Posted at 17 May 2023 / Categories Market Roundups
Market Roundup
•EU Apr Core CPI (YoY) 5.6%,5.6% forecast,5.7% previous
•EU Apr CPI (MoM) 0.6%, 0.7% forecast,0.9% previous
• EU Apr CPI (YoY) 7.0%, 7.0% forecast,6.9% previous
• EU Apr CPI ex Tobacco (YoY) 7.0%,6.9% forecast,6.9% previous
• EU Apr HICP ex Energy & Food (YoY) 7.3%,7.3% forecast,7.5% previous
• EU HICP ex Energy and Food (MoM) 0.9%,1.0% forecast,1.2% previous
• EU Apr Core CPI (MoM) 1.0%, 1.0% forecast,1.3% previous
• EU Apr CPI ex Tobacco (MoM) 0.6%,-0.1% forecast,0.9% previous
•Canada Apr Housing Starts (MoM) 2.2%, -0.8% previous
•US Apr Building Permits 1.416M,1.437M forecast,1.430M previous
• US Apr Housing Starts 1.401M, 1.400M forecast,1.420M previous
• US Mar Foreign Securities Purchases -19.07B,5.22B forecast,4.62B previous
•Canada Mar Foreign Securities Purchases by Canadians -5.59B ,-1.61B previous
Looking Ahead Economic Data(GMT)
•14:30 US Cushing Crude Oil Inventories 0.864M forecast,0.397M previous
•14:30 US Distillate Fuel Production 0.039M forecast,0.030M previous
•14:30 US Gasoline Production -0.107M forecast,0.445M previous
•14:30 US Crude Oil Inventories -0.920M forecast,2.951M previous
Currency Forecast
EUR/USD: The euro dipped against dollar on after data showed Euro zone inflation ticks up in April.Euro zone inflation accelerated last month, Eurostat said on Wednesday, confirming preliminary data pointing to increasingly stubborn price growth among the 20 nations sharing the euro.Overall price growth accelerated to 7.0% in April from 6.9% a month earlier, as rising services and energy costs offset a slowdown in food price growth. Inflation has been above the ECB's 2% target for nearly two years and the bank has lifted interest rates by a combined 375 basis points since last July to arrest runaway price growth. Immediate resistance can be seen at 1.0898(5DMA), an upside break can trigger rise towards 1.1000(Psychological level).On the downside, immediate support is seen at 1.0818 (Daily low ), a break below could take the pair towards 1.0818(Lower BB).
GBP/USD: The pound slipped against a strengthening dollar on Wednesday and maintained its losses after Bank of England Governor Andrew Bailey reiterated he expected price pressures to ease, as soon as April. Speaking at the British Chambers of Commerce Global Annual Conference, Bailey said that if price pressures were to be more persistent, further tightening of policy may be required, but added there were signs the labour market was loosening a little.On Tuesday, data showed Britain’s jobless rate rose to 3.9%, while the rate of increase in total pay, including bonuses, held steady, prompting some investors to scale back their bets on further interest rate hikes. The pound was last down 0.3% at $1.2440, having earlier hit a three-week low of $1.2422.Immediate resistance can be seen at 1.2528 (5DMA), an upside break can trigger rise towards 1.2638 (11th May High).On the downside, immediate support is seen at 1.2425(50%fib), a break below could take the pair towards 1.2377(Lower BB).
USD/CHF: The dollar strengthened against Swiss franc on Wednesday , benefiting from its safe-haven status amid the risk of a U.S. debt default, and as traders trimmed bets on a Federal Reserve rate cut any time soon following solid U.S. consumer spending data.U.S. President Joe Biden and the senior congressman, Republican Kevin McCarthy, have edged closer to a deal to raise the U.S. debt ceiling, but nothing is clinched yet. Against a basket of peers, including the euro, yen and sterling, the dollar index rose 0.25% to 102.86. Immediate resistance can be seen at 0.9012(23.6%fib), an upside break can trigger rise towards 09028 (Higher BB).On the downside, immediate support is seen at 0.8773 (50%fib), a break below could take the pair towards 0.8939 (61.8%fib).
USD/JPY: The dollars strengthened against Japan's yen on Wednesday as traders trimmed bets on imminent U.S. rate cuts following solid consumer spending data, while the greenback also benefitted from its status as a safe-haven so long as risk of a U.S. debt default remained. U.S. President Joe Biden and the senior congressman, Republican Kevin McCarthy, have edged closer to a deal to raise the U.S. debt ceiling, but nothing is clinched yet.Biden said any default would land the economy in recession, but investors also fear the impact globally would be negative. Dollar rose 0.5% against the yen to a two-week peak of 137.17 . Strong resistance can be seen at 137.32(23.6%fib) an upside break can trigger rise towards 137.85(Higher BB).On the downside, immediate support is seen at 136.27(Daily low), a break below could take the pair towards 135.87(38.2%fib)
Equities Recap
European shares slipped on Wednesday as concerns about whether the United States can avoid a debt default, as well as a slew of downbeat corporate updates weighed on sentiment.
At (GMT 12:39),UK's benchmark FTSE 100 was last trading up at 0.09 percent, Germany's Dax was up by 0.37 percent, France’s CAC was trading down by 0.00 percent.
Commodities Recap
Gold prices eased on Wednesday as the dollar gained after the latest comments from U.S. Federal Reserve officials pushed back against prospects of interest rate cuts this year.
Spot gold was down 0.1% to $1,987.29 per ounce at 1027 GMT, close to a two-week low hit on Tuesday. U.S. gold futures fell 0.2% to $1,989.70.
Oil prices were steady on Wednesday after a surprise rise in U.S. crude inventories stoked demand concerns as economic worries competed with a tighter supply outlook for later in the year.
Brent crude futures rose 19 cents, or 0.3%, to $75.10 a barrel. West Texas Intermediate U.S. crude was up 20 cents or 0.3% to $71.06 at 1145 GMT.