Posted at 14 December 2022 / Categories Market Roundups
Market Roundup
•US. consumer prices rise less-than-expected in Nov
•Brent, WTI record biggest daily gains since Nov. 4
•US Nov CPI (MoM) 0.2%,0.3% forecast, 0.3% previous
•US Nov CPI Index, s.a 298.35 ,298.06 previous
•US Nov CPI, n.s.a (MoM) -0.10%, 0.41% previous
•US Nov Core CPI Index 300.07, 299.47 previous
•US Nov CPI (YoY) 7.1%,7.3%forecast, 7.7% previous
•US Nov Core CPI (MoM) 0.1%,0.3% forecast, 0.3% previous
• US CPI Index, n.s.a. 297.71,298.05 forecast, 298.01 previous
•US Nov Real Earnings (MoM) 0.2%, -0.1% previous
•US Nov Core CPI (YoY) 6.0%,6.1% forecast, 6.3% previous
•US Redbook (YoY) 5.9%, 5.7% previous
•US IBD/TIPP Economic Optimism 42.9,41.3 forecast, 40.4 previous
•US API Weekly Crude Oil Stock -7.819M,3.913M forecast,-6.426M previous
Looking Ahead - Economic Data (GMT )
•04:30 Japan Oct Capacity Utilization (MoM) -0.4% previous
•04:30 Japan OctIndustrial Production (MoM) -2.6% forecast, -1.7% previous
Looking Ahead - Events, Other Releases (GMT)
•No significant events
Currency Summaries
EUR/USD: The euro rose on Tuesday as the dollar weakened after data showed the smallest annual increase in inflation in nearly a year. The consumer price index increased 0.1% last month after advancing 0.4% in October, the Labor Department said. Economists polled had forecast the CPI gaining 0.3%.The slowdown could give the Federal Reserve cover to start scaling back the size of its interest rate increases on Wednesday. The euro hit $1.0673 , the highest since June, and was last up 0.9% at $1.0631.Immediate resistance can be seen at 1.0640(23.6%fib), an upside break can trigger rise towards 1.0674(Higher BB).On the downside, immediate support is seen at 1.0577(5DMA), a break below could take the pair towards 1.0490(38.2%fib).
GBP/USD: The pound rose higher against dollar on Tuesday after cooling U.S. inflation lifted expectations that the Federal Reserve would soften its pace of interest rate hikes. U.S consumer prices marked their smallest annual increase in inflation in nearly a year, climbing 7.1% on a year-on-year basis in November, following a 7.7% rise in October. Economists had expected an increase of 7.3% last month. Bets for a smaller 50-basis-point rate hike by Fed on Wednesday rose to 97%. Immediate resistance can be seen at 1.2383( 23.6%fib), an upside break can trigger rise towards 1.2446(Higher BB).On the downside, immediate support is seen at 1.2295(5DMA), a break below could take the pair towards 1.2162(38.2%fib).
USD/CAD: The Canadian dollar rallied to its highest level in more than a week against a broadly weaker greenback on Tuesday, as U.S. bond yields tumbled following data showing that U.S. inflation pressures eased last month. Dollar dropped sharply as U.S. consumer prices barely rose in November, an indication that the Federal Reserve’s battle against inflation has started to bear fruit and that future tightening may be less aggressive. The Canadian dollar was trading 0.6% higher at 1.3557 to the greenback, after touching its strongest level since Dec. 5 at 1.3523.Immediate resistance can be seen at 1.3605 (23.6%fib), an upside break can trigger rise towards 1.3688 (Dec 9th high).On the downside, immediate support is seen at 1.3531(38.2%fib), a break below could take the pair towards 1.3496 (20DMA).
USD/JPY: The dollar declined against Japanese yen on Tuesday after data showed U.S. consumer price inflation rose less than expected last month, reinforcing expectations the Federal Reserve will slow the pace of rate increases after its two-day meeting on Wednesday. Data showed that headline U.S consumer prices rose modestly in November on an annual basis as gasoline and used cars cost less, leading to the smallest annual inflation increase in nearly a year. Against the yen, the dollar dropped to a one-week low of 134.67, and last changed hands at 135.55 yen, down 1.5% Strong resistance can be seen at 136.26(5DMA), an upside break can trigger rise towards 136.56(38.2%fib).On the downside, immediate support is seen at 138.34(23.6%fib), a break below could take the pair towards 133.94(Lower BB).
Equities Recap
European shares climbed on Tuesday after softer-than-expected U.S. inflation data spurred bets that the Federal Reserve would scale back the size of its interest rate hikes in the world's largest economy.
UK's benchmark FTSE 100 closed up by 0.76 percent, Germany's Dax ended up by 1.34 percent, France’s CAC finished the day up by 1.42 percent.
Wall Street stocks gained on Tuesday after new U.S. government data showed the smallest annual increase in inflation in nearly a year.
Dow Jones closed up by 0.30 percent, S&P 500 ended up by 0.73 percent, Nasdaq finished the day up by 1.01 percent.
Treasuries Recap
U.S. Treasury yields dropped after the release of November data showing U.S. consumer prices barely rose last month, an indication that the Fed's battle against inflation has started to bear fruit and that future tightening may be less aggressive.
Benchmark U.S. Treasury 10-year note yields which move inversely to prices - dropped by about 15 basis points just after the data and then climbed to 3.506%, still over 10 bps lower day on day.
Two-year-yields which tend to more closely reflect monetary policy expectations - fell 17 bps on Tuesday to 4.23%.
Commodities Recap
Gold prices climbed over 2% on Tuesday to their highest levels in more than five months after data showing a smaller-than-expected rise in U.S. consumer prices cemented bets for a slowdown in rate hikes from the Federal Reserve.
Spot gold was up 2.1% at $1,817.64 per ounce by 1436 GMT, hitting its highest since June 30. U.S. gold futures advanced 2.2% to $1,830.90.
Oil settled over $80 a barrel on Tuesday and recorded its biggest daily gains in over a month, as investors bought up risk assets after U.S. data pointed to slowing inflation.
Brent crude futures settled at $80.68 per barrel, up $2.69, or 3.5%. U.S. West Texas Intermediate (WTI) crude futures settled at $75.39 per barrel, up by $2.22, or 3%. Both contracts recorded their biggest daily gains since Nov. 4.