Posted at 02 November 2022 / Categories Market Roundups
Market Roundup
•German Sep Trade Balance 3.7B, 0.7B forecast, 1.2B previous
• German Sep Imports (MoM) -2.3%, -0.4% forecast, 3.4% previous
•Italian Oct Manufacturing PMI 46.5, 46.9 forecast, 48.3 previous
• French Oct Manufacturing PMI 47.2, 47.4 forecast, 47.7 previous
•German Oct Unemployment Rate 5.5%, 5.5% forecast, 5.5% previous
•German Oct Unemployment Change 8K, 15K forecast, 14K previous
•German Oct Manufacturing PMI 45.1, 45.7 forecast, 47.8 previous
•EU Oct Manufacturing PMI 46.4, 46.6 forecast, 48.4 previous
Looking Ahead - Economic Data (GMT )
•14:30 US EIA Weekly Refinery Utilization Rates (WoW) 0.5% forecast, -0.6% previous
•14:30 US Cushing Crude Oil Inventories 0.667M previous
•14:30 US Distillate Fuel Production -0.045M previous
•14:30 US EIA Weekly Distillates Stocks -0.560M forecast,0.170M previous
•14:30 US Crude Oil Inventories 0.367M forecast, 2.588M previous
•18:00 US Fed Interest Rate Decision 4.00% forecast, 3.25% previous
Looking Ahead - Events, Other Releases (GMT)
•18:00 US FOMC Statement
•18:30 US FOMC Press Conference
Fxbeat
EUR/USD The euro edged higher on Wednesday ahead of the Federal Reserve policy meeting, which ends later in the day.U.S. economic data released on Tuesday dampened speculation that the Fed might signal a slower pace of monetary tightening. Markets expect another rate hike of 75 basis points (bps), which would bring the U.S. federal funds rate to 3.75%-4.00%, and they see the current round of increases ending in the first half of 2023 at 4.75-5.00%. The U.S. Federal Reserve’s Federal Open Market Committee (FOMC) will issue a statement at 1800 GMT, and Chair Jerome Powell will hold a news conference half an hour later. Immediate resistance can be seen at 0.9931(9DMA), an upside break can trigger rise towards 0.9985 (38.2%fib).On the downside, immediate support is seen at 0.9850 (23.6%fib), a break below could take the pair towards 0.9786 (Oct 24th low).
GBP/USD: Sterling edged up against the dollar on Wednesday as markets braced for policy decisions from the U.S. Federal Reserve and Bank of England on benchmark interest rates aimed at curbing soaring inflation. The Fed is set to meet later on Wednesday and the BoE follows suit on Thursday, with investors focused as much on any clues as to the path of future rate hikes as on immediate moves.Both the Fed and the BoE are expected to hike interest rates by 75 basis points at their respective meetings. Sterling edged up 0.1% against the dollar to $1.14990 . Against the euro, the pound was last down 0.1% at 86.08 pence . Immediate resistance can be seen at 1.1643 (23.6%fib), an upside break can trigger rise towards 1.1693 (Higher BB).On the downside, immediate support is seen at 1.1471(9DMA), a break below could take the pair towards 1.1402(38.2%fib).
USD/CHF: The dollar dipped against the Swiss franc on Wednesday as investors braced for the U.S. Federal Reserve's policy decision later in the day, with many hoping for signs of a slowdown in future rate hikes. Data on Tuesday showed U.S. job openings unexpectedly rose in September, highlighting a resilient labour market and that rapid interest rate hikes have yet to bite hard in the real economy. While a 75-basis-point rate increase is largely priced in, investors will seek clues on whether there is a possibility of the Fed slowing down its tightening pace. At ( GMT 12:51),greenback was down 0.28% versus the Swiss franc to 0.9965.Immediate resistance can be seen at 1.0026(23.6%fib), an upside break can trigger rise towards 1.0063(Higher BB).On the downside, immediate support is seen at 0.9952 (9DMA), a break below could take the pair towards 0.9914 (38.2%fib).
USD/JPY: The dollar strengthened against the yen on Wednesday as investors await the U.S. Federal Reserve's policy decision later in the day that could give clues on future interest rate hikes. Markets widely expect the Fed to raise its benchmark overnight interest rate by 75 basis points but the focus will be on its commentary on inflation and any clues on the pace of future rate hikes. The dollar index - which gauges the greenback against a basket of six counterparts that includes the yen, euro and sterling - eased 0.2% to 111.27, but was not far below Tuesday's high of 111.78, the strongest level since Oct. 25. Strong resistance can be seen at 147.64 (9DMA), an upside break can trigger rise towards 149.64 (23.6%fib).On the downside, immediate support is seen at 146.77 (38.2%fib), a break below could take the pair towards 145.26(Oct 28th low).
Equities Recap
European stocks fell on Wednesday as investors awaited the outcome of key meetings at the Federal Reserve and the Bank of England.
At (GMT 12:51),UK's benchmark FTSE 100 was last trading down at 0.29 percent, Germany's Dax was down by 0.15 percent, France’s CAC was trading down by 0.51 percent.
Commodities Recap
Gold prices rose on Wednesday as the dollar weakened, but they held to a tight range with investors reluctant to place big bets before the U.S. Federal Reserve’s rate decision later in the day.
Spot gold rose 0.4% to $1,654.51 per ounce by 1216 GMT, while U.S. gold futures gained 0.5% to $1,657.40.
Oil prices slipped on Thursday ahead of an expected rate hike by the Federal Reserve, but found a floor as market participants eyed falling U.S. crude stockpiles and upcoming European sanctions on Russian barrels.
Brent crude dipped 56 cents, or 0.6%, to $94.09 a barrel by 1027 GMT, while U.S. West Texas Intermediate (WTI) crude was down 53 cents, or 0.6%, at $87.84 per barrel.