Posted at 10 October 2022 / Categories Market Roundups
Market Roundup
•EU Oct Sentix Investor Confidence -38.3, -34.7 forecast,-31.8 previous
•Greek Sep HICP (YoY) 12.1%, 11.2% previous
• Greek Sep CPI (YoY) 12.0%, 11.4% previous
• Greek Aug Industrial Production (YoY) 3.9%, 7.0% previous
Looking Ahead – Economic data (GMT)
•13:00 EU French 6-Month BTF Auction 1.206% previous
•13:00 EU French 3-Month BTF Auction 0.646% previous
•14:00 US CB Sep Employment Trends Index 119.06 previous
Looking Ahead - Events, Other Releases (GMT)
•13:00 ECB's Lane Speaks
• 13:00 US Chicago Fed President Evans Speaks
• 17:35 US Fed Vice Chair Brainard Speaks
Fxbeat
EUR/USD: The euro declined against dollar on Monday after a surprise drop in U.S. unemployment quashed any thought of a pivot on policy tightening ahead of a reading on inflation which is expected to see core prices move higher again. Headline consumer price inflation is seen slowing a touch to an annual 8.1%, but the core measure is forecast to accelerate to 6.5% from 6.3%. The U.S. CPI data will be released on Thursday at 8:30 am ET (1230 GMT). Minutes of the Fed’s last policy meeting are also out this week and are likely to sound hawkish given how many policy makers lifted their dot plot forecasts for rates. The euro looked vulnerable at $0.9738, having retreated from a high of $0.9999 last week. Immediate resistance can be seen at 0.9811(9DMA), an upside break can trigger rise towards 0.9843 (38.2%ib).On the downside, immediate support is seen at 0.9676(23.6%fib), a break below could take the pair towards 0.9581 (Lower BB).
GBP/USD: Sterling slid versus the dollar on Monday after Friday's strong U.S. labour market data supported bets the Federal Reserve will keep raising rates aggressively, though it recovered a little after Britain said it will publish independent budget forecasts this month.The pound dropped to a 10-day low of $1.1027 but was last just 0.12% lower against the dollar at $1.1077, recovering after the Treasury said Britain will publish its medium-term fiscal plan and independent budget forecasts on Oct. 31.The government had been due to set out the plan, which builds on a mini-budget in September, on Nov. 23, but markets reacted badly to the September announcement and the lack of accompanying independent forecasts, leading to pressure to bring these forward. Immediate resistance can be seen at 1.1191 (11DMA), an upside break can trigger rise towards 1.1158 (38.2%fib).On the downside, immediate support is seen at 1.0880 (23.6%fib), a break below could take the pair towards 1.0716 (Lower BB).
USD/CHF: The dollar started the week firmer against Swiss franc on Monday, with a strong U.S. labour market reinforcing bets on higher interest rates as traders braced for data expected to show stubbornly high inflation.U.S. unemployment unexpectedly fell last month, Friday figures showed, and inflation data due on Thursday is forecast to show headline inflation at a hot 8.1% year-on-year. Policymakers' preferred core inflation is seen rising to 6.5%. Investors will now focus on the U.S. inflation data due later this week. Headline consumer price inflation is seen slowing a touch to an annual 8.1%, but the core measure is forecast to accelerate to 6.5% from 6.3%.Immediate resistance can be seen at 0.9992(23.6%fib), an upside break can trigger rise towards 1.0022(Higher BB).On the downside, immediate support is seen at 0.9927(Daily low), a break below could take the pair towards 0.9874(11DMA).
USD/JPY: The dollar strenthed against the Japanese yen on Monday as strong U.S. jobs data cemented the view that the Federal Reserve would continue its policy of aggressive interest rate hikes. Data showed on Friday U.S. job growth slowed moderately in September, while the unemployment rate dropped, signalling a resilient economy and dousing hopes of a Fed pivot anytime soon. Traders are largely expecting another 75-basis-point rate increase at the Fed meet next month. The dollar index was firm at 112.75 having risen the for the past three sessions. It stood at 145.50 yen but had so far shied away from the recent 24-year top of 145.90 for fear of Japanese intervention.Strong resistance can be seen at 145.76 (23.6% fib), an upside break can trigger rise towards 146.22(Higher BB).On the downside, immediate support is seen at 144.98 (23.6% fib ), a break below could take the pair towards 144.94 (5DMA).
Equities Recap
European stocks fell for a fourth straight session on Monday amid heightened geopolitical tensions and expectations that the Federal Reserve will move ahead with further interest rate hikes.
At (GMT 11:37 ),UK's benchmark FTSE 100 was last trading down at 0.18 percent, Germany's Dax was up by 0.68 percent, France’s CAC finished was down by 0.11 percent.
Commodities Recap
Gold prices dipped for a fourth straight session on Monday, weighed down by a stronger dollar after healthy U.S. jobs data cemented bets that the Federal Reserve would stick to its aggressive rate hike path.
Spot gold was down 0.8% at $1,680.60 per ounce, as of 0857 GMT, after hitting its lowest since Oct. 3. U.S. gold futures fell 1.2% to $1,688.30.
Oil prices fell on Monday, ending five straight days of gains, as investors looked to slowing economic activity in China, the world's biggest crude importer, which revived concerns about a global recession and falling global fuel demand.
Brent crude futures for December settlement fell by as much as 1.1%, and was last down 86 cents, or 0.9%, at $97.06 a barrel by 1111 GMT.
West Texas Intermediate crude for November delivery declined by as much as 1.1% and was last at $91.94 a barrel, down 70 cents, or 0.8%.