<ul><li>Prior +0.7%</li><li>Industrial production -2.4% vs +0.4% y/y expected</li><li>Prior +2.4%</li></ul><p style=““ class=“text-align-justify“>That’s a big miss on estimates as euro area industrial output slumped heavily in July. Looking at the details, production of capital goods fell by 4.2%, durable
consumer goods by 1.6% and intermediate goods by 0.8%, while production of energy rose by 0.4% and nondurable consumer goods by 1.2%.</p>

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

<p>Headlines:</p><ul><li><a target=“_blank“ href=“https://www.forexlive.com/news/dollar-on-the-backfoot-awaiting-us-cpi-data-20220913/“>Dollar on the backfoot awaiting US CPI data</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/eu-reportedly-unlikely-to-cap-price-of-russian-gas-20220913/“>EU reportedly unlikely to cap price of Russian gas</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/us-august-nfib-small-business-optimism-index-918-vs-899-prior-20220913/“>US August NFIB small business optimism index 91.8 vs 89.9 prior</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/uk-august-payrolls-change-71k-vs-73k-prior-20220913/“>UK August payrolls change +71k vs +73k prior</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/germany-august-final-cpi-79-vs-79-yy-prelim-20220913/“>Germany August final CPI +7.9% vs +7.9% y/y prelim</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/spain-august-final-cpi-105-vs-104-yy-prelim-20220913/“>Spain August final CPI +10.5% vs +10.4% y/y prelim</a></li></ul><p>Markets:</p><ul><li>EUR and JPY lead, USD lags on the day</li><li>European equities higher; S&P 500 futures up 0.7%</li><li>US 10-year yields down 4.4 bps 3.317%</li><li>Gold up 0.4% to $1,730.43</li><li>WTI crude up 1.5% to $89.11</li><li>Bitcoin up 0.6% to $22,551</li></ul><p style=““ class=“text-align-justify“>European trading today was more or less a placeholder as we count down to the US CPI data release later today.</p><p style=““ class=“text-align-justify“>The dollar is on the backfoot as positioning flows ahead of the key risk event weigh on the currency while stocks are higher as risk sentiment looks more positive. EUR/USD moved up from 1.0135 to 1.0180 while USD/JPY slipped from 142.40 to 141.90 as Treasury yields are also looking a fair bit heavy during the session.</p><p style=““ class=“text-align-justify“>GBP/USD nudged higher from 1.1690 to 1.1730 as the UK unemployment rate hits a 48-year low, though pay growth – in real terms – continues to slide at an alarming rate so that is something to be wary about.</p><p style=““ class=“text-align-justify“>Elsewhere, USD/CAD nudged lower from 1.2980 to 1.2955 and AUD/USD moved up from 0.6885 to 0.6915 on the session as equities are also positioning higher going into the main event.</p><p style=““ class=“text-align-justify“>CPI is the new NFP now and it’s going to be a real fun one in just over 30 mins‘ time.</p>

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

<p style=““ class=“text-align-justify“>There’s not much in terms of headlines driving markets today but we are seeing the dollar retreat amid positiong flows ahead of the key risk event later in the day. EUR/USD is now up 0.5% to 1.0170 levels as buyers look to build on the break yesterday above the swing region resistance at 1.0075-90:</p><p style=““ class=“text-align-justify“>There is still scope for the rally to extend towards the 100-day moving average (red line) at 1.0333, so just be wary of that in the aftermath of the US CPI data later this week.</p><p style=““ class=“text-align-justify“>Meanwhile, GBP/USD holds higher by 0.4% at 1.1720 levels as seen earlier <a target=“_blank“ href=“https://www.forexlive.com/news/gbpusd-holds-higher-after-uk-unemployment-rate-hits-48-year-low-20220913/“ target=“_blank“>here</a>. And USD/JPY is down 0.5% to 142.18 as it continues to toy in between the 100 and 200-hour moving averages at the moment:</p><p style=““ class=“text-align-justify“>Elsewhere, with the risk mood being more positive for now, commodity currencies are also holding a slight advance against the dollar. USD/CAD is down 0.3% to 1.2960 while AUD/USD is up 0.3% to 0.6910 on the day currently.</p>

