selling,“ one-half of a currency pair, is a wager that the price
will decline. </p><p>6. Margin</p><p class=“MsoNormal“>The initial quantity of
money a trader must deposit to open a position is called margin. <a target=“_blank“ href=“https://www.thebalance.com/trading-on-margin-1344888″>Margin also enables a
trader to open larger positions</a>. When trading on
margin, the trader just has to contribute a percentage of the entire position value
to begin a transaction. Margin enables leveraged trading, but exercise caution
because it increases both gains and losses. </p><p>7. Bearish / Bullish</p><p class=“MsoNormal“>A market’s or the stock
market’s overall performance may be deduced from market sentiment. A bullish market
outlook means that prices are increasing. When the market is in a pessimistic
mindset, prices are falling. </p><p class=“MsoNormal“>Bulls can readily be
distinguished from other animals thanks to their horns and propensity to toss
stuff into the air when enraged. Rising costs Bears have a destructive nature
when upset; they will rise erect on their hind legs. Costs are decreasing.

</p><p>Summary</p><p class=“MsoNormal“>As you can see, the
forex trading sector uses several acronyms and specialised terms. To develop
into more well-rounded and successful traders, we should continually read,
learn new knowledge, and build on what we currently know. </p><p class=“MsoNormal“>The most absurd
question of all is the one that is never posed. Ask around, conduct some
studies, and find out the next time you visit a trading community and encounter
words or phrases you’re not acquainted with. We can all become better traders
with the right tools and instruction, even though forex trading may be a tricky
beast to tame.</p>

This article was written by ForexLive at forexlive.com.

<p class=“MsoNormal“><a target=“_blank“ href=“https://fxbackoffice.com/?utm_source=forexlive&utm_medium=article&utm_campaign=BUZZDNOV22&utm_id=website&utm_term=112022″ target=“_blank“>FX
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marketing</p><p>Thanks to the forex CRM’s
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and IB networks. FX Back Office’s forex CRM provides access to a range of
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levels of control, flexibility, and security to brokerages around the world.</p>

This article was written by ForexLive at forexlive.com.

<p>Market
picture</p><p class=“MsoNormal“>Bitcoin
rewrote two-year lows on Thursday morning near $15,550, losing more than 27%
from Saturday’s local highs. CoinMarketCap estimates the total capitalisation
of the crypto market to be at 839bn, down 6.7% from levels 24 hours ago and 21%
below Saturday’s peaks.</p><p class=“MsoNormal“>Ethereum is
now a third cheaper than levels at the end of last week, and its sell-off
started noticeably from the 200-day moving average, which had previously acted
as resistance in April. Near the $1070 mark, there is a noticeable
strengthening of buying, as in July.</p><p class=“MsoNormal“>The crypto
market is now in a panic liquidation phase, occurring amid a raid on
cryptocurrencies, which can be compared to the bank run in the
early 20th century. The fundamental
difference is that banking was already an established business back then,
although regulation was in its infancy. The current crisis may be the catalyst
for crypto regulation.</p><p class=“MsoNormal“>If we look
at the situation from a market speculator’s perspective, we are in the process
of capitulation. Such moments often precede long-term reversals. But it is
worth realising that despite Bitcoin’s 5% rebound from the start of the day and
the double-digit rise in yesterday’s casualties, the sell-off may not yet be
over.</p><p class=“MsoNormal“>In our view,
the crypto market is now in the same phase where it was in late 2018 when the
bulk of the decline was behind it, but the best speculative buying moment was
still a year away.</p><p>News
background</p><p class=“MsoNormal“>The
prolonged, almost 5-month sideways slide has relaxed market participants. The
sharp fall in crypto assets took traders by surprise. Investors have been
forced to sell off cryptocurrencies to cover losses on loans secured against
them due to margin calls. The FTX exchange itself, along with Alameda, may also
have been selling off assets.</p><p class=“MsoNormal“>The most
significant drop in the top-100 crypto was Solana, which collapsed by 49%, as
one of the largest holders of SOL was Alameda Research, the investment company
of FTX exchange head Sam Bankman-Fried.</p><p class=“MsoNormal“>Marathon
Digital CEO Fred Thiel said his mining firm was the second-largest public
company in the world (11,300 BTC) in terms of bitcoins stored, thanks to its
retention of mined BTC. MicroStrategy remains the leader, with around 130,000
BTC stored in its wallets.</p><p class=“MsoNormal“>According to
a survey by Nickel Digital Asset Management, 92% of professional investors are
optimistic about the outlook for the cryptocurrency market, despite its
decline.</p><p class=“MsoNormal“>This article was written by <a target=“_blank“ href=“https://www.fxpro.com/“ target=“_blank“>FxPro</a>’s Senior Market Analyst Alex
Kuptsikevich.</p>

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

<ul><li>Prior -0.5%</li><li>Market index 199.9 vs 200.1 prior</li><li>Purchase index 162.6 vs 160.5 prior</li><li>Refinance index 373.1 vs 386.7 prior</li><li>30-year mortgage rate 7.14% vs 7.06% prior</li></ul>

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

<p style=““ class=“text-align-justify“>That seems to be the take from Goldman Sachs as they revise higher their 3-, 6-, and 12-month outlook for USD/JPY to 155, 155, and 140 respectively (previously was 150, 135, and 125 respectively). Whatever the case may be, <a target=“_blank“ href=“https://www.forexlive.com/news/usdjpy-stays-lockstep-with-the-bond-market-20221108/“ target=“_blank“>the pair remains lockstep with the bond market</a> and this week’s US CPI data will be a crucial one for short-term sentiment at least.</p>

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

<p style=““ class=“text-align-justify“>This was already rumoured earlier in the week <a target=“_blank“ href=“https://www.forexlive.com/news/wsj-reported-facebook-parent-meta-will-cut-thousands-of-jobs-this-week-20221107/“ target=“_blank“>here</a>. But it is a sign of the times with big banks also looking to cut jobs further as we global economic headwinds build. In addition to that, Meta will also extend its hiring freeze through to Q1 next year with only some exceptions being made.</p>

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

<p style=““ class=“text-align-justify“>The dollar is posting a decent advance on the day now but more so against currencies with high beta (risky currencies) and these days, that includes the pound. GBP/USD is down nearly 1% to 1.1420 as it cracks below its 200-hour moving average:</p><p style=““ class=“text-align-justify“>That erases the gains from yesterday as sellers regain some near-term control in the pair, though <a target=“_blank“ href=“https://www.forexlive.com/news/gbpusd-still-caught-in-no-mans-land-20221108/“ target=“_blank“>the big picture look is still not really going anywhere</a> for now.</p><p style=““ class=“text-align-justify“>The dollar’s push higher comes as we see a round of selling in equities with S&P 500 futures now down by 0.6% on the day.</p><p style=““ class=“text-align-justify“>There’s not much in terms of headlines to have sparked the quick drop in the past hour or so, with the US midterms still shaping up as it is i.e. a less Republican-favoured result than initially anticipated. The Senate race remains tight and the fight for control of the House is still just slightly favoured for the Republicans, even if Democrats have showed much resilience.</p><p style=““ class=“text-align-justify“>One can argue that perhaps the rout in cryptos is starting to spill over as things are looking rather bearish now with Bitcoin breaking the June lows:</p>

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

<p style=““ class=“text-align-justify“>She mentions that the central bank could have a „scorched earth“ rate policy to get inflation under control, but that it would not be the best outcome. In terms of their next steps, she maintains that they have flexibility as they „would raise rates faster if we thought inflation was not coming down as expected“. Right.</p>

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