News

Europe Roundup: Euro dips against dollar,European shares slid, Gold firms, Oil falls, still set for weekly gain on demand hopes-December 16th,2022

Posted at 16 December 2022 / Categories Market Roundups


Market Roundup

•UK Nov Core Retail Sales (YoY)  -5.9%,-5.8% forecast,-6.7% previous

•UK Nov Retail Sales (YoY)  -5.9%, -5.6% forecast,-6.1%

•UK Nov Core Retail Sales (MoM)  -0.3%  ,0.3% forecast,-  0.3% previous

•UK Nov Retail Sales (MoM)  -0.4%,0.3% forecast,0.6% previous

•French Dec Manufacturing PMI  48.9,48.2 forecast,48.3 previous

•French Dec S&P Global Composite PMI  48.0,48.9 forecast,48.7 previous

•French Dec Services PMI  48.1, 49.1 forecast,49.3 previous

•German Dec Manufacturing PMI  47.4,46.3 forecast,46.2 previous

•German Dec Composite PMI  48.9, 46.5 forecast,46.3 previous

•German Dec Services PMI 49.0, 46.3 forecast,46.1 previous

•EU Dec Services PMI 49.1, 48.5forecast,48.5 previous

• EU Dec S&P Global Composite PMI 48.8,48.0 forecast,47.8 previous

• UK Manufacturing PMI 44.7, 46.5 forecast, 46.5 previous

• UK  Services PMI 50.0,49.2 forecast, 48.8 previous

• UK  Composite PMI 49.0,48.2 previous

•EU Nov CPI (YoY)  10.1%,10.0%forecast,10.0% previous

•EU Oct Trade Balance -26.5B,-44.5B forecast,-34.4B previous

•EU Nov Core CPI (MoM) 0.0%,  0.6% forecast,0.6% previous

•EU Nov HICP ex Energy & Food (YoY)  6.6%,6.6% forecast,6.6% previous

•EU Nov Core CPI (YoY)  5.0%, 5.0% forecast,5.0% previous

Looking Ahead - Economic Data (GMT )

•13:30   Canada Oct Foreign Securities Purchases   -22.27B previous

•13:30   Canada Oct Foreign Securities Purchases by Canadians  9.56B previous

•13:30 Canada Canada New Housing Price Index (MoM) -0.2% previous

•13:30 Canada Oct Wholesale Sales (MoM)  1.3% forecast,0.1% previous

•14:45   US Dec Manufacturing PMI  47.7 forecast, 47.7 previous

•14:45 US Dec Services PMI  46.8 forecast, 46.2 previous

•14:45  US Dec S&P Global Composite PMI  47.0  forecast,46.4 previous

•18:00  US U.S. Baker Hughes Oil Rig Count 625 previous

•18:00 US  U.S. Baker Hughes Total Rig Count 780 previous

Looking Ahead - Economic events and other releases (GMT)

•No significant events

Fxbeat

EUR/USD: The euro was little changed on Friday  after major central banks flagged further rate hikes, while economic activity data from the euro zone failed to assuage concerns of a looming recession. The ECB delivered a 50-bps hike like the Fed. This week's hawkish message from the likes of the European Central Bank and the Federal Reserve brought an abrupt end to optimism that peak interest rates are on the horizon. The euro was flat at $1.0621. Immediate resistance can be seen at 1.0661(23.6%fib), an upside break can trigger rise towards 1.0718(Higher BB).On the downside, immediate support is seen at 1.0569(5DMA), a break below could take the pair towards  1.0487(38.2%fib).

GBP/USD: The pound fell on Friday against   the U.S. dollar, setting it on track for its biggest weekly declines against the two currencies since early November after a raft of central bank interest rate hikes.The Bank of England (BoE) delivered an expected half-percentage-point increase in interest rates on Thursday, its ninth in a row. But while the BoE was taking the view that inflation has now peaked, other central banks flagged they are far from finished with rate hikes. Sterling fell 0.2% to $1.2160 against the dollar, after briefly touching a nine-day low against the U.S. currency.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 1.2062 (38.2%fib),a break below could take the pair towards1.2000 (Psychological level).

 USD/CHF: The dollar strengthened against the Swiss franc on Friday as expectations of higher interest rates for a longer period by the U.S. Federal Reserve boost greenback against Swiss franc. The Fed on Wednesday raised interest rates by 50 basis points as expected, but Fed Chair Jerome Powell said the central bank would deliver more rate hikes next year even as the economy slips towards a recession. Central banks in Europe on Thursday followed the Fed in slowing the pace of interest rate increases but also offered a similar stark message that financial conditions will continue to tighten even as economic performance deteriorates. 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 0.9246(23.6%fib), a break below could take the pair towards 0.9200 (Lower BB).

USD/JPY: The dollar dipped against Japanese yen on Friday a day after a slew of central banks jacked up interest rates and signalled that the fight to tame inflation was not over yet. Interest rates went up in the euro area, Britain, Switzerland, Denmark, Norway, Mexico and Taiwan on Thursday, following a U.S. rate hike a day before, and central bankers vowed to keep raising rates to bring down prices. The dollar was 0.5% weaker at 137 yen. Strong resistance can be seen at 138.04(38.2%fib), an upside break can trigger rise towards 139.54(Nov 29th high).On the downside, immediate support is seen at 136.72(5DMA), a break below could take the pair towards 135.60(23.6%fib).

Equities Recap

European shares slid on Friday and were set to post losses for the week after major central banks flagged further rate hikes, while economic activity data from the euro zone failed to assuage concerns of a looming recession.

At (GMT 13:20) UK's benchmark FTSE 100 was last trading down at 1.33 percent, Germany's Dax was down by  0. 63 percent, France’s CAC  was down by 1. 23 percent.

Commodities Recap

Gold prices firmed on Friday but were on course for their biggest weekly fall since mid-November as several central banks this week signalled that more rate hikes are needed to curb inflationary pressures.

Spot gold rose 0.3% to $1,782.61 per ounce, as of 1217 GMT. It is down about 0.8% for the week so far, having hit a one-week low in the previous session.U.S. gold futures were up 0.3% at $1,792.70.

Oil fell on Friday as the market assessed the aftermath of interest rates hikes by central banks, but was poised for a weekly gain amid supply disruption concerns and hopes for a recovery of demand in China.

Brent crude futures were down $1.56, or 1.9%, to $79.65 per barrel at 1200 GMT. West Texas Intermediate futures slipped $1.43, or 1.9%, to $74.68.


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