Posted at 26 October 2022 / Categories Market Roundups
Market Roundup
•EU Private Sector Loans (YoY)4.4%,4.5% previous
•Swiss Oct ZEW Expectations -53.1, -69.2 previous
•EU Sep Loans to Non Financial Corporations 8.9%, 8.7% previous
Looking Ahead - Economic Data (GMT)
•12:30 US Sep Retail Inventories Ex Auto 0.6% previous
•12:30 US Sep Goods Trade Balance -87.28B previous
•14:00 US Sep New Home Sales 585K,685K previous
•14:00 US Sep New Home Sales (MoM) -13.9% forecast,28.8% previous
•14:00 Canada BoC Interest Rate Decision 4.00% forecast,3.25% previous
•14:30 US Gasoline Inventories -0.805M forecast,-0.114M previous
•14:30 US Crude Oil Inventories 1.029M forecast,-1.725M previous
Looking Ahead - Events, Other Releases (GMT)
•14:00 Canada BoC Monetary Policy Report
•14:00 Canada BoC Rate Statement
• 15:00 Canada BOC Press Conference
Fxbeat
EUR/USD The euro climbed back above parity against the dollar for the first time in a month on Wednesday after poor U.S. economic data reinforced speculation that the Federal Reserve will slow its interest rate hikes, sending the greenback tumbling. Investors are focussing on European Central Bank meeting on Thursday. The European Central Bank is widely expected to raise rates by 75 basis points amid a looming recession. The European common currency rose 0.66% to $1.0042, the highest since Sept. 20.Immediate resistance can be seen at 1.0050(50%fib), an upside break can trigger rise towards 1.0204 (61.8%fib).On the downside, immediate support is seen at 0.9896 (50DMA), a break below could take the pair towards 0.9862 (23.6%fib).
GBP/USD: Sterling soared to six-week highs on Wednesday, as Britain’s new Prime Minister Rishi Sunak holds his first cabinet meeting amid reports he could delay the announcement of a plan to repair the country’s public finances. Sunak took power on Tuesday with a promise to fix the mistakes of his predecessor and stabilise the economy, warning Britain faced a “profound economic crisis”.Foreign minister James Cleverly said on Wednesday the government’s fiscal plan, scheduled for Oct. 31 and hotly anticipated by markets, could be delayed, suggesting a little more time might be needed to spell out the details.The pound was last up 1.16% against the dollar at $1.1601. Immediate resistance can be seen at 1.1615 (38.2%fib), an upside break can trigger rise towards 1.1853 (50%fib).On the downside, immediate support is seen at 1.1386(50DMA), a break below could take the pair towards 1.1321(23.6%fib).
USD/CHF: The dollar dipped against the Swiss franc on Wednesday as the dollar fell amid expectations that the Federal Reserve might signal a slowdown in the pace of its interest rate hikes. Data on Tuesday showed U.S. consumer confidence ebbed in October, home prices fell sharply in August and there were signs that the Fed’s aggressive stance was starting to cool the labor market. While the Fed is still widely expected to deliver a 75-basis-point rate hike in November, it’s also likely to debate how much higher it can safely push borrowing costs. At (GMT 11:04), greenback fell 0.52% versus the Swiss franc to 0.9890. Immediate resistance can be seen at 0.9944(38.2%fib), an upside break can trigger rise towards 1.0050 (23.6%fib).On the downside, immediate support is seen at 0.9855(50% fib), a break below could take the pair towards 0.9802(50DMA).
USD/JPY: The dollar dipped against the yen on Wednesday as more signs of economic weakness in the United States fanned speculation about a less hawkish Federal Reserve weighed on greenback. U.S. economic data on Tuesday showed slowing home price growth and souring consumer confidence, with some signs that the Fed’s aggressive interest rate hikes are starting to cool the labour market. The Japanese yen strengthened 0.61 versus the greenback at 146.99 per dollar. The beaten-down currency had touched a 32-year low at 151.94 on Friday, but retreated after two bouts of suspected Bank of Japan intervention either side of the weekend. Strong resistance can be seen at 149.19 (23.6%fib), an upside break can trigger rise towards 150.71 (Higher BB).On the downside, immediate support is seen at 146.57(21DMA), a break below could take the pair towards 145.80(38.2%fib).
Equities Recap
European stocks were broadly lower in choppy trade on Wednesday, as earnings proved to be a mixed bag and investors braced for the ECB rate decision on Thursday.
At (GMT 11:28 ),UK's benchmark FTSE 100 was last trading down at 0.36 percent, Germany's Dax was up by 0.51 percent, France’s CAC finished was down by 0.03 percent.
Commodities Recap
Gold prices jumped over 1% on Wednesday as the dollar and bond yields weakened amid signs that the U.S. Federal Reserve’s aggressive rate hikes were dampening inflationary pressures, prompting speculation that it could shift to smaller rate rises.
Spot gold gained 1.3% to $1,674.09 per ounce by 0905 GMT, touching its highest since Oct. 13.U.S. gold futures rose 1.3% to $1,678.60.
Oil prices were broadly stable on Wednesday, moving in and out of negative territory after industry data showed U.S. crude stockpiles rose more than expected, though supply concerns and a weaker dollar gave support.
Brent crude futures for December were down 4 cents, or 0.04%, to $93.48 a barrel by 0849 GMT. U.S. West Texas Intermediate (WTI) crude futures for December were up 25 cents, or 0.3%, to $85.57 a barrel.