Risk Assets Trading Lows - H2 Woes

Overnight Data: API 0.736M vs. 1.845M prior, Westpac Consumer Confidence Change -4.5% vs. -5.6%prior, China Industrial Production YoY 0.7% vs. -2.9% prior.)

Top of the morning folks and a Happy Hump Day to all readers as we look to the US Rate Announcement later this evening following the Federal Open Market Committee (FOMC) meeting.?

Overnight trade: Us Natural Gas dipped almost 20% following a report from Freeport LNG that said they do not see a return to full operation until late this year. Aussie Consumer Mood down for a 7th month, Crude Oil tumbled 1.67% during Wall Street trade as China demand takes a step back on addition of virus curbs, US Futures pared back yesterday’s losses ahead of the Fed.?

The Fed Ahead: It is no secret now that we are now in a technical bear market on US equities indices as traders scramble on pricing the dollar for a potential 75bps hike. To sum up the mood, we are expecting aggressive moves and language from the Fed today in regards to:?

i. The hike itself?

ii. How they will position themselves (forward guidance) in light of:

1. Inflation
2. Energy Prices
3. Recessionary Fears?

Data Ahead: Apart from the Fed today, we will also be on the lookout for Mortgage numbers out of the US at 1200 GMT (for flavor) and Weekly Inventory Data out of the US Department of Energy at 1530 GMT.?

What To Expect: Expect any moves to be short-lived today on data and any headline news pre-announcement. Any moves today (as we have already seen during APAC trade) will be centered on relief from the prior day’s price action. There is very little chance that any conclusion from the Fed today will not drive price moves for the rest of the week so sit tight - like a sniper would.

That is it from me today on the morning notes, for more detail head over to the Duggan Capital Youtube Channel for the Daily Briefing. To join us in our daily trading, join us on Discord by clicking that purple button below where our Head of Trading is LIVE Mondays to Fridays during European trading hours

Have a great session ahead. This was - Your Morning Reed.

Sources: Trading Economics, Bloomberg, Newsquawk, AmplifyME.

Disclaimer: This is not meant as trading/investment advice. Reader discretion is advised.