The Strong Dollar put pressure on the 4Q22 GDP. The U.S. economy re-expanded with Annualized 3Q22 GDP QoQ grow +2.6% (Vs. contractions of -0.6% 2Q22 and -1.6% 1Q22), driven by export growth. The GDP growth which exceeds market expectations has the opportunity to make the Fed Ultra Hawkish to reduce the inflation pace. Additionally, the release of GDP data amid the Earning Result season made Wall Street close in mixed. Moreover, the strength of Strong Dollar sentiment amid the DXY, which stayed at its high level in 4Q22, potentially hampering exports and slowing down the U.S. GDP, followed by a recession in 2023.
Moving consistently within the Strengthening Zone, JCI reached the psychological level of 7,100. Additionally, Consumer Cyclical and Basic Material strengthened by more than 1% or led the sectoral strengthening. The excellent performance of several Earning Results and the slowing inflation rate of the October projection pushed the JCI up 48 points to the level of 7,091. Amid the release of further Earning Results and several sentiments, NHKSI Research projects the weekend JCI to move Bullish, with a ranged Support: 7,040 / 7,017-7,000 / 6,980-6,960 / 6,900 and Resistance: 7,100-7,110 / 7,140-7,150.
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