Posted at 27 September 2023 / Categories Market Roundups
Market Roundup
•US Aug Durable Goods Orders (MoM) 0.2%,-0.5% forecast, -5.2% previous
•US Aug Durables Excluding Defense (MoM) -0.7%,-5.5% previous
•US Aug Goods Orders Non Defense Ex Air (MoM) 0.9%,0.0% forecast, 0.1% previous
•US Aug Core Durable Goods Orders (MoM) 0.4%,0.1% forecast, 0.5% previous
•US Cushing Crude Oil Inventories-0.943M , -2.064M previous
•US Distillate Fuel Production 0.150M ,-0.229M previous
•US Gasoline Production -0.572M,0.499M previous
•US Crude Oil Inventories -2.170M,-1.320M forecast, -2.135M previous
Looking Ahead Economic Data(GMT)
•00:00 New Zealand Sep ANZ Business Confidence -3.7 previous
•00:00 New Zealand Sep NBNZ Own Activity 11.2% previous
•01:30 Australia Aug Retail Sales (MoM) 0.5% forecast,-0.8% previous
Looking Ahead Events And Other Releases(GMT)
•No Events Ahead
Currency Summaries
EUR/USD: The euro declined on Wednesday as dollar rose as investors bet the U.S. economy will outperform its competitors in an environment of high interest rates. Strong U.S. economic data has defied investor expectations for a slowdown and the Federal Reserve last week warned that it could raise interest rates again and is likely to hold rates higher for longer.Data on Wednesday showed that orders for long-lasting U.S. manufactured goods rose in August as an increase in machinery and other products offset a drop in civilian aircraft, and business spending on equipment appeared to regain momentum after faltering early in the third quarter. The euro dropped to $1.04880, the lowest level since Jan. 6. Immediate resistance can be seen at 1.0568(38.2%fib), an upside break can trigger rise towards 1.0641(50%fib).On the downside, immediate support is seen at 1.0503(23.6%fib), a break below could take the pair towards 1.0474(Lower BB).
GBP/USD: Sterling fell to a fresh six-month low against a strengthening dollar on Wednesday as markets are pricing in that the Bank of England (BoE) is done hiking interest rates as the economy deteriorated, while British inflation subsided.Sterling is set for the biggest monthly drop since August 2022, down more than 4% in September, as money markets are pricing in no further BoE rate hikes this year . Traders also expect the central bank to start cutting rates next summer.The BoE kept rates on hold last week - the first meeting at which it had done so since December 2021 on the back of signs economic growth is slowing and data showing a surprise cooling in Britain's inflation. Sterling reached $1.21110, the lowest level since March 17. Immediate resistance can be seen at 1.2183(5DMA), an upside break can trigger rise towards 1.2247(38.2%fib).On the downside, immediate support is seen at 1.2122 (23.6%fib), a break below could take the pair towards 1.2078(Lower BB).
USD/CAD: The Canadian dollar edged higher against its U.S. counterpart on Wednesday as a jump in oil prices offset recent weakness in equity markets, with the currency recovering from its lowest level in nearly two weeks. The U.S. 10-year yield was up 5.4 basis points at 4.612%, its highest level in 16 years, while the U.S. dollar added to its recent gains against a basket of major currencies. The price of oil, one of Canada's major exports, settled 3.6% higher at $93.68 a barrel after a steep drop in U.S. crude stocks compounded worries of tight global supplies.The loonie was trading 0.1% higher at 1.3504 to the greenback, or 74.05 U.S. cents, after touching its weakest intraday level since Sept. 15 at 1.3542 .Immediate resistance can be seen at 1.3536 (38.2% fib), an upside break can trigger rise towards 1.3547 (30DMA).On the downside, immediate support is seen at 1.3489 (5DMA), a break below could take the pair towards 1.3470 (50% fib).
USD/JPY: The dollar hit fresh 11-month high against the yen on Wednesday as the prospect of higher U.S. rates boosted dollar. The yen's slow-but-steady decline to the psychological level of 150 per dollar has put traders on high alert for any signs of intervention from Japanese authorities, as officials ramp up their rhetoric against the sliding currency.The 150 zone is seen by some as a red line that would spur Japanese authorities to intervene, like they did last year.Minutes of the Bank of Japan's July meeting out on Wednesday showed that policymakers agreed on the need to maintain ultra-loose monetary settings but were divided on how soon the central bank could end negative interest rates. Strong resistance can be seen at 149.12(23.6%fib) an upside break can trigger rise towards 149.55 (Higher BB).On the downside, immediate support is seen 148.34(5DMA), a break below could take the pair towards 147.03 (38.2%fib).
Equities Recap
European shares fell for a fifth day in a row on Wednesday, with real estate stocks hammered by bearish brokerage comments on UK landlords, while negative corporate updates dented shares of Dutch insurers and Swiss bank UBS.
UK's benchmark FTSE 100 closed down by 0.43 percent, Germany's Dax ended down by 0.25 percent, France’s CAC finished the day down by 0. 05 percent.
The S&P 500 eked out a fractional gain on Wednesday after a see-saw session, as investors weighed whether to start bargain hunting following a sell-off fueled by elevated Treasury yields and uncertainty about the path ahead for interest rates.
Dow Jones closed down by 0.20 percent, S&P 500 ended up by 0.02 percent, Nasdaq finished the day up by 0.22 percent.
Commodities Recap
Gold extended declines for the third straight session on Wednesday as appeal for non-yielding bullion took a hit from bets that the Federal Reserve may keep interest rates elevated, while traders hoped for more cues from U.S. inflation numbers this week.
Spot gold dropped 1.4% to $1,874.34 per ounce by 1:47 p.m. EDT (1747 GMT), its lowest in over six months. U.S. gold futures settled 1.5% lower at $1,890.90.
Oil prices surged 3% on Wednesday to the highest settlement in 2023, after a steep drop in U.S. crude stocks compounded worries of tight global supplies.
Brent crude futures closed up $2.59, or 2.8%, at $96.55. It breached $97 a barrel during the session.
U.S. West Texas Intermediate crude futures (WTI) climbed $3.29, or 3.6%, to $93.68. The session high was over $94.