Posted at 23 November 2022 / Categories Market Roundups
Market Roundup
•US Building Permits 1.512M, 1.526M forecast, 1.564M previous
•US Building Permits (MoM) -3.3%,-2.4% forecast,1.4% previous
•US Initial Jobless Claims 240K,225K forecast,222K previous
•US Jobless Claims 4-Week Avg 226.75K,221.00K previous
•US Continuing Jobless Claims 1,551K,1,517K forecast, 1,507K previous
•US Oct Durables Excluding Defense (MoM) 0.8%,1.5% previous
•US Oct Goods Orders Non Defense Ex Air (MoM) 0.7% ,0.3% forecast,-0.4% previous
•US Oct Durable Goods Orders (MoM) 1.0%, 0.4% forecast,0.4% previous
•US Oct Core Durable Goods Orders (MoM) 0.5%, 0.1% forecast,-0.5% previous
•US Nov Manufacturing PMI 47.6,50.0 forecast,50.4 previous
•US Nov Services PMI 46.1, 47.9 forecast,47.8 previous
•US Nov S&P Global Composite PMI 46.3,48.2 previous
•US Nov Michigan Consumer Sentiment 56.8, 55.0 forecast, 54.7 previous
•US Oct New Home Sales 632K, 570K forecast, 603K previous
•US Nov Michigan 5-Year Inflation Expectations 3.00%,3.00% forecast, 2.90% previous
•US Nov Michigan Current Conditions 58.8, 57.8 forecast, 65.6 previous
•US Nov Michigan Consumer Expectations 55.6, 52.7 forecast, 56.2 previous
•US Nov Michigan Inflation Expectations 4.9%, 5.1% forecast, 5.0% previous
•US Crude Oil Inventories -3.691M, -1.055M forecast,-5.400M
Looking Ahead Economic Data(GMT)
•00:30 Japan Services PMI 53.2 previous
•00:30 Japan Nov Manufacturing PMI 50.9 forecast, 50.7previous
•05:00 Japan Leading Index 97.4 previous
•05:00 Japan Leading Index (MoM) -3.9% previous
•05:00 Japan Coincident Indicator (MoM) -0.7% previous
Looking Ahead - Events, Other Releases (GMT)
•No significant events
Currency Summaries
EUR/USD: The euro strengthened against dollar on Wednesday after fresh data showed the downturn in euro zone business activity eased slightly in November. S&P Global's flash Composite Purchasing Managers' Index (PMI), seen as a good gauge of overall economic health, nudged up to 47.8 from 47.3 in October, confounding expectations for a fall to 47.0 in a poll. The downturn in German economic activity also eased in November, a sister survey showed, offering some hope an expected recession in Europe's largest economy could be milder than first feared. The euro was up 0.87% against the dollar at $1.0399, on pace for a second straight session of gains. Immediate resistance can be seen at 1.0417(23.6%fib), an upside break can trigger rise towards 1.0440(Nov 16th high).On the downside, immediate support is seen at 1.0336(38.2%fib), a break below could take the pair towards 1.0280(50%fib).
GBP/USD: Sterling strengthened on Wednesday, rising for a second day against a faltering U.S. dollar after preliminary British economic activity data beat expectations, though it still showed contraction was underway. Flash purchasing manager index (PMI) data on Wednesday showed British economic activity sticking near 21-month lows, adding to signs of recession as orders sank and employment growth slowed. Despite the latest PMI readings remaining below 50 - the threshold for contraction the data was slightly better than economists polled had expected, leading to a slightly firmer pound. Immediate resistance can be seen at 1.2082( 23.6%fib), an upside break can trigger rise towards 1.2158 (Higher BBb).On the downside, immediate support is seen at 1.1947 (38.2%fib), a break below could take the pair towards 1.1846 (50%fib).
USD/CAD: The Canadian dollar edged higher against its U.S. counterpart on Wednesday after the Federal Reserve signaled that the pace of interest rate hikes could slow, but gains were capped by tumbling oil prices. Minutes of the Federal Reserve's latest policy meeting showed U.S. central bankers looking to soon moderate the pace of interest rate hikes. A substantial majority of Fed policymakers agreed it would "likely soon be appropriate" to slow the pace of interest rate hikes, the meeting minutes showed. The loonie was trading 0.1% higher at 1.3360 to the greenback, or 74.85 U.S. cents, after moving in a range of 1.3356 to 1.3439. Other G10 currencies had stronger gains. Immediate resistance can be seen at 1.3367(5 DMA), an upside break can trigger rise towards 1.3476 (38.2% fib).On the downside, immediate support is seen at 1.3332 (23.6% retracement level), a break below could take the pair towards 1.3231 (Nov 16th low).
USD/JPY: The dollar declined against the Japanese yen on Wednesday after minutes from the Federal Reserve's November meeting showed that most policymakers at the central bank agreed it would soon be appropriate to slow the pace of interest rate hikes.The readout of the Nov. 1-2 meeting, at which the Fed raised its key rate by three-quarters of a percent for the fourth straight time in an effort to combat decades-high inflation, showed officials were largely satisfied they could stop front-loading the rate increases and move in smaller steps. The dollar slipped 0.33% to 144.905 against the yen. Strong resistance can be seen at 140.67 (5DMA), an upside break can trigger rise towards 141.33(38.2% fib).On the downside, immediate support is seen at 138.70 (23.6% fib), a break below could take the pair towards 138.76(Nov 15th low).
Equities Recap
European stocks closed higher on Wednesday, with investors digesting the latest batch of economic data from the region.
UK's benchmark FTSE 100 closed up by 1.03 percent, Germany's Dax ended up by 0.29 percent, France’s CAC finished the day up by 0. 35 percent.
Wall Street's main indexes ended Wednesday with solid gains after the Federal Reserve's November meeting minutes showed interest rate hikes may slow soon.
Dow Jones closed up by 1.18 percent, S&P 500 ended up by 1.36 percent, Nasdaq finished the day up by 0.99 percent.
Treasuries Recap
U.S. Treasury yields retreated after minutes of the Federal Reserve's latest policy meeting showed U.S. central bankers looking to soon moderate the pace of interest rate hikes.
U.S. Treasury yields traded lower after the Fed minutes. Benchmark 10-year notes were down to 3.713% while the yields on two-year notes dropped to 4.4876%.
Commodities Recap
Gold prices extended gains on Wednesday as minutes from the U.S. Federal Reserve’s November policy meeting showed a “substantial majority” of members opting to slow down rate hikes.
Spot gold rose 0.5% to $1,749.04 per ounce by 2:38 p.m. ET (1938 GMT), while U.S. gold futures settled 0.3% higher at 1,745.6.
Oil prices fell more than 3% on Wednesday, continuing a streak of volatile trading, as the Group of Seven (G7) nations considered a price cap on Russian oil above the current market level and as gasoline inventories in the United States built by more than analysts' expected.
Brent futures for January delivery fell $2.95, or 3.3%, to settle at $85.41 a barrel. U.S. crude fell $3.01, or 3.7%, to $77.94 per barrel. In early trade, both contracts had risen by over $1 a barrel.