Daily analysis 11NOVEMBER 2022

• US indexes ended yesterday’s session in euphoric moods. The S&P 500 rose 5.5%, the Dow Jones rose 3.7%, and the NASDAQ closed the session at nearly 7.5% plus. The Russell 2000 gained 6.11%. Today, contracts indicate that investors will be looking to extend the upward move;
• The atmosphere is also giving to investors in Asia. NIKKEI contracts are gaining 1.5%. Index contracts from China’s CHNComp and HKComp are trading nearly 3% higher;
• DAX index futures point to a marginally higher European session opening. DE30 gains 0.12%;
• Inflation in Germany came in line with expectations at 11.6% vs. 11.6% previously. The reading did not turn out to be as euphoric as the one in the US;
• The ECB’s Nagel indicated yesterday that he expects German inflation to exceed 7% in 2023;
• According to estimates by Patrick T.Harker of the Philadelphia Fed, PCE inflation in the U.S. will be at 3.5% in 2023 and 2.5% in 2024. Flat GDP this year and 1.5% growth next year is the baseline scenario, according to him. Harker emphasized the still-strong labor market, however, indicating that US unemployment could reach 4.5% next year;
• Dallas Fed President Fed Logan said it may soon be appropriate to slow down to better assess economic conditions. He added that it may soon be appropriate to slow the pace of rate hikes, and that the process of cooling the economy is just beginning;
• Kansas Fed President Ether George said that higher rates will be necessary for some time to convince households to retain savings, with gradual increases being beneficial;
• San Francisco Fed President Mary Daly also referred to the lower U.S. inflation reading and indicated that moderation is “good news,” but “pausing is not the discussion, the discussion is giving way”;
• The Department of Justice, the Securities and Exchange Commission and the Federal Trade Commission have opened an investigation into cryptocurrency exchange FTX. At the same time, the US branch of the FTX US exchange remains untouched due to the fact that it had to comply with the restrictive regulations of Gary Gensler’s institution;
• Regulators’ intervention in the digital asset sector is increasingly likely. White House spokeswoman Jean-Pierre indicated yesterday that prudent regulation of the cryptocurrency industry is required;
• Cryptocurrencies are recovering from recent declines although they are retreating from yesterday’s highs. Bitcoin is holding at $17,400 and is trading 2% lower. Ethereum is losing 3%. DYDX and Kiloshib are the best performers, with both cryptocurrencies gaining nearly 40% today;
• Oil is trading higher today, near $96. Precious metals are continually climbing;
• The dollar continues to weaken against other currencies. The EURUSD pair is already trading at 1,024.

Contracts on the US100 continue today’s rebound near 11,750 points. On the chart, we can see a double-hole formation at 10,700 points, where demand has already stopped declines twice. Yesterday the index rose nearly 7% and scored one of the best sessions in its 21st century history. Today the bulls are trying to continue the upward movement. The nearest support seems to lie in the psychological zone of 12,000 points.