Tesla stock falls into bear market

“Remember, cash is a fact, profit is an opinion.” - Alfred Rappaport

 

 

HEADLINES

 

 

• Dollar at 16-month peak as focus turns to retail sales data
• Sterling rises from 11-month low; investors focus on Brexit and BoE
• Oil Edges Up as Supplies Remain Tight With No SPR Release
• Gold stalls near 5-month high as higher yields pressure prices
• Wall Street ends little changed as rising yields weigh on tech
• Tesla Shares Approach Bear Market Territory on Prolonged Selloff
• USD/JPY could reach 120.00 by early 2023 – Wells Fargo

 

 

FOREX

 

 

Dollar at 16-month peak as focus turns to retail sales data

 

The safe-haven dollar hit a 16-month high against its major peers on Monday, fueled by global growth and inflation concerns, as well as monetary policy expectations, as investors awaited data this week on the strength of U.S. consumers.

The dollar surged on Wednesday after data showed U.S. consumer prices rose last month at the fastest annual pace since 1990, casting doubt on the Federal Reserve's view that price pressures will be transitory and fueling speculation that interest rates will be lifted sooner than previously thought.

 

Sterling rises from 11-month low; investors focus on Brexit and BoE

 

The pound rose on Monday but lagged behind other risk-linked currencies, as investors focused on talks over post-Brexit trade arrangements for Northern Ireland as well as the likelihood of the Bank of England raising rates next month. 

Relations between Britain and the European Union have deteriorated in recent weeks after Britain, unhappy with the Brexit deal it signed up to in 2020, threatened to trigger an emergency clause known as Article 16 of the Northern Ireland Protocol, potentially leading to a trade war.

 

COMMODITIES

 

Oil Edges Up as Supplies Remain Tight With No SPR Release

 

Oil reversed losses to close slightly higher after another day passed without an announcement from the Biden Administration to tap U.S. crude reserves. Futures in New York closed up 0.1% Monday, paring earlier losses of as much as 1.8%. Biden faces increased pressure from members of his own party to release oil from the Strategic Petroleum Reserve to quell rising gasoline prices.

 

Gold stalls near 5-month high as higher yields pressure prices

 

Gold prices pulled back after a seven-day rally on Monday after U.S. bond yields ticked up, although prices hovered around the five-month highs touched recently underpinned by inflation worries. Bullion gained around $100 over the past seven sessions, its longest winning streak since May, as its appeal as a hedge against inflation risk was boosted by data showing U.S. consumer prices surged and as major central banks maintained a dovish stance on interest rates.

 

 

STOCKS

 

 

Wall Street ends little changed as rising yields weigh on tech

 

Wall Street indexes closed out Monday's session near the unchanged mark as rising Treasury yields dented the appetite for technology stocks, while Boeing shares advanced on signs of demand for its freighter aircraft. The technology sector was among the biggest drags on the day as U.S. Treasury yields moved higher, with the yield on the benchmark 10-year U.S. Treasury note touching its highest level since Oct. 27.

 

Tesla Shares Approach Bear Market Territory on Prolonged Selloff

 

Tesla Inc. shares are nearing bear-market territory after tumbling over the past week as Chief Executive Officer Elon Musk sold a chunk of his stock in the electric vehicle maker, and hinted that he may sell more.

The shares dropped as much as 5.3% on Monday in New York, retreating more than 20% from the record high of $1,229.91 touched on Nov. 4. The stock then recovered a bit to close down 1.9% at $1,013.39, marking a nearly 18% decline from the high. A stock enters a bear market when it falls 20% on a closing basis.

 

 

ANALYSIS

 

 

USD/JPY could reach 120.00 by early 2023 – Wells Fargo

 

“U.S. price pressures in particular remain quite robust, with the U.S. October CPI rising 6.2% year-over-year. As U.S. inflation remains quite elevated by historical standards and the Federal Reserve winds down its quantitative easing program by mid-2022 and starts its rate hike cycle before then end of next year, we see U.S. 10-year Treasury yields rising to 2.20% by early 2023.”

“With Japanese yields unlikely to follow U.S. yields perceptibly higher, we expect that will translate into a weaker yen versus the U.S. dollar, and target and USD/JPY exchange rate of JPY120.00 by early 2023.”

 

 

CHART

 

 

Euro / Swiss franc – Weekly Candlesticks

Source: GKFX Prime Metatrader 4

EUR/CHF is back testing major support at 1.05 and its lowest levels since 2015. - Prepared by Trading Writers*

 

 

CALENDAR

 

 

*Times in GMT

Source: FX Street Economic Calendar

 

 

SOURCE

 

 

 

https://www.fxstreet.com/economic-calendar
https://www.fxstreet.com/news/usd-jpy-could-reach-12000-by-early-2023-wells-fargo-202111151619
https://finance.yahoo.com/news/tesla-shares-approach-bear-market-165336814.html
https://finance.yahoo.com/news/us-stocks-wall-street-ends-210054189.html
https://finance.yahoo.com/news/oil-gains-biden-faces-mounting-232808794.html
https://www.cnbc.com/2021/11/15/gold-markets-dollar.html
https://www.reuters.com/article/idUSL1N2S60XD