Posted at 31 October 2022 / Categories Market Roundups
Market Roundup
• UK Sep Mortgage Approvals 66.79K, 67.00K forecast, 74.34K previous
• UK Net Lending to Individuals 6.8B, 7.2B previous
• UK Sep Mortgage Lending 6.06B, 4.90B forecast, 6.14B previous
• EU Core CPI (YoY) 5.0%, 4.8% forecast, 4.8% previous
• EU CPI (MoM) 1.5%,1.2% previous
• EU GDP (YoY) 2.1%,4.1% previous
• EU GDP (QoQ)0.2%, 1.0% forecast, 0.8% previous
• EU Oct CPI (YoY) 10.7%,10.2% forecast,9.9% previous
Looking Ahead - Economic Data (GMT )
•13:45 US Oct Chicago PMI 47.0 forecast, 45.7 previous
•14:00 French 12-Month BTF Auction 2.166% previous
•14:00 French 3-Month BTF Auction 1.000% previous
•14:00 French 6-Month BTF Auction 1.579% previous
•14:30 US Oct Dallas Fed Mfg Business Index -17.2 previous
•15:00 US M2 Money Supply (MoM) 21.5T previous
•15:19 US Sep Dallas Fed PCE 6.00% previous
Looking Ahead - Events, Other Releases (GMT)
•No significant event
Fxbeat
EUR/USD The euro dipped against the dollar on Monday as dollar regained strength ahead of likely 75 bps Fed hike on Wednesday. The Fed is expected to deliver another 75-basis-point (bp) rate hike when the meeting concludes on Wednesday, which would be its fourth such increase in succession, but market pricing indicates roughly a 50% chance of just 50 basis points at its December meeting. On the data front, Eurozone inflation came in hotter than expected at 10.7%, a fresh record high. The euro slid 0.58% to $0.9907 against the dollar. 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 0.9905 (23.6%fib), a break below could take the pair towards 0.9881 (11DMA).
GBP/USD: Sterling fell on Monday, but was still headed for its largest monthly gain in over a year after the turbulence in British politics over the last few weeks finally appeared to subside. The pound ,which hit a record low of $1.0327 against the dollar in late September, has risen by 3.5% in October, the biggest one-month gain since July 2020, when it rose by 5.5%.Since September's all-time low, it's regained 11% in value. The Bank of England is likely to raise interest rates by another 75 basis points when it meets later this week. The pound was last down 0.6% against the dollar at $1.1545. Immediate resistance can be seen at 1.1612 (38.2%fib), an upside break can trigger rise towards 1.1684 (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/CHF: The dollar strengthened against the Swiss franc on Monday as greenback strengthened ahead of this week's highly anticipated policy meeting by the U.S. Federal Reserve. The U.S. Fed is expected to deliver another 75-basis-point rate hike after the conclusion of this week's policy-setting meeting on Wednesday. At ( GMT 12:51),greenback gained 0.52% versus the Swiss franc to 1.0009.Immediate resistance can be seen at 1.0009 (23.6%fib), an upside break can trigger rise towards 1.0083(Higher BB).On the downside, immediate support is seen at 0.9970 (9DMA), a break below could take the pair towards 0.9917 (38.2%fib).
USD/JPY: The dollar strengthened against the yen on Monday as markets looked forward to this week’s Federal Reserve meeting for more clarity on its rate-hike path. Data on Friday showed that U.S. consumer spending rose more than expected in September, while underlying inflation pressures continued to bubble paring expectations of a Fed slowdown.The Fed is widely expected to deliver a fourth straight 75 basis-point rate increase at its Nov. 1-2 policy meeting. At ( GMT 12:50),greenback gained 0.86% versus the Japanese yen to 148.72. Strong resistance can be seen at 147.77 (23.6%fib), an upside break can trigger rise towards 148.41 (11DMA).On the downside, immediate support is seen at 146.12 (Daily low), a break below could take the pair towards 145.45(38.2%fib).
Equities Recap
European stocks slipped into the red on Monday as investors digested weak China data and eyed Eurozone inflation as well as GDP figures for direction.
At (GMT 12:51),UK's benchmark FTSE 100 was last trading down at 0.19 percent, Germany's Dax was up by 0.15 percent, France’s CAC was trading down by 0.24 percent.
Commodities Recap
Gold prices slipped on Monday en route to their seventh straight monthly fall, weighed down by a stronger dollar and elevated U.S. bond yields, while markets looked forward to this week’s Federal Reserve meeting for more clarity on its rate-hike path.
Spot gold eased 0.1% to $1,640.09 per ounce by 1211 GMT, shedding about 1% so far in the month. U.S. gold futures inched 0.1% lower to $1,643.40.
Oil prices fell by more than $1 on Monday after weaker than expected factory activity data out of China and on concerns that the country's widening COVID-19 curbs will curtail demand.
Brent crude futures dropped $1.32, or 1.3%, to $94.45 a barrel by 1105 GMT, extending Friday's 1.2% decline.
U.S. West Texas Intermediate (WTI) crude was down $1.49, or 1.7%, at $86.41 after losing 1.3% on Friday.