Posted at 28 December 2022 / Categories Market Roundups
Market Roundup
•Sweden Nov Household Lending Growth (YoY) 4.1%, 4.5% previous
• Sweden Nov Trade Balance -5.40B,-9.50B previous
Looking Ahead - Economic events(GMT)
•13:55 US Redbook (YoY) 7.6% previous
•15:00 US Nov Pending Home Sales Index 77.1 previous
•15:00 US Dec Richmond Manufacturing Index -10 forecast,-9 previous
•15:00 US Dec Richmond Services Index -2 previous
•15:00 US Dec Richmond Manufacturing Shipments -8 previous
•15:00 US Nov Pending Home Sales (MoM) -0.8% forecast,-4.6% previous
•15:30 US Dec Texas Services Sector Outlook -11.0 previous
•15:30 US Dec Dallas Fed Services Revenues 5.5 previous
•18:00 US 5-Year Note Auction 3.974% previous
Looking Ahead - Economic events and other releases (GMT)
• No significant event
Fxbeat
EUR/USD: The euro steadied against dollar on Wednesday after China took further steps towards reopening its COVID-battered economy, with hopes for an economic rebound tempered by near-term worries over rising cases. A faster-than-anticipated peak of infections in mainland China has stoked expectations that a quick economic recovery is on the cards. But a surge in cases that is straining resources and putting hospitals under pressure has curbed investor enthusiasm. Traders now await the U.S. pending home sales report due later in the day, and Thursday’s initial jobless claims. Immediate resistance can be seen at 1.06337(Daily high), an upside break can trigger rise towards 1.0726(23.6%fib).On the downside, immediate support is seen at 1.0616(9DMA), a break below could take the pair towards 1.0537(38.2%fib).
GBP/USD: The pound edged higher on Wednesday, but gains were limited in subdued trading due to the lack of any fresh triggers. China scrapped its quarantine rules for inbound travellers starting from Jan. 8 on Monday, but global markets turned jittery as COVID cases rose in the world's second-largest economy. UK markets were closed on Monday and Tuesday for Boxing Day and Christmas Day holidays. Immediate resistance can be seen at 1.2091( 9DMA), an upside break can trigger rise towards 1.2173(23.6%fib).On the downside, immediate support is seen at 1.1973(38.2%fib),a break below could take the pair towards 1.9000 (30th Nov).
USD/CHF: The dollar dipped against the Swiss franc on Wednesday as demand for safe haven assets increased as enthusiasm about China lifting COVID restrictions was tempered by rising infections and investors' gloomy outlook for Western economies. The Chinese government announced it will start issuing new passports in another major step that could send an influx of free-spending Chinese tourists to revenue-starved destinations in Asia and Europe for next month's Lunar New Year holiday. Immediate resistance can be seen at 0.9297(9DMA), an upside break can trigger rise towards 0.9346(Dec 23rd high).On the downside, immediate support is seen at 0.9253(23.6%fib), a break below could take the pair towards 0.9216(14h Dec low).
USD/JPY: The dollar edged higher against Japanese yen on Wednesday as data showed Japan's industrial output fell for the third month in a row in November suggesting the economy is still very fragile. Japanese factories slashed output for a third consecutive month in November, dragged down by weak demand for machinery products amid a deteriorating global economic outlook. Factory output fell 0.1% in November from the previous month, government data showed on Wednesday, a smaller decline than the median market forecast for a 0.3% drop.Strong resistance can be seen at 133.66(9DMA), an upside break can trigger rise towards 135.13(38.2%fib).On the downside, immediate support is seen at 132.46(23.6%fib), a break below could take the pair towards 131.55(Dec 22nd low).
Equities Recap
European shares were subdued on Wednesday, while UK's FTSE 100 outpaced peers after a long Christmas holiday weekend as investors assessed Beijing's steps towards reopening its COVID-battered economy.
At (GMT 13:20) UK’s FTSE 100 was last trading up at 0.80% percent, Germany's Dax was down by 0. 08 percent, France’s CAC was down by 0.04 percent.
Commodities Recap
Gold prices on Wednesday fell from last session’s six-month peak as the U.S. dollar firmed and Treasury yields remained elevated, while investors weighed the worsening COVID situation in top bullion consumer China.
Spot gold fell 0.5% to $1,804.48 per ounce by 1226 GMT, having hit its highest since the end of June on Tuesday. U.S. gold futures dropped 0.6% to $1,811.60.
Oil prices fell on Wednesday as concerns about an upsurge in COVID-19 cases in China, the world's top oil importer, outweighed expectations easing pandemic restrictions would lead to economic recovery and growth in demand for fuel.
Brent futures for February delivery fell 42 cents, or 0.5%, to $83.91 a barrel, by 1215 GMT. U.S. crude fell 32 cents, or 0.4%, to $79.21 per barrel.