Posted at 11 November 2022 / Categories Market Roundups
Market Roundup
•UK Sep Manufacturing Production (MoM) 0.0%, -0.4% forecast, -1.6% previous
•UK Sep Industrial Production (MoM) 0.2%, -0.2% forecast,-1.8% previous
•UK Sep GDP (YoY) (Q3) 2.4%, 2.1% forecast, 4.4% previous
•UK Sep Industrial Production (YoY) -3.1%, -4.3% forecast, -5.2% previous
•German Oct CPI (MoM) 0.9%, 0.9% forecast, 1.9% previous
•German Oct CPI (YoY) 10.4%, 10.4% forecast, 10.0% previous
• UK Business Investment (QoQ) (Q3) -0.5%,-0.3% forecast, 3.7% previous
• UK Sep Trade Balance-15.66B, -18.75B forecast, -19.26B previous
• UK Sep Trade Balance Non-EU -8.55B, -11.08B previous
• UK GDP (QoQ) (Q3)-0.2%,-0.5%forecast,0.2% previous
• UK GDP (MoM)-0.6%, -0.4% forecast, -0.3% previous
• UK Monthly GDP 3M/3M Change-0.2%,-0.3% previous
Looking Ahead - Economic Data (GMT )
•13:00 UK NIESR Monthly GDP Tracker -0.3% previous
•14:00 German Sep Current Account Balance n.s.a 0.6B previous
•15:00 US Nov Michigan Consumer Expectations 56.0 forecast, 56.2 previous
•15:00 US Nov Michigan Inflation Expectations 5.0% previous
•15:00 US Nov Michigan 5-Year Inflation Expectations 2.90% previous
•15:00 US Nov Michigan Consumer Sentiment 59.5 forecast, 59.9 previous
•15:19 US Sep Dallas Fed PCE 6.00% previous
•18:00 U.S. Baker Hughes Oil Rig Count 613 previous
•18:00 U.S. Baker Hughes Total Rig Count 770 previous
Looking Ahead - Events, Other Releases (GMT)
•13:10 UK MPC Member Tenreyro Speaks
•17:30 German Buba President Nagel Speaks
Fxbeat
EUR/USD: The euro rose on Friday as dollar continued its downward march after U.S. inflation came in lower than expected, making it less likely the Federal Reserve will keep aggressively raising rates.Data on Thursday showed consumer inflation rose 7.7% year-on-year in October, its slowest rate since January and below forecasts for 8%. Germany's inflation continued to rise at an alarming pace as data showed consumer prices, harmonised to compare with other European countries, was 11.6% higher year-on-year in October. The euro extended the previous day's 2% surge to rise 0.3% to $1.0245, trading around its highest since August. Immediate resistance can be seen at 1.0305(38.2%fib), an upside break can trigger rise towards 1.0377 (Aug 11th high).On the downside, immediate support is seen at 1.0151(50%fib), a break below could take the pair towards 1.0115 (5DMA).
GBP/USD: Sterling edged higher against a weakening dollar on Friday after British economic data came in stronger than expected. According to official data, Britain's economy shrank by a less severe than-expected 0.2% in the three months to September, which is likely to represent the start of a lengthy recession. The pound scored its biggest daily gain since March 2020 against the dollar on Thursday after U.S. consumer prices cooled off in October, supporting expectations that the Federal Reserve might slow down its rate tightening path. Sterling rose 0.2% to $1.1758, after hitting its highest since Aug. 26 at $1.1766. Immediate resistance can be seen at 1.1761 (23.6%fib), an upside break can trigger rise towards 1.1834(Higher BB).On the downside, immediate support is seen at 1.1576(5DMA), a break below could take the pair towards 1.1508(38.2%fib).
USD/CHF: The dollar declined against the Swiss franc on Friday after a softer U.S. inflation reading fanned hopes of milder interest rate hikes by the Federal Reserve. U.S. consumer prices rose less than expected in October, pushing the annual increase below 8% for the first time in eight months, the strongest signs yet that inflation was slowing, which would allow the Fed to scale back its hefty interest rate hikes. At 12:09 GMT, the dollar was 0.62 percent lower versus the Swiss franc at 0.9570. Immediate resistance can be seen at 0.9676(38.2%fib), an upside break can trigger rise towards 0.9748(5DMA).On the downside, immediate support is seen at 0.9560(Daily low), a break below could take the pair towards 0.9477(Sep 13th low)
USD/JPY: The dollar declined sharply against the yen on Friday as lower than expected U.S. inflation data that raised hopes the Federal Reserve could soon start to scale back its hefty increases to interest rate. U.S. consumer prices rose less than expected in October, indicating that inflation was slowing, which raised hopes that the Fed will begin scaling back its hefty rate hikes. The dollar, which has gained 22% in value against the yen this year, its steepest gain since 1979's 24% rise, was last down 1.06% against the Japanese currency at 139.40 yen.Strong resistance can be seen at 141.16(38.2%fib), an upside break can trigger rise towards 143.53(61.8%fib).On the downside, immediate support is seen at 138.64 (38.2%fib), a break below could take the pair towards 138.00 (Psychological level).
Equities Recap
European shares rose on Friday as miners and luxury goods retailers jumped on news of China easing some of its strict COVID-19 rules, with Richemont's better-than-expected sales and margins also aiding the rally in luxury stocks.
At (GMT 11:57),UK's benchmark FTSE 100 was last trading down at 0.25 percent, Germany's Dax was up by 0.53 percent, France’s CAC was up 0.37percent .
Commodities Recap
Gold prices were headed for their best week in more than two years, as they extended gains on Friday on hopes the Federal Reserve might pivot to a less hawkish policy amid signs of cooling inflation.
Spot gold was up 0.4% at $1,762.19 per ounce by 0916 GMT, after rallying more than 2% on Thursday as data showed U.S. consumer prices rose less than expected in October. U.S. gold futures gained 0.7% to $1,765.40.
Oil prices jumped by about 3% on Friday after health authorities in China, the top global crude importer, eased some of the country's heavy COVID curbs.
Brent crude futures rose $2.86, or 3.1%, to $96.53 a barrel by 1145 GMT, extending a 1.1% rise in the previous session.
U.S. West Texas Intermediate (WTI) crude futures gained $2.87, or 3.3%, to $89.34 a barrel, after climbing 0.8% in the previous session.