The Gloomy UK GDP Result

Good morning, dear traders! Are you ready for a new trading day? Let’s see what news can shake the market today. 

Today’s key events

15:30 GMT+2, CAD GDP

US Core PCE Price Index

British GDP results outlook

The UK economy contracted more than expected in the third quarter, indicating that the country has slipped into a recession likely to last until 2024. The Office for National Statistics reported that gross domestic product fell 0.3% in the three months to September, more than the previously forecast 0.2% fall.

The GBPUSD has declined after almost two months of growth. The price came closer to the 1.2040 support level. 50- and 100-period MAs are ready to make a dead cross, which is a bearish sign. If the price gains the bullish power, the price might return to the previous resistance levels – 1.2290 and 1.2400. In case of a further decrease, the price might drop to 1.1900.

Other important news:

• Former FTX CEO Gary Wang and Alameda head of research Caroline Ellison have pleaded guilty to criminal charges. They are cooperating with the US Attorney's Office investigating the collapse of the crypto platform.
• Apple plans to transfer the production of MacBook from China to Vietnam partially.
• Wall Street's forecast for the S&P 500 in 2022 outperformed the index's current value by almost 40%, the biggest deviation since 2008. S&P 500 is 3886.
• The yen resumed growth after a slight fall. It has grown the most since 1998. The USDJPY is 131.94.
• FedEx Inc. profit and Nike Inc. provided a respite for US stocks, which suffered after the Fed's hawkish reversal last week. Risk appetite was also supported by US consumer confidence rising more than predictably to its highest level since April as inflation eased.
• Despite all Elon Musk's Twitter distractions, Tesla is ranked fourth on the 2022 S&P 500's worst stocks list by depreciation in market value.

Have a great day!

FBS Analyst Team

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