Posted at 21 September 2023 / Categories Market Roundups
Market Roundup
•Fed leaves rates unchanged, sees tighter policy through 2024
•US weekly crude inventories fall in line with expectations -EIA
•Fed sees 25 bp hike this year, 50 bp cuts in 2024
•Fed's projections see inflation approaching goal at end of 2025
•US Indexes down: Dow 0.22%, S&P 500 0.94%, Nasdaq 1.53%
•US EIA Weekly Refinery Utilization Rates (WoW) -1.8%, 0.6% previous
•US Gasoline Production 0.499M,-0.576M previous
•US Distillate Fuel Production-0.229M, -0.006M previous
•US Cushing Crude Oil Inventories -2.064M ,-2.450M previous
•US Crude Oil Imports -3.042M,2.654M previous
•US Crude Oil Inventories -2.135M,-2.200M forecast,3.954M previous
•US Gasoline Inventories -0.831M,0.317M forecast,5.560M previous
Looking Ahead Economic Data(GMT)
•01:00 New Zealand Net Debt Forecast 40.30% forecast,38.50% previous
•01:30 Australia Aug Reserve Assets Total 91.4B previous
•03:00 New Zealand Credit Card Spending (YoY) 3.6% previous
Looking Ahead Events And Other Releases(GMT)
•No Events Ahead
Currency Summaries
EUR/USD: The euro declined against dollar on Wednesday after the U.S. Federal Reserve held interest rates unchanged but struck a hawkish stance for future policy. The U.S. central bank held interest rates steady but held its hawkish stance, with a further rate increase projected by the end of the year and monetary policy kept significantly tighter through 2024 than previously expected. Fed policymakers still see the central bank's benchmark overnight interest rate peaking this year in the 5.50%-5.75% range, just a quarter of a percentage point above the current range.The dollar index rose 0.22% to 105.34, with the euro down 0.17% to $1.0659. Immediate resistance can be seen at 1.0717(38.2%fib), an upside break can trigger rise towards 1.0785(50%fib).On the downside, immediate support is seen at 1.0675(5DMA), a break below could take the pair towards 1.0658(23.6%fib).
GBP/USD: The pound fell to its lowest since late May on Wednesday after data showed UK inflation slowed more than expected in August, softening the case for the Bank of England to raise rates much beyond current levels.British annual consumer price inflation (CPI) unexpectedly fell to 6.7% in August, official data showed on Wednesday, a day before the BoE is expected to raise rates again. Economists polled by Reuters had forecast CPI would rise to 7.0% from July's 6.8% after a jump in fuel prices and an increase in a tax on alcoholic drinks.Sterling was last down 0.4% on the day at $1.2323, compared with $1.2386 right ahead of the data. Immediate resistance can be seen at 1.2364(5DMA), an upside break can trigger rise towards 1.2431(38.2%fib).On the downside, immediate support is seen at 1.2322 (23.6%fib), a break below could take the pair towards 1.2280 Lower BB).
USD/CAD: The Canadian dollar weakened against its U.S. counterpart on Wednesday, with the currency giving back its earlier gains as oil prices fell and the U.S. Federal Reserve added to its hawkish stance.The Fed held interest rates steady but projected another rate increase by the end of the year and monetary policy kept significantly tighter through 2024 than previously expected. The Canadian dollar was trading 0.02 at 1.3473 to the greenback, the pair traded in a range of 1.3396 to 1.3475.On Tuesday, the currency touched its strongest intraday level in nearly six weeks at 1.3378 after stronger-than-expected domestic inflation data. Immediate resistance can be seen at 1.3478 (5DMA), an upside break can trigger rise towards 1.3496 (38.2%fib).On the downside, immediate support is seen at 1.3417(50% fib), a break below could take the pair towards 1.3401(Sep 20th low).
USD/JPY: The dollar firmed against yen on Wednesday after the U.S. Federal Reserve held interest rates steady but projected policy would remain tighter through next year. Fed policymakers at the median still see the central bank's benchmark overnight interest rate peaking this year in the 5.50%-5.75% range, just a quarter of a percentage point above the current range. The U.S. dollar index , which measures the currency against a basket of rivals, was 0.09% higher at 105.21, after having been as low as 104.66 earlier in the session. The yen was down 0.13% versus the greenback at 148.05 per dollar. Strong resistance can be seen at 148.51(23.66%fib) an upside break can trigger rise towards 148.72 ( Higher BB).On the downside, immediate support is seen 147.99 (5DMA), a break below could take the pair towards 146.37(38.2%fib).
Equities Recap
European shares rose in a broad-based rally on Wednesday as government bond yields across the continent fell, while investors eyed the U.S. Federal Reserve's verdict on monetary policy tightening later in the day.
UK's benchmark FTSE 100 closed up by 0.93 percent, Germany's Dax ended up by 0.75percent, France’s CAC finished the day up by 0. 67 percent.
U.S. stocks slumped on Wednesday after the U.S. Federal Reserve held key interest rates unchanged as widely expected, and revised economic projections higher with warnings that the battle against inflation was far from over.
Dow Jones closed down by 0.22 percent, S&P 500 ended down by 0.94 percent, Nasdaq finished the day down by 1.53 percent.
Commodities Recap
Gold slightly pared gains on Wednesday after the U.S. Federal Reserve held interest rates unchanged but struck a hawkish stance for future policy.
Spot gold was up 0.6% at $1,942.19 per ounce at 2:41 p.m. EDT (1841 GMT) after rising as much as 0.9% earlier in the session. U.S. gold futures settled 0.7% higher at $1,967.10.
Oil prices fell about 1% to a one-week low on Wednesday after the U.S. Federal Reserve left interest rates unchanged as widely expected, but stiffened its hawkish stance with a further rate increase projected by the end of the year.
Brent futures for November delivery fell 81 cents, or 0.9%, to settle at $93.53 a barrel, while U.S. West Texas Intermediate crude (WTI) for October delivery fell 92 cents, or 1.0%, to settle at $90.28.