Posted at 27 December 2022 / Categories Market Roundups
Market Roundup
•US Nov Goods Trade Balance -83.35B, -96.90B forecast , -98.80B previous
•US Nov Retail Inventories Ex Auto -0.3%, -0.5% previous
•US Wholesale Inventories (MoM) 1.0%,0.4% forecast ,0.5% previous
•US Oct House Price Index (MoM) 0.0%,-0.6% forecast ,0.1% previous
•US S&P/CS HPI Composite - 20 s.a. (MoM) -0.5%,-1.1% forecast ,-1.2% previous
•US Oct S&P/CS HPI Composite - 20 n.s.a. (YoY) 8.6%,8.2% forecast,10.4% previous
•US Oct House Price Index 392.7,392.3 previous
•US Oct House Price Index (YoY) 9.8%,11.0% previous
• US Oct S&P/CS HPI Composite - 20 n.s.a. (MoM) -0.8%. ,-1.5% previous
•US Dec Dallas Fed Mfg Business Index -18.8,-14.4 previous
Looking Ahead - Economic events(GMT)
•23:50 Japan Jan Industrial Production forecast 2m ahead (MoM) 2.4% previous
•23:50 Japan Dec Industrial Production forecast 1m ahead (MoM) 3.3% previous
•23:50 Japan Nov Industrial Production (MoM) -0.3% forecast, -3.2% previous
Currency Summaries
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 trading at $1.2026, down 0.28% on the day. Immediate resistance can be seen at 1.2111( 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 low).
USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Tuesday as higher commodity prices and slightly weaker dollar boosted lonnie. The price of oil, one of Canada’s major exports, steadied after hitting a three-week high earlier in the day, with restarts at some U.S. energy plants shut by winter storms and hopes of a recovery in demand after China's latest easing restrictions. The loonie was last trading 0.03% higher at 1.3517 to the greenback .Immediate resistance can be seen at 1.3568 (5DMA), an upside break can trigger rise towards 1.3632 (23.6% fib).On the downside, immediate support is seen at 1.3493(38.2% fib), a break below could take the pair towards 1.3455 (Lower BB).
USD/JPY: The dollar ticked up against Japanese yen on Tuesday as investors digested China's loosening of COVID rules. 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.The Japanese yen fell 0.2% against the dollar to 133.40 .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. 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 closed a touch higher on Tuesday as China relaxing its COVID-19 curbs more raised hopes of a recovery in the world's second-largest economy.
Germany's Dax ended up by 0.39 percent, France’s CAC finished the day up by 0. 70 percent.
The S&P 500 and the Nasdaq closed lower on Tuesday after the release of U.S. economic data at the start of a holiday-shortened week while bond yields rose after China said it would scrap its COVID-19 quarantine rule for inbound travelers.
Dow Jones closed up by 0.11 percent, S&P 500 ended down by 0.41 percent, Nasdaq finished the day down by 1.38percent.
Treasuries Recap
U.S. Treasury yields rose as investors tried to assess the path of interest rate hikes from the Federal Reserve and eyed China's scaling back of restrictions.
Commodities Recap
Oil prices were steady after hitting a three-week high on Tuesday as restarts at some U.S. energy plants shut by winter storms offset gains stemming from hopes of a demand recovery as China eases its COVID-19 restrictions.
Brent crude was up 41 cents, or 0.5%, at $84.33 a barrel, while U.S. West Texas Intermediate crude settled 3 cents lower at $79.53 per barrel.
Gold prices jumped to their highest level in six months on Tuesday as optimism surrounding decisions by top consumer China to further ease COVID-19 restrictions weighed on the dollar, while benchmark U.S. yields limited gains.
Spot gold jumped 1.1% to $1,816.69 per ounce by 1:52 p.m. ET (1852 GMT), rising to $1,832.99 earlier in the session, its highest level since June 27.U.S. gold futures settled up 1.1% at $1,823.1.