Posted at 11 October 2023 / Categories Market Roundups
Market Roundup
• Fed minutes show cautious policy makers
• Producer prices rise in September on higher energy costs
• U.S. policy rate may need to rise further - Fed's Bowman
• US indexes up: Dow 0.19%, S&P 0.43%, Nasdaq 0.71%
• US Sep PPI ex. Food/Energy/Transport (MoM) 0.2%,0.3% previous
• US PPI (MoM) 0.5%, 0.3% forecast, 0.7% previous
• US Sep Core PPI (MoM) 0.3%,0.2% forecast, 0.2% previous
• US Sep Core PPI (YoY) 2.7%, 2.3% forecast,,2.2% previous
• US Sep PPI (YoY) 2.2%, 1.6% forecast, 1.6% previous
• Canada Aug Building Permits (MoM) 3.4%, 0.5% forecast, -1.5% previous
• US Sep PPI (MoM) 2.8%, 0.3% forecast, 0.7% previous
• US Sep PPI (YoY) 2.2% ,1.6% forecast, 1.6% previous
• US Sep PPI ex. Food/Energy/Transport (YoY) 0.2%, 3.0% previous
Looking Ahead Economic Data(GMT)
•23:30 Japan Sep Bank Lending (YoY) 3.1% forecast, 3.1% previous
•23:30 Japan Aug Core Machinery Orders (YoY) -7.3% forecast, -13.0% previous
•23:30 Japan Sep PPI (MoM) 0.1% forecast, 0.3% previous
•23:30 Japan Sep PPI (YoY) 2.3% forecast, 3.2% previous
•23:30 Japan Aug Core Machinery Orders (MoM) 0.4% forecast,-1.1% previous
Looking Ahead Events And Other Release(GMT)
• 01:30 Japan BoJ Board Member Noguchi Speaks
Currency Summaries
EUR/USD: The euro edged up on Wednesday as dollar dipped after a core reading of U.S. producer prices showed underlying inflation moderated further in September, leading the market to reason the Federal Reserve is done hiking interest rates.The market later barely reacted to minutes of the Fed's policy meeting last month that showed uncertainty around the path of the U.S. economy pushed Fed officials into a cautious stance as they debated whether more rate hikes were needed. The euro was up 0.08% at $1.0614.The dollar index , which tracks the U.S. currency against six others, traded little changed after touching a two-week low of 105.550, while the euro rose to its highest since Sept. 25 at $1.0634. Immediate resistance can be seen at 1.0616 (50%fib), an upside break can trigger rise towards 1.0680(61.8%fib).On the downside, immediate support is seen at 1.0547(38.2%fib), a break below could take the pair towards 1.0458(23.6%fib).
GBP/USD: The pound strengthened against Wednesday as dollar dipped as investors digested Fed minutes. Minutes of the Fed's Sept. 19-20 meeting showed policymakers wrestling with risks they agreed were no longer just about inflation, with world energy and food markets perhaps threatening a new surge in prices, but slowing global growth, labor strikes and tightening financial markets possibly clamping down on the economy in unexpected, and job-killing ways. The U.S. central bank agreed at its meeting last month to hold rates steady even as a 12-7 majority indicated in new projections that one more hike might be needed by the end of the year to ensure inflation returns to the Fed's 2% goal.Immediate resistance can be seen at 1.2331(38.2%fib), an upside break can trigger rise towards 1.2417( 50%fib).On the downside, immediate support is seen at 1.2266(Daily low), a break below could take the pair towards 1.2228(23.6%fib).
USD/CAD: The Canadian dollar edged lower against its U.S. counterpart on Wednesday, giving back some recent gains, as oil prices fell and investors turned attention to a key U.S. inflation report Thursday's U.S. inflation data could offer clues on the outlook for further interest rate hikes by the Federal Reserve.Domestic data on Wednesday showed that the value of building permits rose by 3.4% in August from July, clawing back much of the previous month's decline. U.S. crude oil futures settled 2.9% lower at $83.49 a barrel after top OPEC producer Saudi Arabia pledged to help stabilize the market. The loonie was trading 0.1% lower at 1.36 to the greenback, or 73.53 U.S. cents, after moving in a range of 1.3572 to 1.3623. Immediate resistance can be seen at 1.3615(Daily high), an upside break can trigger rise towards 1.3691(23.6%fib).On the downside, immediate support is seen at 1.3565 (38.2% fib), a break below could take the pair towards 1.3474(50% fib).
USD/JPY: The dollar edged lower against yen on Wednesday as minutes from the U.S. Federal Reserve's last policy meeting indicated caution on tightening policy. Fed officials pointed to uncertainties around the economy, oil prices and financial markets as supporting "the case for proceeding carefully in determining the extent of additional policy firming that may be appropriate," according to the minutes released on Wednesday from the Sept. 19-20 meeting. Earlier on Wednesday, data showed that U.S. producer prices increased more than expected in September amid higher costs for energy products, but underlying inflation pressures at the factory gate continued to moderate. Strong resistance can be seen at 149.13 (5DMA).an upside break can trigger rise towards 149.66(23.6%fib).On the downside, immediate support is seen 147.90 (38.2%fib)a break below could take the pair towards 147.27 (Oct 3rd low).
Equities Recap
European stocks edged higher on Wednesday as Novo Nordisk shares jumped on a positive update on its diabetes drug Ozempic, though a drop in shares of Fresenius Medical and French luxury giant LVMH capped gains.
UK's benchmark FTSE 100 closed down by 0.11 percent, Germany's Dax ended up by 0.24 percent, France’s CAC finished the day down by 0.44 percent.
Wall Street's major indexes closed higher after Wednesday's choppy session with the release of minutes from the U.S. Federal Reserve's last meeting showing caution among policy makers that helped fuel investor hopes that rates would stay steady.
Dow Jones closed up by 0.19 % percent, S&P 500 closed up by 0.43% percent, Nasdaq settled up by 0.71% percent.
Commodities Recap
Gold prices hit a near two-week peak on Wednesday, supported by a dip in U.S. Treasury yields, while focus shifted on key inflation data for further cues on U.S. rates.
Spot gold was up 0.6% at $1,871.79 per ounce by 2:26 p.m. ET (1826 GMT), its highest level since Sept. 29. U.S. gold futures settled 0.6% higher at $1,887.3.
Oil prices fell over 2% on Wednesday as fears of disruption to supplies due to conflict in the Middle East receded a day after top OPEC producer Saudi Arabia pledged to help stabilise the market.
Brent futures fell $1.83, or 2.1%, to settle at $85.82 a barrel. U.S. West Texas Intermediate crude fell $2.48, or 2.9%, to settle at $83.49.