Posted at 09 December 2022 / Categories Market Roundups
Market Roundup
•Spanish Oct Industrial Production (YoY) 2.5%, 2.8% forecast, 3.6% previous
•UK Inflation Expectations 4.8% , 4.9% previous
•Greek Nov HICP (YoY) 8.8%, 9.5% previous
•Greek Nov CPI (YoY) 8.5%, 9.1% previous
•Greek Oct Industrial Production (YoY) -2.5%, -1.2% previous
Looking Ahead - Economic Data (GMT)
•13:30 US Nov PPI (MoM) 0.2% forecast, 0.2% previous
•13:30 US Nov PPI ex. Food/Energy/Transport (YoY) 5.4% previous
•13:30 US Nov PPI (YoY) 7.2% forecast ,8.0% previous
•13:30 US Nov PPI ex. Food/Energy/Transport (MoM) 0.2% previous
•13:30 US Nov Core PPI (YoY) 5.9% forecast, 6.7% previous
•13:30 Canada Capacity Utilization Rate (Q3) 82.2% forecast, 83.8% previous
•13:30 US Nov Core PPI (MoM) 0.2% forecast, 0.0% previous
•15:00 US Oct Wholesale Trade Sales (MoM) 0.4% previous
•15:00 US Dec Michigan Inflation Expectations 4.9% previous
•15:00 US Dec Michigan Consumer Sentiment 56.9 forecast, 56.8 previous
•15:00 US Dec Michigan Consumer Expectations 56.0 forecast,55.6 previous
•15:00 US Dec Michigan Current Conditions 58.0 forecast,58.8 previous
•15:00 US Dec Michigan 5-Year Inflation Expectations 3.00% previous
•15:00 US Wholesale Inventories (MoM) 0.8% forecast, 0.8% previous
Looking Ahead - Events, Other Releases (GMT)
•No significant events
Fxbeat
EUR/USD: The euro edged higher on Friday as dollar dipped on expectations of slower growth or that a recession will curb the rise in U.S. rates. The Fed, the European Central Bank and the Bank of England are set to announce interest rate decisions next week as policymakers continue to tap the brakes on economic growth through firmer rates to thwart stubbornly high inflation.The U.S. producer price index for final demand is forecast later on Friday to show a rise of 7.2% in the 12 months through October, down from 8% last month, ahead of closely-watched consumer price inflation data next week.University of Michigan sentiment data is also due later on Friday. 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(Dec5th 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 was flat against the dollar on Friday but still within striking distance of an almost six-month high as investors await major central bank policy meetings next week, including the Bank of England (BoE).Economists expect the BoE to add another 50 basis points to Bank Rate next week, despite the economy falling into recession.Still, they see the BoE as the most dovish in developed countries as it pushed back against market pricing for hikes at its last meeting in November. The pound was flat versus the dollar at $1.2238. It touched on Monday its highest level since mid-June at $1.2345. 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 declined against the Swiss franc on Friday as jitters reemerged about the health of the U.S. economy, and ahead of producer inflation data later in the day and a Federal Reserve meeting on interest rates next week. U.S. data on producer price inflation due at 1330 GMT will be closely-watched for signs as to whether price rises are cooling, with consumer price data set to follow on Tuesday. Immediate resistance can be seen at 0.9389(5DMA), an upside break can trigger rise towards 0.9418(38.2%fib).On the downside, immediate support is seen at 0.9320(23.6%fib), a break below could take the pair towards 0.9285(Lower BB).
USD/JPY: The dollar declined against Japanese yen on Friday on mounting worries over about global economic slowdown. Investors globally will be looking at the week ahead for rate decisions from a slew of central banks, with the Federal Reserve policy decision taking centre stage. Fed policymakers meet next week and are likely to announce a 50 basis point hike in the U.S. central bank's lending rate, while indicating a slower pace of future rate hikes. The Japanese yen jumped as much as 0.7%, and was last up to 135.9. Strong resistance can be seen at 138.57(5DMA), an upside break can trigger rise towards 137.57 (38.2%fib).On the downside, immediate support is seen at 135.00(Psychological level), a break below could take the pair towards 134.08(23.6%fib).
Equities Recap
European shares inched higher on Friday as gains in industrial and financial stocks on China-led optimism offset weakness in the energy sector, while Credit Suisse climbed on news of a capital raise.
At (GMT 11:33),UK's benchmark FTSE 100 was last trading up at 0.06 percent, Germany's Dax was up by 0.60 percent, France’s CAC finished was up by 0. 32 percent.
Commodities Recap
Gold prices edged higher on Friday due to a weaker dollar, while investors held back making large bets ahead of U.S. inflation data and a slew of central bank meetings with key focus on the Federal Reserve.
Spot gold was up 0.2% at $1,793.20 per ounce, as of 1007 GMT. U.S. gold futures rose 0.3% to $1,805.90.
Oil prices were stable on Friday but both benchmarks were headed for a weekly loss on worries over weak economic outlooks in China, Europe and the United States weighing on oil demand.
Brent crude futures were at $76.16 a barrel, up 1 cent, at 0919 GMT. Brent hit a 2022 low this week.U.S. West Texas Intermediate crude inched up 7 cents to $71.53 a barrel.