Posted at 21 December 2022 / Categories Market Roundups
Market Roundup
• German Jan GfK Consumer Climate -37.8,-38.0 forecast,-40.2 previous
• UK Nov Public Sector Net Cash Requirement 20.336B,9.732B previous
• UK Nov Public Sector Net Borrowing 21.20B, 12.73B previous
• UK Dec CBI Distributive Trades Survey 11, -23 forecast,-19 previous
Looking Ahead - Economic Data (GMT )
•13:30 Canada Nov CPI (MoM)-0.1% forecast, 0.7% previous
•13:30 Canada Common CPI (YoY) 6.2% previous
•13:30 Canada Trimmed CPI (YoY) 5.3% previous
•13:30 Canada Median CPI (YoY) 4.8% previous
•13:30 Canada Nov CPI (YoY) 6.7% forecast, 6.9% previous
•13:30 Canada Core CPI (YoY) 5.8% previous
•13:30 Canada Nov Core CPI (MoM) 0.2% forecast,0.4% previous
•13:30 US Current Account (Q3) -222.0B forecast, -251.1B previous
•15:00 US Nov Existing Home Sales 4.20M forecast,4.43M previous
•15:00 US Nov Existing Home Sales (MoM) -5.4% forecast,-5.9% previous
•15:00 US Dec CB Consumer Confidence 101.0 forecast ,100.2 previous
•15:30 US EIA Refinery Crude Runs (WoW) -0.459M previous
•15:30 US Cushing Crude Oil Inventories 0.426M previous
•15:30 US Distillate Fuel Production -0.164M previous
•15:30 US Gasoline Production 0.129M previous
•15:30 US Crude Oil Inventories -1.657M forecast ,10.231M previous
Fxbeat
EUR/USD: The euro edged higher on Wednesday as investors stayed focused on rising bond supply and central banks’ commitment to fight inflation. The Bank of Japan’s (BOJ) shocked markets on Tuesday with a surprise tweak to its bond yield control that allows long-term interest rates to rise more, but analysts expect further spillover effects to be limited. Investors have been worried about more government spending in 2023 to fight the adverse impact of the energy crisis, while the European Central Bank pledged more rate hikes and announced it would start reducing its 5 trillion bond holdings. Immediate resistance can be seen at 1.0679(23.6%fib), an upside break can trigger rise towards 1.0731(Higher BB).On the downside, immediate support is seen at 1.0595(5DMA), a break below could take the pair towards 1.0537(38.2%fib).
GBP/USD: Sterling slipped against the dollar on Wednesday as British public borrowing hit a November record, underscoring the challenges for the UK economy. British borrowing rose to its highest for any November since records began, reflecting higher costs for energy subsidies, data showed on Wednesday.The pound was last down 0.3% at $1.21515, and lost 0.4% versus the euro to 0.87 pence. Immediate resistance can be seen at 1.2071( 11DMA), an upside break can trigger rise towards 1.2356(23.6%fib).On the downside, immediate support is seen at 1.2073 (30DMA),a break below could take the pair towards 1.2000 (38.2%fib).
USD/CHF: The dollar dipped against the Swiss franc dollar on Wednesday as traders looked ahead to impending economic data later this week. The dollar index turned negative on Wednesday after adding 0.2%, adding to losses of 0.6% on Tuesday after the Bank of Japan adjusted its control of bond yields. On the data front, the U.S. gross domestic product (third estimate) due on Thursday and the core personal consumption expenditure (PCE) price index scheduled on Friday are also on the investors’ radars. Immediate resistance can be seen at 0.9285(5DMA), an upside break can trigger rise towards 0.9366(38.2%fib).On the downside, immediate support is seen at 0.9253(23.6%fib), a break below could take the pair towards 0.9211 (Dec 14th low).
USD/JPY: The dollar traded flat against Japanese yen on Wednesday after surging in the previous session, when the Bank of Japan (BOJ) unexpectedly tweaked a key policy, allowing government bond yields more room to move. The BOJ decided to change its yield curve control policy on Tuesday even as it kept broad policy settings unchanged. It is now letting 10-year yields move 50 basis points either side of its 0% target, wider than the previous 25 basis point band.On Wednesday, the yen was last up less than 0.1%, trading at 131.55 per dollar, not far off the four-month high of 130.58 touched on Tuesday. Strong resistance can be seen at 132.40(Daily high), an upside break can trigger rise towards 133.06(38.2%fib).On the downside, immediate support is seen at 131.55 Daily low), a break below could take the pair towards 130.62(23.6%fib).
Equities Recap
European stocks bounced back from a six-week low on Wednesday, with consumer discretionary firms rising heading into the year-end holiday period.
At (GMT 12:56) UK's benchmark FTSE 100 was last trading up at 1.02 percent, Germany's Dax was up by 0.90 percent, France’s CAC was up by 1.25 percent.
Commodities Recap
Gold prices eased in a tight range on Wednesday as the U.S. dollar firmed, although bullion was not far from a one-week high scaled in the previous session as traders looked ahead to impending economic data later this week.
Spot gold fell 0.2% to $1,813.23 per ounce by 0957 GMT, after rising more than 1% on Tuesday on the back of a dip in the dollar. U.S. gold futures eased 0.2% to $1,822.70.
Oil prices rose on Wednesday after data suggested a larger than expected draw in U.S. crude stockpiles, but gains were capped by growing concerns over demand in China and a snow storm that is expected to hit U.S. travel.
Brent crude futures were up 93 cents, or 1.15%, at $80.92 a barrel by 1040 GMT. U.S. West Texas Intermediate (WTI) crude futures gained 80 cents, or 1.05%, to $77.03.