News

Europe Roundup: Euro edges higher against dollar ahead of U.S. CPI data, European shares gains, Gold range bound, Oil prices lose ground as market jittery over demand risks-October 13th,2022

Posted at 13 October 2022 / Categories Market Roundups


Market Roundup

• German Sep HICP (YoY) 10.9%,  10.9% forecast, 8.8% previous

• German Sep HICP (MoM) 2.2%, 2.2% forecast,  0.4% previous   

•German Sep CPI (YoY) 10.0%, 10.0% forecast,  7.9% previous

•German Sep CPI (MoM) 1.9%, 1.9% forecast,   0.3% previous

•Sweden Sep CPI (MoM) 1.4%, 1.1% forecast, 1.8% previous

•Swiss Sep PPI (MoM) 0.2%, -0.1% previous

Looking Ahead - Economic Data (GMT)

•12:30   US Sep Core CPI (MoM)  0.5% forecast,0.6% previous

•12:30   US  Initial Jobless Claims 225K forecast,219K previous

•12:30   US Continuing Jobless Claims 1,365K forecast,1,361K previous

•12:30   US Jobless Claims 4-Week Avg.  206.50K previous

•12:30   US Sep CPI (YoY)  8.1% forecast, 8.3% previous

•12:30 US Sep CPI (MoM) 0.2% forecast ,0.1% previous

•12:30 US Sep Core CPI (YoY)  6.5% forecast , 6.3% previous

•14:30   US Natural Gas Storage 123B forecast , 129B previous

•15:00 US Cushing Crude Oil Inventories  0.273M previous

•15:00   US  Crude Oil Inventories 1.750M forecast ,-1.356M previous

•18:00 US Federal Budget Balance-220.0B previous

Looking Ahead - Events, Other Releases (GMT)

•No significant events

Fxbeat

EUR/USD: The euro edged higher against dollar on Thursday as investors awaited key U.S. economic data. Markets repriced their inflation expectations ahead of U.S. data. A key market gauge of long-term inflation expectations rose to its highest since May at 2.3% on Wednesday while forwards on euro short-term rates (ESTR) are now peaking in November 2023 around 3.1%. U.S. consumer price numbers due later on Thursday will be the last before the November Federal Reserve policy meeting. Immediate resistance can be seen at 0.9777(9DMA), an upside break can trigger rise towards 0.9843 (38.2%ib).On the downside, immediate support is seen at 0.9841(38.2%fib), a break below could take the pair towards 0.9549 (Lower BB).

GBP/USD: Sterling fell against dollar on Thursday as investors nervously awaited an impending deadline for the end of the Bank of England's emergency bond-buying programm. Sterling eased 0.1% to $1.10860 at 0808 GMT, following a 1.25% rebound in the previous session after the Financial Times reported that the BoE had signalled privately to lenders that it was prepared to extend its emergency bond-buying programme beyond Friday's deadline if market conditions demanded it.However, the central bank later reiterated that its programme of temporary gilt purchases will end on Oct. 14. Immediate resistance can be seen at 1.1185 (38.2%fib), an upside break can trigger rise towards 1.1381 (50%fib).On the downside, immediate support is seen at 1.1047 (5DMA), a break below could take the pair towards 1.0930 (Lower BB).

 USD/CHF: The dollar strengthened against Swiss franc on Thursday as traders braced for U.S. consumer price inflation data, which is expected to spur further Federal Reserve rate hikes. The dollar held its ground against major peers   as traders awaited U.S. consumer price data that could shed light on the pace of further Fed policy tightening. Minutes from the Federal Reserve's policy meeting last month showed that officials agreed they needed to raise interest rates to a more restrictive level - and then keep them there for some time - to meet their goal of lowering "broad-based and unacceptably high" inflation, even as the minutes contained a hint of a downshift in the pace of future monetary tightening. Immediate resistance can be seen at 1.0004(23.6%fib), an upside break can trigger rise towards 1.0066(Higher BB).On the downside, immediate support is seen at 0.9975 (9DMA), a break below could take the pair towards 0.9878(38.2%fib).

USD/JPY: The dollar held near fresh 24-year high on the yen on Thursday ahead of U.S. inflation data due later in the day for possible clues on how much higher the Federal Reserve will push interest rates. The U.S. Consumer Price Index data is due at 1230 GMT and is forecast to come in at a hot 8.1% year-on-year in September, which could cement expectations of another big rate hike from the Fed. Wednesday’s readout of the Fed’s last policy meeting showed policymakers agreed they needed to move to a more restrictive policy stance, and then maintain that for some time to lower inflation. Strong resistance can be seen at 147.07 (23.6%fib), an upside break can trigger rise towards 147.45 (Higher BB).On the downside, immediate support is seen at 146.11(5DMA), a break below could take the pair towards 145.91(38.2%fib).

Equities Recap

European shares steadied on Thursday  as investors  focused   on U.S. inflation data due later in the day to get clues on the Federal Reserve's rate-hike trajectory.

At (GMT 09:31 ),UK's benchmark FTSE 100 was last trading up at 0.19 percent, Germany's Dax was up by 0.79 percent, France’s CAC finished was up by 0.46 percent.

Commodities Recap

Gold prices flitted in a tight range on Thursday as market participants maintained a cautious stance ahead of a key U.S. inflation reading that could influence the size of the Federal Reserve’s next interest rate hike.

Spot gold fell 0.2% to $1,668.59 per ounce, as of 0646 GMT. U.S. gold futures dipped 0.2% to $1,674.80.

Oil prices struggled to find a footing on Thursday after easing in the previous session on a weakening global demand outlook.

Brent crude futures fell 7 cents, or 0.1%, to $92.38 a barrel by 0650 GMT. U.S. West Texas Intermediate crude was down 21 cents, or 0.2%, at $87.06 a barrel.


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