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

<p class=“MsoNormal“>Investing is perhaps
one of the best and most sustainable methods to <a target=“_blank“ href=“https://fiatvisions.com/“ target=“_blank“>grow money</a> and accomplish your important
financial goals in life.</p><p class=“MsoNormal“>To invest, you will
need to have some capital for that. If you don’t have enough to make your first
investment, you can start micro-investing, which lets you contribute as low as
$5 to $10 per trade or as much as you can currently afford.</p><p class=“MsoNormal“>Micro Investing
Explained</p><p class=“MsoNormal“>In a nutshell,
micro-investing is the method of constantly depositing, saving, and allocating
micro amounts of money into your chosen investment.</p><p class=“MsoNormal“>Instead of putting a
considerable amount of money instantly, you make small contributions, including
spare changes, every day to markets via exchange-traded funds (ETFs) or
fractional shares and often done through a platform or an app.</p><p class=“MsoNormal“>Such gradual, small
contributions make this method interesting to investors. You can earn and
diversify your investments without putting a significant amount of your
hard-earned money on the line.</p><p class=“MsoNormal“>Consistency is key to
micro-investing. The small investment amounts you make will only build up if
you’re investing them daily.</p><p class=“MsoNormal“>Ideal Age to Micro
Invest</p><p class=“MsoNormal“>Investors of all ages
can practice micro-investing, although it is most suitable and beneficial for
young market players between the age of 18 and 25.</p><p class=“MsoNormal“>That’s because
investors within that demography often engage with digital or online
transactions, and their regular spare change contributions can add up to a
substantial amount.</p><p class=“MsoNormal“>So if you’re a young
individual looking to enter the investing space but unsure where to start,
micro-investing can provide you with a straightforward way to invest without
requiring you to change your lifestyle.</p><p class=“MsoNormal“>Getting Started with
Micro-Investing</p><p class=“MsoNormal“>Overall, anyone can do
micro-investing. You only need a debit account and sign up with a platform or
an app that mainly provides micro-investing services.</p><p class=“MsoNormal“>Spare change investing
is one ideal way to start micro-investing. This method involves automating the
spare changes from your online transactions.</p><p class=“MsoNormal“>For example, if you
paid for your groceries through a debit card, you can use a round-up investment
app to round up the amount automatically to, let’s say, the next ten and then
invest the spare change on your behalf.</p><p class=“MsoNormal“>Micro-investing can be
your starting point to understanding the complexities of investing. Or, it can
serve as another account in addition to your existing investment portfolio.</p><p class=“MsoNormal“>Whether you treat it as
your starting point or a secondary account, micro-investing can accelerate your
journey towards your financial goals.</p><p class=“MsoNormal“>Factors to Consider</p><p class=“MsoNormal“>As mentioned above,
consistency plays a crucial part in micro-investing. The small investments you
make will only build up if you’re investing them on a daily basis.</p><p class=“MsoNormal“>However,
micro-investing may not be as efficient as with small financial goals if you
aim to achieve big long-term financial goals such as retirement or buying a
house. Still, it makes for a good starting point.</p><p class=“MsoNormal“>So in <a target=“_blank“ href=“https://fiatvisions.com/Registration“ target=“_blank“>micro-investing</a> for your big,
long-term goals, your small investments should become more regular and larger
in the long run. If you store your money in a savings account or set it aside
for future investment, note that it could lose value over time.</p>

This article was written by ForexLive at forexlive.com.

