News

Europe Roundup: Euro dips against dollar ahead of ECB meeting, European stocks falls, Gold dips, Oil rises on strong crude demand, despite China fears-October 27th,2022

Posted at 27 October 2022 / Categories Market Roundups


Market Roundup

 •GfK Nov German Consumer Climate -41.9, -41.9 forecast, -42.5 previous

•Sweden Sep Household Lending Growth (YoY)  5.1%, 5.6% previous

•Sweden Oct Consumer Confidence  48.3, 49.7 previous

•Sweden Oct Manufacturing Confidence 105.1,   110.0 previous

•Italian Oct Business Confidence 100.4, 100.0 forecast, 101.3 previous

•Italian Aug Industrial Sales (YoY ) 23.10%, 16.30% previous

•UK Oct CBI Distributive Trades Survey 18, -20 previous

Looking Ahead - Economic Data (GMT )

•12:15   EU ECB Interest Rate Decision  2.00% forecast,- 1.25% previous

•12:15 EU Oct Deposit Facility Rate 1.50% forecast, 0.75% previous

•12:15   ECB Marginal Lending Facility 1.50% previous

• 12:30  US Jobless Claims 4-Week Avg.  212.25K previous

• 12:30 US Continuing Jobless Claims 1,388K forecast,- 1,385K previous

• 12:30 US Initial Jobless Claims 220K forecast, 214K previous

• 12:30  US  Sep Durables Excluding Defense (MoM)  -0.8% previous

•12:30 US  Sep Core Durable Goods Orders (MoM) 0.2% forecast, 0.3% previous

•12:30 US Sep Goods Orders Non Defense Ex Air (MoM)  0.5% forecast, 1.4% previous

•12:30 US GDP Price Index (QoQ) (Q3)   5.3% forecast, 9.1% previous

•12:30 US GDP (QoQ) (Q3) 2.4%   forecast, -0.6% previous

•12:30 US Sep Durable Goods Orders (MoM) 0.6% forecast, -0.2% previous

•15:00 US Oct KC Fed Manufacturing Index  2 previous

•15:00 US Oct KC Fed Composite Index  1  previous

•15:30 US 4-Week Bill Auction    3.430% previous

 Looking Ahead - Events, Other Releases (GMT)

•14:15   EU ECB President Lagarde Speaks            

•12:45   EU ECB Press Conference

• 12:15 EU ECB Monetary Policy Statement

Fxbeat

EUR/USD The euro dipped against the dollar   on Thursday  ahead of an expected rate hike from the European Central Bank (ECB). The European Central Bank (ECB) is expected to raise its deposit rate by 75 basis points (bps) to 1.5%, a 13-year high. It is also likely to reel in a key subsidy to commercial banks. The euro on Thursday peaked at a more than one-month high of $1.0094 before reversing course.It was last down 0.13% at $1.0066 ahead of the ECB's decision.  Immediate resistance can be seen at 1.0092(38.2%fib), an upside break can trigger rise towards 1.0200 (23.6%fib).On the downside, immediate support is seen at 1.0005 (50%fib), a break below could take the pair towards 0.9977 (5DMA).

GBP/USD: Sterling edged lower  on Thursday as news that the British government's plan to repair the country's public finances will be delayed by more than two weeks to Nov. 17 pushed pound lower. Rishi Sunak became Britain's third prime minister in two months on Tuesday, tasked with tackling a mounting economic crisis and a warring political party.Sterling bulls have welcomed PM Rishi Sunak's appointment, expecting him to deliver a viable plan to repair the UK's public finances on .UK markets are hence buoyant and sterling is stronger, though much of the recent recovery is led by U.S. markets and offshore factors. Immediate resistance can be seen at 1.1660 (23.6%fib), an upside break can trigger rise towards 1.1719 (Higher BB).On the downside, immediate support is seen at 1.1474(5DMA), a break below could take the pair towards 1.1424(38.2%fib).

 USD/CHF: The dollar strengthened against the Swiss franc on Thursday as investors awaited economic data amid expectations the U.S. Federal Reserve might slow its rate hike pace after November. Fourth straight 75 basis-point rate hike at the Fed’s November meeting is widely priced in, there are hopes it may opt for a smaller increase in December.Investors will also keep a close eye on the ECB’s policy decision due later in the day, followed by advance GDP estimates by the U.S. Commerce Department. At ( GMT 11:25),greenback gained 0.38% versus the Swiss franc to 0.9897.Immediate resistance can be seen at 0.9947 (23.6%fib), an upside break can trigger rise towards 0.9975(Higher BB).On the downside, immediate support is seen at 0.9842 (38.2%fib), a break below could take the pair towards 0.9810 (Lower BB).

USD/JPY: The dollar dipped against the yen on Thursday as the yen gained some footing ahead of Friday's policy decision by the Bank of Japan. The BOJ is set to keep ultra-low interest rates on Friday and its pledge to maintain massive stimulus on the view the recent cost-push inflation will prove temporary. Japan will also unveil on Friday a fresh spending package of more than $200 billion that includes steps to curb electricity bills , which could tame inflation next year and help the central bank justify keeping ultra-low interest rates. Strong resistance can be seen at 147.27 (5DMA), an upside break can trigger rise towards 148.32 (Higher BB).On the downside, immediate support is seen at 145.83 (38.2%fib), a break below could take the pair towards 143.92(50%fib).

Equities Recap

European shares fell in early trading on Thursday, as disappointing earnings soured the mood in global markets and traders were cautious ahead of an expected 75 basis point from the European Central Bank.

At (GMT 12:20),UK's benchmark FTSE 100 was last trading higher at 0.23 percent, Germany's Dax was down by 0.88 percent, France’s CAC was trading up by 0.88  percent.

Commodities Recap

Gold prices eased on Thursday as the dollar edged up, while investors await economic data amid expectations the U.S. Federal Reserve might slow its rate hike pace after November

Spot gold inched 0.1% lower to $1,662.79 per ounce by 0952 GMT, while U.S. gold futures also fell 0.1% to $1,666.70.

Oil rose on Thursday, extending a rally of nearly 3% in the previous session, as optimism over record U.S. crude exports and signs that recession fears are abating outweighed concern over slack demand in China.

Brent crude rose 56 cents, or 0.6%, to $96.25 a barrel by 1057 GMT. U.S. West Texas Intermediate (WTI) crude gained 41 cents, or 0.5%, to $88.32.


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