Posted at 08 December 2022 / Categories Market Roundups
Market Roundup
•Irish Nov HICP (YoY) 9.0% ,9.4% previous
•Irish Nov Irish HICP (MoM) 0.2%, 1.5% previous
•Irish Nov CPI (YoY) 8.9%, 9.2% previous
•Irish Nov CPI (MoM)0.3%, 1.5% previous
Looking Ahead - Economic Data (GMT )
•13:30 US Jobless Claims 4-Week Avg 228.75K previous
•13:30 US Continuing Jobless Claims 1,600K forecast,1,608K previous
•13:30 US Initial Jobless Claims 230K forecast, 225K previous
•15:30 US Natural Gas Storage -31B forecast, -81B previous
•16:30 US 4-Week Bill Auction 3.950% previous
•16:30 US 8-Week Bill Auction 4.080% previous
Looking Ahead - Events, Other Releases (GMT)
•17:45 Canada BoC Deputy Gov Kozicki Speaks
•14:30 Swiss SNB Gov Board Member Maechler Speaks
•18:0 ECB President Lagarde Speaks
Fxbeat
EUR/USD: The euro edged higher against dollar on Thursday as investors awaited a speech from European Central Bank President Christine Lagarde at two different events for directional cues. With the economic calendar looking thin, investors will be keeping an eye on a pre-recorded speech by ECB President Christine Lagarde to a financial conference, due later on Thursday. Investors are scrutinising global economic data as the ECB, U.S. Federal Reserve and Bank of England prepare for interest rate decisions next week. The euro gained 0.37% to $1.0517.Immediate resistance can be seen at 1.0559(23.6%fib), an upside break can trigger rise towards 1.0595(Dec 5th high).On the downside, immediate support is seen at 1.0442(9DMA), a break below could take the pair towards 1.0401(38.2%fib).
GBP/USD: The pound edged lower against dollar on Thursday as investors weighed the outlook for Federal Reserve policy against the chances that high interest rates could lead to a recession.Next week brings a raft of major central bank decisions, including those from the Federal Reserve, the European Central Bank and the Bank of England.The key question for traders and investors is whether inflation has reached a peak, giving policymakers more scope to deliver smaller interest-rate rises over the coming months. Immediate resistance can be seen at 1.2275( 23.6%fib), an upside break can trigger rise towards 1.2338(Dec 5th high).On the downside, immediate support is seen at 1.2119(5DMA), a break below could take the pair towards 1.2000(Psychological leevl).
USD/CHF: The dollar was little changed against the Swiss franc on Thursday as investors looked ahead to next week’s U.S. Federal Reserve policy meeting for clues on the pace of rate hikes. The final Fed meeting of 2022 scheduled on Dec. 13-14, traders are also looking towards the November Consumer Price Index (CPI) figures for the U.S. due on Dec. 13. Fed fund futures are now pricing in a 91% chance of 50-basis point (bps) rate increase in December. Immediate resistance can be seen at 0.9435(5DMA), an upside break can trigger rise towards 0.9456(38.2%fib).On the downside, immediate support is seen at 0.9378(23.6%fib), a break below could take the pair towards 0.9338(Dec 5th low).
USD/JPY: The dollar was little changed against Japanese yen on Thursday as investors were concerned about global economic slowdown and the prospect of aggressive interest rate hikes by the U.S. Federal Reserve. Markets are keenly watching out for U.S. inflation data next week and the policy-setting Federal Open Market Committee meeting, when the Fed is likely to announce a half-percentage point hike, with just 9% odds for another 75 bps increase.The two-day meeting will begin on Dec. 13. The dollar was trading slightly higher against dollar at 136.90. Strong resistance can be seen at 137.90(38.2%fib), an upside break can trigger rise towards 138.42(14DMA).On the downside, immediate support is seen at 135.97(38.2%fib), a break below could take the pair towards 133.94(23.6%fib).
Equities Recap
European shares fell for the fifth straight session on Thursday, bogged down by weakness in telecom and real estate sectors amid growing fears of an impending recession.
At (GMT 12:23),UK's benchmark FTSE 100 was last trading down at 0.03 percent, Germany's Dax was down by 0. 25 percent, France’s CAC finished was down by 0. 15 percent.
Commodities Recap
Gold edged lower on Thursday due to a slight uptick in the dollar, although bullion traded in a narrow range as investors looked to the U.S. Federal Reserve’s interest rate hike decision next week.
Spot gold was down 0.2% at $1,782.13 per ounce as of 0942 GMT after rising more than 1% on Wednesday.U.S. gold futures eased 0.2% to $1,793.70.
Oil rebounded on Thursday after four sessions of decline, boosted by hopes that easing anti-COVID measures in China will revive demand and by signs that some tankers carrying Russian oil have been delayed after a G7 price cap came into effect.
Brent crude rose 27 cents, or 0.4%, to $77.44 a barrel by 1120 GMT, while U.S. West Texas Intermediate (WTI) crude gained 49 cents, or 0.7%, to $72.50.signs that some tankers carrying Russian oil have been delayed after a G7 price cap came into effect.