Posted at 29 November 2022 / Categories Market Roundups
Market Roundup
•Canada Sep GDP (MoM) 0.1%,0.1%0.1% forecast, 0.1% previous
•Canada GDP Implicit Price (QoQ) (Q3) -1.40%,3.30% previous
•Canada GDP (YoY) (Q3) 3.93%,4.56% previous
•US Redbook (YoY) 10.4%,7.5% previous
•US Sep S&P/CS HPI Composite - 20 n.s.a. (MoM) -1.5%, -0.7% forecast,-1.6% previous
•USS&P/CS HPI Composite - 20 n.s.a. (YoY) 10.4%,10.8% forecast,13.1% previous
•US Sep House Price Index (YoY) 11.0%,11.9% previous
•US Sep S&P/CS HPI Composite - 20 s.a. (MoM) -1.2% forecast, -1.3% previous
•US Sep House Price Index 392.0 previous
•US Sep House Price Index (MoM) -1.2%,-1.2%forecast,-0.7% previous
•US Nov CB Consumer Confidence100.2, 100.0 forecast, 102.5 previous
•US Nov Texas Services Sector Outlook -11.0,-13.6 previous
•US Nov Dallas Fed Services Revenues 5.5, 8.5 previous
Looking Ahead - Economic Data (GMT )
• 00:00 New Zealand Nov ANZ Business Confidence -42.7 previous
• 00:00 New Zealand Nov NBNZ Own Activity -2.5% previous
•00:30 Australia Oct Private Sector Credit (MoM )0.6% forecast,0.7% previous
•00:30 Australia Construction Work Done (QoQ) (Q3) 1.5% forecast, -3.8% previous
•00:30 Australia Oct Building Approvals (MoM) -1.8% forecast, -5.8% previous
•00:30 Australia CPI (YoY) 7.4% forecast,7.3% previous
•00:30 Australia CPI Index Number 128.40 previous
•00:30 Australia CPI (QoQ) 1.8% previous
•01:30 China Nov Chinese Composite PMI 49.0 previous
•01:30 China Nov Non-Manufacturing PMI 48.0 forecast, 48.7 previous
• 01:30 China Nov Manufacturing PMI 49.0 forecast, 49.2 previous
Looking Ahead - Events, Other Releases (GMT)
• RBA Kearns Speaks
Currency Summaries
EUR/USD: The euro declined against dollar Tuesday as investors also exercised caution ahead of a slew of economic data due later this week, including eurozone inflation on Wednesday and a U.S. jobs report on Friday. Data on Tuesday showed price pressures in Spain and Germany were easing considerably, while a separate survey said inflation expectations among consumers and business in eurozone fell sharply in November from October. Flash euro zone inflation figures for November are expected to show price rises edging down to 10.4% year-on-year from a record 10.6%. The euro fell 0.15% against the U.S. currency to $1.0324. Immediate resistance can be seen at 1.0343(23.6%fib), an upside break can trigger rise towards 1.0428(23.6%fib).On the downside, immediate support is seen at 1.0317(14DMA), a break below could take the pair towards 1.0228(38.2%fib).
GBP/USD: Sterling gained against the dollar on Tuesday as the safe-haven greenback fell against most currencies as market sentiment improved on hopes that China would ease its strict COVID-19 curbs. Investors in Britain are also keeping an eye on an appearance by Bank of England Governor Andrew Bailey before lawmakers in the House of Lords on the off chance of any shift in rhetoric ahead of the Bank of England meeting in two weeks time. The pound was last 0.45% higher against the dollar at $1.2014, heading back towards last week's three-month high of $1.2153. Immediate resistance can be seen at 1.19741( 5DMA), an upside break can trigger rise towards 1.2078 (23.6%fib).On the downside, immediate support is seen at 1.1853 (38.2%fib), a break below could take the pair towards 1.1766(Nov 17th low).
USD/CAD: The Canadian dollar fell to its lowest level in nearly four weeks against the greenback on Tuesday, despite data showing that Canada’s economy grew faster-than-expected in the third quarter. Canada’s economy grew at an annualized rate of 2.9% in the third quarter, above analysts’ expectations, driven by exports and non-residential structures, Statistics Canada data showed.The details were less bullish, with final domestic demand falling 0.6%, while a preliminary estimate showed that October’s GDP was unchanged after the economy grew by 0.1% in September compared to August. The loonie was trading 0.7% lower at 1.3589 to the greenback , the biggest decline among G10 currencies. Immediate resistance can be seen at 1.3632 (23.6% fib), an upside break can trigger rise towards 1.3663 (higher BB).On the downside, immediate support is seen at 1.3472 (38.2% fib), a break below could take the pair towards 1.3437 (9DMA).
USD/JPY: The dollar initially dipped against Japanese yen on Tuesday but recovered some ground as investors awaited Federal Reserve chairman Jerome Powell speech on Wednesday. Powell’s comments will be evaluated for any new signs of hawkishness, with key jobs data for November due on Friday. The U.S. central bank is expected to hike rates by an additional 50 basis points when it meets on Dec. 13-14, though the odds of a 75-basis-point increase have risen over the past several weeks and now stand at a 37% probability. The ADP National Employment report and the U.S. Labor Department’s nonfarm payrolls data are also due this week. Strong resistance can be seen at 139.33(5DMA), an upside break can trigger rise towards 140.33(38.2%fib).On the downside, immediate support is seen at 137.68 (23.6% fib), a break below could take the pair towards 137.00(Psychological level).
Equities Recap
European stocks closed on a mixed note on Tuesday after swinging between gains and losses in cautious trade as investors reacted to Covid-related news from China and the latest batch of European economic data.
UK's benchmark FTSE 100 closed upby 0.51percent, Germany's Dax ended down by 0.19 percent, France’s CAC finished the day up by 0.06 percent.
The S&P 500 ended down on Tuesday, with losses in Apple and Amazon ahead of an upcoming speech by U.S. Federal Reserve Chair Jerome Powell that could provide hints about magnitude of future interest rate hikes.
Dow Jones closed up by 0.01percent, S&P 500 ended downby 0.16 percent, Nasdaq finished the day down by 0.59 percent.
Treasuries Recap
U.S. Treasury yields rose on Tuesday as investors awaited comments this week by Federal Reserve Chairman Jerome Powell and labor market data for November that could reinforce expectations the U.S. central bank will slow its pace of hiking interest rates.
The yield on 10-year Treasury notes rose 5 basis points to 3.752%, while the two-year yield, which typically moves in step with interest rate expectations, rose 1.5 basis points at 4.486%. The yield on the 30-year Treasury bond was up 5.5 basis points at 3.804%.
Commodities Recap
Gold prices rose 1% on Tuesday, helped by a retreat in the dollar and hopes for less aggressive rate hikes from the U.S. Federal Reserve going forward.
Spot gold gained 0.6% to $1,751.21 per ounce by 2:02 p.m. ET (1902 GMT) and U.S. gold futures settled 0.5% higher at $1,748.4.
Oil rose on Tuesday on expectations for a loosening of China's strict COVID-19 controls, but concerns that OPEC+ would keep its output unchanged at its upcoming meeting limited gains.
Brent crude futures settled at $83.03 a barrel, losing 16 cents, or 0.2%. U.S. West Texas Intermediate (WTI) crude futures settled at $78.20 a barrel, up 96 cents, or 1.2%.