Posted at 24 December 2022 / Categories Market Roundups
Market Roundup
•PCE inflation, consumer spending cools
•Orders for U.S. durables advance modestly
•U.S. consumers' 1-year inflation outlook drops to 18-month low
•Dollar/yen on track for weekly loss after BoJ policy tweak
•Commodity currencies rise vs greenback
•S&P 500, Nasdaq on course for third weekly loss
•Canada GDP (YoY) 3.10%,3.93% previous
•US Nov Core PCE Price Index (YoY) 4.7%,4.7% forecast,5.0% previous
•US Nov Core PCE Price Index (MoM) 0.2%,0.2% forecast, 0.2% previous
•US Nov PCE price index (MoM) 0.1%, 0.3% previous
•US Nov PCE Price index (YoY) 5.5%,6.0% previous
•US Nov Real Personal Consumption (MoM) 0.0%, 0.5% previous
•US Nov Personal Spending (MoM) 0.1%, 0.2% forecast, 0.8% previous
•US Nov Core Durable Goods Orders (MoM) 0.2%, 0.1% forecast,0.5% previous
•US Nov Durables Excluding Defense (MoM) -2.6%,0.9% previous
•US Nov Goods Orders Non Defense Ex Air (MoM) 0.2%,0.6% previous
•US Nov Durable Goods Orders (MoM) -2.1%,-0.6% forecast,1.1% previous
•Canada Oct GDP (MoM) 0.1%, 0.1% forecast, 0.1% previous
• US Nov Personal Income (MoM) 0.4%,0.3% forecast, 0.7% previous
•Belgium Dec NBB Business Climate -13.6,-16.6 previous
•US Nov Dallas Fed PCE 3.40%,3.40% previous
•US Dec Michigan 5-Year Inflation Expectations 2.90%,3.00% previous
•US Nov New Home Sales (MoM) 5.8%, -4.7% forecast,7.5% previous
•US Dec Michigan Consumer Expectations 59.9, 58.4 previous
•US Dec Michigan Consumer Sentiment 59.7, 59.1 forecast,59.1 previous
•US Dec Michigan Current Conditions 59.4, 60.2 previous
•US Dec Michigan Inflation Expectations 4.4%,4.6% previous
•US Nov New Home Sales 640K, 600K forecast,632K previous
•Canada Oct Budget Balance -1.90B,-2.16B previous
•Canada Oct Budget Balance (YoY) -0.17B, 1.72B previous
•U.S. Baker Hughes Oil Rig Count 622, 620 previous
Looking Ahead - Economic events(GMT)
•No data ahead
Looking Ahead - Economic events and other releases (GMT)
•No significant events
Currency Summaries
EUR/USD: The euro strengthened against dollar on Friday as euro was boosted on European Central Bank pledged to hike rate hikes further. The European Central Bank may raise rates at its current pace for a “period of time” to curb inflation, said Vice-President Luis de Guindos. The ECB last week eased the pace of its interest rate hikes but stressed that significant tightening remained ahead while laying out plans to drain cash from the financial system as part of a dogged fight against inflation. The euro was up slightly against the dollar, standing 0.1% higher at $1.0651, after slipping less than 0.1% on Thursday. Immediate resistance can be seen at 1.0665(23.6%fib), an upside break can trigger rise towards 1.0718(Higher BB).On the downside, immediate support is seen at 1.0580(5DMA), a break below could take the pair towards 1.0493(38.2%fib).
GBP/USD: The British pound edged up against the U.S. dollar on Friday in thin trading conditions, but was still set for its third straight weekly drop against both currencies. The pound was last up 0.2% versus the dollar at $1.2055. It hit its lowest level in over three weeks on Thursday at $1.1993. Sterling is up 8% against the greenback in the quarter-to-date, heading for its biggest quarterly gain in 13 years as a slowdown in U.S. inflation prompted bets that the Fed would soon stop raising interest rates. Immediate resistance can be seen at 1.2099( 5DMA), an upside break can trigger rise towards 1.2180(23.6%fib).On the downside, immediate support is seen at 1.1995(38.2%fib),a break below could take the pair towards 1.1855 (50%fib).
USD/CAD: The Canadian dollar strengthened to its highest level in more than one week against its U.S. counterpart on Friday, as equity markets seesawed and domestic data showed the economy still growing despite sharply higher borrowing costs in recent months. Wall Street’s main indexes swung between gains and losses after data showed U.S. inflation cooling further in November but likely not enough to discourage the Federal Reserve from sticking to its campaign to raise interest rates.The loonie was trading 0.3% higher at 1.3605 to the greenback, or 73.50 U.S. cents, to close out the last full trading week of the year .Immediate resistance can be seen at 1.3617(5 DMA), an upside break can trigger rise towards 1.3701 (23.6% fib).On the downside, immediate support is seen at 1.3551 (38.2% fib), a break below could take the pair towards 1.3521(Dec 13th low).
USD/JPY: The dollar strengthened against yen on Friday as data showed U.S. inflation was cooling, though not significantly enough for the Federal Reserve to slow down rate hikes. The personal consumption expenditures (PCE) price index rose 0.1% last month after climbing 0.4% in October. In the 12 months through November, the PCE index increased 5.5% after advancing 6.1% in October. Excluding the volatile food and energy components, the PCE index gained 0.2% after increasing 0.3% in October. The so-called core PCE price index rose 4.7% on a year-on-year basis in November after increasing 5.0% in October. Strong resistance can be seen at 132.32(5DMA), an upside break can trigger rise towards 134.5038.2%fib).On the downside, immediate support is seen at 131.44(23.6%fib), a break below could take the pair towards 130.62(Dec 20th low).
Equities Recap
European stocks ended on a mixed note after a choppy ride on Friday as investors largely stayed cautious and refrained from making significant moves ahead of the holiday weekend.
UK's benchmark FTSE 100 closed up by 0.05 percent, Germany's Dax ended up by 0.19 percent, France’s CAC finished the day down by 0.20 percent.
The S&P 500 closed higher on Friday, in a light trading day ahead of a long weekend, as investors assessed inflation data against rate hike and recession fears while energy shares jumped on higher oil prices.
Dow Jones closed down by 0.53% percent, S&P 500 closed up by 0.59% percent, Nasdaq settled up by 0.21% percent.
Treasuries Recap
Treasury yields resumed their upward trajectory after data showed personal income rising more than expected and October inflation data was upwardly revised.
Benchmark 10-year notes last fell 14/32 in price to yield 3.7228%, from 3.671% late on Thursday.
The 30-year bond last fell 40/32 in price to yield 3.7908%, from 3.724% late on Thursday.
Commodities Recap
Gold prices edged up on Friday before a long holiday weekend as data showed U.S. inflation was cooling, though not significantly enough for the Federal Reserve to slow down rate hikes.
Spot gold rose 0.2% to $1,796.53 per ounce by 2:22 p.m. ET (1922 GMT), while U.S. gold futures settled up 0.5% at $1,804.2.Gold was up about 0.2% for the week, its best in three.
Oil prices settled about $3 per barrel higher on Friday for a second straight week of gains after Moscow said it could cut crude output in response to the G7 price cap on Russian exports.
Brent crude settled at $83.92, up by $2.94 or 3.6%, while U.S. West Texas Intermediate (WTI) crude settled at $79.56 a barrel, up $2.07, or 2.7%. Both benchmarks recorded their biggest weekly gains since October.