Posted at 22 September 2023 / Categories Market Roundups
Market Roundup
•US Fed officials flag further hikes
•US oil rig count falls to lowest since February 2022
•US indexes down: Dow 0.31%, S&P 0.23%, Nasdaq 0.09%
•Canada Jul Core Retail Sales (MoM) 1.0% ,0.5% forecast, -0.8% previous
•Canada Jul Retail Sales (MoM) 0.3% ,0.4% forecast,0.1% previous
•US Sep Services PMI 50.2, 50.6 forecast, 50.5 previous
•US Sep Manufacturing PMI 48.9, 48.0 forecast, 47.9 previous
•US Sep S&P Global Composite PMI 50.1, 50.2 previous
•U.S. Baker Hughes Oil Rig Count 507, 515 previous
•U.S. Baker Hughes Total Rig Count 630, 641 previous
Looking Ahead Economic Data(GMT)
•No data ahead
Looking Ahead Events And Other Releases(GMT)
•No significant events ahead
Currency Summaries
EUR/USD: The euro dipped against dollar on Friday as economic data showed a contraction in economic activity, which might lead European Central Bank hawks to soften their policy stance. Preliminary data indicates that there has been a contraction in economic activity in two of the largest Eurozone economies, France and Germany. The HCOB France flash purchasing managers index (PMI) for the services sector fell to a 34-month low in September, well below a forecast, while the German PMI rose to 46.2 but below the 47.2 forecast by economists. Euro zone inflation is stubbornly high with upside risks, so the ECB’s next move could still be a rate increase before cuts come onto the agenda, several policymakers said on Thursday . Immediate resistance can be seen at 1.0663(Daily high), an upside break can trigger rise towards 1.0702(38.2%fib).On the downside, immediate support is seen at 1.0623(23.6%fib), a break below could take the pair towards 1.0579(Lower BB).
GBP/USD: Sterling dipped against the dollar on Friday weak business activity and retail data weighed down the currency, while traders scaled back their expectations of future interest rate hikes following the Bank of England's decision to hold rates steady the day before.The preliminary reading for the services sector revealed a decline from 49.5 in August to 47.2, signaling a continued contraction and falling below the critical 50-point threshold that separates economic growth from contraction. Additionally, British retail data indicated that consumer spending experienced a partial recovery in August after a rain-soaked July, with a month-to-month growth of 0.4%. However, this growth narrowly missed economist forecasts, adding to the overall cautious sentiment surrounding the pound. Immediate resistance can be seen at 1.2303(Daily high), an upside break can trigger rise towards 1.2359(38.2%fib).On the downside, immediate support is seen at 1.2226 (23.6%fib), a break below could take the pair towards 1.2173(Lower BB).
USD/CAD: The Canadian dollar slightly decreased against the U.S. dollar, but it retained its weekly gain as elevated oil prices and the expectation of additional interest rate hikes by the Bank of Canada, counterbalanced the initial data indicating a decline in retail sales for the month of August. Data on Friday showed that Canadian retail sales grew by 0.3% in July from June, but were likely down 0.3% in August.The price of oil, one of Canada's major exports, settled 0.5% higher at $90.03 a barrel, moving closer to the 10-month high posted earlier in the week. The loonie was trading 0.1% lower at 1.3490 to the greenback, or 74.13 U.S. cents, after moving in a range of 1.3424 to 1.3491. For the week, the currency was up 0.2%, its second straight week of gains. Immediate resistance can be seen at 1.3498 (9DMA), an upside break can trigger rise towards 1.3528 (23.6%fib).On the downside, immediate support is seen at 1.3451 (38.2%fib), a break below could take the pair towards 1.3385 (50%fib).
USD/JPY: The dollar rose against yen on Friday as gains were driven by recent data on global business activity, which emphasized the stronger economic position of the United States compared to other major economies. S&P Global reported that its flash U.S. Composite PMI index, which monitors both the manufacturing and service sectors, slipped to a reading of 50.1 in September. This marks a slight decrease from the final reading in August, which stood at 50.2. The data release follows disappointing economic data from Europe, particularly in France, where economic activity declined more rapidly than anticipated in September. The yen dropped as low as 148.42 to the dollar, nearing the 150-mark .Strong resistance can be seen at 148.64(23.6%fib) an upside break can trigger rise towards 149.64( Higher BB).On the downside, immediate support is seen 147.91 (5DMA), a break below could take the pair towards 146.76 38.2%fib).
Equities Recap
European shares ended the day in negative territory as investors grappled with the anticipation of global interest rates staying high for an extended period .
UK's benchmark FTSE 100 closed up by 0.07 percent, Germany's Dax ended down by 0.09 percent, France’s CAC finished the day down by 0.40 percent.
Wall Street experienced a fluctuating trading session that ultimately ended with a lower closing as investors digested the Federal Reserve's more hawkish outlook revisions.
Dow Jones closed down by 0.31% percent, S&P 500 closed by 0.23% percent, Nasdaq settled down by 0.09% percent.
Commodities Recap
Gold prices edged higher on Friday, benefiting from a modest retreat in both the U.S. dollar and bond yields as investors digested a still hawkish stance from the Federal Reserve.
Spot gold rose 0.3% to $1,925.21 per ounce by 1:59 p.m. EDT (1759 GMT), following three sessions of losses. U.S. gold futures settled 0.3% higher at $1,945.60 per ounce.
Oil prices held steady on Friday but closed the week lower on profit-taking as market's evaluated of supply concerns arising from Russia's fuel export ban against concerns about future rate hikes that could impact oil demand.
Brent futures settled 3 cents lower at $93.27 a barrel. It fell 0.3% in the week, breaking a three week streak of gains.
U.S. West Texas Intermediate crude (WTI) futures rose 40 cents, or 0.5%, to $90.03 a barrel, as U.S. oil rig counts fell. The benchmark fell 0.03% for the week, the first decline in four weeks.