Daily Market Outlook, February 22, 2023

Daily Market Outlook, February 22, 2023Stocks Suffer From PMI StrengthAsian Equities retreated overnight, following US markets lower. Growth and inflation expectations increased following a robust round of PMI data. PMI prints from western economies provided a more optimistic outlook for growth, however, the inflation read was more ambiguous with supply chain disruptions easing but service sector inflation remaining elevated. The data docket in the European session is scant today, investors will eye German IFO business survey which markets expect to deliver further signs of improving conditions. Yesterday’s Eurozone flash PMI rose to a nine-month high led by service sector activity, impressively the manufacturing read also signalled a return to growth, aided by indications of further reductions in supply chain constraints. Expect today’s headline IFO index to rise to 91.5 from 90.2, supported by incremental improvements in current conditions and expectations, this  would be a fifth consecutive uptick to the best levels since midsummer of 2022The Federal Market Open Committee will release the minutes of its February policy meeting this evening, the minutes, however, may now be a little stale given subsequent robust US data releases and predominantly hawkish rhetoric from policymakers. Nevertheless, these recent data releases reinforce the hawkish mantra that is likely to come out of the minutes that a policy ‘pivot’ remains a stretch target, as markets have repriced, believing the Fed will raise rates by a further 75bp by the summer and investors have abandoned the notion of rate cuts later this year..FX Options Expiration New York CutN/AOvernight News of NoteStock Futures Inch Higher As Investors Brace For Fed MinutesFed Minutes To Show Support Level For Larger Hikes, Higher PeakBiden Fed Vice Chair Search Set To Focus On Ex-Treasury OfficialsUS Plan To Impose New Sanctions On Russian Individuals, EntitiesUS House Panel Expected To Hold Hearing On Policy About ChinaChina Call Russia Ties ‘Solid As A Rock’ Amid Ukraine Peace PushBoJ Member Tamura Calls For Keeping Ultra-Easy Policy For NowJapan Benchmark Yield Tops Above 0.5% BoJ Cap In Second DayAustralia Wage Growth Weaker Than Expected As Rate Bets PareRBNZ Hikes 50Bps And Flags More To Come As Inflation Too HighPM Sunak Secures Backing Of Key Brexiters For NI Protocol DealGerman Business Morale Set For Fifth Consecutive ImprovementCoinbase See Quarterly Loss, Crypto Winter Hits Trading Volume(Sourced from Bloomberg, Reuters and other reliable financial news outlets)Technical & Trade ViewsSP500 Bias: Intraday Bullish Above Bearish Below 4030Primary support is 3970Primary objective is 4384Below 3960 opens 389020 Day VWAP bearish, 5 Day VWAP bearishEURUSD Bias: Intraday Bullish Above Bearish below 1.0710Primary resistance is 1.0850Primary objective is 1.0430Above 1.0860 opens 1.0920 Day VWAP bearish, 5 Day VWAP bearishGBPUSD Bias: Intraday Bullish Above Bearish below 1.22Primary resistance  is 1.2265Primary objective 1.1785Above 1.2265 opens 1.233720 Day VWAP bearish, 5 Day VWAP bearishUSDJPY Bias: Intraday Bullish above Bearish Below 134Primary support  is 131.85Primary objective is 134.70Below 130.80 opens 130.1120 Day VWAP bullish, 5 Day VWAP bullishAUDUSD Bias: Intraday Bullish Above Bearish below .6910Primary resistance is .7050Primary objective is .6750Above .7150 opens .725020 Day VWAP bearish, 5 Day VWAP bearishBTCUSD Intraday Bias: Bullish Above Bearish below 25200Primary support 23600Primary objective is 26700Below 20300 opens 1950020 Day VWAP bullish, 5 Day VWAP bullish

from Tickmill Expert Blog - Forex Traders Blog https://www.tickmill.com/blog/daily-market-outlook-february-22-2023
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