What’s in store for markets this week!

After The UK government unveiled their top tax rate cut, setting fire to GBP Cross pairs, prompting an intensive sell-off on the cable

The UK’s turn of events 

After The UK government unveiled their top tax rate cut, setting fire to GBP Cross pairs, prompting an intensive sell-off on the cable. Forcing the Bank of England to intervene by buying 30 year bonds, in order to balance out the bond market. Backlash prompted the new PM Liz truss to withdraw her tax cut plan, sending the pound back to highest level in more than a week above the 1.12 mark targeting the area of 1.14.

In this case, the BOE is no longer set to have an emergency rate hike as speculation in the market murmured. 

And speaking of corrections most major assets have rebounded this week, with the U.S. market set for a quick bounce back, as news of hiking rates again in November by 75 basis points fade with other things in focus, giving the U.S. Dollar index a breather, and making room for stocks to uptick. 

NFP & OPEC+ on radar this week

Focus will fall on the Non-Farm payrolls this week, where they are expected to drop to 265K from 315K in September. The Friday figures are pretty important as they will indicate whether the Federal Reserve’s aggressive monetary policy has weakened the labor market or it still remains solid.

Especially after Powell’s speech after the September FOMC indicated that they expect to see softer readings from the labor market as a consequence to the aggressive tightening. Although so far, the labor market has been quite intact holding strong and reflecting nothing but a strong U.S. Economy. And I think the USD would agree.

On the radar this week too comes OPEC+ and reports of the organization and its allies to cut production, giving support to oil prices after almost 5 weeks of declines. Oil prices were able to move higher on the news. In addition to being supported by lower crude oil inventories. Geopolitical woes have also been a strong factor to backing this decision of cutting output.

WTI was able to break resistance of $81, climbing to above $82 while Brent opened on an upward gap to trade above levels of $88 per barrel. 

Geopolitical Woes

Meanwhile in the Eurozone, Russia’s Gazprom halts gas supplies to Italy making the Energy crisis at the front and center in market news this week. Especially after the IEA warns of more issues to be seen in winter. 

The Yellow-metal has indeed found support amid the current market uncertainties, moving up towards levels of $1685. As investors try to seek shelter from the current volatility in store. Yet its only natural to see markets witness a correction after the few past weeks of sharp declines. 

Read this next

Fintech

ANZ deploys CobaltFX’s Dynamic Credit platform

“This new approach to credit management has helped eliminate carve-outs as well as reduce credit usage while improving our market access. This capability benefits our customers, counterparties, and the bank.”

Industry News

FINRA fines M1 Finance $850,000 for misleading ‘finfluencer’ activities

“As investors increasingly use social media to inform their financial decisions, FINRA’s rules on communicating with the public are especially critical. FINRA will continue to consider whether firms are using practices and maintaining supervisory systems that are reasonably designed to address the risks related to social media influencer programs.”

Institutional FX

Eurex launches a new first: STOXX Semiconductor 30 Index Futures

“Recent global uncertainties have prompted nations to prioritize the secure production and distribution of semiconductors. Consequently, our STOXX Semiconductor 30 Index Futures are reflecting the growing appetite for semiconductors as a new investment theme. We are seeing a noticeable demand from Asia in particular, as Taiwanese companies are well represented in the index.”

Fintech

Finalto doubles down on APAC region with oneZero curated liquidity from Tokyo

“We are excited to announce the expanded relationship with oneZero not only by using their Institutional Hub as a key component in our technology stack, but now by adding the Equinix TY3 data center to the LD4 and NY3 data centers. This exemplifies our dedication to providing our customers with cutting-edge technology options in accessing our wide liquidity and product offerings via a seamless trading experience.”

Retail FX

From Backtesting to Arbitrage: Practical Applications of AI in the World of Retail Trading

In this article, the industry leaders delve into the transformative role of AI in trading.

Digital Assets

FTX claim value soars to 92%, creditor sued for reneging on $58M deal

Attestor Capital, a London-based investment firm holding significant FTX bankruptcy claims, has initiated legal action against a Panamanian company called Lemma Technologies.

Digital Assets

OKX to remove Tether trading pairs ahead of MiCA

OKX, the world’s fourth-largest cryptocurrency exchange by trading volume, is discontinuing support for tether (USDT) trading pairs in the European Economic Area (EEA).

Digital Assets

Changpeng Zhao is back with new project post-Binance era

Changpeng Zhao, the founder and former CEO of Binance, hinted at a new educational project on Monday.

Digital Assets

IcomTech owners convicted in crypto Ponzi scheme

A New York jury has found David Brend and Gustavo Rodriguez, former promoters of the crypto mining and trading company IcomTech, guilty of wire fraud conspiracy.

<