<ul><li>Prior +5.0%</li><li>PPI +41.9% vs +42.0% y/y expected</li><li>Prior +43.3%; revised to +43.4%</li></ul><p style=““ class=“text-align-justify“>Another month, another rise in euro area producer prices. The details show a 2.6% increase in the energy sector, a 1.0% jump for non-durable consumer
goods, a 0.4% increase for capital goods and for durable consumer goods and a 0.1% tick higher for intermediate goods.</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-extends-gains-as-post-fed-musings-continue-to-play-out-20221103/“>Dollar extends gains as post-Fed musings continue to play out</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/centralbank/ecbs-visco-italy-germany-spread-is-still-too-high-20221103/“>ECB’s Visco: Italy-Germany spread is still too high</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/centralbank/ecbs-lagarde-a-recession-wont-be-sufficient-to-tame-inflation-20221103/“>ECB’s Lagarde: A recession won’t be sufficient to tame inflation</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/centralbank/ecbs-panetta-we-need-to-bring-inflation-back-to-2-target-as-soon-as-possible-20221103/“>ECB’s Panetta: We need to bring inflation back to 2% target as soon as possible</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/centralbank/ecbs-kazaks-rates-need-to-go-much-higher-20221103/“>ECB’s Kazaks: Rates need to go „much higher“</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/us-october-challenger-layoffs-3384k-vs-2999k-prior-20221103/“>US October Challenger layoffs 33.84k vs 29.99k prior</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/switzerland-october-cpi-30-vs-32-yy-expected-20221103/“>Switzerland October CPI +3.0% vs +3.2% y/y expected</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/uk-october-final-services-pmi-488-vs-475-prelim-20221103/“>UK October final services PMI 48.8 vs 47.5 prelim</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/eurozone-september-unemployment-rate-66-vs-66-expected-20221103/“>Eurozone September unemployment rate 6.6% vs 6.6% expected</a></li></ul><p>Markets:</p><ul><li>USD leads, GBP lags on the day</li><li>European equities lower; S&P 500 futures down 0.9%</li><li>US 10-year yields up 8.2 bps to 4.187%</li><li>Gold down 1.1% to $1,617.01</li><li>WTI crude diwb 1.5% to $88.67</li><li>Bitcoin down 0.3% to $20,108</li></ul><p style=““ class=“text-align-justify“>It was a rather straightforward session, in which markets focused on digesting the aftermath of the Fed policy decision yesterday.</p><p style=““ class=“text-align-justify“>Powell’s hawkish message continued to reverberate and that saw the dollar pull higher, with broader market sentiment slumping as traders and investors stuck to the buy the dollar, sell everything else narrative again.</p><p style=““ class=“text-align-justify“>EUR/USD took a fall from 0.9820 to 0.9730 as the dollar ran hot in the session, with GBP/USD falling by over 1% from 1.1400 to 1.1230 as the pair loses altitude after having posted a solid run in the past two weeks. The BOE is in focus and could yet set off a further drop in cable, despite the already big move so far today.</p><p style=““ class=“text-align-justify“>Meanwhile, US futures pulled lower from a flattish start in European morning trade with S&P 500 futures now down 33 points, or 0.9%, as we look towards the Wall Street open later. That comes as Treasury yields also pull higher with 10-year yields up oer 8 bps to 4.187% on the day.</p><p style=““ class=“text-align-justify“>In turn, the mood is weighing on commodity currencies with the antipodeans bearing the brunt of the selling. AUD/USD is down a little over 1% from 0.6360 to 0.6280 while NZD/USD is also posting a similar size drop, down from 0.5830 to 0.5750 currently.</p><p style=““ class=“text-align-justify“>It looks like markets are reverting back to old habits and with the Fed not switching up the beat just yet, it is very much understandable. The US jobs report tomorrow will be another key risk event to see if the prevailing narrative will continue to go unimpeded before the weekend.</p>

