Posted at 19 November 2022 / Categories Market Roundups
Market Roundup
•Canada Oct IPPI (MoM) 2.4% ,0.4% forecast, 0.1% previous
•Canada Oct IPPI (YoY) 10.1%, 9.0% previous
•Canada Sep Foreign Securities Purchases -22.27B ,22.01B previous
•Canada Oct RMPI (MoM) 1.3% ,-3.2% previous
•US Oct Existing Home Sales 4.43M,4.38M forecast, 4.71M previous
•US Oct Existing Home Sales (MoM) -5.9%, -1.5% previous
•US Oct Leading Index (MoM) -0.8%, -0.4% forecast, -0.4% previous
•U.S. Baker Hughes Total Rig Count 782,779 previous
•U.S. Baker Hughes Oil Rig Count 623 ,622 previous
Looking Ahead - Economic Data (GMT )
•No data ahead
Looking Ahead - Events, Other Releases (GMT)
•No significant events
EUR/USD: The euro declined against dollar on Friday as dovish comment from ECB policy maker weighed on euro. The European Central Bank may slow the pace of interest rate hikes but should soon start running down its massive government debt holdings as that would ease the need for further rate rises, Dutch Central Bank President Klaas Knot said on Friday.The ECB has raised rates by an unprecedented 200 basis points since July, but a slowdown in the rate of increases has been anticipated after the bank claimed "substantial progress" in policy tightening on the back of 75 basis point moves in September and October. Immediate resistance can be seen at 1.0423( 23.6%fib), an upside break can trigger rise towards 1.0476(Higher BB).On the downside, immediate support is seen at 1.0247 (38.2%fib), a break below could take the pair towards 1.0211(11DMA).
GBP/USD: Sterling gained against dollar on Friday after better-than-expected retail sales but gave up some ground as investors booked profits heading into weekend. Data on Friday showed British retail sales staged a partial recovery in October, when inflation hit a 41-year high of 11.1%. Retail sales volumes rose in October by 0.6% month-on-month, following a 1.5% drop in September. After a volatile session on Thursday, sterling rose on Friday to trade up 0.4% against the U.S. dollar to $1.1881, not far from three-month high touched earlier this week. . Immediate resistance can be seen at 1.1963 (23.6%fib), an upside break can trigger rise towards 1.2007(Higher BB).On the downside, immediate support is seen at 1.1838(5DMA), a break below could take the pair towards 1.1731(38.2%fib).
USD/CAD: The Canadian dollar weakened against its U.S. counterpart on Friday, with the currency adding to this week’s decline as oil prices fell and data showed the largest divestment of Canadian securities by foreign investors in nearly four years. Foreign investors sold a net C$22.3 billion ($16.7 billion) in Canadian securities in September, the largest divestment since December 2018.Separate data showed producer prices in Canada rose 2.4% in October from September. The loonie was trading 0.5% lower at 1.3390 to the greenback, or 74.68 U.S. cents, after touching its weakest level since Nov. 10 at 1.3409. For the week, the loonie was down 1%. It follows four straight weeks of gains.Immediate resistance can be seen at 1.2908(38.2%fib), an upside break can trigger rise towards 1.2980(Higher BB).On the downside, immediate support is seen at 1.2810(38.2%fib), a break below could take the pair towards 1.2768 (23rd May low).
USD/JPY: The dollar gained against the yen on Friday as investors continued to make bets on the U.S. Federal Reserve's interest rate hiking path. Federal Reserve Bank of Boston leader Susan Collins said on Friday the central bank has more rate rises ahead of it as it seeks to lower inflation, adding that a 75-basis point hike was still on the table.The dollar was up 0.8% at 140.32 yen. Still, the dollar index , which measures the greenback against a basket of major currencies, was up 0.19% at 106.90 after falling 0.33% earlier in the day.The index was recently up about 0.58% week-to-date, in its biggest gain since early October. Strong resistance can be seen at 141.93(38.2%fib), an upside break can trigger rise towards 142.10 (11DMA).On the downside, immediate support is seen at 138.37(23.6%fib), a break below could take the pair towards 137.59(Lower BB).
Equities Recap
European stocks rallied on Friday in a broad-based rally led by retailers and automakers.
UK's benchmark FTSE 100 closed up by 0.53 percent, Germany's Dax ended up by 1.16 percent, France’s CAC finished the day up by 1.04 percent.
Wall Street's benchmark S&P 500 index ended higher on Friday in a choppy trading session, as gains in defensive shares overshadowed energy declines, and investors shrugged off hawkish comments from Federal Reserve officials about interest rate hikes.
Dow Jones closed up by 0.59 percent, S&P 500 closed up by 0.48 percent, Nasdaq settled up by 0.02 % percent.
Treasuries Recap
A key part of the U.S. Treasury yield curve inverted further on Friday as investors priced for the likelihood that growth will stall as the Federal Reserve continues to hike rates in an effort to stamp out historically high inflation.
Benchmark 10-year yields were last at 3.765%, after falling to 3.671% on Wednesday, the lowest since Oct. 5. They have fallen from a 15-year high of 4.338% on Oct. 21.
Two-year Treasury yields were at 4.467% and are holding above a two-week low of 4.290% reached on Nov. 10 after the CPI data. They are down from 4.883% on Nov. 4, which was also a 15-year high.
Commodities Recap
Gold prices fell on Friday and were bound for a weekly dip following indications from U.S. Federal Reserve officials that more interest rate hikes were due as the bank seeks to lower inflation.
Spot gold fell 0.7% to $1,748.84 per ounce by 2:08 p.m. ET (1908 GMT), set for a weekly decline of about 1.3%, its biggest since mid-October.U.S. gold futures settled down 0.5% at $1,754.4.
Oil dropped by about 2% on Friday, logging a second weekly decline, due to concern about weakened demand in China and further increases to U.S. interest rates.
Brent crude settled at $87.62 a barrel, falling $2.16, or 2.4%. U.S. West Texas Intermediate (WTI) crude settled at $80.08 a barrel, losing $1.56, or 1.9%.