Posted at 19 December 2022 / Categories Market Roundups
Market Roundup
•German Dec Business Expectations 83.2,82.0 forecast, 80.0 previous
•German Dec Ifo Business Climate Index 88.6 , 87.4 forecast,86.3 previous
•German Dec Current Assessment 94.4, 93.5 forecast, 93.1 previous
•EU Labor Cost Index (YoY) (Q3) 2.90%,4.00% previous
•EU Wages in euro zone (YoY) (Q3) 2.10%,4.10% previous
•EU Oct Construction Output (MoM) 1.27%, 0.09% previous
•UK Dec CBI Industrial Trends Orders -6, -9 forecast,-5 previous
Looking Ahead - Economic Data (GMT )
•13:00 EU French 3-Month BTF Auction 1.693% previous
•13:00 EU French 6-Month BTF Auction 2.011% previous
•13:00 EU French 12-Month BTF Auction 2.426% previous
•13:30 Canada Nov RMPI (YoY) 9.0% previous
•13:30 Canada Nov RMPI (MoM) 1.3% previous
•13:30 Canada Nov IPPI (MoM) 0.4% forecast, 2.4% previous
•13:30 Canada Nov IPPI (YoY) 10.1% previous
•15:00 US Dec NAHB Housing Market Index 34 forecast,33 previous
•16:30 US 3-Month Bill Auction 4.270% previous
•16:30 US 6-Month Bill Auction 4.630% previous
Looking Ahead - Economic events and other releases (GMT)
•No significant events
Fxbeat
EUR/USD: The euro strengthened on Monday as investors reacted positively to the latest survey results showing that a measure of German business sentiment increased for a third straight month in December. German business morale rose more than expected in December as Europe's largest economy approached the end of the year with an improved outlook despite the energy crisis and high inflation, a survey said on Monday. The Ifo institute said its business climate index rose to 88.6 from a revised reading of 86.4 in November. A poll of analysts had pointed to a December reading of 87.4. The euro gained 0.19% to $1.0604. 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 edged higher on Monday against the U.S. dollar as investors started the year's last full trading week still mindful of interest rate hike risks to the economy in 2023.The U.S. Federal Reserve and European Central Bank hiked rates and promised more last week, and speculation is even building that the Bank of Japan, which meets on Monday and Tuesday, is eyeing a shift in its ultra-dovish stance. ECB's Vice-President Luis de Guindos said on Monday the ECB will hike rates further, adding that the institution was committed to bringing inflation down to its 2% mid-term goal. Immediate resistance can be seen at 1.2259( 5DMA), an upside break can trigger rise towards 1.2407(23.6%fib).On the downside, immediate support is seen at 1.2062 (38.2%fib),a break below could take the pair towards 1.2000 (Psychological level).
USD/CHF: The dollar dipped against the Swiss franc on Monday as investors were concerned about a expectations of higher interest rates in the United States for longer than earlier expected. The dollar index which tracks the greenback against a basket of six major currencies fell 0.4% to 104.410 , reversing some of its gains from the previous week after the U.S. Federal Reserve and European Central Bank hiked rates. Federal Reserve Chair Jerome Powell said last week the central bank will deliver more interest rate hikes next year even as the economy slips towards a possible recession .The upcoming U.S. core personal consumption expenditure (PCE) numbers on Friday could provide a catalyst for a strong move higher Immediate resistance can be seen at 0.9376(38.2%fib ), an upside break can trigger rise towards 0.9409(21DMA).On the downside, immediate support is seen at 0.9293(5DMA), a break below could take the pair towards 0.9253 (23.6%fib).
USD/JPY: The dollar dipped against Japanese yen on Monday as yen gained on news that the Japanese government could soon revise a joint statement with the Bank of Japan (BOJ) over the latter's inflation target, potentially paving the way for a tweak in the BOJ's ultra-loose monetary policy. The Japanese government will likely consider revising next year a joint statement it signed with the BOJ in 2013 that commits the central bank to meeting a 2% inflation target as soon as possible. The revision, if made, would be done after a new BOJ governor is appointed in April, a move that may heighten the chance of a tweak to incumbent Governor Haruhiko Kuroda's ultra-loose monetary policy. The yen was last 0.4% stronger at 136.05 per dollar, after jumping more than 0.5% to a high of 135.78 earlier in the session. Strong resistance can be seen at 136.32(5DMA), an upside break can trigger rise towards 138.15(38.2%fib).On the downside, immediate support is seen at 135.43(23.6%fib), a break below could take the pair towards 135.00(psychological level).
Equities Recap
European stocks rose notably on Monday after last week's brutal selloff following hawkish signals from the Federal Reserve and the European Central Bank.
At (GMT 10:56) UK's benchmark FTSE 100 was last trading up at 0.52percent, Germany's Dax was up by 0. 58 percent, France’s CAC finished was up by 0.69 percent.
Commodities Recap
Gold prices inched higher on Monday as a softer dollar countered pressure on the non-yielding bullion from expectations of higher interest rates in the United States for longer than earlier expected.
Spot gold rose 0.2% to $1,797.17 per ounce by 0915 GMT. U.S. gold futures gained 0.4% to $1,807.20.
Oil prices rose on Monday after tumbling by more than $2 a barrel in the previous session as optimism over the Chinese economy outweighed concern over a global recession.
Brent crude gained 82 cents, or 1%, to $79.86 a barrel by 0925 GMT while U.S. West Texas Intermediate crude advanced by 60 cents, or 0.8%, to $74.89.