News

Europe Roundup: Euro gains ahead of central banks, U.S. data, European shares fall, Gold slips, Oil resumes slide as weak economy outweighs supply risks-December 12th,2022

Posted at 12 December 2022 / Categories Market Roundups


Market Roundup

•UK Oct  Trade Balance -14.48B, -15.65B forecast, -15.66B previous

•UK Oct  GDP (YoY) 1.5%, 1.4%  forecast, 1.3% previous

•UK Monthly GDP 3M/3M Change -0.3%, -0.4%  forecast, -0.2% previous

•UK GDP (MoM)0.5%,0.4% forecast, -0.6% previous

•UK OcTrade Balance Non-EU -4.82B,  -8.55B previous

•UK Oct Manufacturing Production (YoY) -4.6%, -5.4% forecast, -5.8% previous

•UK Oct U.K. Construction Output (YoY) 7.4%,6.5% forecast,5.6% previous

•UK Oct Oct Construction Output (MoM)  0.8%, 0.1%forecast, 0.4% previous

•UK Oct Industrial Production (YoY)-2.4%, -2.8%forecast, -3.1% previous

•UK Oct Industrial Production (MoM) 0.0%, 0.1% forecast, 0.2% previous

•UK Oct Manufacturing Production (MoM) 0.7%, 0.1%forecast, 0.0%previous

Looking Ahead - Economic Data (GMT )

•13:00   UK NIESR Monthly GDP Tracker -0.3% previous

•14:00   French 12-Month BTF Auction 2.397% previous

•14:00 French 3-Month BTF Auction 1.445% previous

•14:00   French 6-Month BTF Auction 1.925% previous

•16:30   US  3-Year Note Auction               4.605% previous             

•16:30   US  6-Month Bill Auction 4.570% previous s         

 •18:00  US 3-Month Bill Auction                4.270% previous

•18:00   USD 10-Year Note Auction 4.140% previous

•19:00 US  Nov Federal Budget Balance  -248.0B  forecast, -88.0B previous

Fxbeat

EUR/USD: The euro edged higher against dollar on Monday as   investors braced for the last round of transatlantic interest rate hikes this year from a trio of central banks. Economists expect the Federal Reserve on Wednesday, and the European Central Bank and Bank of England on Thursday to all raise rates by 50 basis points, still a slowing down from the 75 basis point hikes seen in recent meetings. Immediate resistance can be seen at 1.0584(23.6%fib), an upside break can trigger rise towards 1.0655(Higher BB).On the downside, immediate support is seen at 1.0513(9DMA), a break below could take the pair towards  1.0435(38.2%fib).

GBP/USD: Sterling held steady against the dollar on Monday, as a murky economic growth outlook outweighed positive data for October ahead of the Bank of England’s next policy decision due later this week. Official data on Monday showed Britain’s economy rebounding in October a little stronger than expected from September .At 1028 GMT, the pound was down a marginal 0.07% against the dollar at $1.22750. Meanwhile, it fell 0.1% versus the euro to 86.015 pence. Immediate resistance can be seen at 1.2346( 23.6%fib), an upside break can trigger rise towards 1.2387(Higher BB).On the downside, immediate support is seen at 1.2226(9DMA), a break below could take the pair towards 1.2126(38.2%fib).

USD/CHF: The dollar dipped  against the Swiss franc on Monday    as investors looked to major central bank policy meetings and crucial data from the United States later this week.The U.S. Federal Reserve’s Federal Open Market Committee (FOMC) ends its two-day meeting on interest rates on Wednesday, while the European Central Bank (ECB) and the Bank of England (BoE) will announce their decisions on Thursday. Immediate resistance can be seen at 0.9393(5DMA), an upside break can trigger rise towards 0.9416(38.2%fib).On the downside, immediate support is seen at 0.9313(23.6%fib), a break below could take the pair towards 0.9262 (Lower BB).

USD/JPY: The dollar steadied  against Japanese yen on Monday as investors awaiting the Federal Reserve policy meeting for more clues about its rate-hike stance. Tuesday’s U.S. Consumer Price Index (CPI) data and the Fed’s final meeting of 2022 scheduled on Dec. 13-14 will be keenly watched by investors.Traders are pricing in a 93% chance of a 50-basis-point rate hike by the Fed. Additionally, the European Central Bank (ECB) and the Bank of England (BoE) are also set to announce rate hikes this week. Strong resistance can be seen at 136.80(5DMA), an upside break can trigger rise towards 137.63(50%fib).On the downside, immediate support is seen at 136.50(38.2%fib), a break below could take the pair towards 134.94(23.6%fib).

Equities Recap

European shares fell on Monday, as investors braced for interest rate decisions from the U.S. and European central banks later this week, while rising COVID-19 infections in China after restrictions were eased also weighed on sentiment.

At (GMT 12:23),UK's benchmark FTSE 100 was last trading down at 0.31 percent, Germany's Dax was down by  0. 35 percent, France’s CAC was down by 0. 36 percent.

Commodities Recap

Gold prices edged lower on Monday as investors squared positions ahead of U.S. inflation data and a slew of central bank meetings across the world, especially the Federal Reserve.

Spot gold was down 0.3% at $1,792.15 per ounce, as of 1003 GMT. U.S. gold futures fell 0.4% to $1,803.70.

Oil prices fell on Monday, deepening a multi-week decline, as a weakening global economy offset supply woes stemming from the closure of a key pipeline supplying the United States and Russian threats of a production cut.

Brent crude futures were down 38 cents, or 0.4%, at $75.72 a barrel by 0900 GMT. U.S. West Texas Intermediate crude was at $70.76 a barrel, down 26 cents, or 0.3%.


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