Posted at 08 November 2022 / Categories Market Roundups
Market Roundup
• French Non-Farm Payrolls (QoQ) (Q3) 0.4%, 0.4% forecast,0.4% previous
• French Sep Exports 52.0B, 51.8B previous
• French Sep Current Account -7.30B, -5.10B previous
• French Sep Trade Balance -17.5B,-14.3B forecast,-15.3B previous
• Italian Sep Retail Sales (YoY) 4.1% ,-4.3% previous
•Italian Sep Retail Sales (MoM) 0.5%, -0.4% previous
•EU Retail Sep Sales (YoY) -0.6%, -1.3% forecast, -2.0% previous
•EU Sep Retail Sales (MoM) 0.4%, 0.4% forecast,-0.3% previous
Looking Ahead - Economic Data (GMT )
•13:55 US Redbook (YoY) 9.7% previous
•14:00 US IBD/TIPP Economic Optimism 41.5 forecast,- 41.6 previous
•14:00 US 3-Year Note Auction 4.318% previous
Looking Ahead - Events, Other Releases (GMT)
•16:00 UK BoE MPC Member Pill Speaks
Fxbeat
EUR/USD: The euro dipped on Tuesday as dollar picked up as traders pulled back on hopes that China could ease its zero-COVID policy and showed signs of caution ahead of U.S. mid-term elections. Markets had started the week with a “risk-on” tone, which some analysts attributed to hopes that China could relax its strict COVID-19 lockdown measures. Markets have also been buoyed by some investors expecting the U.S. Federal Reserve to take a more dovish tone. The euro touched $1.003 in Asia trade, its highest in nearly two weeks, before sliding to trade down a touch straddling the $1 level. Immediate resistance can be seen at 1.0037(38.2%fib), an upside break can trigger rise towards 1.0079 (Higher BB).On the downside, immediate support is seen at 0.9916(9DMA), a break below could take the pair towards 0.9864 (23.6%fib).
GBP/USD: The British pound fell on Tuesday as the dollar rose, with investors focused on U.S. inflation figures and the midterm elections.U.S. consumer price index (CPI) inflation data for October is due out on Thursday. Global investors will scrutinise it for its implications for Federal Reserve interest rate policy. Sterling was down 0.23% against the dollar to $1.1489 in the morning session in Europe, having earlier fallen more than 0.5%. It slumped to a record low of $1.0327 in September after the government's disastrous tax-cutting budget, but has since rebounded strongly. Immediate resistance can be seen at 1.1520 (50%fib), an upside break can trigger rise towards 1.1673(Higher BB).On the downside, immediate support is seen at 1.1327(9DMA), a break below could take the pair towards 1.1304(23.6%fib).
USD/CHF: The dollar edged higher against the Swiss franc on Tuesday as the greenback picked up as investors pulled back on hopes that China could ease its zero-COVID policy while investors awaited U.S. mid-term elections. Investors were focused on the U.S. mid-term elections, within which control of the U.S. House of Representatives is at stake. Non-partisan forecasters expect Republicans to win a majority within the chamber, which might enable them to block President Joe Biden' legislative agenda. Immediate resistance can be seen at 0.9915(23.6%fib), an upside break can trigger rise towards 0.9977(5DMA).On the downside, immediate support is seen at 0.9852(Lower BB), a break below could take the pair towards 0.9820 (38.2%fib).
USD/JPY: The dollar declined against the yen on Tuesday as traders looked ahead to key U.S. inflation figures this week that could influence the Federal Reserve’s rate-hike narrative. Investor focus is also on the U.S. midterm elections later in the day that will determine control of Congress and could spur moves all over the market. A conclusive result could take days. Market participants also kept a close tab on any news surrounding COVID-related curbs in China. The dollar hit a one-week low of 146.35 per yen. Strong resistance can be seen at 147.15(23.6%fib), an upside break can trigger rise towards 147.91(21DMA).On the downside, immediate support is seen at 145.66 (Lower BB), a break below could take the pair towards 144.15(38.2%fib).
Equities Recap
European shares traded in a tight range on Tuesday as investors focussed on U.S. midterm elections that will determine control of Congress, while Danish jewellery maker Pandora jumped after reporting quarterly sales above expectations.
At (GMT 12:19 ),UK's benchmark FTSE 100 was last trading down at 0.13 percent, Germany's Dax was up by 0.34 percent, France’s CAC was flat .
Commodities Recap
Gold prices slipped on Tuesday as the dollar regained some ground, while investors braced for the U.S. inflation data later this week that could determine the Federal Reserve’s future policy path.
Spot gold fell 0.4% to $1,668.50 per ounce by 0844 GMT. Prices hit a three-week peak in the previous session, buoyed by a weaker dollar.U.S. gold futures shed 0.5% to $1,671.50.
Oil prices slipped on Tuesday as recession concerns and worsening COVID-19 outbreaks in top crude importer China heightened fears of lower fuel demand.
Brent crude was down 93 cents, or 1%, at $96.99 a barrel by 1129 GMT, while U.S. West Texas Intermediate (WTI) crude was $1.16, or 1.3%, lower at $90.63.