Posted at 16 November 2022 / Categories Market Roundups
Market Roundup
•US Oct PPI (MoM) 0.2%,0.4% forecast, 0.4% previous
•Canada Sep Wholesale Sales (MoM) 0.1%, -0.2% forecast, 1.4% previous
•US Oct Core PPI (MoM) 0.0%,0.3% forecast, 0.3% previous
•US Nov NY Empire State Manufacturing Index 4.50,-5.00 forecast, -9.10 previous
•Canada Sep Manufacturing Sales (MoM) 0.0%,-0.5% forecast, -2.0% previous
•Canada New Motor Vehicle Sales (MoM) 138.4%,136.0% previous
•US Redbook (YoY) 6.8%,7.6% previous
•New Zealand Global Dairy Trade Price Index 2.4% forecast,-3.9% previous
Looking Ahead - Economic Data (GMT )
•23:30 Japan Sep Core Machinery Orders (YoY) 7.4% forecast, 9.7% previous
•23:30 Japan Sep Core Machinery Orders (MoM) 0.7% forecast, -5.8% previous
•00:30 Australia Wage Price Index (QoQ) (Q3) 0.9% forecast, 0.7% previous
•00:30 Australia Wage Price Index (YoY) (Q3) 3.0% forecast, 2.6% previous
•01:30 China Oct House Prices (YoY) -1.5% previous
•04:30 Japan Tertiary Industry Activity Index (MoM) 0.6% forecast, 0.7% previous
Looking Ahead - Events, Other Releases (GMT)
Currency Summaries
EUR/USD: The euro initially gained against dollar on Tuesday but gave up ground as investors tried to interpret reports that stray Russian missiles may have hit NATO member Poland, killing two people.The euro lost ground sharply against the safe-haven dollar after the Poland reports fueled fears that the nine-month war between Russia and Ukraine could escalate. The euro was last up 0.38% at $1.0364 after falling as much as 0.44% following the reports from Poland. Immediate resistance can be seen at 1.0434(23.6%fib), an upside break can trigger rise towards 1.0500(Psychological level).On the downside, immediate support is seen at 1.0311 (38.2%fib), a break below could take the pair towards 1.0261(5DMA).
GBP/USD: The pound initially gained on Tuesday after data provided new signs U.S. inflation was peaking, but gave up ground as markets were rattled by media reports that said Russian missiles killed two people in Poland, news that raised fears of an escalation in the Ukraine war.Firefighters said two people were killed in an eastern Polish village near the Ukrainian border, Reuters reported. Other media said the deaths were due to what Kyiv said were the heaviest Russian missile strikes since the war in Ukraine began. New UK finance minister Jeremy Hunt delivers his autumn budget on Thursday, which is expected to contain a raft of measures, including tax rises and spending cuts, aimed at closing a 50-billion pound ($59 billion) gap in Britain's finances. The pound was last up 0.10% against the dollar at $1.1875, having reached a session high earlier of $1.2027. Immediate resistance can be seen at 1.1901 (23.6%fib), an upside break can trigger rise towards 1.2020 (Daily high).On the downside, immediate support is seen at 1.1738(5DMA), a break below could take the pair towards 1.1650(38.2%fib).
USD/CAD: The Canadian dollar rose to an eight-week high against its U.S. counterpart on Tuesday, but gains were capped on geopolitical jitters and investors waited for a key domestic inflation report. The safe-haven U.S. dollar pared losses following reports that Russian missiles had hit Poland.Earlier, data showed U.S. producer prices increased less than expected in October, providing further evidence that inflation was starting to subside. Canada's inflation data for October is awaited by investors on Wednesday for clues as to whether the Bank of Canada would raise interest rates by 25 or 50 basis points at its next policy announcement on Dec. 7.Immediate resistance can be seen at 1.3383 (23.6% fib), an upside break can trigger rise towards 1.3433 (11DMA).On the downside, immediate support is seen at 1.3243 (38.2% fib), a break below could take the pair towards 1.3123 (50% fib).
USD/JPY: The dollar declined against the yen on Tuesday after U.S. economic data provided further evidence that inflation was starting to ease, reducing demand for the safe-haven greenback. The U.S. producer price index (PPI) increased 8.0% for the 12 months through October compared with economist expectations for 8.3% and September's 8.4% increase, according to the Labor Department data.The report, following last week's smaller-than-expected increase in consumer prices for October , encouraged investors who have been closely monitoring inflation data for signs that the Federal Reserve could slow its interest rate hikes, which are aimed at dampening soaring prices. Strong resistance can be seen at 140.65(38.2%fib), an upside break can trigger rise towards 141.01(5DMA).On the downside, immediate support is seen at 138.58(50%fib), a break below could take the pair towards 137.82(Lower BB).
Equities Recap
Europe's STOXX 600 index closed higher on Tuesday, boosted by gains in technology and commodity stocks after softer-than-expected U.S. inflation data bolstered hopes of less-aggressive Federal Reserve interest rate hikes in the coming months.
UK's benchmark FTSE 100 closed down by 0.21 percent, Germany's Dax ended up by 0.46percent, France’s CAC finished the day up by 0. 49 percent.
Wall Street's main indexes gained on Tuesday, shaking off an unconfirmed report of Russian missiles crossing into Poland that sparked volatility, as investors seized on softer-than-expected inflation data that raised hopes of a pullback in rate hikes by the U.S. Federal Reserve.
Dow Jones closed up by 0.17 percent, S&P 500 ended up by 0.87 percent, Nasdaq finished the day up by 1.45 percent.
Treasuries Recap
U.S. Treasury yields fell on Tuesday after data showed that producer prices rose less than expected in October, adding to expectations that inflation may have peaked, which could pave the way for more dovish Federal Reserve policy.
Benchmark 10-year yields fell as low as 3.758%, the lowest since Oct. 6, and were last at 3.796%. Two-year yields fell as low as 4.326%, and were last at 4.342%.
Commodities Recap
Gold prices edged up near their highest in three months reached earlier on Tuesday on some safe-haven buying after news that two people were killed in eastern Poland near the Ukraine border.
Spot gold rose 0.3% to $1,776.64 per ounce by 2:08 p.m. ET (1908 GMT). U.S. gold futures settled little changed at $1,776.8.
Oil prices rose on Tuesday and settled higher after news that oil supply to Hungary via the Druzhba oil pipeline has been temporarily suspended due to a fall in pressure.
Brent crude futures rose 72 cents to settle at $93.86 a barrel, while U.S. West Texas Intermediate crude rose $1.05 to $86.92.