JASPER’S MARKET SQUAWK 11-10-2023

<h2>Dovish Tone Starts to Gain Momentum</h2>
<p>Risk appetite continued to improve on Tuesday as investors weighed in yet another flurry of dovish remarks by Fed officials, with the dollar retreating and gold and oil taking a breather.</p>
<p><img decoding="async" class="alignnone wp-image-26209 size-full" src="https://www.keytomarkets.com/blog/wp-content/uploads/2023/10/11-10-chart.png" alt="" width="1913" height="912" srcset="https://www.keytomarkets.com/blog/wp-content/uploads/2023/10/11-10-chart.png 1913w, https://www.keytomarkets.com/blog/wp-content/uploads/2023/10/11-10-chart-300×143.png 300w, https://www.keytomarkets.com/blog/wp-content/uploads/2023/10/11-10-chart-1024×488.png 1024w, https://www.keytomarkets.com/blog/wp-content/uploads/2023/10/11-10-chart-768×366.png 768w, https://www.keytomarkets.com/blog/wp-content/uploads/2023/10/11-10-chart-1536×732.png 1536w" sizes="(max-width: 1913px) 100vw, 1913px" /></p>
<p><strong>Chart: EURUSD</strong></p>
<h2>Key Factors for Today</h2>
<ul>
<li>Investors Embrace Dovish Remarks, Risk-On Continues</li>
<li>Bostic’s Dovish Stance Sends Dollar Spiraling Down</li>
<li>China GDP Downgrade, Euro Supported by Stimulus Reports</li>
<li>Commodities Take a Breather as Impact from Gaza Conflict Eases</li>
<li>Positive Start to Consumer Staples Supports US Equities</li>
</ul>
<h2>Bostic Sees No Need for Further Hikes, DXY Drops</h2>
<p>Atlanta Fed President Raphael Bostic (non-voter) joined the chorus of dovish speakers on Tuesday after saying that the Fed no longer needs to hike unless incoming data deviate substantially from expectations. He also pointed to rising economic uncertainty from the conflict in Gaza. The comments pushed the broader US index to September lows on Tuesday, paving the way to $105.15 unless bulls reclaim 106 swiftly.</p>
<h2>Euro Shrugs Off China GDP Downgrade from IMF</h2>
<p>The IMF downgraded China’s GDP growth outlook on Tuesday, calling on China to clean up its problematic real estate sector while warning of global economic risks despite seeing a soft landing. Markets were stirred up by rumours that China was looking to increase its 2023 deficit to stimulate its economy in a bid to meet its annual growth target, seen as the final catalyst for the euro’s upside. Against a softer dollar, EUR/USD put a 5-day winning streak in past $1.06, exposing $1.0646 next and leaving support at $1.0566 behind.</p>
<h2>Impact of Gaza Conflict on Commodities Appears Fading</h2>
<p>Easing concerns of an escalation have kept the lid on the oil and gold rally on as there is still no credible evidence of Iran’s complicity in the conflict. WTI was drawn to a stand within $84.70 and $87.20 a barrel, forming an inside bar, whereas gold’s upside came to an end at $1860 an ounce, with next levels seen at $1880 and $1848/oz. Meanwhile, the EIA said US crude exports hit record highs in H1 of 2023 at 3.99M bpd, but remained a net importer.</p>
<h2>Earnings for Consumer Staples Kick Off on Positive Footing</h2>
<p>US equities posted gains for the third session in a row on Tuesday from falling yields led by dovish Fed speak and as the impact of the Gaza conflict was seen taking a notch down. US indices were seen partly bolstered by PepsiCo’s better-than-expected profits and raised forecasts as the company reported negligible impact from weight loss drugs. Nasdaq recaptured 15k after a 3-day winning streak, forming regional resistance at 15240 and leaving the round support behind.</p>
<h2>On The Docket</h2>
<ul>
<li>German Inflation</li>
<li>Fed Bowman Speech</li>
<li>US PPI</li>
<li>Fed Waller Speech</li>
<li>Fed Bostic Speech</li>
<li>FOMC Minutes</li>
<li>API Crude Oil Stock Change</li>
</ul>
<h2>FX 1-Day Relative Performance (USD)</h2>
<ul>
<li>Aussie and Kiwi 0.17% and 0.34% in red</li>
<li>Euro 0.02% down, while Pound up by 0.05%</li>
<li>Yen and Franc down by 0.12% and 0.07%</li>
<li>Canadian dollar sees 0.06% drop</li>
<li>Gold 0.13% lower, while Silver 0.19% up</li>
<li>Crude up by 0.28%, Brent leads at 0.34%</li>
<li>Natural gas futures 1.27% higher up</li>
</ul>
<p>The post <a rel="nofollow" href="https://www.keytomarkets.com/blog/analysis/jaspers-market-squawk-11-10-2023-26208/">JASPER’S MARKET SQUAWK 11-10-2023</a> appeared first on <a rel="nofollow" href="https://www.keytomarkets.com/blog">Key To Markets Blog</a>.</p>