Posted at 11 October 2022 / Categories Market Roundups
Market Roundup
•UK Aug Employment Change 3M/3M (MoM)-109K,-155K forecast,40K previous
•UK Aug Average Earnings Index +Bonus 6.0%, 5.9% forecast, 5.5% previous
•UK Aug Unemployment Rate 3.5%, 3.6% forecast, 3.6% previous
•UK Aug Average Earnings ex Bonus 5.4%,5.3% forecast, 5.2% previous
•UK Sep Claimant Count Change 25.5K, 4.2K forecast, 6.3K previous
Looking Ahead - Economic Data (GMT)
•14:00 US IBD/TIPP Economic Optimism 40.5 forecast, 44.7 previous
•15:30 US 6-Month Bill Auction 3.850% previous
•15:30 US 3-Month Bill Auction 3.340% previous
Looking Ahead - Events, Other Releases (GMT)
•15:00 UK BoE MPC Member Cunliffe Speaks
•15:30 US FOMC Member Harker Speaks
•16:00 US FOMC Member Mester Speaks
•16:45 Swiss SNB Chairman Thomas Jordan speaks
•18:00 UK BoE MPC Member Cunliffe Speaks
Fxbeat
EUR/USD: The euro was little changed against dollar on Tuesday as investors sentiment was weighed down by unease about rapidly rising interest rates and escalation in the Ukraine war . U.S. President Joe Biden spoke with Ukrainian President Volodymyr Zelenskiy on Monday after Russia rained cruise missiles on Kyiv and other Ukrainian cities on Monday in its most widespread air attacks since the start of the war on Feb. 24, killing at least 11 people and wounding 64. Biden condemned the attacks and pledged to continue working with allies to hold Russia accountable for its war crimes and atrocities the White House said. The euro was little changed at $0.97075, stemming four days of losses that have seen the currency drift toward the 20-year low of $0.9528 it touched on Sept. 2. Immediate resistance can be seen at 0.9766(5DMA), an upside break can trigger rise towards 0.9843 (38.2%ib).On the downside, immediate support is seen at 0.9668(23.6%fib), a break below could take the pair towards 0.9571 (Lower BB).
GBP/USD: The pound headed for a fifth day of losses on Tuesday as turmoil engulfing UK government bond markets forced the Bank of England to step in again to attempt to stem a damaging debt sell-off. Sterling last traded 0.1% lower against the dollar at $1.1054, but edged up 0.1% versus the euro to 87.84 pence. The BoE said it would extend a series of debt buybacks to include inflation-linked bonds predominantly owned by pension funds which witnessed their biggest rout on record on Monday. The pound hit a record low of $1.0327 on Sept 26. It has since recovered around 7% in value, but is still showing an 18% loss so far this year - its weakest annual performance against the dollar since 2008. Immediate resistance can be seen at 1.1138 (5DMA), an upside break can trigger rise towards 1.1257 (38.2%fib).On the downside, immediate support is seen at 1.0949 (23.6%fib), a break below could take the pair towards 1.0700 (Lower BB).
USD/CHF: The dollar dipped against Swiss franc on Tuesday as geopolitical tensions and expectations of large interest rate hikes by the U.S. Federal Reserve kept investors cautious. Strong U.S. labour market data and an expectation that Thursday's inflation figures will remain stubbornly high have all but dashed bets on anything but high interest rates through 2023 and are driving the dollar back toward the 2002 peak hit last month. Russia continued to strike Ukrainian cities on Tuesday in retaliation for a blast that damaged the only bridge linking Russia to the annexed Crimean peninsula. Immediate resistance can be seen at 1.0027(23.6%fib), an upside break can trigger rise towards 1.0045(Higher BB).On the downside, immediate support is seen at 0.9938(5DMA), a break below could take the pair towards 0.9896(38.2%fib).
USD/JPY: The dollar edged lower against the Japanese yen on Tuesday as worries about rising interest rates and geopolitical tensions unsettled investors. Strong U.S. labour market data and an expectation that Thursday's inflation figures will remain stubbornly high have all but dashed bets on anything but high interest rates through 2023 and are driving the dollar back toward the 2002 peak hit last month. Western governments plan to ratchet up pressure on Russia over its war in Ukraine, underscoring continued support for Ukraine when finance officials from around the world gather in Washington this week, senior U.S. officials said on Tuesday. The yen hit 145.86 per dollar, just short of the 24-year trough of 145.90 touched before the Japanese government stepped in to prop it up three weeks ago. It was last flat at 145.68 per dollar. 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 fifth consecutive session on Tuesday as investors fretted about the impact of higher interest rates on corporate profits.
At (GMT 13:00 ),UK's benchmark FTSE 100 was last trading down at 0.69 percent, Germany's Dax was down by 0.51percent, France’s CAC finished was down by 0.21 percent.
Commodities Recap
Gold prices were flat on Tuesday, pinned near a one-week low hit in the previous session, as a firmer dollar and the prospect of further oversized rate hikes by the U.S. Federal Reserve sapped the zero-yielding asset’s appeal.
Spot gold was flat at $1,668.29 per ounce, as of 0143 GMT. Prices fell 1.6% on Monday, their biggest one-day percentage decline since Sept. 23.U.S. gold futures rose 0.3% to $1,679.60 per ounce.
Oil prices lost about 2% on Tuesday, extending the previous session's almost 2% decline, as recession fears and a flare-up in COVID-19 cases in China raised concerns over global demand.
Brent crude fell $1.61, or 1.7%, to $94.58 a barrel by 1200 GMT. U.S. West Texas Intermediate crude dropped $1.88, or 2.1%, to $89.25.