<p>It was a tough one for US equities this week and it ended on a soft note after a back-and-forth session. Today’s hot PPI number and better UMich sentiment raised some questions about whether Fed hikes are working enough to cool inflation and whether Powell could take a hawkish stand next week. I think he’s instead going to push the idea that the Fed will hold rates high for longer rather than the U-turn that’s priced into Fed funds.</p><p>In any case, expect some even bigger moves next week.</p><p>On the day:</p><ul><li>S&P 500 -0.75%</li><li>Nasdaq -0.7%</li><li>Russell 2000 -1.0%</li></ul><p>On the week:</p><ul><li>S&P 500 -3.4%</li><li>Nasdaq -4.0%</li><li>Russell 2000 -4.9%</li></ul>

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

<p>The NZD/JPY weekly chart is one of the more-interesting ones out there right now as it brushes up against the September high. If that breaks, it will take the pair all the way back to 2015 levels and a time when the pair touched 94.00.</p><p>The general feeling is that yen weakness is over after the spike in USD/JPY to 150.00 but this chart and some others argue that USD weakness is more the case.</p><p>Lately, the antipodean currencies are benefiting from speculation around China reopening and AUD/JPY also posted a decent week.</p><p>The rise in the pair is also reminiscent of the old carry trade. The RBNZ cash rate is now at 4.25% and another 50 bps is expected in February. That’s a hefty carry over zeroed out JPY rates, though risks around global economic growth are high.</p>

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

<p>The one-year oil curve fell into contango today as front-month prices continued to crumble. I think the focus on the curve structure is overdone, especially with uncertainty about China’s reopening timeline, but that likely kicked off a final press towards $70.</p><p>Bidders just above $70 finally stepped in, some perhaps on hopes for an OPEC leak or Russian action on the weekend. The low was $70.06 and it has quickly rallied to $71.50.</p><p>$70 is also more than just a big round number. US officials have indicated that the want to refill the SPR around $70 and that may act as support.</p>

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

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Urals crude at Baltics ports this week assessed at $45/bbl.</a>r</li></ul><ul><li><a target=“_blank“ href=“https://www.forexlive.com/news/australian-pm-announces-government-will-set-a-price-cap-for-gas-aud12-and-coal-aud125-20221209/“ target=“_blank“>Australian PM announces government will set a price cap for gas (AUD12) and coal (AUD125)</a>r</li><li><a target=“_blank“ href=“https://www.forexlive.com/news/forexlive-asia-pacific-fx-news-wrap-usd-lower-as-the-week-works-toward-the-close-20221209/“ target=“_blank“>ForexLive Asia-Pacific FX news wrap: USD lower as the week works toward the close</a>d</li><li><a target=“_blank“ href=“https://www.forexlive.com/news/oecd-head-cormann-says-the-global-economic-outlook-is-continuing-to-deteriorate-20221209/“ target=“_blank“>OECD head Cormann says the global economic outlook is continuing to deteriorate</a>re</li><li><a target=“_blank“ href=“https://www.forexlive.com/centralbank/economic-calendar-in-europeuk-friday-9-december-2022-boe-inflation-attitudes-survey-20221209/“ target=“_blank“>Economic calendar in Europe/UK – Friday, 9 December 2022 – BoE inflation attitudes survey</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/trade-ideas-thread-friday-9-december-2022-ukeurope-version-20221209/“ target=“_blank“>Trade ideas thread – Friday, 9 December 2022, UK/Europe version!!!</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/Cryptocurrency/australian-crypto-exchange-digital-surge-entered-voluntary-administration-20221209/“ target=“_blank“>Australian crypto exchange Digital Surge entered voluntary administration</a></li></ul><p class=“western“>
It
was a relatively sedate session, traders are looking ahead to a busy
central bank driven week coming up next week with the Fed, Bank of
England and European Central Bank. Even today there was a focus
on US data with November PPI and December Michigan Sentiment ahead in
the coming hours.
</p><p class=“western“>The
USD firmed a little after losing some ground in Asia. Ranges were not
large.
</p><p class=“western“>Oil
popped a little (and, as I update, has not followed through) with
news that China is to sell 750bn yuan of bonds to fund an economic
boost. China news has been optimistic all week as reopening moves are
made and further support is provided to the troubled property sector.</p><p class=“western“>CAD was weak:</p>

This article was written by Eamonn Sheridan at www.forexlive.com.

