Posted at 29 December 2022 / Categories Market Roundups
Market Roundup
•EU Nov Loans to Non Financial Corporations 8.4%, 8.6% forecast, 8.9% previous
•EU Nov M3 Money Supply (YoY) 4.8%, 5.0% forecast, 5.1% previous
•EU Nov Private Sector Loans (YoY)4.1%, 4.3% forecast, 4.2% previous
Looking Ahead - Economic events(GMT)
•13:30 US Initial Jobless Claims 225K forecast, 216K previous
•13:30 US Continuing Jobless Claims 1,686K forecast, 1,672K previous
•13:30 US Jobless Claims 4-Week Avg. 221.75K previous
•13:30 US Natural Gas Storage -201B forecast, -87B previous
•16:00 US Gasoline Inventories 0.520M forecast,2.530M previous
•16:00 US EIA Weekly Refinery Utilization Rates (WoW) -0.1% forecast, -1.3% previous
•16:00 US Crude Oil Imports -1.092M previous
•16:00 US Heating Oil Stockpiles -0.239M previous
•16:00 US EIA Weekly Distillates Stocks -2.050M forecast, -0.242M previous
•16:00 US Gasoline Production 0.358M previous
•16:00 US Distillate Fuel Production -0.066M previous
•16:00 US Cushing Crude Oil Inventories 0.853M previous
•16:00 US EIA Refinery Crude Runs (WoW) -0.150M previous
•16:00 US Crude Oil Inventories 1.520M forecast,-5.894M previous
Looking Ahead - Economic events and other releases (GMT)
• No significant event
Fxbeat
EUR/USD:The euro initially gained against dollar on Thursday but gave up some ground as soaring COVID-19 cases in China countered earlier optimism about the country dropping its strict zero-COVID policy. China’s health system has been overwhelmed after the country reversed its lockdown and testing regimes earlier this month. The United States, India, Italy, Japan and Taiwan said they would require COVID-19 tests for travellers from China U.S. weekly jobless claims numbers are due later in the session. The U.S. dollar index was down 0.2% at 104.130 and the euro was up 0.4% at $1.06515.. Immediate resistance can be seen at 1.0668(23.6%fib), an upside break can trigger rise towards 1.0731(Dec 15th high).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 as the U.S. dollar eased, with traders awaiting new indications on the Federal Reserve's rate hike plans. Dollar’s appeal was dented by expectations that the U.S. Federal Reserve would slow its pace of interest rate hikes.The Fed slowed its pace of rate hikes to 50 basis points (bps) in December after four consecutive increases of 75 bps each. However, Fed Chair Jerome Powell has warned that the central bank will lift rates further next year. Sterling rose 0.19% to $1.2040, but was similarly not far off its three-week trough of $1.1993 hit last week. Immediate resistance can be seen at 1.2128( 30DMA), an upside break can trigger rise towards 1.2210(Dec 20th high).On the downside, immediate support is seen at 1.2000 (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 Thursday as rising COVID-19 cases in China dented investors sentiment. Countries including the United States, Japan and India said on Wednesday they would require COVID tests for travellers from China, which has said it would scrap quarantine rules for inbound travellers from Jan. 8. Concerns over the spread of the virus during the nationwide travel rush for the Lunar New Year that falls on Jan. 22 and the uncertainty over how China's economy will fare following the removal of COVID controls have kept markets subdued. 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 lower against Japanese yen on Thursday as market participants awaiting new indications on the Federal Reserve’s rate hike plans. The Fed raised interest rates by only 50 basis points (bps) in December after four consecutive increases of 75 bps each, while Fed Chair Jerome Powell has emphasized the need to keep rates elevated for a time to fight inflation. Traders will scan the weekly U.S. jobless claim numbers due at 1330 GMT, for their likely influence on the Fed’s rate-hike strategy. Strong resistance can be seen at 134.23(11DMA), an upside break can trigger rise towards 134.98(50%fib).On the downside, immediate support is seen at 133.58(38.2%fib), a break below could take the pair towards 131.90(23.6%fib).
Equities Recap
European stock indexes were mixed in early trading on Thursday as global recession fears weighed on markets and soaring COVID-19 cases in China countered earlier optimism about the country dropping its strict zero-COVID policy.
At (GMT 11:28) UK’s FTSE 100 was last trading down at 0.11% percent, Germany's Dax was up by 0. 16 percent, France’s CAC was up by 0.07 percent.
Commodities Recap
Oil prices fell by over 2% on Thursday as surging COVID-19 cases in China dimmed hopes of a recovery in fuel demand for the world's largest crude oil importer.
Brent futures for February fell $1.67, or 2.01%, to $81.59 a barrel by 0953 GMT. The more active March contract fell 1.79% to $82.49/bbl.U.S. West Texas Intermediate crude futures fell $1.62, or 2.05%, to $77.34 a barrel.
Gold edged higher on Thursday helped by a dip in the dollar and U.S. Treasury yields, although prices moved in a tight range as investors refrained from making large bets in anticipation of fresh market drivers.
Spot gold rose 0.3% to $1,808.65 per ounce by 1002 GMT, while U.S. gold futures were little changed at $1,815.60.