Posted at 10 November 2023 / Categories Market Roundups
Market Roundup
•US Jobless Claims 4-Week Avg 212.25K,210.00K previous
•US Continuing Jobless Claims 1,834K, 1,820K forecast,1,818K previous
•US Initial Jobless Claims217K, 215K forecast,217K previous
•US IBD/TIPP Economic Optimism 40.2 forecast, 36.3 previous
• US 4-Week Bill Auction 5.290%,5.290% previous
• US 8-Week Bill Auction 5.290%,5.300%previous
Looking Ahead Economic Data(GMT)
• 23:50 Japan Oct M3 Money Supply 2,114.9% previous
• 23:50 Japan M2 Money Stock (YoY) 2.4% forecast, 2.4% previous
Looking Ahead Events And Other Release(GMT)
•00:30 Australia RBA Monetary Policy Statement
Currency Summaries
EUR/USD: The euro declined against dollar on Thursday after European Central Bank officials played down market bets around rate cuts. ECB policymakers on Wednesday said further progress is needed to tame inflation, while Vice President Luis de Guindos in an interview on Thursday said it is It is premature to discuss European Central Bank rate cuts as there are still some risks to the inflation outlook, particularly for underlying prices .The euro was last 0.2% lower at $1.0665, but not far from Monday's near two-month peak of $1.0765. Immediate resistance can be seen at 1.0679(38.2%fib), an upside break can trigger rise towards 1.0732 (23.6%fib).On the downside, immediate support is seen at 1.0650 (11DMA), a break below could take the pair towards 1.0639(50%fib).
GBP/USD:The pound weakened against the dollar on Thursday after Bank of England (BoE) policymakers, including Chief Economist Huw Pill, reiterated policy will need to remain restrictive for some time. Earlier this week, Pill had said market pricing pointing towards a first interest rate cut in August 2024 “doesn’t seem totally unreasonable .But on Wednesday, BoE Governor Andrew Bailey reiterated that monetary policy would need to remain restrictive for an extended period. The pound was last down 0.2% against a strengthening dollar at $1.2259, and off a near two-month high of $1.2428 touched on Monday. Immediate resistance can be seen at 1.2232(5DMA), an upside break can trigger rise towards 1.2260(38.2%fib).On the downside, immediate support is seen at 1.2153(23.6%fib), a break below could take the pair towards 1.2108 (Nov 1st low).
USD/CAD: The Canadian dollar edged lower against its U.S. counterpart on Thursday as a disappointing U.S. Treasury bond auction and hawkish comments from Federal Reserve Chair Jerome Powell pushed up borrowing costs . U.S. Treasury yields rose and greenback advanced against a basket of major currencies as Powell said that Federal Reserve officials “are not confident” that interest rates are yet high enough to finish the battle with inflation. The price of oil, one of Canada’s major exports, settled 0.5% higher at $75.74 a barrel. The loonie was trading 0.1% lower at 1.3810 to the greenback after moving in a range of 1.3747 to 1.3816. Immediate resistance can be seen at 1.3821 (38.2%fib), an upside break can trigger rise towards 1.3863 (23.6%fib).On the downside, immediate support is seen at 1.3785 (50%fib), a break below could take the pair towards 1.3775(5DMA).
USD/JPY: The dollar strengthened against yen on Thursday after Federal Reserve Chair Jerome Powell said that Fed policymakers are are not confident" that interest rates are yet high enough to finish the battle with inflation. Richmond Fed President Thomas Barkin said on Thursday said that while there's been real progress on inflation, he is still unsure if the U.S. central bank will need to push its policy rate higher to finish the job.Fed Bank of St. Louis acting leader Kathleen O’Neill Paese also said Thursday she's concerned those watching the central bank may not be fully taking on board its commitment to lowering inflation. The dollar index was last up 0.35% on the day at 105.86. The dollar gained 0.21% to 151.29 Japanese yen , the highest since Nov. 1.Strong resistance can be seen at 150.41(Daily high),an upside break can trigger rise towards 151.72(23.6%fib).On the downside, immediate support is seen 151.02(50 %fib)a break below could take the pair towards 150.82 (5DMA).
Equities Recap
European shares rose on Thursday, boosted by AstraZeneca and Adyen on strong earnings, while markets awaited the Federal Reserve Chair's remarks on the monetary policy outlook after European Central Bank officials played down market bets around rate cuts.
The UK's benchmark FTSE 100 closed up by 0.73 percent, Germany's Dax ended up by 0.81 percent, and France’s CAC finished the day up by 1.11 percent.
U.S. stocks closed lower on Thursday, snapping the longest winning streaks for the Nasdaq and S&P 500 in two years, as Treasury yields climbed after a disappointing auction of 30-year bonds and comments from Federal Reserve Chair Jerome Powell..
Dow Jones was down by 0.65 percent, S&P 500 was down by 0.81 percent, Nasdaq was down by 0.94 percent.
Commodities Recap
Gold held on to some gains on Thursday after Federal Reserve Chair Jerome Powell reiterated the need for higher interest rates to rein in inflation, while auto-catalyst palladium fell below the $1,000 an ounce level for the first time since 2018.
Spot gold was up 0.4% to $1,957.62 per ounce by 4:15 p.m. ET (2115 GMT). U.S. gold futures settled up 0.6% at $1,969.80.
The Brent crude oil benchmark finished above $80 a barrel on Thursday, after demand concerns and a fading war-risk premium triggered a sell-off earlier this week.
Brent crude futures settled at $80.01 a barrel, a gain of 47 cents, or 0.59%. U.S. West Texas Intermediate (WTI) crude futures finished at $75.74 a barrel up 41 cents or 0.54%.