Posted at 21 December 2022 / Categories Market Roundups
Market Roundup
•Canada Common CPI (YoY) 6.7%,6.2% previous
•Canada Trimmed CPI (YoY) 5.3%, 5.3% previous
•Canada Median CPI (YoY) 5.0%, 4.8% previous
•Canada Nov CPI (YoY) 6.8%,6.7% forecast, 6.9% previous
•Canada Core CPI (YoY) 5.8%, 5.8% previous
•Canada Nov Core CPI (MoM) 0.0%,0.2% forecast,0.4% previous
•US Current Account (Q3) -217.1B,-222.0B forecast, -251.1B previous
• US Nov Existing Home Sales 4.09M,4.20M forecast,4.43M previous
•US Nov Existing Home Sales (MoM) -7.7%,-5.4% forecast,-5.9% previous
•US Dec CB Consumer Confidence 108.3,101.0forecast ,100.2 previous
•US EIA Refinery Crude Runs (WoW) -0.150M,0.459M previous
•US Cushing Crude Oil Inventories 0.853M,0.426M previous
•US Distillate Fuel Production -0.066M, -0.164M previous
•US Gasoline Production0.129M previous
•US Crude Oil Inventories -5.894M,-1.657M forecast , 10.231M previous
Looking Ahead - Economic Data (GMT )
•23:50 Japan Foreign Bonds Buying -605.7B previous
•23:50 Japan Foreign Investments in Japanese Stocks 1,154.2B previous
•05:00 Japan Coincident Indicator (MoM) -0.9% previous
•05:00 Japan Leading Index (MoM) 0.8% previous
•05:00 Japan Leading Index 99.0 previous
Looking Ahead - Economic events and other releases (GMT)
•No significant events
Currency Summaries
EUR/USD: The euro edged lower 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. Yet sterling is still heading for its best quarter against the dollar since 2009, with a 9% jump since September. The dollar index , which measures the greenback against six major currencies, is heading for its biggest quarterly loss in nearly 12 years. 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 1.2071 (30DMA),a break below could take the pair towards 1.2000 (38.2%fib).
USD/CAD: The Canadian dollar was little changed against its U.S. counterpart on Wednesday as investors kept their eye on developments overseas even as domestic data showed underlying inflation pressures picking up. Canada’s annual inflation rate eased to 6.8% in November as gasoline price rose more slowly, but an uptick in prices after excluding food and energy left the door open for another interest rate increase by the Bank of Canada next month.The loonie was trading nearly unchanged at 1.3610 to the greenback , after moving in a range of 1.3590 to 1.3637.Immediate resistance can be seen at 1.3650 (5 DMA), an upside break can trigger rise towards 1.3705 (23.6% retracement level).On the downside, immediate support is seen at 1.3601 (14DMA), a break below could take the pair towards 1.3525 (38.2%fib).
USD/JPY: The dollar strengthened on Wednesday as yen ceding some of the ground gained the previous day when a surprise policy tweak by the Bank of Japan lifted the Japanese currency by 4% against the dollar. The BOJ decided to change its "yield curve control" policy on Tuesday even as it kept broad policy settings unchanged. It is 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 dollar was 0.4% higher against the yen , having plunged 3.8% in the previous session, its largest one-day drop against the Japanese currency in 24 years. Strong resistance can be seen at 132.59(Daily high), an upside break can trigger rise towards 133.81(38.2%fib).On the downside, immediate support is seen at 131.37(23.6%fib), a break below could take the pair towards 130.52(Dec 20th low).
Equities Recap
European shares rose on Wednesday, as banks extended gains and upbeat results from Nike boosted the region's battered retail sector, while improving economic outlook for the euro zone also lifted sentiment.
UK's benchmark FTSE 100 closed up by 1.72 percent, Germany's Dax ended up by 1.54 percent, France’s CAC finished the day up by 2. 01 percent.
Wall Street's three main stock indexes closed higher on Wednesday for their biggest daily gains so far in December with help from upbeat Nike and FedEx quarterly earnings, as well as improving consumer confidence and easing inflation expectations from investors.
Dow Jones closed up by 1.60 percent, S&P 500 ended up by 1.49 percent, Nasdaq finished the up by 1.54 percent.
Treasuries Recap
U.S. Treasury yields fell on Wednesday as investors waited on inflation data due on Friday for further clues about whether price pressures are continuing to moderate, and before the Treasury Department will auction 20-year bonds.
Benchmark 10-year notes dipped 5 basis points to 3.634%.Two-year note yields fell 6 basis points to 4.208%. The yield curve inversion between two-year and 10-year notes deepened by 1 basis point to minus 58 basis points.
Commodities Recap
Gold prices were unchanged on Wednesday, holding above the key $1,800 level, as expectations of slower U.S. rate hikes lent support, but a rise in the dollar capped any further gains in the non-yielding bullion.
Spot gold was steady at $1,817.95 per ounce by 2:11 p.m. ET (1911 GMT) after rising more than 1% on Tuesday on the back of a dip in the dollar. U.S. gold futures remained unchanged from the previous session at $1,825.40.
Oil prices rose by more than $2 a barrel on Wednesday after data showed a larger-than-expected draw in U.S. crude stockpiles, but gains were capped by a snowstorm that is expected to hit U.S. travel.
Brent crude futures for February delivery were up by $2.21, or 2.76%, at $82.20 a barrel, while U.S. West Texas Intermediate (WTI) crude futures gained $2.06, or 2.7%, to $78.29.