<p>
EUR/USD
</p><ul><li>1.0400 406mn
</li><li>1.0440-50 333mn
</li><li>1.0550 427mn</li></ul><p>USD/JPY </p><ul><li>135.00 511mn
</li><li>135.25 305mn
</li><li>135.50 210mn</li><li>136.00 623mn
</li><li>137.00 200mn</li></ul><p>GBP/USD
</p><ul><li>1.2200 211mn
</li><li>1.2400 291mn</li></ul><p>EUR/GBP
</p><ul><li>0.8700 280mn</li></ul><p>AUD/USD
</p><ul><li>0.6600 482mn
</li><li>0.6700 343mn
</li><li>0.6750 219mn</li><li>0.6800 428mn</li></ul><p>USD/CAD
</p><ul><li>1.3500 1.08bn
</li><li>1.3550-60 473mn
</li><li>1.3600 395mn</li><li>1.3650 625mn
</li><li>1.3700 478mn</li></ul>

This article was written by Eamonn Sheridan at www.forexlive.com.

<p>447bn is above the expected of around 300bn to be paid for December. Also larger than the 296bn repaid in November. </p>

This article was written by Eamonn Sheridan at www.forexlive.com.

<p>Bitcoin Market picture</p><p class=“MsoNormal“>Crypto
market capitalisation rose 2% over the past 24 hours to $858bn. Bitcoin added
2.3% to $17.2K, trading near the top of its range since November 12. The
technical picture remains the same for Bitcoin, and it will need to confirm a
move out of its abnormally narrow range, whichever way it moves.</p><p class=“MsoNormal“>In the event
of a further rise, such confirmation would see a consolidation at above $18K,
near the 50-day moving average and local support from June through October. A
downward move could lead to further decline if it sends the price
below $16K.</p><p>Bitcoin News background</p><p class=“MsoNormal“>Amid the
collapse of FTX and the crypto market, Coinbase’s revenues could be halved by
2022, the company’s CEO Brian Armstrong said.</p><p class=“MsoNormal“>A new CNBC
poll shows that Americans‘ attitudes towards cryptocurrencies have deteriorated
significantly amid the collapse of the Terra ecosystem and the bankruptcy of
cryptocurrency exchange FTX. Only 8% of US residents have a favourable view of
crypto assets.</p><p class=“MsoNormal“>The Ethereum
team has said it plans to activate the Shanghai hardfork n March 2023.</p><p class=“MsoNormal“>Popular
Twitter analyst PlanB, author of the stock-to-flow model, reiterated his
confidence in the massive growth of bitcoin in 2023 or at least in 2024.
According to him, BTC will be worth between $100K and $1 million after the next
halving, with the first cryptocurrency expected to bottom in the next three
weeks.</p><p class=“MsoNormal“>This article was written by <a target=“_blank“ href=“https://www.fxpro.com/“ target=“_blank“ rel=“follow“>FxPro</a>’s Senior Market Analyst Alex
Kuptsikevich.</p>

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

<p>Russia’s state-run TASS news agency reporting that:</p><ul><li>Representatives from Russia and United States will meet in Istanbul on Friday,</li><li>the two sides would discuss a set of „difficult questions“ </li></ul><p>No further details at this stage. Tass citing an unnamed source. </p><p>A little more incoming:</p><ul><li>the two sides would discuss a set of „difficult questions“ Including visas, embassy staffing levels and the work of each side’s institutions and agencies abroad, among other unspecified issues.</li></ul>

This article was written by Eamonn Sheridan at www.forexlive.com.

<p style=““ class=“text-align-justify“>If they can’t bring it to the rest of the world, there’s always China. Especially now as Xi has relented on the zero-Covid policy, re-opening demand is something to watch out for and that is going to be a welcome development for Russia and Putin.</p>

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

<p style=““ class=“text-align-justify“>All eyes are on the central bank bonanza next week and with the Fed in focus, the US consumer price inflation report on Tuesday is going to be a massive one before the FOMC meeting on Wednesday. At the stage we are at, inflation data is essentially the new non-farm payrolls.</p><p style=““ class=“text-align-justify“>But before we get to that, we’ll get a teaser of sorts tomorrow via the November producer prices report. You would think that PPI tends not to be a market mover but in a time when inflation numbers mean everything, the data tomorrow will be a big one – as it was last month <a target=“_blank“ href=“https://www.forexlive.com/news/us-october-ppi-80-vs-83-expected-20221115/“ target=“_blank“ rel=“follow“>here</a>.</p><p style=““ class=“text-align-justify“>So, while broader markets are quiet today with very little to work with, don’t expect that to last when we get to US trading tomorrow.</p>

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