Posted at 27 October 2022 / Categories Market Roundups
Market Roundup
•US economic growth rebounds in Q3, consumer spending slows
•ECB raises interest rates by 75 bps
• US Jobless Claims 4-Week Avg. 219.00K,212.25K previous
• US Continuing Jobless Claims 1,438K,1,388K forecast,- 1,385K previous
• US Initial Jobless Claims 217K,220K forecast, 214K previous
•US Sep Durables Excluding Defense (MoM) 1.4%,-0.8% previous
•US Sep Core Durable Goods Orders (MoM) -0.5%,0.2% forecast, 0.3% previous
•US GDP Price Index (QoQ) (Q3) 5.3% forecast, 9.1% previous
•US GDP (QoQ) (Q3) 4.1%,2.4% forecast, -0.6% previous
•US Sep Durable Goods Orders (MoM) 0.4%, 0.6% forecast, -0.2% previous
•US GDP (QoQ) (Q3) 2.6%, 2.4% forecast,-0.6% previous
•US GDP Price Index (QoQ) (Q3) 4.1%, 5.3% forecast, 9.1% previous
•US Oct KC Fed Manufacturing Index -22 forecast, 2 previous
Looking Ahead - Economic Data (GMT)
•22:55 Japan Oct Tokyo Core CPI (YoY) 3.1% forecast, 2.8% previous
•22:55 Japan Sep Jobs/applications ratio 1.33 forecast, 1.32 previous
•00:00 New Zealand Oct ANZ Business Confidence -36.7 previous
•00:00 New Zealand Oct NBNZ Own Activity -1.8% previous
•00:30 Australia PPI (YoY) (Q3) 5.6% previous
•00:30 Australia PPI (QoQ) (Q3) 1.4% previous
Looking Ahead - Events, Other Releases (GMT)
•02:30 Japan BoJ Interest Rate Decision -0.10% forecast, -0.10% previous
Currency Summaries
EUR/USD : The euro dropped more than 1% on Thursday, falling back below parity with the dollar, after the European Central Bank (ECB) raised interest rates and U.S. data showed that the world's biggest economy rebounded more than expected in the third quarter.ECB raised its deposit rate by 75 basis points to 1.5%, the highest since 2009, in an effort to prevent rapid price growth from becoming entrenched. Further rate hikes are almost certain, but with a weakening economy, the pace is up for debate. The euro fell from a one-month high of $1.0094 versus the dollar earlier in the day to back below parity with the greenback after the ECB rate decision. The single currency was down 1.1% at 0.9968,.Immediate resistance can be seen at 0.9927(38.2%fib), an upside break can trigger rise towards 1.0076 (23.6%fib).On the downside, immediate support is seen at 0.9902 (9DMA), a break below could take the pair towards 0.9889(50%fib).
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 1.1676 (38.2%fib), an upside break can trigger rise towards 1.1800 (Psychological level).On the downside, immediate support is seen at 1.1475(50%fib), a break below could take the pair towards 1.1404(9DMA).
USD/CAD: The Canadian dollar was little changed against its U.S. counterpart on Thursday, with the currency holding onto its recent gains as oil prices rose and data showed growth in the U.S. economy.U.S. gross domestic product increased at a 2.6% annualized rate last quarter, ending two straight quarterly decreases in output. Canada sends about 75% of its exports to the United States, including oil. The Canadian dollar was nearly unchanged at 1.3550 to the greenback, after trading in a range of 1.3539 to 1.3626. On Wednesday, it touched a three-week high at 1.3506. Immediate resistance can be seen at 1.3521(5DMA), an upside break can trigger rise towards 1.3557(23.6%fib).On the downside, immediate support is seen at 1.3524 (38.2%fib), a break below could take the pair towards 1.3440(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 stocks emerged from their session lows and closed nearly flat on Thursday after the European Central Bank raised interest rates by an expected 75 basis points and signalled a slower pace of rate hikes going forward.
The UK's benchmark FTSE 100 closed up by 0.12 percent, Germany's Dax ended up by 0.25 percent, and France’s CAC finished the day down by 0.51 percent.
The S&P 500 and the Nasdaq posted losses on Thursday, as investors contended with solid economic data and a mixed bag of corporate earnings.
Dow Jones closed up by 1.00 percent, S&P 500 ended down by 0.20 percent, Nasdaq finished the down up by 1.64 percent.
Treasuries Recap
Treasury yields slid further on Thursday after data showed U.S. consumer and business spending slowed in the third quarter, pointing to a possible peak in inflation that could allow the Federal Reserve to ease its aggressive hiking of interest rates.
The 10-year yield was last down 7.8 basis points to 3.937%, while 30-year bonds US30YT=RR fell 7.6 basis points to 4.089%.
The two-year U.S. Treasury yield, which typically moves in step with interest rate expectations, fell 9.7 basis points to 4.321%.
Commodities Recap
Gold prices eased in choppy trading on Thursday as a rise in the U.S. dollar offset support for the precious metal from expectations the Federal Reserve will slow its interest rate hikes after a policy meeting next week.
Spot gold was down 0.2% to $1,661.25 per ounce by 1:41 p.m. EDT (1741 GMT), while U.S. gold futures settled at $1,665.60, 0.2% lower on the day.
Oil rose more than $1 a barrel on Thursday, extending the previous day's rally of nearly 3%, as optimism over record U.S. crude exports and signs that recession fears are abating outweighed concern over slack demand in China.
Brent crude settled up $1.27, or 1.3%, to $96.96 a barrel while U.S. West Texas Intermediate (WTI) crude settled up $1.17, or 1.3%, to $89.08 a barrel.