Posted at 19 October 2023 / Categories Market Roundups
Market Roundup
•US Jobless Claims 4-Week Avg. 205.75K,206.25K previous
•US Jobless Continuing Jobless Claims 1,734K, 1,710K forecast, 1,702K previous
•US Oct Philly Fed CAPEX Index -4.80, 7.50 previous
•US Oct Philly Fed Employment 4.0,-5.7 previous
•Canada Sep IPPI (MoM) 0.4%, 0.3% forecast,1.3% previous
•US Oct Philly Fed Prices Paid 23.10, 25.70 previous
•US Oct Philly Fed New Orders 4.4,-10.2 previous
•US Oct Philadelphia Fed Manufacturing Index -9.0,-6.4 forecast, -13.5 previous
•US Sep Existing Home Sales 3.96M, 3.89M forecast, 4.04M previous
•US Sep Existing Home Sales (MoM) -2.0%, -0.7% previous
•US Sep Leading Index (MoM) -0.7%,-0.4% forecast, -0.4% previous
•US Natural Gas Storage 97B, 80B forecast, 84B previous
•US 4-Week Bill Auction5.305%, 5.325% previous
•US 8-Week Bill Auction5.325% , 5.345% previous
Looking Ahead Economic Data(GMT)
•23:30 Japan Sep National Core CPI (YoY) 2.7% forecast, 3.1% previous
•23:30 Japan Sep National CPI (YoY) 3.2% previous
•23:30 Japan National CPI (MoM) 0.2% previous
•01:15 China PBoC Loan Prime Rate 3.45% forecast,3.45% previous
•01:15 China Oct PBoC Loan Prime Rate 4.20% forecast, 4.20% previous
•02:00 New Zealand Credit Card Spending (YoY) 4.2% previous
Looking Ahead Events And Other Release (GMT)
•No Data Ahead
Currency Summaries
EUR/USD: The euro edged higher on Thursday as dollar dipped after Federal Reserve Chair Jerome Powell was interpreted as being generally dovish in comments made at an economic forum, even as he warned that the U.S. central bank could raise interest rates again. The U.S. economy's strength and continued tight labor markets could warrant further rate increases, Powell said. But he also noted that recent market-driven increases in bond yields have helped to "significantly" tighten overall financial conditions. The comments were marginally more dovish. The dollar index was last down 0.27% on the day at 106.24. The euro gained 0.42% to $1.0581.Immediate resistance can be seen at 1.0591(50%fib), an upside break can trigger rise towards 1.0601(21DMA).On the downside, immediate support is seen at 1.0525(38.2%fib), a break below could take the pair towards 1.0442(23.6%fib).
GBP/USD: Sterling was little changed against dollar on Thursday as traders stayed risk-averse and continued to digest data from Tuesday showing UK inflation unexpectedly held at 6.7% in September, raising the possibility of another rise in interest rates. Domestically, traders are still poring over Monday's wage data and Tuesday's inflation numbers. The hotter-than-expected consumer price print followed data showing that growth in British workers' regular pay slowed from a previous record high and job vacancies also declined.Signs of a softer labour market boosted the chance the Bank of England will leave rates unchanged at its next meeting, while the inflation figures did the opposite. Immediate resistance can be seen at 1.2218(38.2%fib), an upside break can trigger rise towards 1.2261 (38.2%fib).On the downside, immediate support is seen at 1.2099(23.6%fib), a break below could take the pair towards 1.2051 (Oct 4th low).
USD/CAD: The Canadian dollar was little changed against the greenback on Thursday, holding near its weakest level in 13 days, as long-term borrowing costs rose after U.S. Federal Reserve Chair Jerome Powell left the door open to additional interest rate hikes. A higher price for oil, one of Canada’s major exports, was of little help for the loonie. U.S. crude oil futures settled up 1.2% at $89.37 a barrel as traders remained nervous that Israel’s military campaign in Gaza could escalate to a regional conflict. The Canadian dollar was trading nearly unchanged at 1.3719 to the greenback, or 72.89 U.S. cents, after earlier touching its weakest intraday level since Oct. 6 at 1.3740.Immediate resistance can be seen at 1.3746(23.6%fib), an upside break can trigger rise towards 1.3786(Oct 6th high).On the downside, immediate support is seen at 1.3682 (5DMA), a break below could take the pair towards 1.3657( 38.2%fib).
USD/JPY: The dollar little changed on Thursday as traders see a risk that Japanese officials could intervene to shore up the currency .Japan is struggling with a weak yen, and Japan's top currency diplomat said on Thursday that, although not acting in response to excessive currency moves could hurt the vulnerable, it would be better if they did not have to intervene. The dollar was last at 149.82 yen, closing in on the psychologically significant 150 yen level that earlier this month triggered a sharp sudden strengthening for the yen, although analysts say the indications suggest Japan did not intervene. The yen, a traditional safe haven, has not benefited much from risk aversion due to the war in the Middle East, unlike the Swiss franc, which has strengthened sharply.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 lost ground on Thursday as a raft of downbeat corporate earnings, including from packaged food giant Nestle, worsened the risk-averse mood, driven by jitters around the Middle East war and uncertainty over interest rates.
UK's benchmark FTSE 100 closed down by 1.17 percent, Germany's Dax ended down by 0.33 percent, France’s CAC finished the day down by 0.64 percent.
U.S. stocks ended solidly lower on Thursday, with shares of Tesla falling after its results and Treasury yields surging as Federal Reserve Chair Jerome Powell spoke about monetary policy and investors worried whether interest rates would stay higher for longer.
Dow Jones closed down by 0.75% percent, S&P 500 closed down by 0.85% percent, Nasdaq settled down by 0.96% percent.
Commodities Recap
Gold gained for a third consecutive session on Thursday as growing tensions in the Middle East sparked safe-haven demand, while remarks from Federal Reserve Chair Jerome Powell fuelled hopes the U.S. central bank may pause rate hikes.
Spot gold rose 1.3% to $1,973.41 per ounce by 2:58 p.m. ET (1858 GMT). U.S. gold futures settled 0.6% higher at $1,980.50.
Oil prices settled higher on Thursday as traders remained nervous that Israel's military campaign in Gaza could escalate to a regional conflict.
Brent futures for December settled up 1%, or 88 cents, at $92.38 a barrel while U.S. West Texas Intermediate (WTI) futures for November, which expire on Friday, settled up $1.05, or 1.2%, at $89.37 a barrel.