Posted at 13 December 2022 / Categories Market Roundups
Market Roundup
•UK NIESR Monthly GDP Tracker -0.3%, -0.3% previous
•French 12-Month BTF Auction 2.426%, 2.397% previous
•French 3-Month BTF Auction 1.693%, 1.445% previous
•French 6-Month BTF Auction 2.011%,1.925% previous
•US 3-Year Note Auction 4.093%,4.605% previous
•US 6-Month Bill Auction 4.630%,4.570% previous s
•US 3-Month Bill Auction 4.270%,4.270% previous
•USD 10-Year Note Auction 3.625%,4.140% previous
•US Nov Federal Budget Balance -249.0B,-248.0B forecast, -88.0B previous
Looking Ahead - Economic Data (GMT )
•00:30 Australia Nov NAB Business Survey 22 previous
•00:30 Australia Nov NAB Business Confidence 0 previous
• Looking Ahead-Economic Events and Other Releases
•No significant events
Currency Summaries
EUR/USD: The euro initially gained against dollar on Monday but gave up some ground 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 initially gained on Monday after data showed the UK economy recovered in October , but gave up some ground on bleak UK economic outlook. Britain's economy rebounded in October a little more strongly than expected from September when output was affected by a one-off public holiday to mark the funeral of Queen Elizabeth, but a recession remained on the cards, official data showed on Monday.Gross domestic product grew by 0.5% after September's 0.6% contraction, the Office for National Statistics said. 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/CAD: The Canadian dollar was little changed against the greenback on Monday, holding near a multi-week low, as investors awaited possible clues on the Bank of Canada policy outlook and then a Federal Reserve interest rate decision later this week. The BoC has said it will study the most recent economic data to gauge whether to raise its benchmark rate further after lifting it last Wednesday to 4.25%, the highest in nearly 15 years. The Canadian dollar was nearly unchanged at 1.3655 to the greenback, or 73.23 U.S. cents, after moving in a range of 1.3633 to 1.3683.Immediate resistance can be seen at 1.3699(23.6%fib), an upside break can trigger rise towards 1.3730 (Higher BB).On the downside, immediate support is seen at 1.3606 (38.2%fib), a break below could take the pair towards 1.3539 (50%fib).
USD/JPY: The dollar steadied against Japanese yen on Monday ahead of key data expected to show U.S. inflation moderating in November on a year-on-year basis, and a Federal Reserve decision that likely slows the pace of rate increases at the conclusion of its two-day policy meeting on Wednesday. Consumer inflation data for November is set to be out on Tuesday and is expected to show a 6.1% rise on a year-on-year basis in the core reading, which excludes food and energy prices, down from 6.3% in October. Strong resistance can be seen at 139.80(38.2%fib), an upside break can trigger rise towards 140.03(Nov 30th high).On the downside, immediate support is seen at 137.00(5DMA), a break below could take the pair towards 135.80(23.6%fib).
Treasuries Recap
U.S. Treasury yields were mixed on Monday ahead of an intense week for bond investors, with the release of fresh U.S. inflation data and a policy decision by the Federal Reserve likely to set the tone for markets over the next few months.
Two-year Treasury yields which tend to closely reflect monetary policy expectations - were slightly higher in early trade on Tuesday, at 4.341%. Benchmark 10-year note yields were roughly unchanged when compared to their closing levels last week, at 3.572%.
Equities Recap
European shares slipped on Monday as investors braced for U.S. and European central bank interest rate decisions, while rising COVID-19 infections in China also weighed on sentiment.
UK's benchmark FTSE 100 closed down by 0.41 percent, Germany's Dax ended down by 0.45 percent, France’s CAC finished the day up by 0.41 percent.
Wall Street stocks rose on Monday as investors took an optimistic stance ahead of the last round of transatlantic central bank interest rate hikes this year, hoping that the now-hefty pace of increases in borrowing costs will finally slow.
Dow Jones closed up by 1.58 percent, S&P 500 ended up by 1.43 percent, Nasdaq finished the day up by 1.26 percent.
Commodities Recap
Gold prices slipped on Monday as investors stayed on the sidelines awaiting U.S. inflation data and the Federal Reserve’s rate-hike decision later this week.
Spot gold was down 0.9% at $1,780.19 per ounce by 15:29 p.m. ET (2029 GMT). U.S. gold futures settled 1% lower at $1,792.30.
Oil prices settled up about $2 a barrel on Monday on supply jitters, as a key pipeline supplying the United States closed and Russia threatened a production cut even as China's loosening COVID-19 restrictions bolstered the fuel demand outlook.
Brent crude futures settled at $77.99 a barrel, gaining $1.89 or 2.5%. U.S. West Texas Intermediate crude settled at $73.17 a barrel, rising $2.15, or 3%.