News

Europe Roundup: Euro dips as dollar climbs ahead of inflation data, European shares edge lower ,Gold ticks higher, Oil drops for fourth day on China demand concerns-November 10th,2022

Posted at 10 November 2022 / Categories Market Roundups


Market Roundup

•Greek Oct HICP (YoY)  9.5%, 12.1% previous

• Italian Sep Industrial Production (YoY)  -0.5%,0.9% forecast,2.9% previous

• Greek Oct CPI (YoY)  9.1%, 12.0% previous

•Irish Oct CPI (YoY)  9.2%, 8.2% previous

Looking Ahead - Economic Data (GMT )

•13:30   US Oct Core CPI (YoY)    6.5% forecast,  6.6% previous

•13:30 US Oct CPI (MoM)  0.6% forecast, 0.4% previous

•13:30 US Oct Core CPI (MoM)  0.5%forecast, 0.6%previous

•13:30  US Oct CPI (YoY)  8.0% forecast, 8.2% previous

•13:30 US Oct Core CPI Index 298.66 previous

•13:30 US CPI Index, n.s.a. 298.58 forecast, 296.81 previous

•13:30 US Oct Real Earnings (MoM)  -0.1% previous

•13:30 US Oct CPI, n.s.a (MoM )  0.22% previous

•13:30 US  Initial Jobless Claims 220K forecast, 217K previous

•13:30 US  Continuing Jobless Claims 1,475K forecast, 1,485K previous

•13:30   US  Jobless Claims 4-Week Avg. 218.75K previous

•15:30 US Natural Gas Storage   84B forecast, 107B previous

•16:00 US Oct Cleveland CPI (MoM)   0.7% previous

•16:30   US  4-Week Bill Auction 3.600% previous

•19:00 US Oct.  Federal Budget Balance -90.0B forecast  ,-430.0B previous

Looking Ahead - Events, Other Releases (GMT)

•17:30 US FOMC Member Mester Speaks   
        
•14:00   US  FOMC Member Harker Speaks

•16:50   Canada BoC Gov Macklem Speaks    
       
Fxbeat

EUR/USD: The euro declined on Thursday as dollar held onto overnight gains before U.S. inflation data that will influence the Federal Reserve's rate plans. The release of U.S. CPI data, due at 1330 GMT, is the main event of the day for markets as investors try to position themselves based on when and at what level they think U.S. interest rates will peak.The report is expected to show a slowing in both the monthly and yearly core numbers for October to 0.5% and 6.5%, respectively, according to a   poll. The euro slid back below parity and last stood 0.71% down at $0.9938. 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 edged higher against dollar on Thursday as investors focused on U.S. inflation figures and the midterm elections. With no final results available from the U.S. mid-term elections, investors were turning to upcoming inflation data later in the day, which is likely to show a slowing in both the monthly and yearly core numbers for October to 0.5% and 6.5%, respectively, according to a  poll. Global investors will scrutinise it for its implications for Federal Reserve interest rate policy. Sterling gained 0.11% to $1.1387, marking a partial recovery from a 1.6% slide in the previous session. Immediate resistance can be seen at 1.1431 (9DMA), an upside break can trigger rise towards 1.1548(23.6%fib).On the downside, immediate support is seen at 1.1315(38.2%fib), a break below could take the pair towards 1.145(50%fib).

USD/CHF: The dollar strengthened against the Swiss franc on Thursday as investors awaited key U.S. inflation data that could influence the Federal Reserve's future interest rate hikes The U.S. consumer price index (CPI) report for October is due at 1330 GMT. Economists expect core inflation to decline on both a monthly and an annual basis. The dollar has surged more than 16% this year but has lost some steam over the past few weeks on hopes that the Fed could begin making smaller increases to interest rates as early as December. Immediate resistance can be seen at 0.9903(23.6%fib), an upside break can trigger rise towards 0.9955(5DMA).On the downside, immediate support is seen at 0.9834(Daily low), a break below could take the pair towards 0.9802(38.2%fib)

USD/JPY: The dollar was little changed against the yen on Thursday as investors focused on U.S. inflation data due later in the session which might provide further indications about the Federal Reserve tightening path.Markets are also closely watching the U.S. election results as they expect a Republican majority to curtail President Joe Biden’s ability to pursue expansive fiscal policy plans, negatively impacting rates.Republicans were edging closer to securing a majority in the U.S. House of Representatives early on Thursday while control of the Senate hung in the balance. Strong resistance can be seen at 147.09(23.6%fib), an upside break can trigger rise towards 147.91(21DMA).On the downside, immediate support is seen at 145.27 (Lower BB), a break below could take the pair towards 144.15(38.2%fib).

Equities Recap

European shares slipped on Thursday, led by declines in real estate stocks, with losses limited by gains in British drugmaker AstraZeneca following upbeat earnings.

At (GMT 11:49 ),UK's benchmark FTSE 100 was last trading up at 0.01 percent, Germany's Dax was up  by 0.10percent, France’s CAC   was down 0.33 percent   .

Commodities Recap

Gold prices were little changed on Thursday as investors held back from placing big bets ahead of U.S. inflation data that may provide cues on further interest rate increases, with the outcome of U.S. midterm elections also on the radar.

Spot gold was steady at $1,708.11 per ounce, as of 0939 GMT. U.S. gold futures were down 0.2% at $1,709.60.

Oil extended losses on Thursday for a fourth consecutive session as renewed COVID curbs in China raised concern about fuel demand in the world's biggest crude importer.

Brent crude was down 68 cents, or 0.7%, to $91.97 a barrel at 1100 GMT. U.S. West Texas Intermediate (WTI) crude fell $1.07, or 1.3%, at $84.76.


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