Posted at 18 October 2023 / Categories Market Roundups
Market Roundup
•US Sep Housing Starts 1.358M, 1.380M forecast,1.283M previous
•US Sep Building Permits 1.473M, 1.455M forecast, 1.541M previous
•1US Sep Building Permits (MoM) -4.4%, 6.8% previous
•US Sep Housing Starts (MoM) 7.0% , -11.3% previous
•US EIA Weekly Refinery Utilization Rates (WoW) 0.4%,-1.6% previous
•US Cushing Crude Oil Inventories -0.758M ,-0.319M previous
•US Distillate Fuel Production -0.033M,0.038M previous
•US EIA Refinery Crude Runs (WoW) 0.193M,-0.399M previous
•US Heating Oil Stockpiles 0.140M,-0.433M previous
•US EIA Weekly Distillates Stocks -1.360M forecast,-1.837M previous
•US Gasoline Inventories -2.371M,-1.097M forecast,-1.313M previous
•US Crude Oil Inventories -4.491M,-0.300M forecast, 10.176M previous
Looking Ahead Economic Data (GMT)
•23:50 Japan Sep Trade Balance -425.0B forecast,-930.5B previous
•23:50 Japan Sep Imports (YoY) -12.9% forecast,-17.8% previous
•23:50 Japan Sep Exports (YoY) 3.1% forecast,-0.8% previous
•23:50 Japan Foreign Investments in Japanese Stocks 1,436.1B previous
•23:50 Japan Foreign Bonds Buying 183.4B previous
•23:50 Japan Adjusted Trade Balance -0.50T forecast,-0.56T previous
•00:30 Australia Sep Unemployment Rate 3.7% forecast,3.7% previous
•00:30 Australia Sep Full Employment Change 2.8K previous
•00:30 Australia Sep Employment Change 18.0K forecast, 64.9K previous
•00:30 Australia Sep NAB Quarterly Business Confidence -3 previous
•01:30 China Sep House Prices (YoY) -0.1% previous
Looking Ahead Events And Other Release(GMT)
•No Events Ahead
EUR/USD: The euro eased on Wednesday as dollar benefiting from safe haven demand on concerns over the conflict in the Middle East. The dollar also benefited from expectations the U.S. Federal Reserve will hold rates higher for longer as it battles to bring inflation closer to its 2% annual target.U.S. President Joe Biden pledged solidarity with Israel on Wednesday and said a deadly blast at a Gaza hospital seemed to have been caused by a rocket misfired by militants. The dollar index was last up 0.32% on the day at 106.55. It is holding below the 107.34 level reached on Oct. 3, the highest since November 2022.The euro dipped 0.38% to $1.0536. It is up from $1.0448 on Oct. 3, the lowest since December 2022.Immediate resistance can be seen at 1.0539 (11DMA), an upside break can trigger rise towards 1.0583(38.2%fib).On the downside, immediate support is seen at 1.0499(23.6%fib), a break below could take the pair towards 1.0454(Oct 4th low).
GBP/USD: Sterling fell after a brief pop up on Wednesday after data showed UK inflation held steady in September, though above expectations for a slight retreat.UK consumer price inflation held at 6.7% in September, an 18-month low, showing no acceleration. It was, however, above expectations for a retreat to 6.6%. The Bank of England is expected to leave interest rates at 5.25% in early November. It kept them on hold in September, following an unexpected drop in the August inflation rate. The pound was last down 0.32% at $1.2144, having earlier risen to $1.2210 after the inflation data. Immediate resistance can be seen at 1.2211(11DMA), an upside break can trigger rise towards 1.2242 (38.2%fib).On the downside, immediate support is seen at 1.2134(23.6%fib), a break below could take the pair towards 1.2104(Oct 6th low).
USD/CAD: The Canadian dollar weakened to a near two-week low against its U.S. counterpart on Wednesday as rising fears of wider instability in the Middle East bolstered demand for safe-haven currencies such as the greenback and the Swiss franc. Canadian housing starts unexpectedly rose in September, climbing 8% compared with the previous month, data from the Canadian Mortgage and Housing Corporation showed. The price of oil, one of Canada’s major exports, settled 1.9% higher at $88.32 a barrel, supported by a bigger-than-expected U.S. storage draw and concerns about global supplies after Iran called for an oil embargo on Israel.The loonie was trading 0.5% lower at 1.3705 per U.S. dollar. Immediate resistance can be seen at 1.3725 (23.6%fib), an upside break can trigger rise towards 1.3769(Higher BB).On the downside, immediate support is seen at 1.3664 (38.2%fib), a break below could take the pair towards 1.3617( 50%fib).
USD/JPY: The dollar little changed on Wednesday as investors were on the edge for any signs of intervention by the Japanese authorities. The Bank of Japan on Wednesday unexpectedly announced $2 billion in bond-buying to keep downward pressure on yields.The 150 yen mark has become a key psychological level after past government interventions to prop up the currency occurred around that point. Earlier in October the yen rallied sharply after falling past 150, although it later fell back and early indications suggest Japan did not intervene. The yen weakened against the greenback to a two-week low of 149.89. Strong resistance can be seen at 149.91 (Daily high),an upside break can trigger rise towards 150.13(23.6%fib).On the downside, immediate support is seen 149.24 (38.2%fib)a break below could take the pair towards 148.90 (21DMA).
Equities Recap
European shares fell on Wednesday, dragged by a drop in shares of chipmakers and British drugmaker AstraZeneca, while increasing concerns over an escalation in the Middle East conflict further weighed on sentiment.
UK's benchmark FTSE 100 closed down by 1.13 percent, Germany's Dax ended down by 1.14 percent, France’s CAC finished the day down by 0.91 percent.
U.S. stocks ended sharply lower on Wednesday, with the S&P 500 and Nasdaq falling more than 1% each, as Treasury yields rose again and investors assessed the latest batch of quarterly corporate results and forecasts.
Dow Jones closed down by 0.98 % percent, S&P 500 closed down by 1.34% percent, Nasdaq settled down by 1.62% percent.
Commodities Recap
Gold rose to a more than two-month peak on Wednesday as the escalating conflict in the Middle East sent investors flocking towards the safe-haven metal.
Spot gold increased 1% to $1,950.67 per ounce by 2:48 p.m. ET (1848 GMT), after hitting its highest since Aug. 1. U.S. gold futures settled 1.7% higher at $1,968.3.
Oil prices climbed about 2% to a two-week high on Wednesday on a bigger-than-expected U.S. storage draw and concerns about global supplies after Iran called for an oil embargo on Israel over the conflict in Gaza.
Brent futures rose $1.60, or 1.8%, to settle at $91.50 a barrel, while U.S. West Texas Intermediate (WTI) crude rose $1.66, or 1.9%, to settle at $88.32. At their session highs, both benchmarks were up more than $3 a barrel.