European Open: Double top forms on EUR/USD

Asian Indices:

Australia's ASX 200 index rose by 15.8 points (0.22%) and currently trades at 7,244.90
Japan's Nikkei 225 index has fallen by -155.3 points (-0.55%) and currently trades at 28,007.53
Hong Kong's Hang Seng index has risen by 666.3 points (3.85%) and currently trades at 17,964.24
China's A50 Index has risen by 440.12 points (3.64%) and currently trades at 12,533.57

UK and Europe:

UK's FTSE 100 futures are currently up 9.5 points (0.13%), the cash market is currently estimated to open at 7,483.52
Euro STOXX 50 futures are currently up 2 points (0.05%), the cash market is currently estimated to open at 3,937.51
Germany's DAX futures are currently up 2 points (0.01%), the cash market is currently estimated to open at 14,385.36

US Futures:

DJI futures are currently up 52 points (0.15%)
S&P 500 futures are currently up 46.75 points (0.4%)
Nasdaq 100 futures are currently up 11.25 points (0.28%)

China’s equity markets surged overnight following news that China’s regulator lifted a ban on equity financing for listed property firms. Property companies were the top performers, and commodities and commodity currencies were also higher.

MPC committee member Catherine Mann speaks at a panel discussion at 15:00 GMT on "policy solutions, fiscal and monetary", hosted by the Conference Board. She has been one of the more hawkish BOE members in recent times.

New Zealand’s Institute of Economic Research (NZIER) expect the RBNZ to hike rates to 5% next year. In an interview yesterday, an RBNZ member said that they will be watching high frequency data (spending, business investment and housing) and January’s inflation print to determine how aggressive February’s hike will be.

Hawkish comments from Fed members threw some support under the US dollar. James Bullard said there is still “a way to go” in regards to reaching a pivot and the Fed could hike rates to 5 – 7% to fight inflation.

EUR/USD daily chart:

A bearish engulfing candle has formed on the daily chart, which is part of a double top at the 1.0482 high. The candle also has a large upper which to suggest strong supply at those highs, and a bearish divergence has also formed on the RSI (14). We are now looking for prices to retrace towards 1.0200 as part of a countertrend move.

FTSE market internals:

FTSE 350: 4138.23 (0.66%) 28 November 2022

229 (65.43%) stocks advanced and 112 (32.00%) declined
4 stocks rose to a new 52-week high, 0 fell to new lows
12.57% of stocks closed above their 200-day average
50.57% of stocks closed above their 50-day average
5.43% of stocks closed above their 20-day average

Outperformers:

+ 3.30% - Vietnam Enterprise Investments Limited (VEILV.L)
+ 2.93% - VinaCapital Vietnam Opportunity Fund Ltd (VOF.L)
+ 2.27% - Just Group PLC (JUSTJ.L)

Underperformers:

-7.04% - Home REIT PLC (HOMEH.L)
-6.99% - Dr Martens PLC (DOCS.L)
-5.89% - Future PLC (FUTR.L)

Economic events up next (Times in GMT)

How to trade with FOREX.com

Follow these easy steps to start trading with FOREX.com today:

Open a Forex.com account, or log in if you’re already a customer.
Search for the pair you want to trade in our award-winning platform.
Choose your position and size, and your stop and limit levels.
Place the trade.

The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Products and services available depend on your location and the entity holding your account. Before deciding to trade forex, commodity futures, or digital assets, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to FOREX.com or GAIN Capital refer to StoneX Group Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.

Please note that foreign exchange and other leveraged trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved, seeking independent advice if necessary.

FOREX.com is a trading name of GAIN Global Markets Inc. which is authorized and regulated by the Cayman Islands Monetary Authority under the Securities Investment Business Law of the Cayman Islands (as revised) with License number 25033.

FOREX.com may, from time to time, offer payment processing services with respect to card deposits through StoneX Financial Ltd, Moor House First Floor, 120 London Wall, London, EC2Y 5ET.

GAIN Global Markets Inc. has its principal place of business at 30 Independence Blvd, Suite 300 (3rd floor), Warren, NJ 07059, USA., and is a wholly-owned subsidiary of StoneX Group Inc.