Posted at 29 October 2022 / Categories Market Roundups
Market Roundup
• US Employment Cost Index (QoQ) (Q3) 1.2%,1.2% forecast, 1.3% previous
• US Sep Personal Income (MoM) 0.4% , 0.3% forecast, 0.3% previous
• US Sep Personal Spending (MoM) 0.6%, 0.4% forecast, 0.4% previous
•US Sep PCE price index (MoM) 0.3%,0.3% previous
• Sep PCE Price index (YoY) 6.2%, 6.2% previous
• US Sep Core PCE Price Index (YoY) 5.1%,5.2% forecast, 4.9% previous
•US Sep Core PCE Price Index (MoM) 0.5%,0.5% forecast, 0.6% previous
•Canada Aug GDP (MoM) 0.1%, 0.1% forecast, 0.1% previous
•US Sep Pending Home Sales Index 79.5, 88.4 previous
•US Oct Michigan Consumer Sentiment 59.9,59.8 forecast, 59.8 previous
•US Oct Michigan Current Conditions 65.6, 65.3 forecast, 65.3 previous
•US Oct Michigan Consumer Expectations 56.2, 56.2 previous
•US Oct Michigan 5-Year Inflation Expectations 2.90%,2.90% previous
• US Sep Pending Home Sales (MoM) -10.2%,-5.0% forecast, -2.0% previous
• Canada Aug Budget Balance -2.45B,-3.87B previous
• Canada Aug Budget Balance (YoY) 3.88B, 6.33B previous
• U.S. Baker Hughes Oil Rig Count 610, 612 previous
• U.S. Baker Hughes Total Rig Count 768, 771 previous
Looking Ahead - Economic Data (GMT )
• No ahead
Looking Ahead - Events, Other Releases (GMT)
•No significant event
Currency Summaries
EUR/USD The euro was little changed against the dollar on Friday as investors assessed the path for monetary policy tightening amid slowing economic growth. Remarks from the ECB policy meeting on Thursday led investors to forecast a slowdown of future rate hikes as the central bank reiterated its commitment to reinvestments and omitted to start talking about quantitative tightening. The euro was last 0.05% lower at $0.9945, following a more than 1% slide overnight, after the ECB raised rates by 75 basis points .Immediate resistance can be seen at 1.0000(Psychological level), an upside break can trigger rise towards 1.0087(38.2%fib).On the downside, immediate support is seen at 0.9918 (23.6%fib), a break below could take the pair towards 0.9881 (11DMA).
GBP/USD: The British pound initially dipped against the dollar but recovered as newfound UK political stability and expectation that BoE will further hike interest rates supported pound. The Bank of England (BoE) is expected to further hike interest rates while the economy is slowing and with ongoing issues concerning EU trade and the Northern Ireland Protocol, Cole was cautious on the outlook for the pound . Traders are placing around a 90% chance of a 75 basis point rate hike at the meeting. The pound was up 0.46% against the dollar to $1.1613. For the week, the pound was still up 1.9%, its biggest weekly jump since Sept. 30. Immediate resistance can be seen at 1.1646 (38.2%fib), an upside break can trigger rise towards 1.1739 (Higher BB).On the downside, immediate support is seen at 1.1430(50%fib), a break below could take the pair towards 1.1367(11DMA).
USD/CAD: The Canadian dollar weakened against its U.S. counterpart on Friday, giving back some of its weekly advance, as attention turned to a Federal Reserve interest rate decision next week, while data showed surprise growth in the domestic economy. Money markets expect the Fed to raise interest rates by three-quarters of a percentage point at a policy announcement next Wednesday. Money markets expect the Fed to raise interest rates by three-quarters of a percentage point at a policy announcement next. The Canadian economy grew by 0.1% in August, compared with expectations for no growth, and likely expanded another 0.1% in September. The loonie was down 0.3% at 1.3610 to the greenback , pulling back from its strongest intraday level in nearly five weeks on Thursday at 1.3493.Immediate resistance can be seen at 1.3596 (5DMA), an upside break can trigger rise towards 1.3673(23.6%fib).On the downside, immediate support is seen at 1.3487 (38.2%fib), a break below could take the pair towards 1.3460 (LowerBB).
USD/JPY: The dollar strengthened against the yen on Friday after the Bank of Japan bucked the trend among other major central banks and stuck with ultra-low interest rates. The Bank of Japan kept ultra-low interest rates on Friday and maintained its dovish guidance, cementing its status as an outlier among global central banks tightening monetary policy, as recession fears dampen prospects for a solid recovery.The central bank also announced plans to increase the frequency of its bond buying next month, doubling down on efforts to defend its ultra-loose monetary policy. As widely expected, the BOJ left unchanged its -0.1% target for short-term interest rates and a pledge to guide the 10-year bond yield around 0% under its yield curve control (YCC) policy.Strong resistance can be seen at 147.34 (5DMA), an upside break can trigger rise towards 148.30 (23.6%fib).On the downside, immediate support is seen at 146.12 (Daily low), a break below could take the pair towards 145.75(38.2%fib).
Equities Recap
European stocks started off on a negative note on Friday, but with investors reacting to a slew of earnings updates and economic data, recovered gradually as the session progressed to eventually close broadly higher.
The UK's benchmark FTSE 100 closed down by 0.37 percent, Germany's Dax ended up by 0.24 percent, and France’s CAC finished the day up by 0.56 percent.
A robust, broad-based rally sent Wall Street to a sharply higher close on Friday as encouraging economic data and a sunnier earnings outlook fueled investor risk appetite ahead of next week's much-anticipated two-day policy meeting of the Federal Reserve.
Dow Jones closed up by 2.59 percent, S&P 500 ended up by 2.46 percent, Nasdaq finished the day up by 2.87 percent.
Treasuries Recap
U.S. Treasury yields rose on Friday after data showed underlying inflation pressures remain elevated and suggested to the bond market that the Federal Reserve will move forward with its aggressive interest rate hiking campaign.
The yield on 10-year notes rose 3.6 basis points to 3.975%, while the 30-year yield was up 0.4 basis points to 4.098%.
Commodities Recap
Gold fell more than 1% on Friday as the dollar and bond yields climbed after data showed underlying inflation pressures remained high, cementing expectations around another hefty rate hike from the U.S. Federal Reserve next week.
Spot gold fell 1.3% to $1,641.30 per ounce by 1:43 p.m. ET (1743 GMT). U.S. gold futures settled down 1.3% at $1,644.8.
Oil prices eased about 1% on Friday after top crude importer China widened its COVID-19 curbs, though the crude benchmarks were poised for a weekly gain on supply concerns and surprisingly strong economic data.
Brent futures fell $1.19, or 1.2%, to settle at $95.77 a barrel. U.S. West Texas Intermediate (WTI) crude fell $1.18, or 1.3%, to $87.90.