Posted at 17 August 2022 / Categories Market Roundups
Market Roundup
•UK Jul PPI Output (MoM) 1.6%, 0.8% forecast, 1.4% previous
•UK Jul Core CPI MoM (MoM) 0.3%,0.2% forecast, 0.4% previous
•UK Jul Core CPI (YoY) 6.2%,5.9% forecast, 5.8% previous
•UK Jul CPI (MoM) 0.6%,0.4% forecast, 0.8% previous
•UK Jul Core RPI (MoM) 0.8%, 0.8% previous
•UK Jul RPI (YoY) 12.3%, 12.0% forecast, 11.8% previous
•UK Jul RPI (MoM) 0.9%,0.6% forecast, 0.9% previous
•UK Jul PPI Output (YoY) 17.1%, 16.2% forecast, 16.5% previous
•UK Jul PPI Input (MoM) 0.1%, 1.4% forecast, 1.8% previous
•UK Jul PPI Input (YoY) 22.6% ,23.9% forecast, 24.0% previous
•UK Jul CPI (YoY) 10.1%, 9.8% forecast,9.4% previous
• EU Employment Change (QoQ) 0.3% ,0.6% previous
• EU GDP (QoQ) (Q2) 0.6%,0.7% forecast, 0.7% previous
• EU GDP (YoY) (Q2) 3.9%,4.0% forecast, 4.0% previous
Looking Ahead – Economic data (GMT)
•12:30 US Jul Core Retail Sales (MoM) -0.1% forecast, 1.0% previous
•12:30 US Jul Retail Sales Ex Gas/Autos (MoM) 0.7% previous
•12:30 US Jul Retail Sales (MoM) 0.1% forecast, 1.0% previous
•12:30 US Jul Retail Control (MoM) 0.6% forecast, 0.8% previous
•14:00 US Jun Retail Inventories Ex Auto 1.6% forecast, 1.4% previous
•14:00 US Jun Business Inventories (MoM) 1.4% forecast, 1.4% previous
•14:30 US Crude Oil Inventories -0.275M forecast, 5.458M previous
•14:30 US Cushing Crude Oil Inventories 0.723M previous
Looking Ahead - Events, Other Releases (GMT)
•18:00 US FOMC Meeting Minutes
•18:20 US FOMC Member Bowman Speaks
Fxbeat
EUR/USD: The euro was little changed against dollar on Wednesday after revised official data showed euro zone economic growth was slightly less robust in the second quarter than previously estimated. Euro zone economic growth was slightly less robust in the second quarter than forecast but still strong, and employment rose again, revised data from the European statistics office showed on Wednesday. Eurostat said gross domestic product in the 19 countries using the euro rose 0.6% quarter-on-quarter in April-June for a 3.9% year-on-year rise. The office had previously estimated the quarterly growth at 0.7% and the year-on-year rise at 4.0%. The euro was broadly unchanged versus the dollar at $1.01730. Immediate resistance can be seen at 1.0218(14DMA), an upside break can trigger rise towards 1.0308(38.2%fib).On the downside, immediate support is seen at 1.0114(23.6%fib), a break below could take the pair towards 1.0086(Lower BB).
GBP/USD: The British pound edged lower against dollar on Wednesday after data showed inflation climbed to its highest level in more than four decades in July, heaping pressure on the Bank of England to bring down prices but increasing the risk of a sharper economic slowdown. Consumer price inflation rose to 10.1% in July, its highest since February 1982, official figures showed. The increase was above economists' expectations in a poll for inflation to rise to 9.8%. Money markets are pricing in about an 88% chance of a 50 basis point rate rise from the central bank next month, little changed from before the data. But traders are now pricing in a further 200 basis points of tightening by May next year, taking the Bank Rate to 3.75%. Immediate resistance can be seen at 1.2137(38.2%fib), an upside break can trigger rise towards 1.2246(50%fib).On the downside, immediate support is seen at 1.2028(23.6%fib),a break below could take the pair towards 1.1943 (Lower BB).
USD/CHF: The dollar rose higher against the Swiss franc on Wednesday ahead of the release of minutes of the U.S. Federal Reserve's July meeting that could give further clues about the pace of further interest rate hikes. Traders are pricing in a 50 or 75 basis point rate hike at the next scheduled monetary policy meeting on Sept. 20-21. U.S. retail sales data due later on Wednesday will also be watched closely as an indicator of the economy's resilience. The greenback has recovered the ground it lost since softer-than-expected inflation data last week led to investor bets that price rises may have peaked, weakening the dollar. Immediate resistance can be seen at 0.9537(Daily high), an upside break can trigger rise towards 0.9567(38.2%fib).On the downside, immediate support is seen at 0.9484 (23.6%fib), a break below could take the pair towards 0.9454(5DMA)
USD/JPY: The dollar strengthened against yen on Wednesday after data showed Japan's trade gap widened after a record surge in imports in July. Japan's imports jumped to a record amount in July, boosted by global fuel inflation and a weak yen, outweighing exports and deepening the trade deficit, in a sign of a further worsening in the terms of trade for the export-oriented economy. The trade data came on the heels of Reuters Tankan, which showed improvement in Japan's business sentiment in August, while a key gauge of corporate capital spending rebounded in June from the previous month's decline. The U.S. dollar gained 0.5% versus the yen to 134.960.Strong resistance can be seen at 135.23(38.2%fib), an upside break can trigger rise towards 136.00(Psychological level).On the downside, immediate support is seen at 134.09(5DMA), a break below could take the pair towards 132.47 (50%fib).
Equities Recap
European stocks fell on Wednesday amid inflation worries after data showed British consumer price inflation jumped to 10.1 percent in July, its highest since February 1982, intensifying the squeeze on households.
At (GMT 12:05),UK's benchmark FTSE 100 was last trading down at 0.29% percent, Germany's Dax was down by 1.12% percent, France’s CAC was down by 0.50% percent
Commodities Recap
Gold prices eased in a tight range on Wednesday as the dollar held firm, while investors braced for guidance on U.S. interest rate hikes from the minutes of the Federal Reserve's latest policy meeting.
Spot gold was down 0.2% to $1,771.97 per ounce by 1056 GMT. U.S. gold futures eased 0.2% to $1,786.70.
Oil hit a six-month low on Wednesday after a brief rally as concerns about the prospect of a global recession that would weaken demand overshadowed a report showing lower U.S. crude and gasoline stocks.
Brent crude fell as low as $91.51, the lowest since February, and by 0931 GMT was down 5 cents at $92.29. U.S. West Texas Intermediate (WTI) crude fell 20 cents, or 0.2%, to $86.33.