Posted at 03 November 2022 / Categories Market Roundups
Market Roundup
• Swiss Oct CPI (MoM) 0.1%,0.2% forecast, -0.2% previous
• UK Oct Services PMI 48.8, 47.5 forecast, 50.0 previous
• UK Oct Composite PMI 48, 47.2 forecast, 49.1 previous
• EU Sep Unemployment Rate 6.6%,6.6% forecast, 6.6% previous
Looking Ahead - Economic Data (GMT )
•12:00 UK Nov BoE Interest Rate Decision 3.00% forecast, 2.25% previous
•12:30 US Initial Jobless Claims 220K forecast, 217K previous
•12:30 US Jobless Claims 4-Week Avg 219.00K previous
•12:30 US Continuing Jobless Claims 1,450K forecast, 1,438K previous
•12:30 US Imports 326.30B previous
•12:30 US Exports 258.90B previous
•12:30 US Sep Trade Balance -72.20B forecast, -67.40B previous
•12:30 Canada Sep Building Permits (MoM) -6.1% forecast, 11.9% previous
•12:30 US Unit Labor Costs (QoQ) (Q3) 4.1% forecast, 10.2% previous
•12:30 Canada Sep Trade Balance 1.34B forecast, 1.52B previous
•12:30 US Nonfarm Productivity (QoQ) (Q3) 0.6% forecast, -4.1% previous
•13:45 US Oct Services PMI 46.6 forecast, 49.3 previous
•13:45 US Oct S&P Global Composite PMI 47.3 forecast, 49.5 previous
•14:00 US Sep Factory Orders (MoM) 0.3% forecast, 0.0% previous
•14:00 US Oct ISM Non-Manufacturing PMI 55.5 forecast, 56.7 previous
•14:00 US Oct ISM Non-Manufacturing Business Activity 59.1 previous
•14:00 US Oct ISM Non-Manufacturing New Orders 60.6 previous
Looking Ahead - Events, Other Releases (GMT)
•14:15 UK BoE Gov Bailey Speaks
Fxbeat
EUR/USD: The euro declined on Thursday after the Federal Reserve flagged a longer monetary tightening path with potentially higher peaks in rates. The Fed indicated on Wednesday smaller increments in the future but left policymakers room to continue pushing rates higher if inflation does not start to slow after delivering a widely expected 75 basis point (bps) hike. Immediate resistance can be seen at 0.9854(38.2%fib), an upside break can trigger rise towards 0.9904 (9DMA).On the downside, immediate support is seen at 0.9718 (23.6%fib), a break below could take the pair towards 0.9637 (Lower BB).
GBP/USD: Sterling dropped against the dollar on Thursday after the Federal Reserve jacked up interest rates again, and as traders awaited the latest decision from the Bank of England (BoE) . The dollar’s rise was particularly pronounced against the pound, with traders selling sterling in expectation the BoE would strike a less aggressive tone than the Fed.Sterling slumped 1.18% to $112.84, its lowest since Oct. Investors’ attention now turns to the BoE, which is also widely expected to raise borrowing costs by an historically large 75 bps to 3%.Immediate resistance can be seen at 1.1317 (21DMA), an upside break can trigger rise towards 1.1452 (50%fib).On the downside, immediate support is seen at 1.1234(38.2%fib), a break below could take the pair towards 1.1067(Oct 21st low).
USD/CHF: The dollar strengthened against the Swiss franc on Thursday after the U.S. Federal Reserve signalled that it will not slow down the pace of its interest rate increases. The Fed raised interest rates by 75 basis points on Wednesday and said its battle against inflation would require borrowing costs to rise further.Fed Chair Jerome Powell, speaking at a news conference at the end of a policy meeting, said it was "very premature" to discuss when the Fed might pause its rate increases, sending jitters through the markets.At ( GMT 12:51),greenback was down 0.28% versus the Swiss franc to 0.9965.Immediate resistance can be seen at 1.0138(23.6%fib), an upside break can trigger rise towards 1.0200(Psychological level).On the downside, immediate support is seen at 1.0041 (38.2%fib), a break below could take the pair towards 1.0007 (9DMA).
USD/JPY: The dollar strengthened against the yen on Thursday as U.S. Federal Reserve Chair Jerome Powell’s hawkish remarks boosted dollar. The Fed raised interest rates by 75 basis points on Wednesday and said its battle against inflation will require borrowing costs to rise further, yet signaled it may be nearing an inflection point.Powell, in a press conference, said the Fed has “ways to go with interest rates before we get to the level that’s sufficiently restrictive” and that it is premature to discuss pausing. The Japanese yen eased 0.2% against the dollar to 148.38 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 shares fell on Thursday, led by technology shares, after the Federal Reserve hinted at smaller interest rate increases for longer, dampening hopes of a downshift in its aggressive fight against inflation.
At (GMT 11:17),UK's benchmark FTSE 100 was last trading down at 0.54 percent, Germany's Dax was down by 1.04 percent, France’s CAC was trading down by 0.75 percent.
Commodities Recap
Gold prices fell to a near two-week low on Thursday, as the dollar and U.S. bond yields climbed after Federal Reserve Chair Jerome Powell indicated the central bank will stick with raising rates to tame inflation.
Spot gold fell 0.9% to $1,620.19 per ounce by 1024 GMT, while U.S. gold futures slipped 1.7% to $1,621.90.
Oil slipped on Thursday as a U.S. interest rate hike pushed up the dollar and increased fears of a global recession that would crimp fuel demand, although losses were capped by concerns over tight supply.
Brent crude dropped 85 cnets, or 0.9%, to $95.30 a barrel at 0750 GMT, while U.S. West Texas Intermediate (WTI) crude futures fell $1.01, or 1.1%, to $88.99.