Posted at 21 October 2022 / Categories Market Roundups
Market Roundup
•UK Sep Core Retail Sales (MoM) -1.5%, -0.3% forecast, -1.6% previous
•UK Sep Core Retail Sales (YoY) -6.2%, -4.1% forecast, -5.0% previous
•UK Sep Retail Sales (MoM) -1.4%, -0.5% forecast, -1.6% previous
•UK Sep Retail Sales (YoY) -6.9%, -5.0% forecast,-5.4% previous
Looking Ahead - Economic Data (GMT)
•12:30 Canada Manufacturing Sales (MoM) -2.0% previous
•12:30 Canada Wholesale Sales (MoM) 1.4% previous
•12:30 Canada Sep New Housing Price Index (MoM) 0.2% forecast, 0.1% previous
•12:30 Canada Aug Core Retail Sales (MoM) 0.4% forecast, -3.1% previous
•12:30 Canada Aug Retail Sales (MoM) 0.2% forecast,-2.5% previous
•14:00 EU Oct Consumer Confidence -30.0 forecast,-28.8 previous
•17:00 US Baker Hughes Oil Rig Count 610 previous
•17:00 U.S. Baker Hughes Total Rig Count 769 previous
•18:00 US Federal Budget Balance -173.5B forecast, -220.0B previous
Looking Ahead - Events, Other Releases (GMT)
•13:10 US FOMC Member Williams Speaks
Fxbeat
EUR/USD: The euro dipped against dollar on Friday as the prospect of aggressive interest rate hikes from the Federal Reserve . Global markets have been extremely volatile as investors worry that hefty rate hikes will push major economies into recessions before inflation is tamed.Philadelphia Federal Reserve President Patrick Harker on Thursday suggested the central bank will "keep raising rates for a while," while U.S. economic data showed persistent labour market tightness. The euro fell 0.27% to $0.9753 .Immediate resistance can be seen at 0.9779(14DMA), an upside break can trigger rise towards 0.9827 (38.2%ib).On the downside, immediate support is seen at 0.9741(23.6%fib), a break below could take the pair towards 0.9549 (Lower BB).
GBP/USD: Sterling edged lower on Friday as investors digested the news that British Prime Minister Liz Truss had quit after just six weeks in office. Truss was brought down by an economic programme that sent shockwaves through markets and shattered the country’s reputation for financial stability.The Conservative Party, which holds a big majority in parliament and need not call a nationwide election for another two years, will now elect a new leader by Oct. 28 - Britain’s fifth prime minister in six years. The pound dipped 0.21% to $1.1215, after a brief rally to a high of $1.1338 in the previous session after Truss announced her resignation. Immediate resistance can be seen at 1.1219 (14DMA), an upside break can trigger rise towards 1.1285 (38.2%fib).On the downside, immediate support is seen at 1.1139(Daily low), a break below could take the pair towards 1.1038(23.6%fib).
USD/CHF: The dollar rose against the Swiss franc on Friday as the dollar gained on bets the U.S. Federal Reserve will keep raising interest rates despite the risks of recession. Adding to the recent hawkish rhetoric, Philadelphia Fed President Patrick Harker on Thursday said the U.S. central bank is “going to keep raising rates for a while. Also reinforcing expectations of another oversized rate hike next month, data on Thursday showed the number of Americans filing new claims for unemployment benefits fell last week. At (GMT 14:34), greenback rose 0.49% versus the Swiss franc to 0.9268. Immediate resistance can be seen at 1.0109(Higher BB), an upside break can trigger rise towards 1.0137 (23.6%fib).On the downside, immediate support is seen at 1.0065(38.2% fib), a break below could take the pair towards 1.0026 (Daily low).
USD/JPY: The dollar was on track for its 10th straight weekly gain against the dollar on Friday. An extended yen sell-off past 150 yen per dollar to 32-year lows has put markets on heightened alert for further intervention in currency markets by Tokyo. Japanese finance minister Shunichi Suzuki said on Friday authorities were dealing with currency speculators strictly, while Bank of Japan governor Haruhiko Kuroda said the central bank would closely watch the impact of currency moves.The yen last stood at 150.94 per dollar, down 0.4% on the day. Strong resistance can be seen at 150.94 (23.6%fib), an upside break can trigger rise towards 151.70 (Higher BB).On the downside, immediate support is seen at 150.06(Daily low), a break below could take the pair towards 149.91(Daily low).
Equities Recap
European shares dropped on Friday, triggered by fears that major central banks would retain their aggressive rate-hike stance to rein in prices, while investors digested mixed earnings reports that did little to ease concerns of an economic slowdown.
At (GMT 09:24 ),UK's benchmark FTSE 100 was last trading down at 1.07 percent, Germany's Dax was up by 1.69 percent, France’s CAC finished was down by 1.84 percent.
Commodities Recap
Gold prices fell on Friday and were bound for a second weekly drop, dragged down by elevated U.S. Treasury yields and dollar amid a growing chorus of hawkish comments from Federal Reserve officials.
Spot gold fell 0.2% to $1,624.90 per ounce, as of 0739 GMT, after hitting their lowest level since Sept. 28. Bullion prices have shed 1% this week.U.S. gold futures lost 0.4% to $1,630.10.
Oil slipped on Friday and was heading for a second weekly decline as investors weighed the impact of sharp interest rate rises on energy consumption, offsetting hopes of higher Chinese demand and output cuts by OPEC and its allies.
Brent crude slipped $1.16, or 1.3%, to $91.22 a barrel by 0821 GMT. U.S. West Texas Intermediate crude was down by 74 cents, or 0.9%, to $83.77.