Posted at 08 December 2022 / Categories Market Roundups
Market Roundup
•US Jobless Claims 4-Week Avg 230.00K,228.75K previous
•US Continuing Jobless Claims 1,671K,1,600K forecast,1,608K previous
•US Initial Jobless Claims 230K, 230K forecast, 225K previous
•US Natural Gas Storage-21B, 31B forecast, -81B previous
•US 4-Week Bill Auction3.650%, 3.950% previous
•US 8-Week Bill Auction 3.940%,4.080% previous
Looking Ahead - Economic Data (GMT )
• 23:50 Japan Nov M3 Money Supply 2,079.4T previous
• 23:50 Japan M2 Money Stock (YoY) 3.0% forecast, 3.1% previous
•01:30 China Nov CPI (YoY) 1.6% forecast, 2.1% previous
•01:30 China Nov PPI (YoY) -1.4% forecast, -1.3% previous
•01:30 China M2 Money Stock (YoY) 3.0% forecast, 3.1% previous
Looking Ahead - Events, Other Releases (GMT)
•No significant events
Fxbeat
EUR/USD: The euro gained on Thursday as dollar dipped as investors looked to U.S. inflation data and the Federal Reserve’s interest rate hike decision next week. Investors are awaiting the Dec. 14 conclusion of the Fed's monetary policy meeting, at which the central bank is broadly expected to slow the pace of rate hikes by delivering a 50 basis point increase. However, recent upbeat U.S. employment, services and factory data added to market uncertainty over the Fed policy outlook. Investors will also be on watch for the U.S. Consumer Price Index (CPI) report for November due on Dec. 13.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 higher 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/CAD: The Canadian dollar strengthened against its U.S. counterpart on Thursday as investors bet that a decline in oil prices, a key driver of inflation, would make it more likely that the Federal Reserve scales back its cycle of interest rate hikes. U.S. crude oil futures fell to their lowest level this year, settling down 0.8% at $71.46 a barrel, but Wall Street rebounded as a rise in U.S. weekly jobless claims supported expectations for the pace of rate hikes to soon slow. The loonie was trading 0.5% higher at 1.3580 to the greenback, or 73.64 U.S. cents, recovering some ground after it touched on Wednesday its weakest level in more than a month at 1.3699.Immediate resistance can be seen at 1.3617 (38.2% fib), an upside break can trigger rise towards 1.3697(23.6% fib).On the downside, immediate support is seen at 1.3550(50% fib), a break below could take the pair towards 1.3490(14 DMA).
USD/JPY: The dollar was little changed against Japanese yen on Thursday as investors were concerned about global economic slowdown and outlook for Federal Reserve policy. 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 little changed against dollar at 136.59. 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 stocks closed lower on Thursday, extending recent losses, as concerns over a recession, and rising interest rates continued to hurt sentiment.
UK's benchmark FTSE 100 closed down by 0.23 percent, Germany's Dax ended up by 0.02 percent, France’s CAC finished the day down by 0. 20 percent.
The S&P 500 ended higher on Thursday, snapping a five-session losing streak, as investors interpreted data showing a rise in weekly jobless claims as a sign the pace of interest rate hikes could soon slow..
Dow Jones closed up by 0.55 percent, S&P 500 ended up by 0.75 percent, Nasdaq finished the day up by 1.13 percent.
Commodities Recap
Gold prices edged higher on Thursday as the dollar eased, while investors positioned themselves ahead of key U.S. inflation data and the Federal Reserve’s policy meeting due next week.
Spot gold was up 0.2% at $1,789.42 per ounce, as of 1901 GMT, after rising more than 1% on Wednesday.U.S. gold futures settled 0.2% higher at $1,801.50.
Oil settled lower for a fifth straight session on Thursday as traders shrugged off the closure of a major Canada-to-U.S. crude pipeline, focusing instead on concerns that global economic slowdowns would slash fuel demand.
Brent crude settled at $76.15 a barrel, losing $1.02, or 1.3%. U.S. West Texas Intermediate (WTI) crude settled at $71.46 a barrel, shedding 55 cents, or 0.8%.