News

Europe Roundup: Euro little changed ahead of U.S. payrolls data, European shares slips, Gold little changed, Oil heads for weekly gain after OPEC+ cut despite economy headwinds-October 7th,2022

Posted at 07 October 2022 / Categories Market Roundups


Market Roundup

•Swiss Sep Unemployment Rate n.s.a. 1.9%, 2.0% forecast, 2.0% previous

•Swiss Sep Unemployment Rate s.a  2.1%, 2.1%  forecast, 2.1% previous

•German Aug Retail Sales (MoM) -1.3%,  -1.1% forecast, 1.9% previous

•German Aug Import Price Index (MoM)  4.3%,2.0% forecast, 1.4% previous

•German Aug Import Price Index (YoY)  32.7%, 29.9% forecast, 28.9% previous

•UK Sep Halifax House Price Index (MoM) -0.1% forecast, 0.4% previous

•German Aug Industrial Production (MoM) -0.8%, -0.5%  forecast, -0.3% previous

•French Sep Reserve Assets Total  243,535.0M, 242,728.0M previous

•French Aug Trade Balance -15.3B, -14.8B forecast, -14.5B previous

•French Aug Exports  51.2B forecast, 49.0B previous

•French Aug Current Account -5.10B forecast, -5.30B previous

•UK Labour Productivity (Q2) 0.4% forecast, -0.8% previous

Looking Ahead – Economic data (GMT)

•12:30   Canada Sep Part Time Employment Change 37.5K previous

•12:30 Canada Sep Full Employment Change -77.2K previous

•12:30   US Sep Average Hourly Earnings (MoM)0.3% forecast,0.3% previous

•12:30  US Sep Private Nonfarm Payrolls  265K   forecast,308K previous

•12:30  US Sep Nonfarm Payrolls  250K forecast,  315 previous

•12:30 US  Sep Manufacturing Payrolls  19K forecast, 22K previous

•12:30 Canada Sep Participation Rate  64.8% previous

•12:30 Canada Sep Unemployment Rate  5.4% forecast, 5.4% previous

•12:30 US Sep Average Weekly Hours  34.5 forecast, 34.5 previous

•12:30 US Sep  Unemployment Rate  3.7% forecast, 3.7% previous          

•12:30 US  Sep Average Hourly Earnings (YoY) (YoY)  5.1% forecast, 5.2% previous            

•12:30 Canada Sep Employment Change  20.0K forecast, -39.7K previous

•12:30 US Sep Participation Rate  62.4% previous

•14:00   US Aug Wholesale Trade Sales (MoM)  0.4% forecast, -1.4% previous

Looking Ahead - Events, Other Releases (GMT)

• 14:00  US FOMC Member Williams Speaks

Fxbeat

EUR/USD: The euro was little changed against dollar on Friday ahead of a highly anticipated U.S. jobs report due later that could give clues on the Federal Reserve's interest rate hike trajectory .Euro had dipped on Thursday   after minutes from the European Central Bank's last meeting fanned fears about the state of inflation in the euro zone and aggressive policy moves to tame it.All eyes are on the U.S. nonfarm payrolls report, due at 1230 GMT, which will show job growth likely slowed in September, although overall labour market conditions remain tight, providing the Federal Reserve with cover to continue hiking rates. The euro was last up 0.1% on the day at $0.9801, having tried twice unsuccessfully to regain parity this week.  Immediate resistance can be seen at 0.9871(21DMA), an upside break can trigger rise towards 0.9912 (38.2%ib).On the downside, immediate support is seen at 0.9766(23.6%fib), a break below could take the pair towards 0.9643 (Sep 29th low).

GBP/USD: Sterling edged higher against dollar on Friday as investors braced for a U.S. jobs report, which could influence the Federal Reserve’s rate hike trajectory. Sterling rose 0.3% to $1.1192, having fallen 1.4% overnight. It rose to as much as $1.1493 earlier this week, after the British government reversed a planned cut to the highest rate of income tax. All eyes now turn to the U.S. non-farm payrolls report due at 1230 GMT. Economists expect 250,000 jobs to have been added last month, compared with 315,000 in August. The U.S. dollar index eased 0.1% to 112.11, after rising nearly 1% overnight, and was set for a decline of 0.16% this week. Immediate resistance can be seen at 1.1245(38.2%fib), an upside break can trigger rise towards 1.1297 (5DMA).On the downside, immediate support is seen at 1.1124  (Daily low), a break below could take the pair towards 1.0893 (23.6%fib).

 USD/CHF: The dollar steadied against the Swiss franc on Friday as investors bet a solid jobs data later in the day will keep the world's biggest central bank on its aggressive tightening path to tame inflation. Comments from Federal Reserve officials overnight that the U.S. central bank is not nearly finished with its rate hiking cycle sapped risk appetite, with all eyes now on U.S. non-farm payrolls due at 1230 GMT to make bets on the Fed's rate hike path.A  poll predicts 250,000 jobs were created in September after rising 315,000 in August, while the unemployment rate is expected to remain at 3.7%. Immediate resistance can be seen at 0.9931(23.6%fib), an upside break can trigger rise towards 0.9985(Higher BB).On the downside, immediate support is seen at 0.9867(5DMA), a break below could take the pair towards 0.9827(38.2%fib).

USD/JPY: The dollar edged lower against the Japanese yen on Friday as investors bet on another strong U.S. non-farm payrolls report that should keep the Federal Reserve on an aggressive tightening path for some time. The U.S. Labor Department’s nonfarm payrolls data for September on Friday would follow a better-than-expected ADP National Employment report on Wednesday. Upbeat data and hawkish comments from San Francisco Federal Reserve President Mary Daly on Wednesday cooled any hopes of a policy pivot. The yen was last up 0.2% against the dollar at 144.91 per dollar, close to a 24-year low of 145.90 hit last month .Strong resistance can be seen at 144.12 (23.6% fib), an upside break can trigger rise towards 145.51 (Higher BB).On the downside, immediate support is seen at 144.60 (5DMA ), a break below could take the pair towards 142.72 (38.2% fib).

Equities Recap

European shares slipped on Friday, led by semiconductor firms after weak earnings and forecasts from Samsung and Advanced Micro Devices, while recession fears lingered amid signs that central banks would remain aggressive with policy tightening.

At (GMT 12:15 ),UK's benchmark FTSE 100 was last trading up at 0.17 percent, Germany's Dax was down by 0.01 percent, France’s CAC  was up by 0.19 percent.

Commodities Recap

Gold prices were stuck in a tight range on Friday as investors braced for a U.S. jobs report, which could influence the Federal Reserve’s rate hike trajectory.

Spot gold was up 0.1% at $1,713.20 per ounce, as of 0904 GMT. Prices have risen about 3.3% so far this week.U.S. gold futures were steady at $1,719.80.

Oil rose about 1% on Friday and was headed for a second consecutive weekly gain supported by OPEC+'s decision to make its largest supply cut since 2020 despite concern about recession and rising interest rates.

Brent crude was up 87 cents, or 0.9%, to $95.29 a barrel at 1110 GMT. U.S. West Texas Intermediate or WTI crude gained 98 cents, or 1.1%, to $89.43.


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