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Europe Roundup: Euro dips against dollar,ECB,BoE rate decision in focus,European shares fall, Gold drops, Oil dips as dollar firms while more rate hikes loom-December 15th,2022

Posted at 15 December 2022 / Categories Market Roundups


Market Roundup

•German Nov Car Registration (MoM)  24.9%, -7.2% previous

• German Nov Car Registration (YoY)  31.4%, 16.8% previous

•UK Nov Car Registration (MoM)  6.4%,  -40.4% previous

•UK Nov Car Registration (YoY) 23.5%,  26.4% previous

•Italian Nov Car Registration (YoY)  14.7%, 14.6% previous

•French Nov Car Registration (YoY) 9.8%,5.5% previous

•French Nov CPI (MoM)  0.3%,0.4% forecast,1.0% previous

•French Nov HICP (YoY)  7.1%,7.1% forecast, 7.1% previous

 •French Nov HICP (MoM) 0.4%, 0.5% forecast,0.5% previous

•French Dec Business Survey 101, 100 forecast, 101 previous

•French CPI (YoY) 6.2%, 6.2% forecast,6.2% previous

• Swiss SNB Interest Rate Decision (Q4) 1.00%,1.00% forecast,  0.50% previous

Looking Ahead - Economic Data (GMT )

•12:00  UK Dec  BoE MPC vote cut  0 previous

•12:00  UK Dec BoE MPC vote unchanged  1 forecast,  0 previous

•12:00  UK Dec BoE Interest Rate Decision  3.50% forecast,  3.00% previous

•12:00  UK Dec BoE MPC vote hike  9 forecast,  9 previous

•13:15  EU Dec ECB Interest Rate Decision 2.50% forecast,  2.00% previous

•13:15   EU Dec Deposit Facility Rate  2.00% forecast,  1.50% previous

•13:30  US Nov Retail Sales Ex Gas/Autos (MoM)  0.9% forecast

•13:30  US Nov Core Retail Sales (MoM)  0.2% forecast,  1.3% previous

•13:30   US Nov Retail Sales (MoM)  -0.1% forecast, 1.3% previous

•13:30   US Dec Philadelphia Fed Manufacturing Index  -10.0 forecast,   -19.4 previous

•13:30  US Dec Philly Fed Business Conditions  -7.1 previous

•13:30  US Dec Philly Fed New Orders  -16.2 previous

•13:30  US Dec Philly Fed Prices Paid  35.30 previous

•13:30  US Dec Philly Fed Employment  7.1 previous

•13:30  US Dec Philly Fed CAPEX Index   6.40 previous

•13:30  US Nov Retail Sales (YoY)  8.27% previous

•13:30  US Dec NY Empire State Manufacturing Index   -1.00 forecast, 4.50 previous

•13:30 US Jobless Claims 4-Week Avg.  230.00K previous

•13:30  US Initial Jobless Claims 230K forecast

•13:30  US Continuing Jobless Claims 1,671K forecast,1,671K previous

•14:15  US Nov Manufacturing Production (MoM)  -0.1% forecast, 0.1% previous

•14:15  US Nov Industrial Production (YoY)  3.28% previous

•14:15   US Nov Capacity Utilization Rate  79.8% forecast,79.9% previous

•14:15  US Nov Industrial Production (MoM) 0.1% forecast, -0.1% previous

•14:15  US Oct Retail Inventories Ex Auto  -0.4% previous

•14:15  US Oct Business Inventories (MoM)  0.4% forecast, 0.4% previous

•15:19  US Sep Dallas Fed PCE   6.00% previous

•15:30  US  Natural Gas Storage  -45B forecast,   -21B previous

•16:00  US Nov Cleveland CPI (MoM)  0.5% previous

•16:30  US 4-Week Bill Auction  3.650% previous

•16:30  US 8-Week Bill Auction  3.940% previous

Looking Ahead - Events, Other Releases (GMT)

•15:15  EU ECB President Lagarde Speaks

•13:45  ECB Press Conference

•13:15  EU ECB Monetary Policy Statement

Fxbeat

EUR/USD: The euro edged lower on Thursday as investors awaited an interest rate decision from the European Central Bank, a day after the U.S. Federal Reserve signalled it would keep hiking rates further.. 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. The European Central Bank is widely expected to raise interest rates by 50 basis points at 1315 GMT, after the Fed's move on Wednesday to raise rates by a half percentage point.. The euro eased 0.68% to $1.0608, 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 declined on Thursday as dollar climbed broadly   after the Federal Reserve raised interest rates by a widely-expected half a percentage point overnight, and its policymakers foresaw making further hikes and keeping rates high for longer than earlier hoped. Markets now turn their attention to rate decisions by the Bank of England and the European Central Bank (ECB) later on Thursday, with both central banks also expected to deliver a 50 basis point rate hike. Sterling was last down  0.34% at $1.2386 against dollar. 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 towards1.2164(38.2%fib).

 USD/CHF: The dollar strengthened against the Swiss franc on Thursday after the U.S. Federal Reserve signalled to more interest rates hikes next year. The Fed will deliver more rate hikes next year, even as the U.S. economy slips towards a possible recession, Powell said on Wednesday, arguing a higher cost would be paid if the central bank does not get a firmer grip on inflation. Immediate resistance can be seen at 0.9301(5DMA), an upside break can trigger rise towards 0.9338(38.2%fib).On the downside, immediate support is seen at 0.9236(23.6%fib), a break below could take the pair towards 0.9200 (Lower BB).

USD/JPY: The dollar gained against Japanese yen on Thursday 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. Market participants now await rate-hike decisions from the Bank of England and the European Central Bank later in the day.Traders will also scan upcoming economic data, including the weekly U.S. jobless claim numbers due at 1330 GMT, for their likely influence on the Fed’s rate-hike strategy. The dollar index was up 0.72% at 104.36. Strong resistance can be seen at 136.33(5DMA), an upside break can trigger rise towards 136.86(38.2%fib).On the downside, immediate support is seen at 134.24(23.6%fib), a break below could take the pair towards 133.10(Lower BB).

Equities Recap

European shares slipped on Thursday as nervous investors awaited an interest rate decision from the bloc's central bank, a day after the U.S. Federal Reserve signalled it would keep hiking rates further.

At (GMT 09:16) UK's benchmark FTSE 100 was last trading down at 0.76 percent, Germany's Dax was down by  0. 10 percent, France’s CAC finished was down by 1. 22 percent.

Commodities Recap

Gold prices fell nearly 1% on Thursday, after U.S. Federal Reserve Chair Jerome Powell said more interest rate hikes would come next year.

Spot gold slipped 0.9% to $1,791.71 per ounce, as of 0724 GMT, retreating further from a more than five-month high scaled on Tuesday. U.S. gold futures were down 0.9% at $1,802.10.

Oil prices dipped in Asian trade on Thursday as the dollar firmed, while the possibility of further interest rate hikes from global central banks also heightened demand concerns.

Brent crude futures fell 64 cents, or 0.8%, to $82.06 per barrel by 0730 GMT, while U.S. crude futures slid 73 cents, or 0.9%, to $76.55.


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