Posted at 12 October 2022 / Categories Market Roundups
Market Roundup
• UK Aug Industrial Production (YoY) -5.2%, 0.6% forecast, 1.1% previous
• UK Aug GDP (YoY) 2.0%, 2.4% forecast, 4.4% previous
• UK Monthly GDP 3M/3M Change -0.3%, -0.2% forecast, 0.0% previous
• UK GDP (MoM) -0.3%, 0.0% forecast, 0.2% previous
• UK Aug Industrial Production (MoM) -1.8%, -0.2% forecast, -0.3% previous
• UK Aug Trade Balance Non-EU -11.08B, -10.19B previous
• UK Aug Trade Balance-19.26B, -20.40B forecast,-19.36B previous
• UK Aug Manufacturing Production (MoM) -1.6%, 0.2% forecast, 0.1% previous
• EU Aug Industrial Production (YoY) 2.5%, 1.2% forecast, -2.5% previous
• EU Aug Industrial Production (MoM) 1.5%, 0.6% forecast, -2.3% previous
Looking Ahead - Economic Data (GMT)
• 12:30 US Sep Core PPI (MoM) 0.3% forecast, 0.4% previous
•12:30 US Sep PPI ex. Food/Energy/Transport (MoM) 0.2% previous
•12:30 US PPI ex. Food/Energy/Transport (YoY) 5.6% previous
•12:30 US Sep PPI (YoY) 8.4% forecast,8.7% previous
•12:30 US Sep PPI (MoM) 0.2% forecast,-0.1% previous
Looking Ahead - Events, Other Releases (GMT)
•13:30 EU ECB President Lagarde Speaks
•15:00 IMF Meetings
•17:00 UK BoE MPC Member Mann
•17:45 US Fed Vice Chair for Supervision Barr Speaks
•18:00 US FOMC Meeting Minutes
Fxbeat
EUR/USD: The euro was little changed against dollar on Wednesday as investors awaited European Central Bank President Christine Lagarde's speech later in the session . Traders are watching European Central Bank President Christine Lagarde's speech at the IIF annual meeting in Washington for any signals about euro zone rate increases. U.S. producer price data due at 1230 GMT is expected to keep the Fed on the path of rate hikes. Consumer price data (CPI) is due on Thursday. The minutes from the Fed's latest policy meeting are also due to be released later in the US session. 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 British pound edged higher on Wednesday after the Bank of England affirmed its commitment to end its emergency bond buying programme as scheduled on Friday, even as reports signalled they could extend purchases should market conditions warrant. The Financial Times reported that the Bank of England (BoE) has privately indicated to bankers that it could extend bond buying beyond Friday’s deadline if market conditions demanded it, citing three sources briefed on the discussions. Meanwhile, official data showed Britain’s economy unexpectedly shrank by 0.3% in August, hit by weakness in manufacturing and maintenance work in the North Sea oil and gas fields. British pound was up against the dollar at $1.1038, snapping five days of losses. 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 Wednesday ahead of Federal Reserve minutes and inflation data due this week. The Federal Open Market Committee will issue minutes of its Sept. 20-21 meeting at 1800 GMT later in the day. The U.S. inflation reading will be released on Thursday and could cement expectations of another big rate hike at the November meeting. Federal Reserve Bank of Cleveland President Loretta Mester said even with a large amount of rate rises this year, the central bank has yet to get surging inflation under control and will need to press forward with tightening monetary policy. Immediate resistance can be seen at 0.9994(23.6%fib), an upside break can trigger rise towards 1.0066(Higher BB).On the downside, immediate support is seen at 0.9912(9DMA), a break below could take the pair towards 0.9880(38.2%fib).
USD/JPY: The dollar scaled new 24-year heights on the yen on Wednesday, breaching levels that prompted intervention by Japanese officials last month. The dollar reached as high as 146.39 yen in early Asia trade, the first time at that level since August 1998. It was last up 0.2% at 146.18.Japanese authorities staged their first yen-buying intervention since 1998 on Sept. 22, when the yen weakened to 145.90 per dollar.Officials have reiterated they remain ready to take appropriate steps to counter excessive currency moves, though whether they wish to defend particular levels is less clear. Strong resistance can be seen at 146.38 (Higher BB), an upside break can trigger rise towards 146.279(Higher BB).On the downside, immediate support is seen at 145.15(9DMA), a break below could take the pair towards 143.80(38.2%fib).
Equities Recap
European stocks held steady in early trading on Wednesday on Wednesday as a slew of mixed earnings reports heightened worries about the impact of tighter monetary policies and soaring inflation on corporate profits.
At (GMT 09:42 ),UK's benchmark FTSE 100 was last trading up at 0.31 percent, Germany's Dax was up by 0.58 percent, France’s CAC finished was up by 0.54 percent.
Commodities Recap
Gold prices edged higher on Wednesday helped by a slight pullback in the dollar, as investors look to minutes from the U.S. Federal Reserve’s September policy meeting and inflation data for clues on its rate hike path.
Spot gold was up 0.2% at $1,668.40 per ounce at 0908 GMT, after falling for five straight sessions.U.S. gold futures slipped 0.6% to $1,675.50..
Oil futures recouped some losses on Wednesday after dropping by 2% in the previous session, supported by supply worries stemming from OPEC+ production cuts, although a stronger dollar weighed on market sentiment.
Brent crude futures were down 2 cents, or 0.02%, to $94.27 a barrel by 0727 GMT after hitting a session low of $93.33 a barrel.
U.S. West Texas Intermediate crude was at $89.14 a barrel, down 21 cents, or 0.24%. The contract fell to a session low of $88.27 per barrel earlier in the day.