Daily Market Outlook, December 12, 2022

Daily Market Outlook, December 12, 2022 Investors Pare Risk Ahead of This Week's Inflation Data & Central Bank DecisionsAsian equity markets have started the week on the back foot, as investors pare risk positions ahead of tomorrow's US headline inflation data coupled with major central bank announcements due Wednesday and Thursday. Friday's firmer PPI data underpinned US Yields with the 10yr trading back above the 3.50% level, the move in US Yields also helped support the greenback, however, foreign exchange markets are predominantly range-bound ahead of the headline event risk this week. This morning's UK GDP data showed some signs of improvement, the economy rebounded by 0.5% in October, pipping market expectations of 0.4% for the month, the increase represents an uptick on September's 0.6% decline, driven by the additional bank holiday following the Queen's funeral. The improvement in UK GDP comes ahead of tomorrow's employment report, followed by domestic CPI data Wednesday, then Thursday sees the final Bank of England meeting for the year, market watchers anticipate another modest increase in headline inflation to print 10.9%, this should see the BoE raise rates again on Thursday by another 50bps to 3.5%. Looking to tomorrow, US inflation data will be scrutinised as to the effectiveness of the Fed's most aggressive hiking cycle since the 1980's, this data comes a day ahead of Wednesday's FOMC meeting. In the Eurozone, the ECB will also update its policy on Thursday, with markets poised for the European central bank to slow the pace of rate hikes from 75bps to 50bps raise this week.Markets-wise, expect somewhat of a holding pattern to develop today as investors await the deluge of inflation and central bank data before repositioning into year-end, with many investors hoping that once this week's data is digested, the eagerly anticipated year-end rally in equity markets may have a chance to get underway.Overnight HeadlinesCongress Faces Deadline For Keeping Government FundedBoE Divisions on Rates Set To Deepen With UK Stagflation OutlookUK Power Surges To Record As Sub-Zero Chill Sends Demand SurgingUK Home Asking Prices Are Falling At Sharpest Pace In Four YearsUK Lenders See 23% Slide In Mortgages For Home-Buyers In 2023China’s Top Medical Adviser Says Omicron’s Risks Same As FluChina's Healthcare System Put To The Test As Covid Curbs FadeJapan PPI Inflation Sticks To Near 41-Year High In NovemberBoJ’s Takata Says Not Time To End Yield Curve ControlKishida Aide Says Amamiya, Nakaso Among Candidates For BoJ ChiefInvestors Withdraw Record Levels Of Coins From Crypto ExchangesUneasy Traders Ramp Up Bets On Europe Bond SelloffOil Rebounds As Key Pipeline Remains Shut And China Eases CurbsTurkey’s Oil Tanker Backlog Is Starting To ClearAsian Shares Fall, Dollar Firms Ahead Of Central Bank Rate HikesWorld’s Top Money Managers See Global Stocks Recovering In 2023FX Options Expiring 10am New York CutEUR/USD: 1.0380-90 (1.06BLN), 1.0420-25 (637M)1.0500-10 (1.6BLN), 1.0550 (381M), 1.0565 (270M)1.0600-10 (598M)USD/JPY: 135.00 (610M), 136.00-05 (730M), 138.00 (911M)USD/CHF: 0.9500 (208M)GBP/USD: 1.2070 (298M), 1.2150 (446M). EUR/GBP: 0.8750 (405M)Technical & Trade ViewsSP500 Bias: Bullish Above Bearish Below 3900Primary support is 3900Primary upside objective is 4120Failure at 3880 opens a test of 385020 Day VWAP bearish, 5 Day VWAP bearishEURUSD Bias: Bullish Above Bearish below 1.05Primary support is 1.05Primary upside objective is 1.0620Failure at 1.0440 opens a test of 1.035020 Day VWAP bullish, 5 Day VWAP bullishGBPUSD Bias: Bullish Above Bearish below 1.22Primary support is 1.22Primary upside objective 1.24Failure at 1.2080 opens a test of 1.203020 Day VWAP bullish, 5 Day VWAP bullishUSDJPY Bias: Bullish above Bearish Below 137.70Primary resistance is 137.70Primary downside objective is 132Acceptance above 138 opens a test of 139.3020 Day VWAP bearish, 5 Day VWAP bullishAUDUSD Bias: Bullish Above Bearish below .6640Primary support is .6640Primary upside objective is .6900Failure at .6600 opens a test of .655020 Day VWAP bullish, 5 Day VWAP bearishBTCUSD Bias: Intraday Bullish Above Bearish below 16500Intraday 16500 is primary supportPrimary upside objective is 18000Failure at 16400 opens a test of 1600020 Day VWAP bearish, 5 Day VWAP bullish

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