Posted at 20 October 2022 / Categories Market Roundups
Market Roundup
•German Sep PPI (MoM) 2.3%, 1.3% forecast, 7.9% previous
•German Sep PPI (YoY) 45.8%, 44.7% forecast, 45.8% previous
•French Oct Business Survey 103, 101 forecast, 102 previous
•EU Aug Current Account -26.3B, -20.3B forecast, -19.9B previous
•EU Aug Current Account n.s.a. -20.2B, -10.1B previous
•French 3-Year BTAN Auction 2.38%, 1.84% previous
Looking Ahead - Economic Data (GMT)
•12:30 US Jobless Claims 4-Week Avg. 211.50Kprevious
•12:30 US Continuing Jobless Claims 1,375K forecast, 1,368K previous
•12:30 US Initial Jobless Claims 230K forecast, 228K previous
•12:30 US Oct Philadelphia Fed Manufacturing Index -5.0 forecast, -9.9 previous
•12:30 US Oct Philly Fed Employment 12.0 previous
•12:30 US Oct Philly Fed Prices Paid 29.80 previous
•12:30 US Oct Philly Fed Business Conditions -3.9 previous
•14:00 US Sep Existing Home Sales 4.70M forecast, 4.80M previous
•14:00 US Sep Existing Home Sales (MoM) -0.4% previous
•14:00 US Sep Leading Index (MoM) -0.3% forecast, -0.3% previous
Looking Ahead - Events, Other Releases (GMT)
•16:00 US FOMC Member Harker Speaks
•17:45 US Fed Governor Cook Speaks
•18:05 US FOMC Member Bowman Speaks
Fxbeat
EUR/USD: The euro edged higher against dollar on Thursday as investors assessed the impact of possible new tightening measures at next week’s European Central Bank policy meeting. ECB will increase deposit and refinancing rates by 75 basis points (bps), but analysts are focused on comments on quantitative tightening and possible changes in rules of long-term refinancing operations (TLTRO).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 weakened on Thursday as political chaos unfolded in the UK and as a Bank of England official's comments prompted a further scaling back of bets on a full percentage-point November rate hike.British Prime Minister Liz Truss battled to retain her grip on power, a day after a second top minister quit and rowing and jostling broke out among her lawmakers in parliament. After only six weeks in the role, Truss's premiership has seen a bond market rout and a U-turn on almost all of her fiscal policy programme. Wednesday saw her lose her interior minister, less than a week after she fired her finance minister.Against this backdrop, the pound fell 0.4% to $1.1179 . Immediate resistance can be seen at 1.1274 (5DMA), an upside break can trigger rise towards 1.1404(50%fib).On the downside, immediate support is seen at 1.1143(38.2%fib ), a break below could take the pair towards 1.1063 (Oct 13th low).
USD/CHF: The dollar edged lower against Swiss franc on Thursday as dollar pulled back slightly but losses were limited on prospects of more sharp rate hikes by Federal Reserve. Federal Reserve Bank of Minneapolis President Neel Kashkari said on Wednesday that U.S. job market demand remained strong and underlying inflation pressures probably had not peaked yet.The Fed is widely expected to hike interest rates by 75 basis points at its policy meeting next month after U.S consumer prices increased more than expected in September. At 12:20 GMT, the dollar was 0.26 percent lower versus the Swiss franc at 1.0026.Immediate resistance can be seen at 1.0065(23.6%fib), an upside break can trigger rise towards 1.0094(Higher BB).On the downside, immediate support is seen at 0.9992 (9DMA), a break below could take the pair towards 0.9878(38.2%fib).
USD/JPY: The dollar hit the symbolic level of 150 yen for the first time since 1990 on Thursday as the greenback was supported by Treasury yields trading at multi-year highs, keeping markets on high alert for intervention from Japanese authorities. The fragile yen briefly weakened past 150 per dollar in early European trading for the first time since August 1990. It was last trading a touch below that level, at 149.7 yen per dollar.The Japanese currency has been on a losing streak for 11 straight sessions as of Wednesday's close, and has renewed 32-year lows for six sessions now. Traders were also watching to see whether the breach of the 150 level would cause Japanese authorities to repeat last month's intervention in currency markets.Strong resistance can be seen at 150.12 (23.6%fib), an upside break can trigger rise towards 150.70 (Higher BB).On the downside, immediate support is seen at 149.32(5DMA), a break below could take the pair towards 147.91(38.2%fib).
Equities Recap
European initially slipped but recovered some ground on Thursday, as investors fretted over persistent inflation and aggressive central bank actions, while downbeat earnings from chip equipment firm BE Semiconductor and telecom company Nokia fuelled fears of an economic slowdown.
At (GMT 12:24 ),UK's benchmark FTSE 100 was last trading up at 0.37 percent, Germany's Dax was up by 0.02 percent, France’s CAC last was up by 0.58 percent.
Commodities Recap
Oil prices rose by more than $1 on Thursday in response to tighter supplies and on news that China is considering a cut in the duration of quarantine for inbound visitors.Brent crude futures rose $1.33, or 1.4%, to $93.74 a barrel at 1020 GMT.
U.S. West Texas Intermediate crude for November delivery , which expires on Thursday, rose $1.43, or 1.7%, to $86.98 per barrel. The WTI contract for December delivery was up 1.8%, or $1.51, at $86.03 a barrel.
Gold prices rose from a three-week trough on Thursday due to a pullback in the U.S. dollar, although higher Treasury yields and prospects of another big rate hike by the Federal Reserve kept investors on edge.
Spot gold rose 0.5% to $1,637.02 per ounce by 1156 GMT, having slipped to its lowest since end-September earlier in the day. U.S. gold futures gained 0.5% to $1,641.90.