Posted at 21 October 2022 / Categories Market Roundups
Market Roundup:
•US Jobless Claims 4-Week Avg. 212.25K,211.50Kprevious
•US Continuing Jobless Claims 1,385K,1,375K forecast, 1,368K previous
•US Initial Jobless Claims 214K , 230K forecast, 228K previous
•US Oct Philadelphia Fed Manufacturing Index-8.7, -5.0 forecast, -9.9 previous
• US Oct Philly Fed Employment 28.5, 12.0 previous
•US Oct Philly Fed Prices Paid 36.30, 29.80 previous
•US Oct Philly Fed Business Conditions -14.9,-3.9 previous
•US Sep Existing Home Sales 4.71M,4.70M forecast, 4.80M previous
•US Sep Existing Home Sales (MoM) -1.5%,-0.4% previous
•US Sep Leading Index (MoM) -0.4%,-0.3% forecast, -0.3% previous
Looking Ahead - Economic Data (GMT)
•02:00 New Zealand Credit Card Spending (YoY) 29.4% previous
Looking Ahead - Events, Other Releases (GMT)
•No significant events
Currency Summaries
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 initially gained on Thursday but reversed course as UK Prime Minister Liz Truss announced her resignation just six weeks after she was appointed.Truss' economic programme had sent shockwaves through the markets and divided her Conservative Party, contributing to a sharp a selloff in UK assets.Pressure on the prime minister had been mounting in recent days and a leadership election will be completed within the next week.The pound, which had rallied ahead of Thursday's news, was last down 0.10% at $1.1220 . 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/CAD: The Canadian dollar was little changed against its U.S. counterpart on Thursday, with the currency pulling back from its strongest level in two weeks as hawkish comments by a Federal Reserve official weighed on investor sentiment. Dollar climbed as Federal Reserve Bank of Philadelphia President Patrick Harker added to concerns about the Fed hiking rates aggressively and potentially tilting the economy into a recession.The price of oil, one of Canada’s major exports, rose but gave back much of its earlier gains as investors worried about inflation dampening demand for it.Domestic data provided further evidence that the slowdown in Canada’s housing market is depressing prices. Canadian home prices tumbled by 3.1% in September from August.The loonie was trading trading down 0.11 percent at 1.3778 to the greenback, after touching its strongest intraday level since Oct. 6 at 1.3652. .Immediate resistance can be seen at 1.3820(23.6%fib), an upside break can trigger rise towards 1.33890(Higher BB).On the downside, immediate support is seen at 1.3756(5DMA), a break below could take the pair towards 1.36667 (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 for the first time since August 1990.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 150.20 (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 stocks closed broadly higher on Thursday, reacting to the U-turn in the British fiscal plan and Prime Minister Lizz Truss's decision to resign from her post.
UK's benchmark FTSE 100 closed up by 0.27 percent, Germany's Dax ended up by 0.20 percent, France’s CAC finished the day up by 0.76 percent.
U.S. stocks closed lower on Thursday as data on the labor market and comments from a U.S. Federal Reserve official reinforced expectations the central bank will be aggressive in hiking interest rates outweighed a flurry of solid corporate earnings.
Dow Jones closed down by 0.30 percent, S&P 500 closed down by 0.81 percent, Nasdaq settled down by 0.61% percent.
Treasuries Recap
Yields on U.S. government bonds continued their relentless march higher on Thursday, hitting fresh 14-year tops as investors bet the Federal Reserve would keep raising interest rates aggressively.
The 10-year Treasury yield rose as high as 4.18%, its highest level since June 2008. It was last up 2 basis points (bps) at 4.146%.
Commodities Recap
Gold prices pared gains on Thursday, having risen about 1% on a softer dollar, as a jump in equities markets and rallying Treasury yields pulled bullion back toward three-week lows hit earlier.
Spot gold rose 0.1% to $1,629.75 per ounce by 1:51 p.m. ET (1751 GMT), earlier touching its lowest since end-September. U.S. gold futures settled up 0.2% at $1,636.8.
Oil prices were near flat during a choppy trading session on Thursday, as worries about inflation dampening demand for oil contended with news that China is considering easing COVID-19 quarantine measures for visitors.
Brent crude futures fell 3 cents to settle at $92.38 a barrel.U.S. West Texas Intermediate crude for November delivery , which expires on Thursday, rose 43 cents to $85.98 per barrel. WTI for December delivery edged down 1 cent at $84.51 per barrel.