Posted at 10 November 2021 / Categories Market Roundups
Market Roundup
•German Oct CPI (MoM) 0.5%, 0.5% forecast, 0.0% previous
•German Oct HICP (MoM) 0.5%,0.5% forecast, 0.3% previous
•German Oct HICP (YoY) 4.6%, 4.6% forecast, 4.1% previous
•Italian Sep Industrial Production (YoY) 4.4%, 4.0% forecast, 0.0% previous
• Italian Sep Industrial Production (MoM) 0.1%, -0.1% forecast, -0.2% previous
Looking Ahead Economic Data (GMT)
•12:30 US Oct Real Earnings (MoM) 0.8% previous
•12:30 US Oct Initial Jobless Claims 265K forecast, 269K previous
•12:30 US Initial Jobless Claims 281K previous
•13:30 US Jobless Claims 4-Week Avg 284.75K previous
•13:30 US Continuing Jobless Claims 2,095K forecast, 2,105K previous
•13:30 US Oct CPI Index, s.a 274.14 previous
•13:30 US Oct CPI, n.s.a (MoM ) 0.27% previous
•13:30 US Oct Core CPI Index 280.02 previous
•13:30 US Oct CPI Index, n.s.a. 275.76 forecast, 274.31 previous
•13:30 US Oct CPI (YoY) 5.8% forecast, 5.4% previous
•13:30 US Oct Core CPI (MoM) 0.4% forecast, 0.2% previous
•13:30 US Oct Core CPI (YoY) 4.3% forecast, 4.0% previous
•13:30 US Oct CPI (MoM) 0.6% forecast, 0.4% previous
•15:30 US Gasoline Inventories -1.193M forecast, -1.488M previous
•15:30 US Crude Oil Inventories 2.125M forecast, 3.291M previous
•16:00 US Oct Cleveland CPI (MoM) 0.5% previous
Looking Ahead - Events, Other Releases (GMT)
•No significant events
Fxbeat
EUR/USD: The euro dipped on Wednesday as dollar rose as markets awaited the October U.S. inflation report.The report, due at 1330 GMT, is expected to show consumer prices rose 5.8% year-on-year in October . The report comes after Fed policymakers suggested an interest rate hike was not yet on the cards earlier this week, though two of the central bank’s most dovish officials said on Tuesday they expect to get more clarity on the economic outlook by next summer. Immediate resistance can be seen at 1.1646(50%fib), an upside break can trigger rise towards 1.1646 (50%fib).On the downside, immediate support is seen at 1.1542 (Lower BB), a break below could take the pair towards 1.1528 (23.6%fib).
GBP/USD: Sterling edged lower on Wednesday as Britain and the European Union looked far from finding a post-Brexit agreement trade on Northern Ireland, while Bank of England interest rate raise bets ebbed.Britain left the EU last year but has since put off implementing some of the border checks between its province of Northern Ireland and EU member Ireland that the bloc says London is obliged to under their divorce deal. Sterling was under renewed pressure after the Irish government ministers met to dust off contingency plans in case disagreements between Britain and the EU trigger major trade disruption.. Immediate resistance can be seen at 1.3546 (38.2%fib), an upside break can trigger rise towards 1.3610(50%fib).On the downside, immediate support is seen at 1.3500(Daily low), a break below could take the pair towards 1.3470(23.6%fib).
USD/CHF: The dollar strengthened against the Swiss franc on Wednesday as investors awaited U.S. inflation data for a clue to when the Federal Reserve might raise interest rates. U.S. consumer price index data for October is set to be released later in the global day. Economists polled expect a 0.4% rise in the October index, accelerating from a 0.2% rise in the previous month, with the closely watched year-on-year core measure gaining 0.3 percentage point to 4.3%, well above the Fed's average annual 2% inflation target.Immediate resistance can be seen at 0.9139 (38.2%fib), an upside break can trigger rise towards 0.9176 (50%fib).On the downside, immediate support is seen at 0.9101 (23.6%fib), a break below could take the pair towards 0.9076 (Lower BB).
USD/JPY: The dollar strengthened against the Japanese yen on Wednesday as traders awaited U.S. inflation data which could shine some light on how fast the Federal Reserve might raise interest rates. The U.S. consumer price index, due later on Wednesday, is predicted by a Reuters poll of economists to come in at an annualised 4.3%, versus the U.S Federal Reserve average annual 2% inflation target.The Fed last week restated its belief that current high inflation is transitory but many investors fear that underestimating the rise in prices could prove a costly policy mistake. Strong resistance can be seen at 113.62 (11DMA), an upside break can trigger rise towards 113.75(23.6%fib).On the downside, immediate support is seen at 112.75(50% fib), a break below could take the pair towards 112.29(61.8%fib).
Equities Recap
European stocks hovered below all-time highs on Wednesday, supported by a jump in oil companies and some strong earnings reports ahead of a key U.S. inflation reading.
At (GMT 11:30 ),UK's benchmark FTSE 100 was last trading up at 0.49percent, Germany's Dax was down by 0.08 percent, France’s CAC was last down by 0.23 percent.
Commodities Recap
Oil prices rose on Wednesday, extending strong gains in the previous session, after industry data showed U.S. crude stocks unexpectedly fell last week just as near-term travel demand picked up with COVID-19 pandemic curbs easing.
Brent crude futures were at $85.22 a barrel by 0732 GMT, up 44 cents, or 0.5%, to after rising 1.6% on Tuesday.
U.S. West Texas Intermediate (WTI) crude futures rose 16 cents, or 0.2%, to $84.31 a barrel, adding to Tuesday’s 2.7% gain.
Gold prices slipped on Wednesday as the dollar and yields firmed ahead of U.S. inflation data that could help investors gauge the path of the Federal Reserve’s monetary policy.
Spot gold fell 0.3% to $1,825.40 per ounce by 944 GMT. U.S. gold futures for December delivery slipped 0.2% to $1,826.50 per ounce.