EUR/USD below parity again

As a recession in Germany becomes more likely, the euro temporarily crossed the crucial $1/dollar parity mark again. This is due to surging natural gas prices in Europe, a sharp decline in manufacturing output in Europe’s largest economy, and investor anticipation for hawkish comments from the ECB at its monetary policy meeting.

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Brazilian real gains 4% in one day 🔥

The Brazilian real increased by 4% versus the dollar, trading at about $5.2. BRL strenghtens as investors cheered an unexpectedly close outcome in the first round of the presidential elections. After no candidate receives a majority of more than 50% of the vote, the contest will proceed to a runoff scheduled for October 30.

GBP rises after last week’s turmoil

On the first trading day of Q4, the British pound climbed up near $1.12, returning to levels not seen in nearly two weeks. GBP rose right after the finance minister Kwarteng said he would not cut the top 45% income tax rate for the largest earners.

GBP remains volatile

The Bank of England announced that it would start making temporary purchases of long-term UK government bonds on September 28 in order to restore orderly market conditions. The British pound remained volatile, first rising to above $1.08 before dropping to $1.05.

Indian Rupee suffers losses

The Indian rupee hit a record low of 81.7 and is on track with the retreat of riskier currencies. This is due to recession fears and expectations of a hawkish Federal Reserve policy. Pressure on the rupee is also contributed to an increase in capital outflows from the country.

Serbian Dinar weakens

As a result of the Fed’s aggressive rate hikes, Serbian Dinar hits an all-time low against the US Dollar. USD/RSD rose 0.62% to 121.6800 from 120.9300 in the previous trading session.

EUR/USD below 0.98

The eurodollar fell under $0.98 for the first time in 20 years. This is just two days after Fed increased its interest rates by 75 bps and strengthened the dollar.

More market movers

Brazilian real gains 4% in one day 🔥

The Brazilian real increased by 4% versus the dollar, trading at about $5.2. BRL strenghtens as investors cheered an unexpectedly close outcome in the first round of the presidential elections. After no candidate receives a majority of more than 50% of the vote, the contest will proceed to a runoff scheduled for October 30.

Silver skyrockets 🚀

Silver futures are up 8% and hit $20.3 per ounce on the first trading day of Q4 of 2022. Silver is up by almost 15% in just one week.

Tesla stock drops 7%

Tesla trades at $246, down 7% in a single day. Looking back, the stock dropped 10.51% over the last four weeks and is down 40% from its all-time high.

EU gas prices tumble 9%

Gas prices in Europe are down 9% for the day at €171, far lower than the record highs of €340 in August. Europe managed to replace certain Russian supplies with LNG imports and was able to refill its storage facilities ahead of winter. The amount of gas reserves across Europe is currently at about 87%.

GBP rises after last week’s turmoil

On the first trading day of Q4, the British pound climbed up near $1.12, returning to levels not seen in nearly two weeks. GBP rose right after the finance minister Kwarteng said he would not cut the top 45% income tax rate for the largest earners.

UK natural gas jumps sky-high

UK natural gas reached their highest level in two weeks on Friday, rising by almost 50% to 380. The surge was fueled by increased demand from gas-fired power facilities as a result of slower wind speeds.  As of September 28th, gas storage facilities in the UK were 94.65% full.

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Weekly macro report – Inflation-linked bonds are attractive

This macro report will be slightly different from the others. We will look at some assets where we see solid logic and will try to explain the BoE moves.

Tesla delivers record number of vehicles in Q3

Tesla delivered 35% more vehicles to customers in Q3 than in Q2. However, it's still less than expected and the stock is falling.
Gold sparks to $1700 – what happened?
XAU
2.08%

Gold sparks to $1700 – what happened?

The weaker US manufacturing index negatively impacts the US dollar and helps gold reach the level of $1700.
USD/JPY tests cycle highs near 145
0.23%

USD/JPY tests cycle highs near 145

A cautious uptrend is still seen in the USD/JPY pair, despite fears of another BoJ intervention.