The Price.

Good morning to all readers as we look towards the start of cash equity trade in Europe this Thursday.

FOMC: US Federal Reserve Chairman overnight (Fed raises rates by 75 bps for 3rd consecutive time) hammers home the Fed’s hawkish stance saying a recession may very well be the price to pay to combat inflation signaling that the current tightening cycle is not yet out of the woods. Equity futures dipped as the US Dollar shot above the 110 handle it's been trading under to notch 111.000.?

APAC Update: Gold Futures remain subdued under its 1700 level and was last seen testing the new 2022 low around the 1660s mark. Steel hits 1-month lows, China stocks test 4-month lows & crude oil futures remain volatile during APAC trading as inventory data out of the Department of Energy point to a smaller build than expected, in line with API data the day before.?

Data: In terms of scheduled data for the rest of the day, we do have the ECB General Council Meeting kicking off at 0800 GMT, rate decisions out of the Swiss National Bank, and Norges Bank along with the release of the ECB Economic Bulletin at 0900 GMT, rate decision from the Bank of England at 1200 GMT, Initial Jobless Claims out of the US at 1330 GMT, Consumer Confidence Flash readings out of the Eurozone at 1500 GMT and Natural Gas stocks change at 1530 for Natgas traders.

In my opinion, the move lower is far from over but the ferocity of shorts entering markets may fuel a momentary relief rally so it would be wise to not jump the gun and look for technical confirmation before committing large size on your book. Plenty of data releases that will warrant further hold before further volatility kicks in. In other words, mind the ebb and flow of the day’s session.?

That is it from me today and this was - Your Morning Reed.

Sources: Trading Economics, Bloomberg, RTRS, MacroHIVE.

Disclaimer: This piece is for information purposes ONLY and not meant as trading/investment advice. Trading futures carries with it inherent risks and done so at your own risk.