Posted at 21 October 2023 / Categories Market Roundups
Market Roundup
• U.S. dollar brushes against 150 Japanese yen level
• Benchmark yields ease after breaching 5%
• Crude prices settle lower but notch second straight weekly gains
• Canada Aug Retail Sales (MoM) -0.1% ,-0.3% forecast, 0.3% previous
• Canada Aug Core Retail Sales (MoM) 0.1%,0.0% forecast, 1.0% previous
• U.S. Baker Hughes Oil Rig Count 502 ,501 previous
• U.S. Baker Hughes Total Rig Count 624,622 previous
• US Sep Federal Budget Balance -171.0B, -78.6B forecast, 89.3B 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 edged higher against dollar on Friday as market participants digested possible further interest rate hikes from the Federal Reserve and worries of escalation of the Middle East conflict. Geopolitical tensions dampened investor risk appetite as Israel levelled a northern Gaza district. The European Central Bank meets next week and is expected to keep its rates on hold after 10 consecutive increases but for now traders were just trying to make it to the end of the week.Federal Reserve chief Jerome Powell had said on Thursday that he agreed in principle that the recent jump in bond yields might at the margin lessen the need for more rate hikes, but also stressed the strength of the U.S. economy. 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 edged higher on Friday as dollar eased as investors turned cautious on riskier assets after a U.S. bond sell-off, with uncertainties surrounding the Israel-Hamas conflict also weighing on sentiment. British retail sales fell more than expected in September as shoppers avoided buying autumn clothing during unseasonably warm weather, against a backdrop of broader cost of living pressures that could see the economy shrink overall in the third quarter. Retail sales volumes dropped by 0.9% on the month after a 0.4% rise in August, the Office for National Statistics (ONS) said on Friday, a much bigger decline than the 0.2% fall economists had forecast in a poll. Sterling was last trading up 0.17% against the dollar to $1.2163. 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 rose against its U.S. counterpart on Friday but the move was modest as stock markets fell and domestic data showed a decline in retail sales, cementing expectations that the Bank of Canada will remain on hold next week. Canadian retail sales fell by 0.1% in August from July and look set to stay flat in September, adding to evidence of a slowdown in the domestic economy. Canadian retail sales fell by 0.1% in August from July and look set to stay flat in September, adding to evidence of a slowdown in the domestic economy. The loonie was trading 0.1% higher at 1.37 to the greenback .Immediate resistance can be seen at 1.3742(23.6% fib), an upside break can trigger rise towards 1.3776(Oct 5th high).On the downside, immediate support is seen at 1.3682(5DMA), a break below could take the pair towards 1.3654(38.2% fib).
USD/JPY: The dollar touched the closely watched 150 level against the yen on Friday, before falling back again, as investors positioned for the Federal Reserve to hold rates higher for longer.A move above 150 is seen in the market as having the potential to spur an intervention by Japanese monetary officials concerned about the currency weakening too far.It reached 150.165 on Oct. 3 before quickly dropping back to 147.3, but market participants say it is not clear whether the move resulted from an intervention by the Ministry of Finance (MOF) or was caused by market nerves and trading stop losses or other automated trades being triggered. The dollar was last up 0.11% on the day against the Japanese currency at 149.85 yen . 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 Friday and posted their biggest weekly loss in seven months as concerns about a wider Middle East conflict, rising government bond yields and disappointing earnings reports kept higher-risk equities under pressure.
UK's benchmark FTSE 100 closed down by 1.30 percent, Germany's Dax ended down by 1.64 percent, France’s CAC finished the day down by 1.52 percent.
Wall Street ended lower on Friday as investors closed the book on a week marked with mixed earnings, warnings of possible further interest rate hikes from the Federal Reserve, and worries of escalation of the Middle East conflict.
Dow Jones closed down by 0.86 percent, S&P 500 ended down by 1.26 percent, Nasdaq finished the day down by 1.53 percent.
Commodities Recap
Oil prices turned modestly lower but notched their second straight weekly gain as the potential escalation of the Israel-Hamas war stoked supply concerns.
U.S. crude fell 0.69% to settle at $88.75 per barrel, while Brent settled at $92.16 per barrel, down 0.24% on the day.
Gold extended its advance, nearing the key $2,000 per ounce level as geopolitical tensions enhanced the metal's safe-haven appeal.
Spot gold was up 0.3% at $1,979.39 per ounce by 3:04 p.m. ET (1904 GMT), after hitting its highest since May earlier in the session. U.S. gold futures settled 0.7% higher at $1,994.40.