<p class=“MsoNormal“><a target=“_blank“ href=“https://maxiwyse.com/“ target=“_blank“>Investment trusts</a> have a long history, being
considered closed-ended investment vehicles that hold a specific number of
shares.</p><p class=“MsoNormal“>If you’re seeking a
portfolio with the right mix of assets, investment trusts can provide you with
that. Several investment trusts have proven their ability to drive dividend
growth for five decades, while others have time and again fared better than some
of the open-ended funds. </p><p class=“MsoNormal“>Investment Trusts
Explained</p><p class=“MsoNormal“>Investment trusts or
closed-end trusts are collective investments that pool investors’ money to hold
a diversified portfolio. They are usually publicly traded companies that aim to
turn a profit by buying other assets.</p><p class=“MsoNormal“>The number of
securities in a portfolio can vary with an investment trust. Sometimes, the
portfolio can have around 30 different assets, but it can also consist of
hundreds in one or more industries.</p><p class=“MsoNormal“>The ability to make
decisions related to the investments falls on the fund manager, who is also
tasked with ensuring that the trust’s investment goal is met.</p><p class=“MsoNormal“>Diving Deeper into
Investment Trusts</p><p class=“MsoNormal“>Investment trusts are
also called closed-end trusts because they put money into a specific number of
shares. They are quoted on the London Stock Exchange (LSE), allowing market
players to buy/sell shares at real-time prices, just like shares in regular
companies.</p><p class=“MsoNormal“>Fund managers have a
specific amount of investment dollars but can also borrow to make another
investment on top of the original one. Such a strategy is known as gearing,
which increases fund managers’ <a target=“_blank“ href=“https://maxiwyse.com/Registration“ target=“_blank“>potential
returns</a> as well as their potential losses.</p><p class=“MsoNormal“>Moreover, gearing is
not widely used in investment funds. In fact, many types of investment funds
are prohibited from using this method. One reason is that gearing would allow
funds to generate extra cash from investors if they’re open-ended.</p><p class=“MsoNormal“>Pros and Cons of
Investment Trusts</p><p class=“MsoNormal“>The pros of using
investments trusts are as follows:</p><p class=“MsoListParagraph“>· Diversification</p><p class=“MsoNormal“>As mentioned above,
investment trusts pool investors’ money so they can hold a diversified
portfolio which is usually ready-made and handled by experts. That saves
investors time and money that would have been otherwise spent on buying
individual shares in different companies.</p><p class=“MsoListParagraph“>· More Investment Options</p><p class=“MsoNormal“>Investment trusts have
access to a broader set of investments than funds since they can also invest in
unlisted assets, which may help amplify returns.</p><p class=“MsoListParagraph“>· Real-Time Trading</p><p class=“MsoNormal“>Unlike funds that are
forward priced, investment trusts allow Investors to buy/sell assets at live
prices and set stop loss orders to minimize their potential losses if the price
unexpectedly makes a sharp drop. </p><p class=“MsoListParagraph“>· Stable Income Source</p><p class=“MsoNormal“>Investment trusts are
an excellent option for investors looking for a reliable and stable source of
income. That’s because investment trusts can tap on reserves when the situation
in the market seems bleak.</p><p class=“MsoNormal“>Any investment is not
without risks. Here are the cons of using investment trusts:</p><p class=“MsoListParagraph“>· Gearing</p><p class=“MsoNormal“>Gearing is also a double-edged
sword that makes investment trusts more volatile than other funds. This
strategy can raise the returns but also increase the losses.</p><p class=“MsoListParagraph“>· Annual Management Fees</p><p class=“MsoNormal“>Investment trusts can
charge an annual management fee of 2% or higher, compared to active funds’ 0.5%
– 1% yearly fee. Such costs can be inconvenient as they can gradually reduce
the portfolio’s value.</p><p class=“MsoListParagraph“>· Valuation</p><p class=“MsoNormal“>While investment trusts
can access unlisted securities, the value of such assets may not be specific
and may only be determined quarterly. Therefore, relying on the net asset value
will not exactly help investors make a final decision.</p>

This article was written by ForexLive at forexlive.com.

<ul><li>Prior 89.9</li></ul><p style=““ class=“text-align-justify“>US small business confidence picked up slightly in August as worries about inflation subsided and demand for workers remained strong despite relative economic uncertainty. The number of businesses that reported that inflation was their single most important problem was seen at 29% – down 8 points from July, which was the highest since Q4 1979.</p>

