Posted at 26 September 2022 / Categories Market Roundups
Market Roundup
• German Sep Business Expectations 75.2,79.0 forecast, 80.3 previous
• German Sep Ifo Business Climate Index 84.3, 87.0 forecast, 88.5 previous
• German Sep Current Assessment 94.5, 96.0 forecast, 97.5 previous
•Canada Wholesale Sales (MoM) 0.8% ,-0.6% previous
Looking Ahead - Economic Data (GMT)
•13:00 Belgium Sep NBB Business Climate -8.3 forecast, -5.8 previous
•13:00 EU French 6-Month BTF Auction 0.890% previous
•13:00 EU French 3-Month BTF Auction 0.686% previous
•13:00 EU French 12-Month BTF Auction 1.798% previous
•14:30 US Sep Dallas Fed Mfg Business Index -12.9 previous
•15:30 US 3-Month Bill Auction 3.270% previous
•15:30 US 6-Month Bill Auction 3.780% previous
Looking Ahead - Economic events and other releases (GMT)
•14:00 US FOMC Member Rosengren Speaks
•13:00 EU ECB President Lagarde Speaks
• 16:00 UK MPC Member Tenreyro Speaks
Fxbeat
EUR/USD: The euro declined versus the dollar on Monday as Germany’s latest IFO numbers highlighted the fragility of the eurozone economy. The German economy is heading for recession, the Ifo institute said on Monday, reporting a stronger-than-forecast plunge in business morale across all sectors as Germany scrambles to avoid a gas shortage this winter. The Ifo institute said its business climate index fell to 84.3 from 88.6 in August, posting a more severe drop than the 87.0 forecast by economists according to a poll. The downturn was visible across all four sectors of the German economy, Ifo said, adding that pessimism had increased considerably looking ahead to the coming months. Immediate resistance can be seen at 0.97168(38.2%fib), an upside break can trigger rise towards 0.9803(5DMA).On the downside, immediate support is seen at 0.9600(Psychological level), a break below could take the pair towards 0.9555(23.6%fib).
GBP/USD: Sterling crashed to a record low on Monday as traders rushed for the exits on mounting concern that the new government's economic plan will stretch Britain's finances to the limit.The British pound's searing drop helped lift the safe-haven U.S. dollar to a new two-decade peak against a basket of major currencies, while the euro hit a fresh two-decade low against the greenback. The pound had already fallen 3.6% on Friday, when new finance minister Kwasi Kwarteng unveiled historic tax cuts funded by the biggest increase in borrowing since 1972. The pound recovered ground during the London session but was still down 1.5% at $1.0689 . Immediate resistance can be seen at 1.1015(38.2%fib), an upside break can trigger rise towards 1.1133(5DMA).On the downside, immediate support is seen at 1.0688(23.6%fib),a break below could take the pair towards 1.0600(Psychological level).
USD/CHF: The dollar strengthened against the Swiss franc on Monday as the safe-haven U.S. dollar continued to soar against a basket of major peers. Surging inflation has prompted several central banks to tighten monetary policy, with the U.S. Fed raising its benchmark overnight interest rate by 75 basis points on Wednesday. Atlanta Fed President Raphael Bostic said on Sunday he still believes the U.S. central bank can tame inflation without substantial job losses given the economy's continued momentum Immediate resistance can be seen at 0.9926 (23.6% fib), an upside break can trigger rise towards 0.9956(Higher BB).On the downside, immediate support is seen at 0.9809 (38.2% fib), a break below could take the pair towards 0.9751 (5DMA).
USD/JPY: The dollar rose against yen on Monday as U.S. Federal Reserve's hawkish stance stance on rate hikes boosted greenback. Surging inflation has prompted several central banks to tighten monetary policy. The U.S. central bank and a number of other major central banks raised interest rates last week, triggering concerns over the impact on growth. Last week, the Federal Reserve hiked interest rates by 75 bps for the third consecutive time and Chairman Jerome Powell said central bank officials are "strongly resolved" to bringing down inflation. Benchmark U.S. Treasury yields firmed near their highest level since 2011.Strong resistance can be seen at 144.22(23.6%fib), an upside break can trigger rise towards 145.57(Higher BB).On the downside, immediate support is seen at 143.50(5DMA), a break below could take the pair towards 142.00(Psychological level).
Equities Recap
European stocks traded mixed on Monday after having suffered heavy losses last week on worries about an economic downturn.
At (GMT 12:30 ),UK's benchmark FTSE 100 was last trading down at 0.72 percent, Germany's Dax was down by 0.08 percent, France’s CAC finished was down by 0.16 percent.
Commodities Recap
Gold prices steadied after dropping to a 2-1/2-year low on Monday as the dollar rally took a breather, while analysts expected a further drop in prices with more interest rate hikes by the U.S. Federal Reserve looming.
Spot gold was little changed at $1,645.47 per ounce as of 0724 GMT. Prices fell as much as 1% earlier in the session to hit $1,626.41, their lowest level since April 2020.U.S. gold futures fell 0.4% to $1,648.70.
Oil prices hit nine-month lows on Monday, driven down by an expected decline in fuel demand as rising interest rates raise the likelihood of global recession, with further price pressure coming from a surging U.S. dollar.
Brent crude futures for November settlement slipped by 82 cents, or 1%, to $85.33 a barrel at 1110 GMT. The contract fell as low as $84.51, the lowest since Jan. 14.
U.S. West Texas Intermediate (WTI) crude for November delivery dropped 74 cents, or 0.9%, to $78. WTI dropped as low as $77.21, the lowest since Jan. 6.