Posted at 26 October 2022 / Categories Market Roundups
Market Roundup
•US Redbook (YoY) 8.2%, 8.0% previous
•US Aug S&P/CS HPI Composite - 20 n.s.a. (MoM) -1.6%, -0.7% forecast , -0.8% previous
•US S&P/CS HPI Composite - 20 n.s.a. (YoY) 13.1%,14.4% forecast , 16.1% previous
•US Aug House Price Index (YoY) 11.9%, 13.9% previous
•US Aug S&P/CS HPI Composite - 20 s.a. (MoM) -1.3% , -0.5% forecast , -0.4%previous
•US Oct Richmond Manufacturing Index -10, -8 previous
•US Oct US CB Consumer Confidence 102.5, 106.5 forecast ,108.0 previous
•US Oct Richmond Services Index -10,-12 previous
Looking Ahead-Economic Data
•00:30 Australia CPI (YoY) (Q3) 7.0% forecast , 6.1% previous
•00:30 Australia Trimmed Mean CPI (QoQ) (Q3) 1.5% forecast, 1.5% previous
•00:30 Australia Trimmed Mean CPI (YoY) (Q3) 5.6% forecast, 4.9% previous
•00:30 Australia CPI (QoQ) (Q3) 1.6% forecast, 1.8% previous
•05:00 Japan Coincident Indicator (MoM) 1.6% previous
Looking Ahead - Events, Other Releases (GMT)
• US Fed Waller Speaks
Curency Summaries
EUR/USD: The euro edged higher 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% higher at $0.9956 .Immediate resistance can be seen at 1.0000(Higher BB), an upside break can trigger rise towards 1.0058 (38.2%fib).On the downside, immediate support is seen at 0.9896 (23.6%fib), a break below could take the pair towards 0.9828 (11DMA).
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 0.16% to $1.1450. Immediate resistance can be seen at 1.1527 (Higher BB), an upside break can trigger rise towards 1.1607 (50%fib).On the downside, immediate support is seen at 1.1367(38.2%fib), a break below could take the pair towards 1.1296(11DMA).
USD/CAD: The Canadian dollar rose to its highest level in nearly three weeks against its U.S. counterpart on Tuesday as investment sentiment continued to recover, but the move was limited ahead of a Bank of Canada (BoC) interest rate decision. All eyes will be on the Bank of Canada tomorrow to see what their guidance is on rates.Money markets expect the BoC on Wednesday to raise interest rates by three-quarters of a percentage point to a 14-year high of 4% and to then tighten further over the coming months to a peak of nearly 4.50% next year. The price of oil, one of Canada’s major exports, was lifted by a weaker U.S. dollar and supply concerns highlighted by Saudi Arabia’s energy minister. The Canadian dollar was trading 0.7% higher at 1.3615 to the greenback. Immediate resistance can be seen at 1.3666(5DMA), an upside break can trigger rise towards 1.3734 (23.6%fib).On the downside, immediate support is seen at 1.3600 (38.2%fib), a break below could take the pair towards 1.3540 (Lower BB).
USD/JPY: The dollar dipped against the yen on Tuesday as weak data stoked hopes the Federal Reserve will slow its aggressive pace of interest rate hikes. U.S. business activity contracted for a fourth straight month, data on Monday showed, suggesting that the Fed's rate increases have softened the economy, which in turn raised hopes that the central bank could begin slowing the pace of the hikes. U.S. consumer confidence ebbed in October after two straight monthly increases amid rising concerns about inflation and a possible recession next year, but households remained keen to purchase big-ticket items like motor vehicles and appliances. Strong resistance can be seen at 14858 (11DMA), an upside break can trigger rise towards 149.89 (23.6%fib).On the downside, immediate support is seen at 148.57(38.2%fib), a break below could take the pair towards 145.89(50%fib).
Equities Recap
European stocks closed higher on Tuesday with investors digesting a slew of strong earnings updates and looking ahead to upcoming policy announcements from the Federal Reserve and the European Central Bank.
UK's benchmark FTSE 100 closed down by 0.01 percent, Germany's Dax ended up by 0.94 percent, France’s CAC finished the day up by 1.94 percent.
U.S. stocks closed sharply higher on Tuesday as soft economic data hinted that the Fed's aggressive policy is taking effect, while falling benchmark Treasury yields boosted the rally's momentum.
Dow Jones closed up by 1.07%percent, S&P 500 closed up by 1.63% percent, Nasdaq settled up by 2.25 % percent.
Commodities Recap
Gold reversed course to trade higher after the dollar fell as weakness in the U.S. economy fuelled expectations the Federal Reserve would likely slow the pace of its interest rate hikes.
Spot gold was up 0.4% at $1,654.58 per ounce as of 1:45 p.m. ET (1745 GMT), while U.S. gold futures settled 0.2% higher at $1,658.
Oil prices edged higher on Tuesday, rebounding from an early fall of more than $1 a barrel, on a lift from a weaker dollar and supply concerns highlighted by Saudi Arabia's energy minister.
Brent crude futures rose 26 cents to settle at $93.52 per barrel, while U.S. West Texas Intermediate crude futures rose by 74 cents to $85.32.