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

<p>Headlines:</p><ul><li><a target=“_blank“ href=“https://www.forexlive.com/centralbank/icymi-ecb-policymakers-see-growing-probability-of-rates-moving-to-restrictive-territory-20220912/“>ICYMI: ECB policymakers see growing probability of rates moving to „restrictive territory“</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/euro-looks-to-come-up-for-air-20220912/“>Euro looks to come up for air</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/uk-july-monthly-gdp-02-vs-04-mm-expected-20220912/“>UK July monthly GDP +0.2% vs +0.4% m/m expected</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/frances-le-maire-government-cant-bear-all-of-the-energy-price-increase-20220912/“>France’s Le Maire: Government can’t bear all of the energy price increase</a></li></ul><p>Markets:</p><ul><li>EUR leads, USD lags on the day</li><li>European equities higher; S&P 500 futures up 0.5%</li><li>US 10-year yields down 3.4 bps to 3.287%</li><li>Gold up 0.8% to $1,729.13</li><li>WTI crude up 0.6% to $87.32</li><li>Bitcoin up 4.8% to $22,310</li></ul><p style=““ class=“text-align-justify“>The euro and broader market sentiment is cheering the start of the new week as the single currency looks to come up for air amid a technical break above 1.0100 against the dollar. There was a decent gap higher at the open today and the euro has built on that during the session, touching a high of 1.0197.</p><p style=““ class=“text-align-justify“>One can point to more hawkish talk by ECB policymakers or just general positive developments from the Russia-Ukraine conflict as the latter is making some gains. But I’d rather just let the charts do the talking as the momentum carries over from last week.</p><p style=““ class=“text-align-justify“>USD/JPY also initially tracked higher to 143.49 but ran into near-term resistance before falling back now to 142.45, pitting the dollar as the weakest performer on the day now.</p><p style=““ class=“text-align-justify“>Meanwhile, GBP/USD also opened with a gap higher around 1.1640 before pushing higher towards 1.1700. The dollar was initially holding its own against the commodity currencies but as risk sentiment picked up, the greenback also fell against the group.</p><p style=““ class=“text-align-justify“>USD/CAD declined from 1.3020 to 1.2990 while AUD/USD ran up from 0.6840 to 0.6885 on the session.</p><p style=““ class=“text-align-justify“>The mood carries over from last week but we will have to see what the US CPI data tomorrow has to offer as that will set the tone for the rest of the week surely.</p>

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

<p style=““ class=“text-align-justify“>That said, the firm has taken a more optimistic approach by arguing that „stronger incoming data have led us to revise our outlook for the US economy in favour of a longer expansion“. Adding that „we have pushed our outlook for a mild recession in the US to begin in 1H 2023, versus late 2022 previously“. Here’s a look at how they are viewing the jobs market:</p>

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

<p style=““ class=“text-align-justify“>That’s a tough pill to swallow and Russia is quite literally laughing its way to the bank, as one can say. In July, Germany imported goods from Russia totalling a value of €2.9 billion. That amount is 10.2% higher than the value of imports seen in July 2021.</p><p style=““ class=“text-align-justify“>Of course, the main reason for the surge in imports value can be attributed to soaring energy costs with the German stats office noting that crude oil and natural gas imports totalled €1.4 billion (+1.6% y/y), coke and petroleum products totalled €0.5 billion (+72.5% y/y), and coal totalled €0.3 billion (more than double in value).</p><p style=““ class=“text-align-justify“>As for total trade volume, Germany did manage to reduce imports from Russia by 45.8%.</p>

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

<p style=““ class=“text-align-justify“>The pair is up 0.9% on the day to near 1.1700 currently as the bounce from key support at the March 2020 lows near 1.1400 continues to extend. The initial bounce stalled around the 23.6 Fib retracement level at 1.1610 but we are running above that now with the 38.2 Fib retracement level next seen at 1.1737:</p><p style=““ class=“text-align-justify“>As such, there is scope for cable to extend the latest bounce here amid a correction in the dollar and the pound finding some light relief from the government’s fiscal aid on energy prices.</p><p style=““ class=“text-align-justify“>Despite the latest recovery, it is hard to be convinced of a major turnaround in cable unless the government really is going to abandon fiscal responsibility and throw the kitchen sink at propping up the economy. The issue here is that during the pandemic, monetary policy worked in tandem as interest rates were cut; now it is quite the opposite.</p><p style=““ class=“text-align-justify“>That’s a costly thing to consider and it won’t bode well for the UK’s long-term fundamentals i.e. from a current account perspective.</p><p style=““ class=“text-align-justify“>In any case, I would pin any move closer to 1.1800 to start inviting short positions again – so long as the balance of things remain as they are at the moment. For this week, be wary of the US CPI data release tomorrow. That will also help to set the tone before we get to the FOMC meeting next week.</p>

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