10-13-2023, 06:29 PM
TRIAL BY INFLATION
![[Image: 3f0131bfd999dc6e7014e8f10e29771b.png]](https://freshforex.com/netcat_files/Image/3f0131bfd999dc6e7014e8f10e29771b.png)
Dear clients,
Barely have the markets began to get used to the idea of a dovish stance from the Fed, as the unpleasant data on US producer inflation threatens to rain on parade, making for a nervous wait of the consumer price data to be released later today.
For now, the unchanged and — for equity investors — very welcome statement from Fed officials that caution should be exercised before further rate hikes drowns out any concerns about the data.
Asia-Pacific stocks picked up the baton from Wall Street, with Japan's Nikkei and Hong Kong's Hang Seng both rising more than 1%.
But how quickly markets reversed earlier in the week shows how quickly they can pull back. Despite the dovish notes, the Fed's underlying message remains that rates will rise as much as necessary to contain inflation.
While the prospect of US bond yields returning to 16-year highs above 5% is certainly a risk, there is a sense that the ceiling could be lower, while safe-haven assets are currently in demand amid geopolitical risks.
It's a big day for UK data too, with GDP and industrial production data coming out first.
At its meeting last month, the Bank of England kept interest rates unchanged for the first time since the start of the interest rate tightening cycle in December 2021, but traders are putting the possibility of another rate hike before the end of the first quarter of next year at stake.
TRADING SIGNALS: SEPTEMBER INFLATION IN THE USA
![[Image: 9ae50454ba8767e4f072f60ac0de2639.png]](https://freshforex.com/netcat_files/Image/9ae50454ba8767e4f072f60ac0de2639.png)
Dear clients,
A closely watched US inflation report may help solve one of the most pressing questions among traders: whether the market has correctly identified the short-term trajectory of interest rates.
What to expect this month, let's learn from our expert:
The Federal Reserve Bank of New York reported an increase in inflation expectations of the population, which is favourable for the US dollar, as the Fed may then raise interest rates at its next meeting in November. On Thursday consider selling GBPUSD, #NQ100 and buying USDZAR, USDTRY.
Let's celebrate our birthday together with FreshForex Birthday Challenge. Trade and win!
FINAL BOSS OF MICROSOFT\ACTIVISION BLIZZARD
![[Image: 4a129204673d22fe0a10f6eebc9cfd61.png]](https://freshforex.com/netcat_files/Image/4a129204673d22fe0a10f6eebc9cfd61.png)
Dear clients,
The UK competition authority on Friday approved Microsoft's acquisition of "Call of Duty" game maker Activision Blizzard after earlier concerns were allayed by a restructuring of the deal.
Activision agreed to sell its streaming rights to Ubisoft Entertainment in August, and last month Microsoft proposed measures to ensure compliance with the terms of the deal, allowing the regulator to allay some residual concerns.
The approval will allow Microsoft to complete the deal by 18 October, after it extended the deadline by three months in July to get the UK clearance.
The Competition and Markets Authority (CMA) said Microsoft's concession on streaming was a "game changer" and added that it was the only competition organisation in the world to achieve such a result.
"The new deal will not allow Microsoft to block competition in cloud gaming as this market evolves, keeping prices and services competitive for UK cloud gaming customers," it said in a statement.
Microsoft announced the biggest deal in gaming industry history in early 2022, but in April the $69bn acquisition was blocked by the CMA, concerned that the US computer giant would gain too much control over the nascent cloud gaming market.
CMA chief executive Sarah Cardell said: "We made it clear to Microsoft that the deal would be blocked unless they addressed all of our concerns and we stand by our judgement." She said the regulator, which has been given greater powers following the UK's exit from the European Union, makes decisions "without political influence" and will not be "subject to lobbying by corporations".
Microsoft expressed "gratitude for the CMA's careful consideration and judgement".
"We have now cleared the final hurdle to finalise a deal that we believe will benefit players and the gaming industry worldwide," said vice president and president Brad Smith.
Dear clients,
Barely have the markets began to get used to the idea of a dovish stance from the Fed, as the unpleasant data on US producer inflation threatens to rain on parade, making for a nervous wait of the consumer price data to be released later today.
For now, the unchanged and — for equity investors — very welcome statement from Fed officials that caution should be exercised before further rate hikes drowns out any concerns about the data.
Asia-Pacific stocks picked up the baton from Wall Street, with Japan's Nikkei and Hong Kong's Hang Seng both rising more than 1%.
But how quickly markets reversed earlier in the week shows how quickly they can pull back. Despite the dovish notes, the Fed's underlying message remains that rates will rise as much as necessary to contain inflation.
While the prospect of US bond yields returning to 16-year highs above 5% is certainly a risk, there is a sense that the ceiling could be lower, while safe-haven assets are currently in demand amid geopolitical risks.
It's a big day for UK data too, with GDP and industrial production data coming out first.
At its meeting last month, the Bank of England kept interest rates unchanged for the first time since the start of the interest rate tightening cycle in December 2021, but traders are putting the possibility of another rate hike before the end of the first quarter of next year at stake.
TRADING SIGNALS: SEPTEMBER INFLATION IN THE USA
Dear clients,
A closely watched US inflation report may help solve one of the most pressing questions among traders: whether the market has correctly identified the short-term trajectory of interest rates.
What to expect this month, let's learn from our expert:
The Federal Reserve Bank of New York reported an increase in inflation expectations of the population, which is favourable for the US dollar, as the Fed may then raise interest rates at its next meeting in November. On Thursday consider selling GBPUSD, #NQ100 and buying USDZAR, USDTRY.
Let's celebrate our birthday together with FreshForex Birthday Challenge. Trade and win!
FINAL BOSS OF MICROSOFT\ACTIVISION BLIZZARD
Dear clients,
The UK competition authority on Friday approved Microsoft's acquisition of "Call of Duty" game maker Activision Blizzard after earlier concerns were allayed by a restructuring of the deal.
Activision agreed to sell its streaming rights to Ubisoft Entertainment in August, and last month Microsoft proposed measures to ensure compliance with the terms of the deal, allowing the regulator to allay some residual concerns.
The approval will allow Microsoft to complete the deal by 18 October, after it extended the deadline by three months in July to get the UK clearance.
The Competition and Markets Authority (CMA) said Microsoft's concession on streaming was a "game changer" and added that it was the only competition organisation in the world to achieve such a result.
"The new deal will not allow Microsoft to block competition in cloud gaming as this market evolves, keeping prices and services competitive for UK cloud gaming customers," it said in a statement.
Microsoft announced the biggest deal in gaming industry history in early 2022, but in April the $69bn acquisition was blocked by the CMA, concerned that the US computer giant would gain too much control over the nascent cloud gaming market.
CMA chief executive Sarah Cardell said: "We made it clear to Microsoft that the deal would be blocked unless they addressed all of our concerns and we stand by our judgement." She said the regulator, which has been given greater powers following the UK's exit from the European Union, makes decisions "without political influence" and will not be "subject to lobbying by corporations".
Microsoft expressed "gratitude for the CMA's careful consideration and judgement".
"We have now cleared the final hurdle to finalise a deal that we believe will benefit players and the gaming industry worldwide," said vice president and president Brad Smith.