Posted at 28 October 2021 / Categories Market Roundups
Market Roundup
•Spanish Oct HICP (YoY) 5.5%,4.8% forecast,4.0% previous
• Spanish CPI (YoY) 5.5%,4.0% previous
•German Oct Unemployment Rate 5.4%, 5.4% forecast, 5.5% previous
•German Oct Unemployment n.s.a 2.377M,2.465M previous
•German Oct Unemployment Change -39K,-20K forecast, -30K previous
•Italian Oct Business Confidence 114.9,112.2 forecast, 113.0 previous
•Italian Oct Consumer Confidence 118.4,118.5 forecast, 119.6 previous
•EU Oct Selling Price Expectations 42.2,38.2 previous
• EU Oct Consumer Inflation Expectation 40.0, 33.1 previous
• EU Oct Industrial Sentiment 14.2, 12.5 forecast, 14.1 previous
• EU Oct Services Sentiment 18.2,16.5 forecast, 15.1 previous
•Belgian GDP (QoQ) (Q3) 1.8%,1.8% forecast, 1.7% previous
•Belgium Oct CPI (YoY) 4.16%, 2.86% previous
•EU Oct Deposit Facility Rate -0.50% forecast, -0.50% previous
•EU ECB Marginal Lending Facility 0.25% previous
Looking Ahead Economic Data (GMT)
•12:00 Oct German HICP (MoM) 0.4% forecast,0.4%previous
•12:00 Oct German HICP (YoY)4.5%forecast,4.1 previous
•12:30 US Real Consumer Spending (Q3) 12.0% previous
•12:30 US GDP Sales (Q3) 8.1% previous
•12:30 US PCE Prices (Q3) 6.5% previous
•12:30 US GDP (QoQ) (Q3) 2.7% forecast, 6.7% previous
•12:30 US Core PCE Prices (Q3) 4.50% forecast, 6.10% previous
•12:30 US GDP Price Index (QoQ) (Q3) 5.5% forecast, 6.2% previous
•12:30 US Initial Jobless Claims 290K forecast, 290K previous
•12:30 US Jobless Claims 4-Week Avg 319.75K previous
•12:30 US Continuing Jobless Claims 2,415K forecast, 2,481K previous
•14:00 US Sep Pending Home Sales Index 119.5 previous
•14:00 US Sep Pending Home Sales (MoM) 0.5% forecast, 8.1% previous
•15:00 US Oct KC Fed Composite Index 22 previous
•15:00 US Oct KC Fed Manufacturing Index 10 previous
Looking Ahead - Events, Other Releases (GMT)
•11:45 ECB Monetary Policy Statement
•12:30 ECB Press Conference
Fxbeat
EUR/USD: The euro declined on Thursday as market participants waited for a meeting of the European Central Bank later in the day to hear its comments about the inflation outlook. Analysts expect the ECB to push back against growing expectations for a rate hike next year, even though it may admit that inflation will be higher than projected. Euro zone inflation expectations are also soaring, with one market gauge hitting a seven-year high this month.The euro was down marginally at $1.1599 by 0705 GMT. The dollar index was little changed at 93.863 . Immediate resistance can be seen at 1.1658 (38.2%fib), an upside break can trigger rise towards 1.1708(50%fib).On the downside, immediate support is seen at 1.1588 (23.6%fib), a break below could take the pair towards 1.1500(Psychological level).
GBP/USD: Sterling firmed a touch on Thursday against the euro and the dollar as investors assessed whether the Bank of England would proceed with an interest rate hike at the upcoming meetings or hold fire, given concerns around economic growth.Finance minister Rishi Sunak on Wednesday promised higher public spending but his budget, while projecting robust 6.5% growth in 2021, also flagged inflation of almost 5% next year.By 0900 GMT, sterling gained 0.2% to $1.375, with the dollar on the back foot amid a general recovery in market sentiment. Immediate resistance can be seen at 1.3769(9DMA),an upside break can trigger rise towards 1.3796(23.6%fib).On the downside, immediate support is seen at 1.3717(38.2%fib), a break below could take the pair towards 1.3655(50%fib).
USD/CHF: The dollar declined against Swiss franc on Thursday dollar as investors focused on how central banks respond to rising price pressures. Investors are watching out for ECB's stance on rising global consumer prices and for any clarity on the outlook for its ultra-easy policy stance.While key decisions about ECB's emergency stimulus are set for its December meeting, the recent jack-up in rate-hike expectations has traders looking for any clues from Thursday's meeting. Immediate resistance can be seen at 0.9195(9DMA), an upside break can trigger rise towards 0.9205 (38.2%fib).On the downside, immediate support is seen at 0.9161(23.6%fib), a break below could take the pair towards 0.9149(Lower BB).
USD/JPY: The dollar declined against yen on Thursday as the Bank of Japan kept policy steady as expected. Bank of Japan Governor Haruhiko Kuroda on Thursday welcomed the economic benefits of a weak yen, brushing off fears that rising import costs could derail a recovery and committing to an easy policy even as other nations dial back crisis-mode stimulus. The BoJ cut its consumer inflation forecast for the year ending in March 2022 to 0% from 0.6% and as expected the overall takeaway reinforced market bets it will lag other central banks in dialling back crisis-mode policies. Strong resistance can be seen at 113.95 (9DMA), an upside break can trigger rise towards 114.34(23.6%fib).On the downside, immediate support is seen at 113.75(38.2%fib), a break below could take the pair towards 113.34(50%fib).
Equities Recap
European stocks slipped on Thursday in one of the busiest days for earnings and ahead of a policy update from the European Central Bank, as some leading automakers warned of production hit from chip shortages.
At (GMT 10:09 ),UK's benchmark FTSE 100 was last trading down at 0.20 percent, Germany's Dax was down by 0.09 % percent, France’s CAC was last up by 0.43 percent.
Commodities Recap
Gold rose on Thursday, hovering above the $1,800 mark as softer U.S. Treasury yields lifted its appeal, while investors await the European Central Bank’s remarks on inflation and policy outlook when it meets later in the day.
Spot gold rose 0.2% to $1,800.75 per ounce by 0857 GMT. U.S. gold futures inched 0.2% higher to $1,803.10.
Oil prices slumped to their lowest in two weeks after official figures showed a surprise jump in U.S. inventories of crude, and rising cases of COVID-19 in Europe, Russia, and some outbreaks of infections in China dented hopes for an economic recovery.
Brent crude dropped 94 cents, or 1.1%, to $83.64 a barrel by 0655 GMT, having hit a two-week low of $82.32 earlier and fallen by 2.1% in the previous session.