Posted at 25 November 2022 / Categories Market Roundups
Market Roundup
•Sweden Oct Household Lending Growth (YoY) 4.5%, 5.1% previous
•GfK German Dec Consumer Climate -40.2, -39.6 forecast,-41.9 previous
•German GDP (QoQ) (Q3) 0.4%, 0.3%forecast,0.1% previous
•German GDP (YoY) (Q3) 1.2%,1.1% forecast,1.7% previous
• Sweden Oct PPI (YoY) 18.7% ,20.6% previous
•Switzerland Employment Level (Q3)5.362M,5.316M previous
•Italian Nov Business Confidence 102.5,99.6 forecast,100.4 previous
•Italian Nov Consumer Confidence 98.1,91.0 forecast, 90.1 previous
•Italian Oct Trade Balance Non-EU -2.04B, -5.44B previous
Looking Ahead Economic Data(GMT)
•16:00 Canada Sep Budget Balance (YoY) 3.88B, 16:00 previous
•16:00 Canada Sep Budget Balance -2.45B, 17:00 previous
Looking Ahead - Events, Other Releases (GMT)
•17:00 ECB's De Guindos Speaks
Fxbeat
EUR/USD: The euro was set for weekly gains against dollar on Friday after GfK institute survey brought some relief, that German consumer sentiment is expected to stabilise next month with the help of energy measures. German consumer sentiment is set to barely change in December as government energy measures help stabilize morale at a level that is just above a record low set two months earlier and still signals declining consumption, a GfK institute survey showed on Friday.The institute said its consumer sentiment index rose to negative 40.2 heading into December from a reading of negative 41.9 in November. Immediate resistance can be seen at 1.0436(23.6%fib), an upside break can trigger rise towards 1.0484(Nov 15th high).On the downside, immediate support is seen at 1.0351(9DMA), a break below could take the pair towards 1.0265(38.2%fib).
GBP/USD: Sterling was slightly lower on Friday but still set for its third consecutive weekly gain against a weakening U.S. dollar.Analysts expect the pound to remain vulnerable as central banks, including the Bank of England (BoE), will tighten their monetary policy even into a recession, which is expected to be deeper in Britain than in the U.S. Expectations for rate hikes, which usually boost a currency's value, might harm the pound by dampening the country's economic outlook. At 0958 GMT, the pound was down 0.3% against the dollar at $1.2076. It hit $1.2153, the highest level since August 12, on Thursday. Immediate resistance can be seen at 1.2148( 23.6%fib), an upside break can trigger rise towards 1.2225 (Higher BBb).On the downside, immediate support is seen at 1.2009 (5DMA), a break below could take the pair towards 1.1905 (38.2%fib).
USD/CHF: The dollar strengthened against the Swiss franc on Friday as the prospect of the Federal Reserve slowing monetary policy tightening as soon as December dominated investors’ minds and kept the mood buoyant.Trading was thin overnight due to the Thanksgiving holiday in the United States, though most currencies extended their gains against a softer greenback before paring them slightly in early Asia trade. Against a basket of currencies, the U.S. dollar index stood at 105.94, testing its three-month trough of 105.30 hit last week. It was headed for a weekly loss of nearly 1%. Immediate resistance can be seen at 0.9484(5DMA), an upside break can trigger rise towards 0.9517(38.2%fib).On the downside, immediate support is seen at 0.9378(23.6% fib), a break below could take the pair towards 0.9300(23.6% fib).
USD/JPY: The dollar strengthened against Japanese yen on Friday as the U.S. dollar regained some ground, but expectations of less aggressive interest rate hikes from the Federal Reserve kept gains in check. The U.S. Federal Reserve has raised interest rates aggressively throughout this year, but a substantial majority of Fed policymakers agreed it would likely soon be appropriate to slow the pace of interest rate rises, minutes of their latest meeting showed on Wednesday. Expectations that the peak in rates is approaching were raised earlier this month when U.S. October inflation data came in cooler than expected. The Japanese yen slipped 0.5% on the day to 139.40 to the dollar. Strong resistance can be seen at 140.18 (5DMA), an upside break can trigger rise towards 140.73(38.2%fib).On the downside, immediate support is seen at 138.28 (23.6% fib), a break below could take the pair towards 138.00(Psychological level).
Equities Recap
European stocks were on track for a sixth successive week of gains on Friday as investors reacted to positive data and signs central banks may not hike rates as aggressively as feared.
At (GMT 12:56 ),UK's benchmark FTSE 100 was last trading up at 0.25 percent, Germany's Dax was down by 0.01 percent, France’s CAC finished was up by 0. 09 percent.
Commodities Recap
Gold prices retreated on Friday as the U.S. dollar regained some ground, but expectations of less aggressive interest rate hikes from the Federal Reserve set bullion up for a small weekly gain.
Spot gold was down 0.2% at $1,751.49 per ounce by 1201 GMT, coming off a one-week high hit earlier in the session. Bullion was up 0.1% for the week so far.U.S. gold futures rose 0.4% to $1,752.10.
Oil prices rose on Friday in thin market liquidity, closing a week marked by worries about Chinese demand and haggling over a Western price cap on Russian oil.
Brent crude futures were up $1.29, or 1.5%, to trade at $86.63 a barrel at 1024 GMT.U.S. West Texas Intermediate (WTI) crude futures were up $1.56, or 2%, at $79.50 a barrel.