Posted at 09 November 2022 / Categories Market Roundups
Market Roundup
• Sweden Industrial Production (MoM) 1.3%, -6.4% previous
• Sweden Sep Industrial New Orders (YoY) 4.8%, -0.6% previous
•Portuguese Unemployment Rate (Q3) 5.8%,5.7% previous
• Portuguese Sep Trade Balance -8.31B , -8.20B previous
Looking Ahead - Economic Data (GMT )
•15:00 US Wholesale Inventories (MoM) 0.8% forecast, 0.8% previous
•15:00 US Sep Wholesale Trade Sales (MoM) 0.4% forecast, 0.1% previous
•15:30 US Gasoline Inventories -1.080M forecast ,-1.257M previous
•15:30 US Heating Oil Stockpiles -0.383M previous
•15:30 US Cushing Crude Oil Inventories 1.267M previous
•15:30 US Crude Oil Inventories 1.360M forecast, -3.115M previous
Looking Ahead - Events, Other Releases (GMT)
•16:00 US FOMC Member Barkin Speaks
• 17:00 German Buba Wuermeling Speaks
Fxbeat
EUR/USD: The euro was little changed against dollar on Wednesday as traders waited on results from U.S. elections and on inflation data this week that will guide expectations for the interest rate outlook. U.S. CPI data due Thursday will consequently be closely watched, especially after last week's Federal Reserve meeting caused markets to reposition for an even higher peak in U.S. rates. The euro was little changed at $1.0061, just off the $1.0096 hit overnight, its highest since Sept. 13. 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 Wednesday as investors focused on U.S. inflation figures and the midterm elections. As the race heats for control of U.S. Congress, markets are expecting Republican gains, a result that will likely temper Democratic spending and regulation but set up a tough fight over raising the U.S. debt ceiling next year. A split Congress is also viewed as a more favourable outcome for financial markets. 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. 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 declined against the Swiss franc on Wednesday as investors awaited the results of the closely-watched U.S. midterm elections. Early U.S. midterm-election results showed an uncertain picture with Republicans still favoured to win a majority in the House of Representatives though the Senate remained a toss up.Results could take days to emerge, and what they mean for currency markets is uncertain, though divided government has in the past caused equities to rally, which could weigh further on the dollar. The U.S. dollar index , which is heading for its best year in almost four decades, is down about 1% so far this week and hovered at 109.68 on Wednesday. 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 was little changed against the yen on Wednesday as investors braced for U.S. inflation data due this week and awaited the results of the midterm elections that could signify a power shift in Washington. Results of the elections will decide whether the Democrats lose or retain congressional control halfway through President Joe Biden's term, with investors expecting Republican gains. U.S. consumer price index (CPI) data for October is due Thursday, with economists expecting a deceleration in both the monthly and yearly core inflation to 0.5% and 6.5%, respectively. The dollar also weakened to 145.17 yen , its lowest level against the Japanese currency this month. 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 came off eight-week highs Wednesday as Marks & Spencer led declines among retailers, while investors closely tracked results from the U.S. midterm election to determine a shift in the balance of power in Washington.
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, on Wednesday, eased off the one-month peak hit in the previous session, as the dollar edged up, although investors held off on big bets ahead of U.S. inflation data later this week that could steer the Federal Reserve’s rate hike strategy.
Spot gold inched 0.2% lower to $1,708.57 per ounce by 1054 GMT, while U.S. gold futures eased 0.3% to $1,711.50. Bullion prices rose more than 2% to breach the key $1,700 level on Tuesday.
Oil prices slipped on Wednesday after industry data showed that U.S. crude stockpiles rose more than expected and on concerns that a rebound in COVID-19 cases in top importer China would hurt fuel demand.
Brent crude futures fell 61 cents, or 0.6%, to $94.75 a barrel by 1000 GMT, while U.S. West Texas Intermediate (WTI) crude futures fell 68 cents, or 0.7%, to $88.23 a barrel. The benchmarks fell around 3% on Tuesday.