WEDNESDAY’S ASIA-PACIFIC OUTLOOK
Asia-Pacific Markets are set to open higher after stocks and other risk assets rallied in New York overnight. The benchmark S&P 500 rose 2.76% as traders brushed aside disappointing corporate earnings reports. A softening in Federal Reserve rate hike bets is supporting risk taking, with traders betting that the Fed may have to stop hiking sooner than previously expected.
The US Dollar DXY Index fell for the third day despite the Atlanta Fed’s GDPNow update for Q2 posting a weaker number, falling to -1.6% from -1.5% after weak US housing data. The Euro took advantage of the situation, benefiting further from strengthening rate hike bets for the European Central Bank’s meeting later this week. Overnight index swaps show a nearly 50% chance that the ECB will deliver a 50-bps hike. However, that leaves EUR/USD open to a pullback if the ECB disappoints.
Bitcoin and US stocks rallied overnight as traders looked past a looming recession. China may cut its 5-year Loan Prime Rate at today’s monthly fixing to help support the property sector.
Read more at : https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/asia_am_briefing/2022/07/19/Bitcoin-Rallies-into-APAC-Trading-as-Market-Sentiment-Brightens.html