Posted at 06 December 2022 / Categories Market Roundups
Market Roundup
• German Oct Factory Orders (MoM) 0.8%,0.1% forecast,-4.0% previous
• French Nov IHS S&P Global Construction PMI (MoM) 40.7, 44.3 previous
• EU Nov M2 Money Supply (MoM) 43.6,44.9 previous
•Italian Nov IHS S&P Global Construction PMI (MoM) 52.0, 48.1 previous
•German Nov IHS S&P Global Construction PMI 41.5, 43.8 previous
•UK Nov Construction PMI 50.4, 52.0 forecast, 53.2 previous
Looking Ahead - Economic Data (GMT )
•13:30 US Imports 331.30B previous
•13:30 US Exports 258.00B previous
•13:30 US Oct Trade Balance -80.00B forecast, -73.30B previous
•13:30 Canada Oct Exports 66.37B previous
•13:30 Canada Oct Trade Balance 1.20B forecast, 1.14B previous
•13:30 Canada Oct Imports 65.23B previous
•13:55 US Redbook (YoY) 10.4% previous
•14:30 New Zealand GlobalDairyTrade Price Index 2.4% previous
•15:00 Canada Nov Ivey PMI 51.0 forecast, 50.1 previous
•15:00 Canada Nov Ivey PMI n.s.a 51.4 Nov
Looking Ahead - Events, Other Releases (GMT)
•15:30 Australia RBA Rate Statement
Fxbeat
EUR/USD: The euro initially dipped on Tuesday but recovered some ground as investors looked for clear policy signals .Better-than-expected U.S. services industry data spooked investors on Monday, offering more evidence of underlying economic momentum and raised fears that the Fed might stick longer with aggressive interest rate increases The Federal Open Market Committee decides policy on Dec. 15. Traders currently expect a half-point hike to a 4.25-4.5% policy band and a terminal rate of just above 5% in May. Immediate resistance can be seen at 1.0551(23.6%fib), an upside break can trigger rise towards 1.0614(Higher BB).On the downside, immediate support is seen at 1.0475(9DMA), a break below could take the pair towards 1.0431(38.2%fib).
GBP/USD: The pound edged up on Tuesday, as investors cashed in on a rally in the dollar, while UK data showed high interest rates and a gloomy economic outlook slowed activity in the British construction industry to a crawl in November. The S&P Global/CIPS UK Construction Purchasing Managers' Index (PMI) fell to a three-month low of 50.4 from 53.2 in October, barely above the 50 dividing line between growth and contraction.A poll of economists had pointed to a reading of 52.0. Sterling was last up 0.3% against the dollar at $1.222, while against the euro , the pound eased 0.1% to 86.09 pence. Immediate resistance can be seen at 1.2328( 23.6%fib), an upside break can trigger rise towards 1.2399(Higher BB).On the downside, immediate support is seen at 1.2149(5DMA), a break below could take the pair towards 1.2116(38.2%fib).
USD/CHF: The dollar steadied against the Swiss franc on Tuesday as U.S. data reinforced the belief among investors that the Federal Reserve might stick longer with aggressive interest rate rises. Data released on Monday showed U.S. services industry activity unexpectedly picked up in November following a robust U.S. payrolls report published Friday - all of which raised doubts over whether the Fed would go for smaller hikes in interest rates just yet. Immediate resistance can be seen at 0.9435(5DMA), an upside break can trigger rise towards 0.9443(38.2%fib).On the downside, immediate support is seen at 0.9353(23.6%fib), a break below could take the pair towards 0.9272(Lower BB).
USD/JPY: The dollar initially gained against Japanese yen on Tuesday but gave up most of the ground as new evidence of a strong U.S. economy raised expectations that interest rates would stay higher for longer. U.S. services industry activity unexpectedly picked up in November and employment rebounded. It was the latest data showing economic momentum that could push the Federal Reserve to tighten policy further, and it followed a robust U.S. payrolls report for November. Strong resistance can be seen at 137.30(38.2%fib), an upside break can trigger rise towards 138.68(14DMA).On the downside, immediate support is seen at 134.06(Daily low), a break below could take the pair towards 132.59(Aug 15th low).
Equities Recap
European shares fell on Tuesday, dragged down by financials and energy stocks, as strong U.S. services activity data spurred fears that the Federal Reserve could stick to its aggressive rate hike approach.
At (GMT 12:42 ),UK's benchmark FTSE 100 was last trading down at 0.34 percent, Germany's Dax was down by 0. 15 percent, France’s CAC was last down by 0. 10 percent.
Commodities Recap
Gold prices steadied on Tuesday after shedding more than 1% in the last session as the dollar paused its rally, but stuck to a relatively tight range as traders held off for more policy signals from the Federal Reserve.
Spot gold ticked 0.2% higher to $1,771.85 per ounce by 0950 GMT. U.S. gold futures edged up 0.2% to $1,784.20.
Oil prices fell in a volatile market on Tuesday, as a stronger U.S. dollar and economic uncertainty offset the bullish impact of a price cap placed on Russian oil and prospects of a demand boost in China.
Brent crude futures fell 90 cents, or $1.09%, to $81.78 a barrel by 1055 GMT. West Texas Intermediate crude (WTI) fell 79 cents, or $1.03%, to $76.14.