Daily Market Outlook, February 13, 2023A Cautious Start To Trading Ahead of Inflation DataAsian equities are mixed this morning ahead of tomorrow’s key US inflation print, with investors hoping that the trend in retreating inflationary pressures persists, however, Friday’s reports of revisions to past CPI data and elevated consumer inflation expectations have investors nervous regarding a potential upside surprise to tomorrow’s number, a hotter number tomorrow would likely spark another rapid repricing in interest rate yields and a markdown for global equities. Geo-politics risk also remains on the radar, with the US shooting down a fourth flying object believed to have potential surveillance capabilities, China has now indicated its intention to carry out a similar termination of an object in its airspace, stating that US surveillance balloons have trespassed into Chinese airspace over 10 times since January 2022. Overnight the Japanese Government is believed to confirm to the Diet that Kazuo Ueda is the nominee to become the new Bank of Japan Governor. Markets reacted on Friday to chatter regarding his nomination, which initially led to a jump in the yen on concerns that it may mean a move to more restrictive monetary policy. The yen retreated after Ueda commented that he did not plan an immediate change in policy but markets will be alert for further details on his policy views. Japanese GDP for Q4 will also be released overnight and is expected to show a rebound from Q3’s decline.FX Options Expiration New York CutEURUSD 1.09(842mln), 1.10(337mln)USDJPY 126.50(700mln), 127.60(426mln)Overnight News of NoteAsian Equities Tumble And US Futures Slide After Wall Street SlumpDollar Hangs Near 5-Week High As Inflation Data Looms; Yen SlipsAs Funding Costs Surge, China Set To Pump Extra Cash Into Money MarketJapan’s LDP Policy Head Says Monetary Policy Has Room For ReformAustralian Tsy: RBA Review To Scrutinise Communications On RatesECB’s Visco: ECB Must Avoid Unnecessary Rise In Real Interest RatesChancellor Scholz’s Party Loses Berlin Election For First Time Since 1999UK Firms Plan Biggest Pay Rises Since 2012 To Fill Staff GapsAnalysts Say Credit Markets Are Poised For A Gut Check After 10% RallyCrypto Firm Paxos Faces SEC Lawsuit Over Binance USD TokenOil Edges Lower As Slowdown Concerns Vie With Russian CutbackOPEC Expects Global Oil Demand To Cross Pre-Pandemic Levels In 2023Meta Delays Setting Team Budgets As It Plans Fresh Round Of Job Cuts(Sourced from Bloomberg, Reuters and other reliable financial news outlets)Technical & Trade ViewsSP500 Bias: Intraday Bullish Above Bearish Below 4040Primary support is 3990Primary objective is 4384Below 4040 opens 400020 Day VWAP bullish, 5 Day VWAP bearishEURUSD Bias: Intraday Bullish Above Bearish below 1.0810Primary resistance is 1.0950Primary objective is 1.06Below 1.0580 opens 1.050020 Day VWAP bearish, 5 Day VWAP bearishGBPUSD Bias: Intraday Bullish Above Bearish below 1.21Primary resistance is 1.21Primary objective 1.1840Above 1.2165 opens 1.226020 Day VWAP bearish, 5 Day VWAP bearishUSDJPY Bias: Intraday Bullish above Bearish Below 131.50Primary support is 130Primary objective is 134.70Below 130.80 opens 130.1120 Day VWAP bullish, 5 Day VWAP bullishAUDUSD Bias: Intraday Bullish Above Bearish below .7050Primary resistance is .7050Primary objective is .6750Above .7150 opens .725020 Day VWAP bearish, 5 DayVWAP bullishBTCUSD Intraday Bias: Bullish Above Bearish below 21500Primary support 21200Primary objective is 25000Below 20300 opens 1950020 Day VWAP bullish, 5 Day VWAP bearish
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