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

<ul><li>Prior 29.99k</li></ul><p style=““ class=“text-align-justify“>US-based employers announced 33,843 job cuts in October, a 13% increase from the previous month and 48% higher than the number announced in the same month last year. Of note, the job cuts in October were the highest in a single month since February 2021 when 34,531 job cuts were recorded. Challenger notes that:</p><p style=““ class=“text-align-justify“>“We are beginning to see more job cut activity in the fourth quarter, historically when the bulk of cuts occur, as companies finalize budgets and plans. Many companies are anticipating a downturn, and with a still-tight labor market and the Fed’s rate hikes, more cuts will be on the way as we enter 2023.”</p><p style=““ class=“text-align-justify“>/<a target=“_blank“ href=“https://www.forexlive.com/terms/u/us-dollar/“ target=“_blank“ id=“fddda8f4-d5f8-4ee4-8e34-3760ed062f3c_1″ class=“terms__main-term“>US Dollar</a></p>

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

<p style=““ class=“text-align-justify“>Well, the good news at least is that markets aren’t getting too carried away in pricing in fragmentation risks. But considering that the spread remains elevated, the risk is still lingering. The ECB does have a new tool to deal with that and for now, markets are listening.</p>

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

<p class=“MsoNormal text-align-start“><a target=“_blank“ href=“https://www.zulutrade.com/“ target=“_blank“>Z</a><a target=“_blank“ href=“https://www.zulutrade.com/“>uluTrade</a>, a Finvasia Group company, driven by the world’s largest community of social leaders in investments, has won the ‘Best Social Wealth Management Platform’ award at the Forex Expo Dubai 2022. ZuluTrade presented extremely informative insights and sessions on “Top user acquisition strategies for brokers and on how to scale your business with social trading and power of network effects.” </p><p class=“MsoNormal“>ZuluTrade was one of few booths to be visited by the Chief Guest, His Excellency Mr. Buti Saeed Al Ghandi (Director, Commercial Bank of Dubai & Vice-Chairman, DWTC).</p><p class=“MsoNormal“>The award marks a new milestone for ZuluTrade that has been championing the Social Trading and Investments industry for over 15 years. It is the 2nd consecutive award for the company in less than six months after it was awarded ‘Best Social Trading Solution’ at the Ultimate Fintech Awards in Cyprus earlier this year. </p><p class=“MsoNormal text-align-start“>The company has supported more than 2.5 million clients across 150 countries that have transacted over 2.5 trillion USD on its platform throughout the years. It is a multi-investment social trading platform that holds its head high on providing customer-focused investment solutions in the most transparent and trustworthy environment.</p><p class=“MsoNormal text-align-start“>“ZuluTrade has gone truly global since its inception in 2007 and is the oldest and most recognised brand in social wealth management. It has been unveiling new features and collaborations over the years that cater to both advanced and novice investors.” Tajinder Virk, Interim CEO of ZuluTrade gratefully remarked. “We cherish the gesture of being awarded the ‘Best Social Wealth Management Platform’ in one of the most competitive industry segments across Forex, Stocks, Cryptos, Commodities and Indices. </p><p class=“MsoNormal“>It is a testimony to our company’s relentless approach to providing the most innovative features and opportunities, and making investment easy and accessible to everyone. We are determined now more than ever to continue providing the best services to all our valued clients and partners.”</p><p>ZuluTrade Moving Ahead</p><p class=“MsoNormal“>ZuluTrade is steering ahead strongly under the leadership of Finvasia Group. Strengthening and expanding on its current capabilities, the company will soon launch ZuluTrade 2.0. The new platform will be a more engaging social investing platform with enhanced social and technology features. I</p><p class=“MsoNormal text-align-start“>t will empower the platform’s users with access to analysis, data, insights, and portfolio optimization tools that are typically available only to professional traders. ZuluTrade 2.0 will maintain its legacy of being both broker and platform neutral, so it has no conflict of interest with its investors. A variety of new asset classes added to ZuluTrade 2.0 will encourage more investors, leaders and brokers to join the platform whilst creating a conducive environment for them to grow their wealth.</p><p>About ZuluTrade</p><p class=“MsoNormal“>ZuluTrade is the largest broker agnostic social wealth management and copy trading platform in the world. It revolutionised copy trading by creating a “one of its kind” conflict free, socially driven, broker and platform agnostic social network in 2007. </p><p class=“MsoNormal“>Catering to both advanced and novice investors, Zulutrade offers the biggest database of signals and strategies currently available across the market. Investors can experience simplified Social Trading across multiple instruments including Forex, Stock CFD’s, Crypto CFD’s, Commodities and Indices.</p><p class=“MsoNormal“>ZuluTrade is authorized and regulated in the EU by Hellenic Capital and Market Commission (HCMC) and Financial Services Agency (FSA) in Japan. Its parent company, Finvasia Group, has entities across the globe that are regulated/registered with over 30 regulatory bodies in various capacities.</p><p class=“MsoNormal text-align-start“>To find out more, reach out to <a target=“_blank“ href=“mailto:marketing@zulutrade.com“ target=“_blank“>marketing@zulutrade.com</a></p>

This article was written by ForexLive at forexlive.com.

