Posted at 12 November 2022 / Categories Market Roundups
Market Roundup
•US Nov Michigan Consumer Expectations 52.7, 56.0 forecast, 56.2 previous
•US Nov Michigan Inflation Expectations 5.1%,5.0% previous
•US Nov Michigan 5-Year Inflation Expectations 3.00%, 2.90% previous
•US Nov Michigan Consumer Sentiment 54.7,59.5 forecast, 59.9 previous
•US Nov Michigan Current Conditions 57.8, 64.0 forecast, 65.6 previous
•US U.S. Baker Hughes Oil Rig Count 622 ,613 previous
•U.S. Baker Hughes Total Rig Count 779 , 770 previous
Looking Ahead - Economic Data (GMT )
•No data ahead
Looking Ahead - Events, Other Releases (GMT)
•No significant events
Currency Summaries
EUR/USD: The euro rose on Friday as dollar continued its downward march following signs U.S. inflation is cooling that boosted the case for the Federal Reserve to ease off its hefty interest rate hikes.Friday's dollar weakness was an extension of the move set off after Thursday's data showed U.S. consumer inflation rose 7.7% year-on-year in October, its slowest rate since January and below forecasts for 8%.Against a basket of currencies , the dollar was down about 3.8% over two sessions, on pace for its largest two-day percentage loss since March 2009. Immediate resistance can be seen at 1.0374(38.2%fib), an upside break can trigger rise towards 1.0444 (5th June high).On the downside, immediate support is seen at 1.0237(50%fib), a break below could take the pair towards 1.0131 (5DMA).
GBP/USD: Sterling rose 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. Immediate resistance can be seen at 1.1853 (Daily high), an upside break can trigger rise towards 1.1928(23.6%fib).On the downside, immediate support is seen at 1.1638(38.2%fib), a break below could take the pair towards 1.1595(5DMA).
USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Friday as Canadian dollar was driven higher by higher oil prices and weaker dollar. Also adding to support for the loonie, has been the move higher in equities. Shares rose globally on Friday on hopes of cooler U.S. inflation would lead to less aggressive interest rate hikes by the Federal Reserve. The currency touched its strongest level since Sept. 22nd . The Canadian dollar was trading 0.46% higher at 1.3250 to the greenback .Immediate resistance can be seen at 1.3321 (38.2% fib), an upside break can trigger rise towards 1.3401 ( 5DMA ).On the downside, immediate support is seen at 1.3255 (38.2%fib), a break below could take the pair towards 1.3160 (23.6%fib).
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 139.81(38.2%fib), an upside break can trigger rise towards 142.15(50%fib).On the downside, immediate support is seen at 138.58 (Daily low), a break below could take the pair towards 136.00 (Psychological level).
Equities Recap
European stocks closed broadly higher on Friday although gains were just modest in most of the markets in the region.
The UK's benchmark FTSE 100 closed down by 0.78 percent, Germany's Dax ended up by 0.56 percent, and France’s CAC finished the day up by 0.58 percent.
Wall Street's main indexes ended higher on Friday, extending a rally started the day before after a soft inflation reading raised hopes the Federal Reserve would get less aggressive with U.S. interest rate hikes..
Dow Jones closed up by 0.10 percent, S&P 500 ended up 0.92 percent, Nasdaq finished the day up by 1.88percent.
Treasuries Recap
U.S. bond markets were closed on Friday on account of Veterans Day.
Commodities Recap
Gold prices extended gains to a near three-month high on Friday and were heading for their best week in over 2-1/2 years, as signs of cooling U.S. inflation bolstered bets that the Federal Reserve would be less hawkish on rate hikes going forward.
Spot gold gained 0.7% to $1,766.39 per ounce by 14:28 p.m. ET (1928 GMT), after hitting its highest since Aug. 18 earlier in the session. Bullion is up over 5% so far this week.U.S. gold futures settled up 0.9% at $1,769.4.
Oil prices settled higher on Friday but fell week-on-week after health authorities in China eased some of the country's heavy COVID-19 curbs, raising hopes for improved economic activity and demand in the world's top crude importer.
Brent crude futures settled up $2.32 at $95.99 a barrel, extending a 1.1% rise from the previous session but falling 2.6% on the week.U.S. West Texas Intermediate (WTI) crude futures settled up $2.49, or 2.9%, at $88.96 a barrel.