Posted at 05 May 2022 / Categories Market Roundups
Market Roundup
•German Mar Factory Orders (MoM) -4.7%,-1.1% forecast, -2.2% previous
•Swiss Apr CPI (YoY) 2.5%,2.5% forecast, 2.4% previous
•Swiss Apr CPI (MoM) 0.4%, 0.3% forecast, 0.6% previous
•French Mar Industrial Production (MoM) -0.5% , 0.2% forecast, -0.9% previous
•German Apr IHS Markit Construction PMI 46.0, 50.9 previous
•UK Apr Services PMI 58.9, 58.3 forecast, 58.3 previous
•UK Apr Composite PMI 58.2, 57.6 forecast, 57.6 previous
Looking Ahead - Economic Data (GMT)
•11:00 UK May BoE Interest Rate Decision 1.00% forecast, 0.75% previous
•12:30 US Unit Labor Costs (QoQ) (Q1) 9.9% forecast, 0.9% previous
•12:30 US Nonfarm Productivity (QoQ) (Q1) -5.4% forecast, 6.6% previous
•12:30 US Initial Jobless Claims 182K forecast, 180K previous
•12:30 US Continuing Jobless Claims 1,400K forecast, 1,408K previous
•12:30 US Jobless Claims 4-Week Avg 179.75K previous
•13:30 Canada ADP Nonfarm Employment Change 475.0K previous
•14:30 US Natural Gas Storage 68B, 40B previous
•15:30 US 4-Week Bill Auction 0.480% previous
•15:30 US 8-Week Bill Auction 0.710% previous
Looking Ahead - Economic events and other releases (GMT)
•13:40 BoC Gov Council Member Schembri Speaks
•13:15 BoE Gov Bailey Speaks
Fxbeat
EUR/USD: The euro pulled back from a one-week high against the U.S. dollar on Thursday after German industrial orders fell more than expected in March, signalling Europe was facing growing headwinds from the war in Ukraine. The dollar had weakened after the Fed raised interest rates by 50 basis points. The single currency which briefly climbed to a one-week high of $1.0639 on Thursday ceded gains and fell 0.2% to $1.0600 It matched an early 2017 low of $1.0470 last month. Immediate resistance can be seen at 1.0590 (38.2%fib), an upside break can trigger rise towards 1.0638(11DMA).On the downside, immediate support is seen at 1.0482(23.6%fib), a break below could take the pair towards 1.0400 (Psychological level).
GBP/USD: Britain’s pound weakened against a rebounding dollar despite expectations that the Bank of England will hike interest rates later on Thursday, a day after the U.S. Federal Reserve delivered its biggest rate hike in 22 years.It would be the BoE’s fourth consecutive rate hike, the first such run since 1997, and is expected to take the Bank Rate to 1% from 0.75% now. It is already largely factored in by markets. At 0922 GMT, sterling was down 0.6% at $1.2561, reversing Wednesday’s gains and falling back towards the lowest level since July 2020, hit last week at $1.2412. Immediate resistance can be seen at 1.2650(38.2%fib), an upside break can trigger rise towards 1.2708(14DMA).On the downside, immediate support is seen at 1.2557(5DMA), a break below could take the pair towards 1.2456(23.6%fib).
USD/CHF: The dollar gave up some ground against Swiss franc on Thursday after the U.S. Federal Reserve raised interest rates as widely expected but poured cold water on the idea that even larger hikes could lie ahead. The Fed’s 50 basis point hike was the largest since 2000 as policymakers urgently tried to tamp down inflation. But Chair Jerome Powell told reporters afterward that Fed members aren’t actively considering 75-bp moves in the future. Immediate resistance can be seen at 0.9803 (23.6 % fib), an upside break can trigger rise towards 0.9860(Higher BB).On the downside, immediate support is seen at 0.9771(5DMA), a break below could take the pair towards 0.9745(38.2 % fib ).
USD/JPY: The dollar steadied against yen on Thursday as Federal Reserve Chair Jerome Powell ruled out aggressive interest rate hikes for the year as the U.S. central bank seeks to contain inflation without triggering an economic recession. The Fed on Wednesday raised its benchmark overnight interest rate by a widely expected half-a-percentage point, the biggest hike in 22 years, as it seeks to tighten pandemic-era monetary policy.However, Powell explicitly ruled out raising rates by three-quarters of a percentage point at upcoming monetary policy meetings, pausing dollar’s rally against yen.Strong resistance can be seen at 130.34(23.6%fib), an upside break can trigger rise towards 131.53(Higher BB).On the downside, immediate support is seen at 129.18 (5DMA), a break below could take the pair towards 128.26(38.2%fib).
Equities Recap
European stocks climbed on Thursday, riding a global stock markets rally after the Federal Reserve raised interest rates as expected but cooled aggressive tightening expectations, with sentiment lifted further by a slew of upbeat earnings.
At (GMT 10:50 ),UK's benchmark FTSE 100 was last trading up at 1.17 percent, Germany's Dax up by 1.52 percent, France’s CAC finished was up by 1.89 percent.
Commodities Recap
Gold prices rose more than 1% on Thursday as Federal Reserve Chairman Jerome Powell allayed investor fears over bigger interest rate hikes in the U.S. central bank's efforts to rein in soaring inflation.
Spot gold was up 0.9% to $1,896.90 per ounce at 0956 GMT, having earlier hit its highest since April 29. U.S. gold futures climbed 1.5% to $1,896.20.
Oil prices extended gains on Thursday on supply concerns after the European Union laid out plans for new sanctions against Russia, including an embargo on crude in six months, offsetting concerns over weaker Chinese demand.
Brent crude was up 36 cents, or 0.3%, at $110.50 a barrel by 1007 GMT. U.S. West Texas Intermediate crude rose 4 cents, or less than 0.1%, to $107.85.