Image Source: Pixabay
 

• Asian markets are trading with a mixed tone, the standout exception is the Hong Kong market which has opened with a strong risk-on posture, as the Hang Seng printed fresh seven-month highs. The handover from Wall Street was mixed, however, all the major indices staged significant intraday reversals from lows to close broadly unchanged on the session, overnight Tesla earnings provided support for bulls as earnings and revenues topped estimates, although margins contracted, Tesla shares were seen up 5.5% in post-market trade. 
• With no econ data of note for European trading, investor focus shifts to the US session, where US Q4 GDP is set to be released this afternoon. Markets expect the print to confirm a second successive quarter of growth reversing declines witnessed in the first half of 2022, softness seen in some December inputs suggests that growth may be lower than previously expected, however, growth is expected to confirm a 2.2-2.6% annualized uptick quarter over quarter. The Fed is deemed to still view this as a hotter-than-wanted level of activity, the policy response to this level of growth will likely see the FOMC maintain a cautious tone at the Feb 1 meeting, with markets fully pricing a 0.25bps move, any upside surprise to the data would like to see markets rapidly repricing a 50bps move, the data comes during the Fed blackout period so markets won't get any response from Fed officials. 
• Other US data of note comes in the form of weekly jobless claims, expected to show a small uptick, signaling slight softness in the employment outlook, another round of housing data is expected to confirm continued pressure in the sector with new homes sales believed to cool further in December dropping from 640k to 617k
• Markets-wise, European bourses have opened on the front foot, buoyed by Tesla earnings and the upbeat outlook provided by Tesla CEO Musk, robust earnings out of STMicroelectronics were well received,  helping cement the constructive opening to European trade with the FTSE & Eurostoxx in the green. US equity futures are also in positive territory as the Dollar remains pressured below the 102 level, supporting EUR and GBP. Crude continues to cling to the $80 handle with Gold closing on the 1950 target.
   

Overnight News of Note

• Bitcoin Tops $23.7K In Wednesday Comeback - CoinDesk
• Asian Shares Scale Fresh 7-Month High As Hong Kong Trade Resumes
• China Stocks Rally In Hong Kong As Holiday Spending Recovers
• BoJ Policymakers Divided On Wage, Inflation Outlook, Jan Opinions Shows
• Fear of BOJ Turning Hawkish Spurs 94% Jump In Shorter Bond Sales
• US Economic Growth Set To Have Slowed In Fourth Quarter Of 2022
• Housing Demand Climbs As US Market Starts To Show Signs Of Life
• US And Germany To Send Main Battle Tanks To Ukraine
• BoC’s Macklem Says He Is 'Not Even Thinking' Of Cutting Rates
• UK Business Confidence Drops To Lowest Since Financial Crisis
• Dollar Near Eight-Month Low Ahead Of Central Bank Meetings
• Oil Edges Higher On Outlook For Chinese Demand And Weaker Dollar
• Chevron To Buy Back $75 Billion In Stock After Record Profits
• Tesla Seeks To Boost Output Quickly As Profit Beats Estimates
• IBM To Cut About 3,900 Workers, Still Hiring In ‘Higher Growth’ Areas
• DOT Probes Southwest Airlines Scheduling After Holiday-Travel Meltdown
• China Stocks Rally In Hong Kong As Holiday Spending Recovers

(Sourced from Bloomberg, Reuters and other reliable financial news outlets)
 

Options Expiration For the New York Cut 10am EST

(BOLD expiries with a value of a Billion+ more magnetic if price is within the daily trading range)

• USDJPY 130.00
• USDCHF .9795
   

Technical & Trade Views

SP500 Bias: Intraday Bullish Above Bearish Below 3985

• Primary support is 3885
• Primary objective is 4065
• Below 3840 opens 3800
• 20 Day VWAP bullish, 5 Day VWAP bullish

(Click on image to enlarge)

EURUSD Bias: Intraday Bullish Above Bearish below 1.0835

• Primary support  is 1.0750
• Primary objective is 1.10
• Below 1.0730 opens 1.0610
• 20 Day VWAP bullish, 5 Day VWAP bullish

(Click on image to enlarge)

GBPUSD Bias: Intraday Bullish Above Bearish below 1.2340

• Primary support  is 1.2180
• Primary objective 1.2460
• Below 1.2150  opens 1.2100
• 20 Day VWAP bullish, 5 Day VWAP BULLISH

(Click on image to enlarge)

USDJPY Bias: Intraday Bullish above Bearish Below 131.50

• Primary resistance is 132.30
• Primary objective is 125.00
• Above 133.00 opens 135.00
• 20 Day VWAP bearish, 5 Day VWAP bullish

(Click on image to enlarge)

AUDUSD Bias: Intraday Bullish Above Bearish below .7060

• Primary support is .6950
• Primary objective is .7250
• Below .6930 opens .6870
• 20 Day VWAP bullish, 5 Day bullish VWAP 

(Click on image to enlarge)

BTCUSD Intraday Bias: Bullish Above Bearish below 22500

• Primary support 20300
• Primary objective is 25000
• Below 20200 opens 19400
• 20 Day VWAP bullish, 5 Day VWAP bullish

(Click on image to enlarge)

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