Daily Market Outlook, February 7, 2023Powell’s Speech The Highlight of The Day, First Post Payrolls Remarks“Asian equities traded with mixed tone overnight following on from a very quiet session on Wall Street, as investors were reluctant to extend risk ahead of a speech by Fed Chair Powell, who addresses the Economic Club of Washington later today, investors will parse Powell’s comments for his read on the red hot jobs data in the US Friday, these come in light of lasts weeks post rate announcement press conference when markets believed the Fed Chair gave the first clear acknowledgement of the start of the disinflationary process in play, however, the employment data on Friday has pushed market pricing in favour of further rate hikes given the continued tightness in the US labour market. Overnight the Australian central bank raised rate again and confirmed they expected further hikes to follow given the re-emergence of inflationary pressure in the economy, this move comes as markets were starting to reprice lower rates down under before inflation data came in hotter than expected, leading investors to consider inflationary pressures returning on a global scale, Fed’s Bostic’s remarks overnight supported this view suggesting that employment data could lead to a higher terminal rate stateside European bourses are taking the soft handover from Asian markets with the EuroStoxx CAC and Dax trading lower, the stand out performer is the FTSE being supported by record earnings from BP this morning, who announced a £2.7Bln stock buyback programme. In the foreign exchange markets the unwind in Dollar weakness is attracting attention, with investors piling into Dollar call options and increasing bets on a return to EUR & GBP weakness, notably €500million trading on a nine month 0.9500 USD call structure ”FX Options Expiration New York CutEURUSD 1.0600 (726mln), 1.0845 (336mln)Overnight News of NoteAsian Share Markets Stabilised Somewhat On Tuesday Ahead Of PowellAussie Extends Gain After RBA Hikes Rates, Signals More To ComeRBA Raises Rates To 10-Year High, Says More Hikes AheadRBA: Path To Achieving A Soft Landing Remains A Narrow OneFed’s Bostic Says Higher Peak Rate on Table After Jobs BlowoutChina's Yuan Off One-Month Low On Signs Of De-Escalation In Sino-U.S. TensionsJapan's December Nominal Wages Rise 4.8%, Most Since 1997Australia Records Its Fifth Straight Year Of Trade Surpluses In 2022BoE Officials Say Brexit Fuelling Inflation, Driving Up RatesOil Extends Gain As Saudi Arabia Bets On Demand Rebound In AsiaNYSE Plans To Pay In Full 60% Of Claims Submitted After Glitch(Sourced from Bloomberg, Reuters and other reliable financial news outlets)Technical & Trade ViewsSP500 Bias: Intraday Bullish Above Bearish Below 4070Primary support is 3990Primary objective is 4384Below 4050 opens 402020 Day VWAP bullish, 5 Day VWAP bearishEURUSD Bias: Intraday Bullish Above Bearish below 1.0610Primary support is 1.0610Primary objective is 1.11Below 1.0585 opens 1.050020 Day VWAP bearish, 5 Day VWAP bearishGBPUSD Bias: Intraday Bullish Above Bearish below 1.21Primary support is 1.21Primary objective 1.1840Above 1.2165 opens 1.226020 Day VWAP bearish, 5 Day VWAP bearishUSDJPY Bias: Intraday Bullish above Bearish Below 131Primary support is 131Primary objective is 134.70Below 130.80 opens 130.1120 Day VWAP bullish, 5 Day VWAP bullishAUDUSD Bias: Intraday Bullish Above Bearish below .7050Primary resistance is .7050Primary objective is .6750Above .7150 opens .725020 Day VWAP bearish, 5 Day bearish VWAPBTCUSD Intraday Bias: Bullish Above Bearish below 23200Primary support 22200Primary objective is 25000Below 21000 opens 2030020 Day VWAP bullish, 5 Day VWAP bullish