<ul><li>Prior -1.7%</li><li>Market index 200.1 vs 201.1 prior</li><li>Purchase index 160.5 vs 160.4 prior</li><li>Refinance index 386.7 vs 394.7 prior</li><li>30-year mortgage rate 7.06% vs 7.16% prior</li></ul><p style=““ class=“text-align-justify“>Another week, another slump in mortgage activity as high rates continue to weigh heavily on housing market conditions. The index is already at its weakest since 1997 and the Fed could inflict further pain on the market should it stick to its hawkish resolve today.</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/10-year-treasury-yields-retreat-back-below-4-20221101/“>10-year Treasury yields retreat back below 4%</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/dollar-slides-further-amid-strong-bid-in-bonds-20221101/“>Dollar slides further amid strong bid in bonds</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/centralbank/rbas-lowe-need-to-strike-a-balance-between-doing-too-much-and-too-little-20221101/“>RBA’s Lowe: Need to strike a balance between doing too much and too little</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/centralbank/ecbs-lagarde-we-will-have-further-rate-increases-in-the-future-20221101/“>ECB’s Lagarde: We will have further rate increases in the future</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/japans-suzuki-further-sharp-yen-weakening-is-unfavourable-with-inflation-being-an-issue-20221101/“>Japan’s Suzuki: Further sharp yen weakening is unfavourable with inflation being an issue</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/germany-september-import-prices-09-vs-06-mm-expected-20221101/“>Germany September import prices -0.9% vs +0.6% m/m expected</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/uk-october-nationwide-house-prices-09-vs-00-mm-prior-20221101/“>UK October Nationwide house prices -0.9% vs 0.0% m/m prior</a></li><li><a target=“_blank“ href=“https://www.forexlive.com/news/uk-october-final-manufacturing-pmi-462-vs-458-prelim-20221101/“>UK October final manufacturing PMI 46.2 vs 45.8 prelim</a></li></ul><p>Markets:</p><ul><li>NZD leads, USD lags on the day</li><li>European equities higher; S&P 500 futures up 0.9%</li><li>US 10-year yields down 13.8 bps to 3.938%</li><li>Gold up 1.3% to $1,653.51</li><li>WTI crude up 1.3% to $87.66</li><li>Bitcoin up 0.5% to $20,525</li></ul><p style=““ class=“text-align-justify“>There was a rumour floating about in Asia trading suggesting that China is looking to take steps to assess a potential move away from its zero-Covid policy. The setting up of a so-called ‚re-opening committee‘ was enough to produce a surging rally in Chinese equities and the positive momentum spilled over into European trading as well.</p><p style=““ class=“text-align-justify“>US futures ticked higher and that set up a buoyant open in Europe, which continued throughout. The mood is also helped by a bid in bonds with Treasury yields slumping heavily during the session, with 10-year yields down back below 4% today.</p><p style=““ class=“text-align-justify“>As such, the dollar was offered with the yen among the strong gainers. USD/JPY fell from 148.40 to 147.00 during the session while EUR/USD advanced from 0.9900 to 0.9947 with large option expiries nearby the top.</p><p style=““ class=“text-align-justify“>The dollar also slumped against the commodity currencies with USD/CAD dipping by 0.6% to 1.3535 and AUD/USD erasing its post-RBA retreat, moving up from 0.6410 to 0.6450 levels.</p><p style=““ class=“text-align-justify“>It is shaping up to be a choppy start to proceedings this week and putting aside the headline from China above, the main focus will be on the Fed tomorrow. That will shape up how things will go for much of the remainder of this year as well.</p>

