Forexlive Americas FX news wrap. Sunak becomes the youngest PM in modern history | Forexlive

Rishi Sunak became the youngest modern day PM in the UK. The Richmond MP is a year younger than David Cameron – who was 43 when he took office. Tony Blair was also 43 when he became prime minister in 1997. IN 1783, William Pitt was the youngest at the age of 24. Sunak replaces the beleaguered Liz Truss who was coerced into resigning last week after a mini budget filled with unfunded stimulus and tax cutss. The action of Truss sent the 10 year yield up to a high of 4.632%. Today the yield moved down -34 basis points to 3.714%, the lowest level since September 23. Yields in the UK are still up from 1.711% from early August.

In other news the US S&P global Flash services PMI came in weaker than expected at 46.6 vs 49.2 expected. The Manufacturing index was also lower than expections at 49.9 vs 51.0 expected.

Stocks initially dipped in the first hour of trading, but then ticked higher for the day and closed in positive territory for the 2nd consecutive day. Bad news was good news as traders hang onto the idea that the Fed will shift earlier to a steady policy and may not be influenced by inflationary numbers once the tightenings into the new year are enacted.

The major indices are closing higher for the 2nd consecutive trading day led by the Dow which rose by 1.34%. The S&P was up 1.19% and the Nasdaq gained 0.86%.

The next few days will be tested as major big cap names will be reporting earnings including GM, GE, Microsoft, Alphabet, Visa, Boeing, General Dynamics, Ford, ServiceNow, McDonalds, Caterpillar, Apple, Amazon and Intel.

In the forex market today in the US, session the price action was sideways, up and down. The strongest to the weakest has the EUR and the USD as the top two strongest currencies, while the AUD and the NZD were the weakest. The AUDUSD moved down -0.99% and the NZDUSD fell -0.92%. The vast majority of the moves were in the Asiaon and London morning the session. The US session swqy the pairs consolidate near their respective 100/200 hour MAs.

The USDJPY, after a 400 pip plunge on the back of intervention in the Asian session down to 145.50, recovered the gains and moved back between the 100 hour MA above at 149.512 and the 200 hour MA below at 148.75. The price is trading at 149.02 into the close.

The GBPUSD fell to test its 100/200 hour MA at 1.1357. That level will be a barometer into the new trading day .

The USDCHF is also closing between its 100/200 hour MAs at 1.0004 and 1.0017.

In the US debt market today: