Posted at 10 December 2022 / Categories Market Roundups
Market Roundup:
•US Nov PPI (MoM) 0.3%, 0.2% forecast, 0.2% previous
• US Nov PPI ex. Food/Energy/Transport (YoY) 4.9%,5.4% previous
•US Nov PPI (YoY) 7.4%,7.2% forecast ,8.0% previous
•US Nov PPI ex. Food/Energy/Transport (MoM) 0.3%,0.2% previous
•US Nov Core PPI (YoY) 6.2%, 5.9% forecast, 6.7% previous
•Canada Capacity Utilization Rate (Q3) 82.6%,82.2% forecast, 83.8% previous
•US Nov Core PPI (MoM) 0.4%, 0.2% forecast, 0.0% previous
•US Oct Wholesale Trade Sales (MoM) 0.4%,0.4% previous
•US Dec Michigan Inflation Expectations 4.6%, 4.9% previous
•US Dec Michigan Consumer Sentiment 59.1,56.9 forecast, 56.8 previous
•US Dec Michigan Consumer Expectations 58.4, 56.0 forecast,55.6 previous
•US Dec Michigan Current Conditions 60.2,58.0 forecast,58.8 previous
•US Dec Michigan 5-Year Inflation Expectations 3.00%,3.00% previous
•US Wholesale Inventories (MoM) 0.5%,0.8% forecast, 0.8% previous
•U.S. Baker Hughes Oil Rig Count 625,627 previous
•U.S. Baker Hughes Total Rig Count 780 ,784 previous
Looking Ahead - Economic Data (GMT)
•No data ahead
Looking Ahead - Events, Other Releases (GMT)
•No significant events
Currency Summaries
EUR/USD: The euro dipped against dollar on Friday after U.S. producer inflation data for November came in slightly hotter than expected, bolstering the case for continued interest rate hikes by the Federal Reserve even if at a slower pace. The producer price index for final demand rose 0.3% last month. Data for October was revised up to show the PPI gaining 0.3% instead of 0.2% as previously reported. The euro was 0.1% lower against the dollar at $1.05465, though the common currency was still on track for a third straight week of gains. 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 edged higher against the dollar on Friday as the British government announced reforms designed to maintain London as one of the most competitive financial hubs in the world. British finance minister Jeremy Hunt said the financial services reforms he announced on Friday would not lead to a repeat of the regulatory errors that contributed to the 2008 global financial crisis. Sterling rose to a four-day high up 0.3% to $1.2259. Immediate resistance can be seen at 1.2301(23.6%fib), an upside break can trigger rise towards 1.2362(Higher BB).On the downside, immediate support is seen at 1.2205(5DMA), a break below could take the pair towards 1.2076(38.2%fib).
USD/CAD: The Canadian dollar weakened against its U.S. counterpart on Friday, extending this week’s decline, as oil prices sank to fresh lows for the year and investors turned cautious ahead of the Federal Reserve’s interest rate decision next week. U.S. crude oil futures settled 0.6% lower at $71.02 a barrel, taking its losses for the week to roughly 11%, on growing recession fears. Oil is one of Canada’s major exports. The Canadian dollar was trading 0.2% lower at 1.3625 to the greenback, after moving in a range of 1.3570 to 1.3690. For the week, it was down 1.2%, its second straight week of declines. Immediate resistance can be seen at 1.3710 (23.6%fib), an upside break can trigger rise towards 1.3750(Higher BB).On the downside, immediate support is seen at 1.3625(5DMA), a break below could take the pair towards 1.3571 (38.2%fib).
USD/JPY: The dollar initially dipped against Japanese yen on Friday but recovered some ground after hotter-than-expected U.S. producer price data challenged hopes the Federal Reserve would shift to a less aggressive path for interest rate hikes. U.S. producer prices rose slightly more than expected in November amid a jump in the costs of services, but the trend is moderating, with annual inflation at the factory gate posting its smallest increase in 1-1/2 years.The report from the Labor Department on Friday also showed underlying producer prices increasing at their slowest pace since April 2021 on a year-on-year basis. 13.Strong resistance can be seen at 136.76(9DMA), an upside break can trigger rise towards 138.36 (38.2%fib).On the downside, immediate support is seen at 135.81(23.6%fib), a break below could take the pair towards 134.61(Lower BB).
Equities Recap
European stocks closed higher on Friday with investors reacting to news about China loosening some of the world's strictest Covid-19 restrictions, and a drop in China's consumer price inflation.
UK's benchmark FTSE 100 closed up by 0.06 percent, Germany's Dax ended up by 0.74 percent, France’s CAC finished the day up by 0. 46 percent.
Wall Street ended lower on Friday as investors assessed economic data and awaited a potential 50-basis point interest rate hike by the U.S. Federal Reserve at its policy meeting next week.
Dow Jones closed down by 0.90 percent, S&P 500 ended down by 0.73 percent, Nasdaq finished the day down by 0.70 percent.
Commodities Recap
Gold prices rose on Friday despite an uptick in the dollar and U.S. bond yields as some investors still expect the Federal Reserve will slow the pace of rate hikes from early next year.
Spot gold rose 0.5% to $1,798.40 per ounce, as of 1907 GMT. U.S. gold futures settled 0.5% higher at $1,810.70.
Oil price settled lower in volatile trading on Friday, with both benchmarks recording their biggest weekly declines in months, as growing recession fears negated any supply woes after weak economic data from China, Europe and the United States.
U.S. West Texas Intermediate crude settled 44 cents lower at $71.02 a barrel, a new low for 2022. Brent crude settled 5 cents lower at $76.10 per barrel.