Posted at 06 October 2022 / Categories Market Roundups
Market Roundup
•Sweden Aug Industrial New Orders (YoY)-0.6%, 4.3%previous
•German Aug Factory Orders (MoM) -2.4%, -0.7%forecast, -1.1% previous
•Spanish Aug Industrial Production (YoY) 5.5%, 4.8% forecast, 5.3% previous
•UK Sep Construction PMI 52.3,48.0 forecast, 49.2 previous
•EU Aug Retail Sales (YoY) -2.0%,-1.7% forecast, -0.9% previous
•EU Aug Retail Sales (MoM) -0.3%, -0.4% forecast, 0.3% previous
• US Initial Jobless Claims219K,203K forecast, 193K previous
• US Jobless Claims 4-Week Avg 206.50K, 207.00K previous
• Continuing Jobless Claims 1,361K,1,345K,1,347K previous
Looking Ahead – Economic Data (GMT)
•14:00 Canada Sep Ivey PMI 60.9 previous
•14:00 Canada Sep Ivey PMI n.s.a 57.1 previous
•14:00US Natural Gas Storage 113B forecast, 103B previous
•15:30 US 4-Week Bill Auction 2.660% previous
•15:30 US 8-Week Bill Auction 2.990% previous
Looking Ahead - Events, Other Releases (GMT)
•15:35 Canada BoC Gov Macklem Speaks
•17:00 US Fed Governor Cook Speaks
•17:00 US Chicago Fed President Evans Speaks
•21:00 US Fed Waller Speaks
•22:30 US FOMC Member Mester Speaks
Fxbeat
EUR/USD: The euro edged lower against dollar on Thursday as weak economic data weighed on euro. German industrial orders dropped more than expected in August, dragged down by a fall in orders from the euro zone, where companies are battling with energy and inflation crises, data showed on Thursday.New orders in manufacturing fell by 2.4% month on month on a seasonally and calendar adjusted basis, the federal statistics office said. Analysts had predicted a less severe 0.7% drop.Eurozone retails sales fell 0.3 percent month-on-month in August and by 2.0 percent on an annualized basis. Immediate resistance can be seen at 0.9889(Daily high), an upside break can trigger rise towards 1.1062 (38.2%ib).On the downside, immediate support is seen at 0.9844 (23.6%fib), a break below could take the pair towards 0.9789 (9DMA).
GBP/USD: Sterling edged lower on Thursday after a sharp drop the previous day, as investors waited for Friday’s highly significant U.S. jobs data. The greenback suffered its biggest one-day drop in more than two years on Tuesday after some weak economic data raised hopes that the Fed might slow down on rate hikes, but rebounded a day after. This bounce continued on Thursday, with the dollar index last up 0.28% to 111.23, not too far from its 20-year high of 114.78 touched last week. Traders are particularly grappling with whether the U.S. Federal Reserve will maintain its aggressive pace of interest rate hikes as it tries to curb inflation which sent the dollar surging this year or whether concerns about slowing economic growth mean it will pivot and raise rates more slowly. Immediate resistance can be seen at 1.1597(Daily high), an upside break can trigger rise towards 1.1558 (38.2%fib).On the downside, immediate support is seen at 1.1217 (23.6%fib), a break below could take the pair towards 1.1108 (9 DMA).
USD/CHF: The dollar steadied against the Swiss franc on Thursday as investors awaited U.S. nonfarm payrolls data that could affect the Federal Reserve’s rate hike strategy. U.S. Labor Department’s more comprehensive watched nonfarm payrolls data due on Friday follows a strong ADP National Employment report released on Wednesday. The ADP report showed private employment rose by 208,000 jobs last month, while separately the Institute for Supply Management’s non-manufacturing PMI reading came in slightly above expectations, suggesting underlying strength in the economy despite rising interest rates. Upbeat data and hawkish comments from San Francisco Federal Reserve President Mary Daly on Wednesday cooled any hopes of a policy pivot. Immediate resistance can be seen at 0.9849(Daily high), an upside break can trigger rise towards 0.9889(23.6%fib).On the downside, immediate support is seen at 0.9761 (38.2% fib), a break below could take the pair towards 0.9738(21DMA).
USD/JPY: The dollar strengthened against the Japanese yen on Thursday as the dollar steadied ahead of U.S. jobs data that could offer a steer on the US economic outlook. Investors are anxiously waiting for confirmation from Friday's U.S. non-farm payrolls report of the resilience of the world's largest economy. U.S. non-farm payrolls data is due on Friday and analysts polled expect 250,000 jobs were added last month. San Francisco Federal Reserve President Mary Daly on Wednesday underscored the U.S. central bank's commitment to curbing inflation with more rate hikes, even as she said the Fed will not simply barrel ahead if the economy starts to crack.. Strong resistance can be seen at 144.76 (23.6% fib), an upside break can trigger rise towards 145.90 (Higher BB).On the downside, immediate support is seen at 144.08 (14DMA ), a break below could take the pair towards 143.52 (38.2% fib).
Equities Recap
European stocks traded flat to slightly higher on Thursday despite renewed concerns about inflation and a possible recession.
At (GMT 12:15 ),UK's benchmark FTSE 100 was last trading down at 0.78 percent, Germany's Dax was down by 0.20 percent, France’s CAC finished was down by 0.40 percent.
Commodities Recap
Gold prices inched lower on Thursday, hurt by an uptick in the dollar and U.S. Treasury yields, while investors held back from making large bets ahead of U.S. jobs data.
Spot gold was down 0.1% at $1,713.91 per ounce as of 1147 GMT. U.S. gold futures edged 0.1% higher to $1,722.50.
Oil prices held near three-week highs on Thursday after OPEC+ agreed to tighten global crude supply with a deal to cut production targets by 2 million barrel per day (bpd), the largest reduction since 2020.
Brent crude futures edged down 16 cents, or 0.2%, to $93.21 per barrel by 1020 GMT after settling 1.7% up in the previous session.
U.S. West Texas Intermediate (WTI) crude futures lost 14 cents, or 0.2%, to $87.62 after closing 1.4% up on Wednesday.