Market Drivers – US Session 09/11/2022

Mohamed Abdelhamid 10 November, 2022 2:32 am Forex Market, Market Update

Global news came mixed on Wednesday. News from China impacted market sentiment and risk appetite after another district lockdown due to covid infections. Russia is withdrawing from Kherson, the only Ukrainian regional capital captured since the invasion began, as Moscow cannot keep supplying troops and Russian President Vladimir Putin would not attend the upcoming G-20 summit.

Economic Data

U.S. wholesale inventories increased less than initially thought in September amid decreases in stocks of petroleum and computer equipment, also suggesting that businesses were carefully managing their inventory amid slowing demand.

The Commerce Department said on Wednesday that wholesale inventories rose 0.6% instead of 0.8% as reported last month. Stocks at wholesalers advanced 1.4% in August. Economists polled by Reuters had expected that inventories would be unrevised.

Other Developments

The US dollar benefited from Wednesday’s retreating market mood. The American currency was able to recover some of the ground lost but still down for the week against most major rivals. US stocks reflected the negative sentiment, with Wall Street closing the trading session in the red territory.

US Treasury yields, however, were little changed ahead of the release of US inflation figures. The Consumer Price Index is expected to have risen in October by 8% YoY, below the previous 8.2% reading.

The EURUSD finished the day near 1.0010, while GBPUSD is down to 1.1340. Commodity-linked currencies were also sharply down, with AUDUSD trading around 0.6420 and USDCAD up to 1.3512.

Safe-haven assets gave up little ground against the dollar. The USD/CHF pair trades at 0.9860, while the USDJPY pair trades around 146.50. Gold trades at around $1,705 a troy ounce, retaining most of its weekly gains.

Crude oil prices, on the other hand, collapsed after the release of US inventories, showing a larger-than-expected build of 3.925 million barrels in the week ended November 4. WTI trades at around $86.00 a barrel.

Cryptos extended their slump amid the forex dilemma. The company is being investigated by the US SEC, while Binance is likely to refrain from rescuing its former rival. BTCUSD trades around $16,660, its lowest since November 2020.

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