Posted at 25 October 2022 / Categories Market Roundups
Market Roundup
•German Oct Current Assessment 94.1, 92.4 forecast, 94.5 previous
•German Oct Ifo Business Climate Index 84.3, 83.3 forecast, 84.3 previous
•German Oct Business Expectations 75.6, 75.0 forecast, 75.2 previous
•UK Oct CBI Industrial Trends Orders -4 , -12 forecast ,-2 previous
Looking Ahead - Economic Data (GMT)
•12:55 US Redbook (YoY) 8.0% previous
•13:00 US Aug S&P/CS HPI Composite - 20 n.s.a. (MoM) -0.7% forecast , -0.8% previous
•13:00 US S&P/CS HPI Composite - 20 n.s.a. (YoY) 14.4% forecast , 16.1% previous
•13:00 US Aug House Price Index (YoY) 13.9% previous
•13:00 US Aug S&P/CS HPI Composite - 20 s.a. (MoM) -0.5% forecast , -0.4%previous
•14:00 US Oct Richmond Manufacturing Index -8 previous
•14:00 US Oct CB Consumer Confidence 106.5 forecast ,108.0 previous
•14:00 US Oct Richmond Services Index -12 previous
Looking Ahead - Events, Other Releases (GMT)
• US Fed Waller Speaks
Fxbeat
EUR/USD: The euro little changed against dollar on Tuesday as investors looked ahead to Thursday's European Central Bank (ECB) policy meeting for directional cues .The ECB is likely to go for another jumbo 75 basis point increase to its deposit and refinancing rates even as the economic outlook darkens. German business morale was nearly unchanged in October, defying forecasts of further decline thanks to an improvement in companies' expectations, a survey showed on Tuesday. The Ifo institute said its business climate index inched down to 84.3 from a revised reading of 84.4 in September. Analysts had expected a drop to 83.3. The euro edged 0.07% lower at $0.9860 .Immediate resistance can be seen at 0.9894(38.2%fib), an upside break can trigger rise towards 0.9952 (Higher BB).On the downside, immediate support is seen at 0.9791 (11DMA), a break below could take the pair towards 0.9739 (23.6%fib).
GBP/USD: Sterling rose against dollar on Tuesday supported by improved risk sentiment as Rishi Sunak prepared to become Britain's prime minister. Sunak will become Britain's next prime minister, Downing Street said on Monday. Sunak was due to meet King Charles on Tuesday morning before speaking outside No. 10 Downing Street.British government bonds recovered further and the 20-year gilt returned to a level last seen on Sept. 23, the day former Prime Minister Liz Truss's economic agenda triggered a collapse in sterling assets.Sterling edged higher, up 0.3% to $1.1323. Immediate resistance can be seen at 1.1371 (50%fib), an upside break can trigger rise towards 1.1495 (Higher BB).On the downside, immediate support is seen at 1.1229(11DMA), a break below could take the pair towards 1.1140(38.2%fib).
USD/CHF: The dollar steadied against the Swiss franc on Tuesday as the greenback steadied despite lingering expectations that the U.S. Federal Reserve may slow the pace of interest rate hikes .The dollar index found some footing due to a plunge in China’s yuan, shaking off pressure from bets of a less hawkish Fed and a firmer sterling as Rishi Sunak prepared to become Britain’s prime minister. While the Fed appears set to deliver another 75-basis-point interest rate hike at its next policy meet, policymakers are seen debating the size of future increases. At (GMT 14:34), greenback rose 0.20% versus the Swiss franc to 1.0025. Immediate resistance can be seen at 1.0036(38.2%fib), an upside break can trigger rise towards 1.0095 (Higher BB).On the downside, immediate support is seen at 0.9998(5DMA), a break below could take the pair towards 0.9949 (38.2%fib).
USD/JPY: The dollar little changed against the dollar on Tuesday after another suspected foreign exchange intervention by Japan. Japan likely spent up to 900 billion yen ($6 billion) on its second straight day of suspected currency intervention on Monday, bringing total yen-buying since last month to as much as 9.2 trillion yen, market estimates show. Japan has been conducting yen-buying interventions to defend the yen against sharp declines, which have been driven by the widening divergence between Japanese and U.S. interest rates. The BOJ is set to maintain ultra-low interest rates at its two-day policy meeting ending on Friday to support the fragile economy, even at the cost of accelerating an unwelcome fall in the yen to new 32-year lows. Strong resistance can be seen at 149.04 (23.6%fib), an upside break can trigger rise towards 150.35 (Higher BB).On the downside, immediate support is seen at 148.49(11DMA), a break below could take the pair towards 147.81(11DMA).
Equities Recap
European stocks rose on Tuesday after a slew of better-than-expected earnings reports helped offset worries about fast rising interest rates and a slowing euro zone economy.
At (GMT 12:24 ),UK's benchmark FTSE 100 was last trading down at 0.98 percent, Germany's Dax was down by 0.98 percent, France’s CAC finished was up by 0.19 percent.
Commodities Recap
Gold prices eased on Tuesday as the dollar regained some ground, but bullion’s losses were capped by expectations that the U.S. central bank may hit pause on its rapid rate hike trajectory.
Spot gold fell 0.3% to $1,644.56 per ounce by 1144 GMT, while U.S. gold futures slipped 0.3% to $1,648.50.
Oil prices fell by more than $1 per barrel on Tuesday as bearish economic data from key global economies heightened demand fears.
International benchmark Brent crude futures fell by $1.30 to $91.96 per barrel by 1117 GMT, after easing 0.3% in the previous session.