Posted at 30 November 2022 / Categories Market Roundups
Market Roundup
•US ADP Nov Nonfarm Employment Change 127K,200K, 239K previous
•US GDP (QoQ) (Q3) 2.9%,2.7%forecast, 2.6% previous
•US Real Consumer Spending (Q3) 1.7%,1.4% forecast, 2.0% previous
•US GDP Sales (Q3) 4.0%, 3.3% forecast, 1.3% previous
•US PCE Prices (Q3) 4.3%, 4.2% forecast, 7.3% previous
•US Core PCE Prices (Q3) 4.60%,4.50% forecast, 4.70% previous
•US GDP Price Index (QoQ) (Q3) 4.3%,4.1% forecast ,9.0% previous
•US Oct Retail Inventories Ex Auto -0.4%,-0.2% forecast , -0.1% previous
•US Corporate Profits (QoQ) (Q3) -0.2%, 3.1% forecast , 6.2% previous
•US Oct Goods Trade Balance-99.00B, -90.20B forecast , -92.22B previous
•US Wholesale Inventories (MoM) 0.8%,0.5% forecast , 0.6% previous
• US Nov Chicago PMI 37.2, 47.0 forecast , 45.2 previous
•US Oct Pending Home Sales Index 77.1,79.5 previous
•US Oct JOLTs Job Openings 10.334M, 10.300M forecast ,10.717M previous
•US Oct Pending Home Sales (MoM) -4.6%,-5.0% forecast ,-10.2% previous
• US Crude Oil Inventories-12.580M, -2.758M forecast ,--3.691M previous
Looking Ahead - Economic Data (GMT )
• 23:50 Japan Capital Spending (YoY) (Q3) 6.4% forecast , 4.6% previous
• 23:50 Japan Foreign Bonds Buying -526.6B previous
•00:30 Australia Building Capital Expenditure (MoM) (Q3) -2.5% previous
•00:30 Australia Plant/Machinery Capital Expenditure (QoQ) (Q3) 2.1% previous
•00:30 Australia Private New Capital Expenditure (QoQ) (Q3) 1.5% forecast ,-0.3% previous
Looking Ahead - Events, Other Releases (GMT)
•No significant events
Currency Summaries
EUR/USD: The euro strengthened against weaker dollar Wednesday after Federal Reserve Chairman Jerome Powell said that the U.S. central bank could scale back the pace of its interest rate hikes as soon as December. Powell said at the Brookings Institution in Washington that we think that slowing down at this point is a good way to balance the risks. Powell cautioned that the fight against inflation was far from over and that key questions remain unanswered, including how high rates will ultimately need to rise and for how long. The euro rose 0.95% against the U.S. currency to $1.0413. The single currency is on course for a 5.52% monely gain. Immediate resistance can be seen at 1.0457(23.6%fib), an upside break can trigger rise towards 1.0493(Higher BB).On the downside, immediate support is seen at 1.0380(5DMA), a break below could take the pair towards 1.0320(38.2%fib).
GBP/USD: Sterling rose against the dollar on Wednesday following three days of losses, and headed for its largest monthly gain since 2020, despite Britain's persistently gloomy economic outlook. The pound touched a three-month high of $1.2153 against the dollar on Nov. 24, having recovered from a trough at the end of September in the aftermath of Liz Truss' mini-budget.It's risen 4.6% in November, its biggest one-month gain against the dollar since July 2020. But fears of a lengthy UK recession are still weighing on sentiment, with the pound down 11% this year.Market players are pondering the Bank of England's (BoE) next move, with the Monetary Policy Committee, the BoE's rate-setting body, expected to increase rates by 50 basis points . Immediate resistance can be seen at 1.2134(23.6%fib), an upside break can trigger rise towards 1.2163 (Nov 24th high).On the downside, immediate support is seen at 1.2034(5DMA), a break below could take the pair towards 1.2003 (38.2%fib).
USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Wednesday, clawing back nearly all of its previous day’s decline, as hopes that China would soon reopen its economy bolstered commodity prices.The price of oil, one of Canada’s major exports, was up 3.8% at $81.14 a barrel on signs of tighter supply and optimism over a Chinese demand recovery. The Chinese city of Guangzhou has relaxed COVID prevention rules in several districts in an effort to implement rules authorities announced this month aimed at easing the burden of the strict zero-COVID policy. The Canadian dollar was trading 0.6% higher at 1.3502 to the greenback, or 74.06 U.S. cents, after moving in a range of 1.3497 to 1.3593. Immediate resistance can be seen at 1.3482 (38.2%fib), an upside break can trigger rise towards 1.3559 (Higher BB).On the downside, immediate support is seen at 1.3410 (5DMA), a break below could take the pair towards 1.3338(50%fib).
USD/JPY: The dollar dipped against Japanese yen on Wednesday after the Federal Reserve chair Jerome Powell signaled slower pace of interest-rate hikes as early as next month to battle inflation. Powell said the Fed has been "pretty aggressive" already with its rate hikes and won't try to crash the economy with further sharp increases just to get price rises under control faster. Though he warned that the fight against inflation was far from over. Markets now await the Labor Department’s closely watched non-farm payrolls data on Friday for cues on the jobs market strength, which could influence the U.S. central banks further policy decisions. Strong resistance can be seen at 139.03(5DMA), an upside break can trigger rise towards 140.53(38.2%fib).On the downside, immediate support is seen at 137.74 (23.6% fib), a break below could take the pair towards 137.00(Psychological level).
Equities Recap
European stocks closed higher on Wednesday, buoyed by data showing eurozone inflation slowing more than expected in the month of November.
UK's benchmark FTSE 100 closed up by 0.81percent, Germany's Dax ended up by 0.29 percent, France’s CAC finished the day up by 1.04 percent.
Wall Street ended sharply higher on Wednesday after Federal Reserve Chair Jerome Powell said the central bank might scale back the pace of its interest rate hikes as soon as December.
Dow Jones closed up by 2.18% percent, S&P 500 closed up by 3.09 % percent, Nasdaq settled down by 4.41% percent.
Commodities Recap
Gold prices rose over 1% on Wednesday as the non-yielding asset races to end its best month since mid-2020 on slower U.S. rate hike expectations, further reinforced by Federal Reserve Chair Jerome Powell’s comments.
Spot gold rose 1% to $1,767.52 per ounce by 3:03 p.m. ET (2003 GMT). U.S. gold futures settled 0.2% lower at $1,759.9.
Oil prices settled up by over $2 per barrel on Wednesday on signs of tighter supply, a weaker dollar and optimism over a Chinese demand recovery.
Brent crude futures settled up $2.40, or 2.8% to $85.43 per barrel while U.S. West Texas Intermediate (WTI) crude futures settled up $2.35, or 3.01%, to $80.55.