Posted at 27 December 2022 / Categories Market Roundups
Market Roundup
•Finnish Dec Consumer Confidence -18.5, -16.9 previous
•Finnish Dec Industrial Confidence -8, -7 previous
Looking Ahead - Economic events(GMT)
•13:30 US Nov Goods Trade Balance -96.90B forecast , -98.80B previous
•13:30 US Nov Retail Inventories Ex Auto -0.5% previous
•13:30 USWholesale Inventories (MoM) 0.4% forecast ,0.5% previous
•14:00 US Oct House Price Index (MoM) -0.6% forecast ,0.1% previous
•14:00 French 6-Month BTF Auction 2.352% previous
•14:00 French 3-Month BTF Auction 1.714% previous
•14:00 French 12-Month BTF Auction 2.628% previous
•14:00 US S&P/CS HPI Composite - 20 s.a. (MoM) -1.1% forecast ,-1.2% previous
•14:00 US Oct S&P/CS HPI Composite - 20 n.s.a. (YoY) 8.2% forecast,10.4% previous
•14:00 US Oct House Price Index 392.3 previous
•14:00 US Oct House Price Index (YoY) 11.0% previous
•14:00 US Oct S&P/CS HPI Composite - 20 n.s.a. (MoM) -1.5% previous
• 15:30 US Dec Dallas Fed Mfg Business Index -14.4 previous
Looking Ahead - Economic events and other releases (GMT)
• No significant event
Fxbeat
EUR/USD: The euro strengthened on Tuesday as dollar dipped after China said it would scrap its COVID-19 quarantine rule for inbound travellers a major step in reopening its borders. China will stop requiring inbound travellers to go into quarantine on arrival starting Jan. 8, the National Health Commission said on Monday, even as COVID cases spike. China's gradual dismantling of its zero-COVID policies could give the euro - which has clawed higher thanks to the European Central Bank taking a much harder line on inflation than investors had expected an additional boost.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 1.0622(5DMA), a break below could take the pair towards 1.0568(20DMA).
GBP/USD: The pound edged lower as traders return to their terminals on Tuesday after the Christmas holiday. Sterling traded slightly lower in thin holiday trade after China said it would end travel restrictions and quarantine for inbound travelers from Jan. 8 symbolizing an end to its zero-COVID policy that has been in place for nearly three years.Markets in some regions including London, Dublin, Hong Kong and Australia remain shut. Sterling was last down 0.1% against the dollar at $1.216, having fluctuated in and out of positive territory in afternoon trading in London. Immediate resistance can be seen at 1.211( 9DMA), an upside break can trigger rise towards 1.2173(23.6%fib).On the downside, immediate support is seen at 1.2000 (38.2%fib),a break below could take the pair towards 1.9011 (30th Nov).
USD/CHF: The dollar dipped against the Swiss franc on Tuesday as greenback softened after China said it would drop its quarantine requirements for inbound visitors, further easing three-year border controls aimed at curbing COVID-19. Dollar eased as expectations about slower interest rate hikes from the U.S. Federal Reserve dimmed the dollar’s allure.Data released on Friday showed U.S. consumer spending barely rose in November while inflation cooled further, reinforcing expectations that the Federal Reserve could scale back its aggressive monetary policy tightening. Immediate resistance can be seen at 0.9343(21DMA), an upside break can trigger rise towards 0.9371(38.2%fib).On the downside, immediate support is seen at 0.9305(9DMA), a break below could take the pair towards 0.9253(23.6%fib).
USD/JPY: The dollar ticked up against Japanese yen on Tuesday in light trade after holiday weekend. The Japanese yen fell 0.2% against the dollar to 133.28 .The yen is heading for its biggest quarterly rally against the dollar since 2008, with a rise of 8.1%, following a surprise decision by the Bank of Japan (BOJ) to adjust its monetary policy last week.BOJ Governor Haruhiko Kuroda on Monday brushed aside the chance of a near-term exit from ultra-loose monetary policy, even as markets and policymakers are signalling an increasing focus on what comes after Kuroda’s tenure ends in April next year. Strong resistance can be seen at 133.68(Aug 12th high), an upside break can trigger rise towards 134.88(38.2%fib).On the downside, immediate support is seen at 132.16(23.6%fib), a break below could take the pair towards 131.62(Aug 1st low).
Equities Recap
European shares climbed on Tuesday, tracking a global rally in equities after China further relaxed its COVID-19 curbs, raising hopes of a recovery in the world's second-largest economy.
At (GMT 13:20) Euro Stoxx 50 was last trading down at 0.92% percent, Germany's Dax was up by 0. 78 percent, France’s CAC was down by 0.20 percent.
Commodities Recap
Gold prices firmed above the key psychological threshold of $1,800 on Tuesday, as the U.S. dollar weakened following China’s decision to further ease COVID-19 restrictions.
Spot gold rose 0.6% to $1,809.20 per ounce by 1136 GMT. U.S. gold futures were up 0.7% to $1,817.60.
Oil hit a three-week high on Tuesday as China's latest easing of COVID-19 restrictions spurred hopes of a fuel demand recovery, with further support coming from cuts to U.S. energy production caused by winter storms.
Brent crude was up 56 cents, or 0.7%, at $84.48 a barrel by 1240 GMT and U.S. West Texas Intermediate crude gained 35 cents, or 0.4%, to $79.91. Both benchmarks hit their highest since Dec. 5 earlier in the session.