Posted at 07 November 2022 / Categories Market Roundups
Market Roundup
• German Sep Industrial Production (MoM) 0.6%, 0.2% forecast, -0.8% previous
•Swiss Oct Unemployment Rate s.a. 2.1%, 2.1% forecast ,2.1% previous
•Swiss Oct Unemployment Rate n.s.a 1.9%, 2.0% forecast , 1.9% previous
• UK Oct Halifax House Price Index (MoM) -0.4% ,-0.4% forecast , -0.1% previous
• German Sep Industrial Production (MoM) 0.6%, 0.2% forecast , -0.8% previous
• UK Halifax House Price Index (YoY) 8.3% forecast , 9.8% previous
Looking Ahead Economic Data(GMT)
•14:00 French 12-Month BTF Auction 2.145% previous
•14:00 French 3-Month BTF Auction 1.330% previous
•14:00 French 6-Month BTF Auction 1.680% previous
•15:00 US Oct CB Employment Trends Index 120.17 previous
•16:30 US 3-Month Bill Auction 4.070% previous
•16:30 US 6-Month Bill Auction 4.440% previous
•20:00 US Sep Consumer Credit 30.00B forecast , 32.24B previous
Looking Ahead - Events, Other Releases (GMT)
• 20:40 US FOMC Member Mester Speaks
•20:40 US Fed Collins Speaks
•23:00 US FOMC Member Barkin Speaks
Fxbeat
EUR/USD: The euro strengthened on Monday as weaker dollar and better than expected German industrial production boosted euro. German industrial production grew in September, official data showed on Monday, despite a fall in the energy-intensive industrial branches and on going delivery bottlenecks. Industrial output was up 0.6% on the previous month, the Federal Statistical Office said. In a poll, analysts had pointed to a 0.2% increase. By contrast, production in energy-intensive industrial branches fell by 0.9% in September, the office said.For August, the office revised its figure to -1.2% from a previous -0.8%.The euro was up by 0.4% to near-parity at $0.99975.Immediate resistance can be seen at 1.0027(50%fib), an upside break can trigger rise towards 1.0059 (Higher BB).On the downside, immediate support is seen at 0.98889 (38.2%fib), a break below could take the pair towards 0.9878 (5DMA).
GBP/USD: Sterling rose on Monday, largely boosted by a softer dollar, which pushed the pound back up to levels seen before the Bank of England (BoE) delivered its biggest interest rate hike in three decades last week . The pound is trading roughly where it was in the run-up to Thursday’s decision by the Bank of England to raise its benchmark interest rate by 75 bps as it battles to bring down double-digit inflation. But analysts remain gloomy about the prospects for the currency given the economic outlook. At 1000 GMT, the pound was up 0.61% against the dollar at $1.14405, and 0.35% higher versus the euro at 87.260 pence per euro. Immediate resistance can be seen at 1.1477 (38.2%fib), an upside break can trigger rise towards 1.1408(38.2%fib).On the downside, immediate support is seen at 1.1327(21DMA), a break below could take the pair towards 1.1134(23.6%fib).
USD/CHF: The dollar dipped against the Swiss franc on Monday as data showing an uptick in U.S. unemployment rate in October dragged the dollar lower. On Friday, the October employment report showed much faster job growth than expected, but slower wage growth and a rise in the unemployment rate, suggesting some of the tightness in the labour market may be easing. Investors will now focus on the U.S. inflation data due later this week. The data is likely to shed some light on Fed’s rate-hike move in the upcoming December meet. Immediate resistance can be seen at 0.9977(23.6%fib), an upside break can trigger rise towards 1.0000(Psychological level).On the downside, immediate support is seen at 0.9893(Daily low), a break below could take the pair towards 0.9855 (38.2%fib).
USD/JPY: The dollar declined against the yen on Monday as investors awaited consumer inflation data this week. The biggest macroeconomic risk event this week will be the October consumer price index (CPI), which could be instrumental in setting investor expectations for the likely course of Federal Reserve monetary policy. Four Federal Reserve policymakers on Friday indicated they would still consider a smaller interest rate hike at their next policy meeting, sounding less hawkish than Chair Jerome Powell. There are at least seven Fed officials scheduled to speak this week, which will help refine the rate outlook with markets now narrowly leaning toward a half-point rate hike next month to 4.25-4.5%. Strong resistance can be seen at 147.56 (5DMA), an upside break can trigger rise towards 148.23(23.6%fib).On the downside, immediate support is seen at 146.40 (Daily low), a break below could take the pair towards 145.44(38.2%fib).
Equities Recap
European shares rose on Monday, reversing declines from the opening bell, as a jump in travel stocks helped outweigh a drag from China-exposed luxury giants.
At (GMT 12:19 ),UK's benchmark FTSE 100 was last trading down at 0.26 percent, Germany's Dax was up by 0.81 percent, France’s CAC was up by 0.15 percent.
Commodities Recap
Gold prices eased on Monday as some investors locked in profits after a sharp rise in the previous session, while markets awaited this week's U.S. inflation data to get cues on the Federal Reserve's rate hike path.
Spot gold fell 0.2% to $1,676.69 per ounce by 1130 GMT, while U.S. gold futures rose 0.2% to $1,679.50.
Oil prices were stable on Monday, hovering close to $100 a barrel as support from a weaker dollar and recovering Chinese crude imports met renewed demand concerns linked to China's stringent COVID containment approach.
Brent crude futures rose by 6 cents, or 0.06% to $98.63 a barrel at 1026 GMT. U.S. West Texas Intermediate crude was at $92.60 a barrel, down 1 cent, or 0.01%.