Posted at 15 December 2022 / Categories Market Roundups
Market Roundup
•US Nov Export Price Index (MoM) -0.3%,-0.4% forecast,-0.3% previous
•US Nov Import Price Index (MoM) -0.6%, -0.5% forecast,-0.2% previous
•Canada Oct Manufacturing Sales (MoM) 2.8%,2.0% forecast, -1.9% previous
•US EIA Refinery Crude Runs (WoW-0.459M,0.053M previous
•US Gasoline Production0.129M, -0.295M previous
•US EIA Weekly Refinery Utilization Rates (WoW) -3.3%,-0.1% forecast,0.3% previous
•US Distillate Fuel Production -0.164M ,0.021M previous
•US Cushing Crude Oil Inventories 0.426M, -0.715M forecast, -0.373M previous
•US Crude Oil Imports -0.031M,1.493M previous
•US Crude Oil Inventories 10.231M,3.595M forecast,-5.187M previous
•US Fed Interest Rate Decision 4.50%, 4.50% forecast, 4.00% previous
Looking Ahead - Economic Data (GMT)
•04:30 Japan Tertiary Industry Activity Index (MoM) -0.4% previous
Looking Ahead - Economic events and other releases (GMT)
•No significant events
Currency Summaries
EUR/USD: The euro edged lower on Wednesday after the U.S. Federal Reserve raised interest rates by half a percentage point as expected and said it would need to continue to raise rates. The Fed raised interest rates by half a percentage point and projected at least an additional 75 basis points of increases in borrowing costs by the end of 2023 Investors’ eyes will now be trained on policy decisions from the European Central Bank and Bank of England later in the global day, as officials there also stood ready to hike rates again against the rising risks of fomenting recessions. The euro eased 0.11% to $1.0654, but still near Wednesday’s more-than-six-month peak at $1.0695. Immediate resistance can be seen at 1.0689(23.6%fib), an upside break can trigger rise towards 1.0718(Higher BB).On the downside, immediate support is seen at 1.0583(5DMA), a break below could take the pair towards 1.0539(38.2%fib).
GBP/USD: The pound held broadly steady on Wednesday after the U.S.Federal Reserve's projection for its target federal funds rate came in higher than expected. The Fed raised interest rates by half a percentage point and projected at least an additional 75 basis points of increases in borrowing costs by the end of 2023 as well as a rise in unemployment and a near stalling of economic growth in the world's largest economy. Sterling edged 0.19% lower to $1.2405, remaining not far from an overnight top at $1.2446. Immediate resistance can be seen at 1.2457( 23.6%fib), an upside break can trigger rise towards 1.2520(Higher BB).On the downside, immediate support is seen at 1.2299(9DMA),a break below could take the pair towards 1.2164(38.2%fib).
USD/CAD: The Canadian dollar moved slightly higher against its U.S. counterpart on Wednesday as oil prices rose and investors grappled with more hawkish than expected projections by the Federal Reserve. The U.S. central bank raised interest rates by half a percentage point, as expected, and projected that the policy rate would rise to 5.1% in 2023, slightly higher than investors expected. The loonie was up 0.1% at 1.3530 to the greenback , in volatile trading as equity markets swung in and out of negative territory after a Fed rate decision. Immediate resistance can be seen at 1.3587(5DMA), an upside break can trigger rise towards 1.3657(23.6%fib).On the downside, immediate support is seen at 1.3512(38.2%fib), a break below could take the pair towards 1.3417 (Nov 9th low).
USD/JPY: The dollar dipped against Japanese yen on Wednesday after the U.S. Federal Reserve raised interest rates by half a percentage point as expected and said it would need to continue to raise rates. The greenback reversed course and retreated when Fed Chair Jerome Powell took questions. The Fed projected at least an additional 75 basis points of increases in borrowing costs by the end of 2023 as well as a rise in unemployment and a near stalling of economic growth. The dollar index , which measures the greenback against a basket of major currencies, was down 0.39%. Strong resistance can be seen at 136.30(5DMA), an upside break can trigger rise towards 136.86(38.2%fib).On the downside, immediate support is seen at 134.66(23.6%fib), a break below could take the pair towards 133.47(Lower BB).
Equities Recap
European stocks closed lower on Wednesday after the Federal Reserve's monetary policy announcement.
UK's benchmark FTSE 100 closed down by 0.09 percent, Germany's Dax ended down by 0.26 percent, France’s CAC finished the day down by 0.21 percent.
U.S. stocks closed lower in volatile trading on Wednesday following a policy announcement by the Federal Reserve that raised interest rates by an expected 50 basis points, but its economic projections see higher rates for a longer period.
Dow Jones closed up by 0.06 percent, S&P 500 ended down by 0.17 percent, Nasdaq finished the day down by 0.76 percent.
Commodities Recap
Gold slipped on Wednesday as the U.S. Federal Reserve signalled that interest rates would stay elevated going into the new year and said it was too soon to consider rate cut.
Spot gold edged 0.1% lower to $1,808.09 per ounce, U.S. gold futures settled 0.4% lower at $1,818.70.
Oil settled up more than $2 on Wednesday after OPEC and the International Energy Agency (IEA) forecast a rebound in demand over the course of next year and as U.S. interest rate hikes are expected to ease further alongside slowing inflation.
Brent crude futures settled up $2.02, or 2.4%, to $82.70 per barrel, while U.S. West Texas Intermediate (WTI) crude futures settled up $1.94 to $77.28.