Posted at 19 October 2022 / Categories Market Roundups
Market Roundup
•UK Sep Core CPI (YoY) 6.5%, 6.4% forecast, 6.3% previous
•UK Sep Core CPI (YoY) 6.5%, 6.4% forecast, 6.3% previous
•UK Sep CPI (MoM) 0.5%, 0.4% forecast, 0.5% previous
•UK Sep CPI, n.s.a 123.80, 123.10 previous
•UK Sep PPI Input (MoM) 0.4%, -0.4% forecast, -1.2% previous
•EU Sep CPI (MoM) 1.2%, 1.2%forecast, 0.6% previous
•EU Sep CPI (YoY )9.9%, 10.0% forecast, 9.1% previous
•EU Sep Core CPI (YoY) 4.8%, 4.8% forecast, 4.3% previous
Looking Ahead - Economic Data (GMT)
•12:30 Canada Sep Core CPI (MoM) 0.0% previous
•12:30 Canada Common CPI (YoY) 5.6% forecast, 5.7% previous
•12:30 Canada Trimmed CPI (YoY) 5.1% forecast, 5.2% previous
•12:30 US Sep Building Permits (MoM) -8.5% previous
• 12:30 US Sep Building Permits 1.530M forecast, 1.542M previous
•12:30 US Sep Housing Starts 1.475M forecast, 1.575M previous
•12:30 US Sep Housing Starts (MoM) 12.2% previous
•12:30 Canada Sep Core CPI (YoY) 5.8% previous
•12:30 Canada RMPI (MoM) -3.5% forecast, -4.2% previous
•12:30 Canada Sep CPI (MoM) -0.1% forecast, -0.3% previous
•14:30 US Cushing Crude Oil Inventories -0.309M previous
•14:30 US Crude Oil Inventories 1.380M forecast, 9.880M previous
Looking Ahead - Events, Other Releases (GMT)
•18:00 US Beige Book
•17:00 US FOMC Member Kashkari Speaks
•23:30 US FOMC Member Bullard Speaks
Fxbeat
EUR/USD: The euro dipped against dollar on Wednesday as investors fretted about runaway inflation and aggressive monetary policy tightening . Data showed UK inflation hit 10.1% in September, matching the 40-year high touched in July, and putting more pressure on the Bank of England to step up interest rate hikes to rein in surging prices.Inflation in the eurozone reached 10% last month, as the region grapples with soaring energy prices that have raised the risks of a recession this winter. The euro sank 0.90% to $0.9767, retreating from Tuesday's high of $0.9875 , a level last seen on Oct. 6. 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: Sterling weakened on Wednesday after hotter-than-expected consumer price inflation and fears of a deeper recession bolstered expectations of a less aggressive rate hike by the Bank of England in November. The British pound fell 0.8% at 0827 GMT to $1.1221 after data showing Britain's annual consumer price inflation inched up to 10.1% in September, rising more than expected and returning to a 40-year high hit in July.Investors expect sterling to remain under pressure amid the outlook for rising inflation and a recession in Britain which could lead the BoE to hike by 75 basis points rather than 100 bps at its November meeting. Immediate resistance can be seen at 1.1330(38.2%fib), an upside break can trigger rise towards 1.1428 (Oct 17th high).On the downside, immediate support is seen at 1.1173 (9DMA), a break below could take the pair towards 1.1105 (Lower BB).
USD/CHF: The dollar strengthened against Swiss franc on Wednesday as dollar gained on bets of more steep interest rate hikes from the Federal Reserve. Minneapolis Fed President Neel Kashkari said on Tuesday the U.S. central bank may need to push its benchmark policy rate above 4.75% if underlying inflation does not stop rising The Fed is widely expected to deliver a fourth straight 75-basis point hike when it meets in November. The dollar index - which measures the currency against six peers including the yen, sterling and euro - added 0.46% to 112.49, after dropping to the lowest since Oct. 6 at 111.76 on Tuesday. Immediate resistance can be seen at 1.0046 (23.6%fib), an upside break can trigger rise towards 1.0089(Higher BB).On the downside, immediate support is seen at 0.9984(9DMA), a break below could take the pair towards 0.9954(38.2%fib).
USD/JPY: The U.S. dollar held at a 32-year peak against the yen on Wednesday as dollar was supported on expectations of aggressive U.S. Federal Reserve interest rate hikes. Traders are on high alert for the Ministry of Finance and Bank of Japan to step into the market again, as the currency pair pushes toward the key psychological barrier at 150. A cross of 145 a month ago spurred the first yen-buying intervention since 1998.Japanese Finance Minister Shunichi Suzuki said on Wednesday that he was checking currency rates meticulously and with more frequency, local media reported. Strong resistance can be seen at 149.83 (23.6%fib), an upside break can trigger rise towards 150.00(Psychological level).On the downside, immediate support is seen at 148.15(5DMA), a break below could take the pair towards 147.43(38.2%fib).
Equities Recap
European shares reversed early gains on Wednesday, as investors fretted about runaway inflation and aggressive monetary policy tightening, even as upbeat corporate earnings soothed some fears about a recession..
At (GMT 11:11 ),UK's benchmark FTSE 100 was last trading down at 0.12percent, Germany's Dax was down by 0.16 percent, France’s CAC finished was up by 0.15 percent.
Oil prices rose slightly on Wednesday amid plenty of caution as bullish signals like falling U.S. crude stocks and a generally undersupplied market were countered by bearish factors such as uncertain Chinese demand growth and falling gas prices.
Brent crude futures for December settlement rose 60 cents, or 0.7%, to $90.63 a barrel by 0913 GMT. Earlier in the session, Brent hit a low of $89.32.
U.S. West Texas Intermediate crude for November delivery, expiring on Thursday, was at $83.59 a barrel, up 77 cents, or 0.9%. The December contract was at $82.73, up 66 cents, or 0.8%.