Posted at 26 August 2022 / Categories Market Roundups
Market Roundup
• German Sep GfK Consumer Climate -36.5, -31.8 forecast, -30.6 previous
•Sweden Jul PPI (YoY) 20.4%, 25.6% previous
•Sweden Jul PPI (MoM) -1.5%, 2.5% previous
•French Aug Consumer Confidence 82, 79 forecast, 80 previous
•Italian Aug Business Confidence 104.3, 104.4 forecast, 106.7 previous
•EU Private Sector Loans (YoY) 4.5%, 4.6% forecast, 4.6% previous
•Italian Aug Consumer Confidence 98.3, 92.5 forecast, 94.8 previous
•EU Jul M3 Money Supply (YoY) 5.5%, 5.6% forecast,5.7% previous
Looking Ahead - Economic Data (GMT)
•12:30 US Jul Personal Income (MoM) 0.6% forecast,0.6% previous
•12:30 US Wholesale Inventories (MoM) 1.4% forecast, 1.8% previous
•12:30 US Core PCE Price Index (YoY) 4.7% forecast, 4.8% previous
•12:30 US Jul Retail Inventories Ex Auto 1.5% previous
•12:30 US Jul PCE Price index (YoY) 6.8% previous
•12:30 US Jul Personal Spending (MoM) 0.4% forecast, 1.1% previous
•12:30 US Jul PCE price index (MoM) 1.0% previous
•12:30 US Jul Core PCE Price Index (MoM) 0.3% forecast, 0.6% previous
•14:00 US Michigan 5-Year Inflation Expectations 3.00% forecast,2.90% previous
•14:00 US Aug Michigan Current Conditions 55.5 forecast,58.1 previous
•14:00 US Aug Michigan Consumer Sentiment 55.1 forecast, 51.5 previous
•14:00 US Aug Michigan Consumer Expectations 54.9 forecast, 47.3 previous
•15:00 Canada Jun Budget Balance (YoY) 5.32B previous
•15:00 Canada Jun Budget Balance 2.66B previous
•17:00 U.S. Baker Hughes Total Rig Count 762 previous
•17:00 U.S. Baker Hughes Oil Rig Count 601 previous
Looking Ahead - Events, Other Releases (GMT)
•13:00 US Jackson Hole Symposium
•13:00 US FOMC Member Harker Speaks
•13:00 US FOMC Member Bullard Speaks
•13:00 US FOMC Member Bostic Speaks
•14:00 US Fed Chair Powell Speaks
• 16:30 US FOMC Member Mester Speaks
Fxbeat
EUR/USD: The euro strengthened dollar on Friday as the market paused ahead of Federal Reserve chair Jerome Powell’s speech at Jackson Hole.Most analysts argued Powell’s speech is unlikely to trigger a further sell-off in bonds as the Fed leaned hard on the idea that rates would rise and remain at a high level until inflation returned to the 2% target, despite recession risks.Fed officials on Thursday were noncommittal about the size of the interest rate increase they will approve at their Sept. 20-21 meeting. The euro gained 0.4% to $1.00120, nudging back above parity against the dollar after spending much of this week below the psychologically important level. Immediate resistance can be seen at 1.0056 (9DMA), an upside break can trigger rise towards 1.0131(38.2%fib).On the downside, immediate support is seen at 0.9992(23.6%fib), a break below could take the pair towards 0.9865 (Lower BB).
GBP/USD: The British pound slipped slightly on Friday as traders waited for a speech by U.S. Federal Reserve Chair Jerome Powell and assessed the likely impact of a massive jump in UK household energy bills. Global markets were steady, with attention focused on Powell’s speech at the Jackson Hole symposium at 1400 GMT which investors hope will give clues on the Fed’s future interest rate policy. British energy bills are set to jump 80% from October to an average of 3,549 pounds ($4,190) a year, the regulator Ofgem said, calling it a “crisis” that needed to be tackled by urgent and decisive government intervention.Inflation in Britain has hit a 40-year high, and the Bank of England has warned of a lengthy recession. At 0954 GMT the pound was a touch lower against the dollar at $1.1833. Immediate resistance can be seen at 1.1902(38.2%fib), an upside break can trigger rise towards 1.1953(5DMA).On the downside, immediate support is seen at 1.1770(38.2%fib),a break below could take the pair towards 1.1675 (Lower BB).
USD/CHF: The dollar declined against the Swiss franc on Friday ahead of U.S. Federal Reserve Chair Jerome Powell's widely-anticipated speech at the Jackson Hole symposium. Traders are looking for clues on the U.S. central bank's tightening plans to combat rampant inflation when Powell speaks at 1400 GMT.The dollar index which tracks the greenback against six major currencies has steadily gained over the past two weeks and is just shy of the two-decade peak of 109.29 it hit in mid-July. After making small gains earlier in the session, it slipped a quarter of a percent on the day to 108.210. Immediate resistance can be seen at 0.9679(23.6%fib), an upside break can trigger rise towards 0.9748(Higher BB).On the downside, immediate support is seen at 0.9630(5DMA), a break below could take the pair towards 0.9591(38.2%fib)
USD/JPY: The dollar steadied against yen on Friday as investors positioned for Federal Reserve Chair Jerome Powell's speech at Jackson Hole for indications on further rate rises. Powell is scheduled to speak at 1400 GMT at the conference in Wyoming. But some market participants do not expect a clear message from Powell on the size of the next hike, with recent comments on rates from Fed policymakers indicating they could go further. The dollar index edged lower on the day, but was still well within sight of a two-decade peak. The dollar gained 0.3% on the Japanese yen, last quoted at 136.905 yen per dollar. Strong resistance can be seen at 137.76(23.6%fib), an upside break can trigger rise towards 138.00(Psychological level).On the downside, immediate support is seen at 135.49 (9DMA), a break below could take the pair towards 135.35(38.2%fib).
Equities Recap
European shares slipped on Friday as investors fretted over downbeat German consumer sentiment data due to rising energy costs and the path for U.S. interest rate hikes ahead of Federal Reserve Chair Jerome Powell's speech at Jackson Hole.
At (GMT 12:30 ),UK's benchmark FTSE 100 was last trading up at 0.13 percent, Germany's Dax was down by 0.10 percent, France’s CAC finished was down by 0.13 percent.
Commodities Recap
Gold prices fell on Friday as the dollar held near recent peaks and Treasury yields firmed with investors positioning for Federal Reserve Chair Jerome Powell's speech at Jackson Hole for indications on further rate rises.
Spot gold fell 0.8% to $1,743.60 per ounce by 1203 GMT. U.S. gold futures dropped 0.9% to $1,756.40.
Oil prices rose as much as $1 on Friday on signs of improving fuel demand, though an upcoming speech from the U.S. Federal Reserve chairman capped further gains.
Brent crude futures climbed $1.53, or 1.54%, to $100.87 a barrel by 1051 GMT. U.S. West Texas Intermediate (WTI) crude futures rose $1.20 cents, or 1.3%, to $93.72.