Posted at 29 August 2022 / Categories Market Roundups
Market Roundup
•Sweden GDP (QoQ) 0.9%,1.4% forecast,-0.8%previous
•Sweden Retail Sales (YoY)-3.9%, -3.4% forecast, -3.6% previous
•Sweden Retail Sales (MoM) -0.6%, 0.6% forecast, -1.3% previous
•Sweden GDP (YoY)3.8%,4.2% forecast, 3.0% previous
Looking Ahead - Economic Data (GMT)
• 13:00 French 12-Month BTF Auction 0.680% previous
• 13:00 French 3-Month BTF Auction 0.058% previous
• 13:00 French 6-Month BTF Auction 0.084% previous
• 14:30 US Aug Dallas Fed Mfg Business Index -22.6 previous
• 14:30 US 3-Month Bill Auction 2.740% previous
• 15:30 US 6-Month Bill Auction 3.110% previous
Looking Ahead - Economic events and other releases (GMT)
• 18:15 US Fed Vice Chair Brainard Speaks
Fxbeat
EUR/USD: The euro strengthen on Monday as money markets moved to price in a two-thirds chance of a large 75 basis-point European Central Bank rate hike in September on Monday, as policymakers made the case over the weekend for a large move to tame uncomfortably high inflation. ECB governing council member Francois Villeroy de Galhau said on Saturday the bank needed another "significant" hike in September, while ECB policymaker Martins Kazaks said a euro zone recession was very likely but that alone would not bring down inflation, and the bank should opt for a big rate hike next month. Markets now price in two-thirds risk the ECB could hike rates by 75 bps at its September meeting, up from 24% last week.. Immediate resistance can be seen at 0.1019(38.2%fib), an upside break can trigger rise towards 1.0041(11DMA).On the downside, immediate support is seen at 0.9972(5DMA), a break below could take the pair towards 0.9926 (23.6%fib).
GBP/USD: The British pound fell to its lowest level since March 2020 on Monday as mounting concern about the economic outlook gave traders added reason to dump the currency against the broadly robust U.S. dollar. Inflation in Britain has hit a 40-year high and the Bank of England (BoE) has warned of a lengthy recession. Soaring energy bills have exacerbated concern about the economic outlook. British energy bills will jump 80% to an average of 3,549 pounds ($4,188) a year from October, the regulator said on Friday, the latest example of what politicians have called a cost-of-living crisis .Sterling came under fresh selling pressure and fell to as low as $1.1649 the lowest since March 2020. It was last down 0.3% at $1.1690 in Europe. Immediate resistance can be seen at 1.1820(38.2%fib), an upside break can trigger rise towards 1.1856(5DMA).On the downside, immediate support is seen at 1.1650(23.6%fib),a break below could take the pair towards 1.1583(Lower BB).
USD/CHF: The dollar steadied against the Swiss franc on Monday as the dollar continued to rise after U.S. Federal Reserve Chair Jerome Powell signalled interest rates would be kept higher for longer to bring down soaring inflation. Federal Reserve Chair Jerome Powell, speaking at the Jackson Hole symposium on Friday, said the Fed would raise rates as high as needed to restrict growth, and keep them there "for some time" to bring down inflation running well above its 2% target. The dollar index , which measures the U.S. currency against six rivals, was slightly up to 109.48. At 12:44 GMT, the dollar was 0.17 percent higher versus the Swiss franc at 0.9675 . Immediate resistance can be seen at 0.9868(38.2%fib), an upside break can trigger rise towards 0.9731(Higher BB).On the downside, immediate support is seen at 0.9619(50%fib), a break below could take the pair towards 0.9592(11DMA)
USD/JPY: The dollar strengthened against yen on Monday as Federal Reserve Chair Jerome Powell signalled interest rates would be kept higher for longer to bring down uncomfortably high inflation. In a speech kicking off the Jackson Hole central banking conference in Wyoming on Friday, Powell said the Fed would continue to raise rates to curb inflation even as it caused pain for households and businesses. Markets are now largely pricing in a 75-basis-point rate hike at the Fed's September meeting. The dollar index , which measures the currency's value against a basket of peers, scaled a fresh two-decade peak of 109.48 before pulling back slightly as the European session wore on.It held around 0.5% firmer against Japan's yen. Strong resistance can be seen at 138.65(Higher BB), an upside break can trigger rise towards 139.30(23.6%fib).On the downside, immediate support is seen at 137.45(Daily low), a break below could take the pair towards 136.99(38.2%fib).
EquitiesRecap
European shares dropped sharply on Monday while bond yields surged as comments from central bank policymakers heightened fears of aggressive measures to stamp out inflation amid rising risks of a recession.
At (GMT 12:29),UK's benchmark FTSE 100 was last trading down at 0.70% percent, Germany's Dax was down by 0.83 % percent, France’s CAC was up by 1.33% percent
Commodities Recap
Gold prices fell to a one-month low on Monday as U.S. Federal Reserve Chair Jerome Powell acknowledged that a quick undo of the U.S. central bank’s rate tightening was far from over, boosting the dollar.
Spot gold fell 0.6% to $1,727.20 per ounce by 1109 GMT after hitting its lowest since July 27 at $1,719.56 earlier in the session.US. gold futures dropped 0.6% to $1,738.90.
Oil prices rose 1% on Monday, as expectations OPEC will cut output if needed to support prices, conflict in Libya, and rising demand amid soaring natural gas prices in Europe helped offset a dire outlook for growth in the United States.
U.S. West Texas Intermediate (WTI) crude futures jumped $1.09, or 1.2%, to $94.15 a barrel at 0241 GMT, adding to a 2.5% gain last week.
Brent crude futures rose 89 cents, or 0.9%, to $101.88 a barrel, extending a 4.4% gain last week.