Posted at 18 October 2022 / Categories Market Roundups
Market Roundup
• Italian Sep Car Registration (MoM) 55.9%, -35.0% previous
•French Sep Car Registration (YoY) 5.5% , 3.8% previous
•French Sep Car Registration (MoM) 54.4%, -15.0% previous
•German Sep Car Registration (MoM) 12.9%, -3.3% previous
•German Oct ZEW Current Conditions -72.2, -68.0 forecast, -60.5 previous
•German Oct ZEW Economic Sentiment -59.7, -61.2 forecast, -60.7 previous
Looking Ahead - Economic Data (GMT)
•12:30 Canada Aug Foreign Securities Purchases by Canadians 4.30B previous
•12:30 Canada Aug Foreign Securities Purchases 17.32B forecast, 14.83B previous
•12:55 US Redbook (YoY) 8.3% previous
•13:15 US Sep Manufacturing Production (MoM) 0.2% forecast, 0.1% previous
•13:15 US Sep Industrial Production (YoY) 3.68% previous
•13:15 US Sep Industrial Production (MoM) 0.1% forecast, -0.2% previous
•14:00 US Oct NAHB Housing Market Index 43 forecast, 46 previous
Looking Ahead - Events, Other Releases (GMT)
•16:00 ECB's Schnabel Speaks
•17:00 German Buba President Nagel Speaks
Fxbeat
EUR/USD: The euro steadied against dollar on Tuesday as less pessimistic than expected German investor sentiment data weighed on euro. German investor sentiment was less pessimistic than expected in October, even as the view of the current economic situation left little room for optimism following a tumble in confidence the month before.The ZEW economic research institute said on Tuesday its economic sentiment index grew slightly in October, to -59.2, from -61.9 in September, beating a forecast by analysts polled by Reuters of a reading of -65.7. The euro was a touch lower at $0.9832 .Immediate resistance can be seen at 0.9928(38.2%ib), an upside break can trigger rise towards 0.9953(38.2%ib).On the downside, immediate support is seen at 0.9758(9DMA), a break below could take the pair towards 0.9714 (23.6%ib).
GBP/USD: The pound eased on Tuesday as the new British finance minister's decision to reverse most of the government's mini-budget prompted investors to reassess the outlook for UK interest rates.Jeremy Hunt, who replaced Kwasi Kwarteng as finance minister after Prime Minister Liz Truss sacked the latter for his failed fiscal plan that sent the government bond market into a damaging tailspin, ditched most of the contents of the mini-budget and said he would raise over 30 billion in taxes.Sterling was down 0.1% against the dollar at $1.1335, and down 0.2% versus the euro at 86.82 pence. Immediate resistance can be seen at 1.1419 (38.2%fib), an upside break can trigger rise towards 1.1556 (Higher BB).On the downside, immediate support is seen at 1.1254 (5DMA), a break below could take the pair towards 1.1097(23.6%fib).
USD/CHF: The dollar edged lower against Swiss franc on Tuesday as the dollar faltered, although risks from looming aggressive interest hikes by the U.S. Federal Reserve limited losses. The dollar index fell to a 1-1/2-week low as sterling jumped following the UK's dramatic U-turn over the tax-slashing mini budget that had rattled global markets. The U.S. dollar index hit a 12-day low during as investors became less risk-averse. At 12:20 GMT, the dollar was 0.08percent lower versus the Swiss franc at 0.9968. Immediate resistance can be seen at 0.9988 (5DMA), an upside break can trigger rise towards 1.0032(23.6%fib).On the downside, immediate support is seen at 0.9940 (38.2%fib), a break below could take the pair towards 0.9862(50%fib).
USD/JPY: The dollar touched fresh 32-year high on the yen on Tuesday as investors braced for any sign of central bank intervention. Investors have been watching out for any signs of further intervention by the Bank of Japan, with authorities repeatedly warning of a firm response to overly rapid yen declines. Finance Minister Shunichi Suzuki warned on Tuesday that Japan would take appropriate and decisive action against excessive, speculator-driven currency moves, keeping alive the possibility of more market intervention after the yen hit a new 32-year low. The yen slipped to 149.10 to the dollar on Tuesday, its weakest since August 1990, putting the major psychological barrier of 150 in focus. Strong resistance can be seen at 149.45 (23.6%fib), an upside break can trigger rise towards 150.00 (Psychological level).On the downside, immediate support is seen at 148.18(5DMA), a break below could take the pair towards 147.85(38.2%fib).
Equities Recap
European stock indexes rose on Tuesday and Wall Street was set to open higher, in a revival of risk appetite that analysts attributed to the turnaround in British fiscal policy.
At (GMT 12:15),UK's benchmark FTSE 100 was last trading up at 1.39 percent, Germany's Dax was up by 1.92 percent, France’s CAC finished was up by 1.50 percent.
Commodities Recap
Gold prices pared gains on Tuesday due to an uptick in the U.S. dollar and bond yields, although investors remained wary of more hefty interest rate hikes from the Federal Reserve.
Spot gold was up 0.1% at $1,651.60 per ounce by 1104GMT, while U.S. gold futures fell 0.4% to $1,657.70.
Oil prices were stable on Tuesday as the market balanced cuts to OPEC+ production quotas against fears of economic slowdown and lower Chinese fuel demand.
Brent crude futures eased by 7 cents, or 0.08%, to $91.55 a barrel by 1127 GMT while U.S. West Texas Intermediate (WTI) crude futures were down 12 cents, or 0.14%, at $85.34.