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

<p style=““ class=“text-align-justify“>The dollar is trading to the lows for the day with USD/JPY now close to clipping 147.00, down over 1% at the moment:</p><p style=““ class=“text-align-justify“>There’s a lot at stake this week when it comes to the Fed. The price action today suggests that broader markets are not settled or that traders and investors think something big is coming. Think along the lines of a Fed pivot. That’s the most important narrative that needs to be sorted out as we look towards the FOMC meeting tomorrow.</p><p style=““ class=“text-align-justify“>Sure, the rumour about China setting up steps to re-open is also a big step in the right direction but until there is any real truth to that, the Fed will remain the major focus point this week.</p><p style=““ class=“text-align-justify“>If there is any crack in the resolve by the Fed tomorrow, it’s not that they risk a misstep in the battle against inflation. It is more so that they risk credibility and that is something markets will look to punish. Any slight softening in their messaging will no doubt result in a whopping rally for risk trades.</p><p style=““ class=“text-align-justify“>For the dollar? That might be what signals a top.</p>

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

<p style=““ class=“text-align-justify“>It’s a risk-on day and these days that tends to translate to a softer USD/JPY as <a target=“_blank“ href=“https://www.forexlive.com/news/10-year-treasury-yields-retreat-back-below-4-20221101/“ target=“_blank“>bonds are also bid</a> alongside equities in trading today. Not to mention that the dollar has been more favoured as a safety currency this year, so any risk-positive momentum is likely to lead to a fall in USD/JPY such is the one today.</p><p style=““ class=“text-align-justify“>The pair is down 0.8% to 147.47 and closing in on its 100-hour moving average (red line) next at 147.24. A drop below that will see sellers regain near-term control with a keen emphasis to try and take a run at 145.00 to gather further momentum.</p><p style=““ class=“text-align-justify“>For now, Japan officials can take comfort in the recent price action – in the sense that we are not seeing buyers overstep to take a run at the 150.00 level again since two weeks ago.</p><p style=““ class=“text-align-justify“>But more importantly I would say, is that one should be paying attention to some subtle shifts in communique from Japan as of late. The BOJ did it on Friday <a target=“_blank“ href=“https://www.forexlive.com/centralbank/boj-announces-it-leaves-monetary-policy-unchanged-20221028/“ target=“_blank“>here</a> and we also got remarks from finance minister Suzuki earlier today <a target=“_blank“ href=“https://www.forexlive.com/news/japans-suzuki-further-sharp-yen-weakening-is-unfavourable-with-inflation-being-an-issue-20221101/“ target=“_blank“>here</a>. I would say it is premature to say that this is the turning point in the BOJ pivot argument but I am open to the idea that perhaps domestic authorities are starting to accept that this is the only option to really arrest any further yen decline.</p><p style=““ class=“text-align-justify“>Besides, with the rest of the world having to deal with rampaging <a target=“_blank“ href=“https://www.forexlive.com/terms/i/inflation/“ target=“_blank“ id=“ad51a5a2-1afc-4f42-9e62-ea6faf6f90fa_1″ class=“terms__main-term“>inflation</a>, is it too far-fetched to believe that some of that will eventually seep into the Japanese economy?</p>

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

<ul><li>Prior 48.4</li></ul><p style=““ class=“text-align-justify“>A slight revision higher but it still marks a modest contraction of the manufacturing sector in the UK as output, new orders and new export business all decline. That comes despite input cost and selling price inflation easing slightly on the month. S&P Global notes that:</p><p style=““ class=“text-align-justify“>“UK manufacturing production suffered a further decline at the start of the fourth quarter, with the sector buffeted by weak demand, high inflation, supply-chain constraints and heightened political and economic uncertainties. New work intakes fell at the quickest pace since May 2020 as demand in domestic and export markets weakened. While the downturn has lessened the pressure on prices, the weak pound and high energy prices mean elevated cost <a target=“_blank“ href=“https://www.forexlive.com/terms/i/inflation/“ target=“_blank“ id=“ad51a5a2-1afc-4f42-9e62-ea6faf6f90fa_3″ class=“terms__main-term“>inflation</a> remains a prime concern for manufacturers. </p><p style=““ class=“text-align-justify“>“The darkening situation also knocked business optimism down to a two-and-a-half year low, as concerns about the weak demand outlook, recession, inflationary pressure and sustained uncertainty hit confidence. The labour market picture has also deteriorated, with companies cutting jobs for the first time in almost two years while still struggling to recruit and retain appropriate staff. On current form manufacturing is in no position to help prevent the broader UK economy from sliding into recession.“</p>

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