Posted at 31 December 2022 / Categories Market Roundups
Market Roundup
•U.S. dollar on track for 7.9% gain in 2022
•Euro set to post 5.9% annual loss
•US Indexes down: Dow 0.22%, S&P 500 0.25%, Nasdaq 0.11%
•Brent crude logs 10% gain in 2022, WTI records 7% increase
• US Dec Chicago PMI 44.9, 40.0 forecast, 37.2 previous
•U.S. Baker Hughes Oil Rig Count 621,622 previous
•U.S. Baker Hughes Total Rig Count 779 , 779 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 steadied on Friday as dollar dipped in the last trading day of a year dominated by Federal Reserve rate hikes and fears of a sharp slowdown in global growth. Optimism about China's reopening after three years of strict COVID-19 curbs has been tempered by surging infections which threaten more economic disruptions. The euro was up 0.22% on the day to $1.0684, on track for a 6% annual loss versus the dollar, compared with last year's 7% drop. A combination of weak eurozone growth, the war in Ukraine and the Fed's hawkishness has put the euro under pressure this year. Immediate resistance can be seen at 1.0705(23.6%fib), an upside break can trigger rise towards 1.0736(Higher BB).On the downside, immediate support is seen at 1.0649(5DMA), a break below could take the pair towards 1.0605(29th Dec).
GBP/USD: The pound strengthened against dollar on Friday as investors braced for the new year with worries about a potential recession and the U.S. Federal Reserve rate hiking path. Traders also focused on the outlook for China. Optimism about the country's reopening after three years of strict COVID-19 curbs has been tempered by surging infections which threaten more economic disruptions.Sterling was set for its worst performance against the dollar since 2016, when Britain voted to leave the European Union. The British pound was last up 0.09% at $1.2063, on pace for a 10.8% annual drop. Immediate resistance can be seen at 1.2137( 14DMA), an upside break can trigger rise towards 1.2201(23.6%fib).On the downside, immediate support is seen at 1.2000(38.2%fib),a break below could take the pair towards 1.1927 (Lower BB).
USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Friday as investors opted for caution in holiday-thinned trading. The market’s mood into 2023 will be driven by the response of global central banks to bubbling inflation. The U.S. Federal Reserve has raised rates by a total of 425 basis points since March in an attempt to curb surging inflation. On the last trading day of 2022,the Canadian dollar was trading up 0.03% at 1.3541 to the greenback.Immediate resistance can be seen at 1.3556 (5DMA), an upside break can trigger rise towards 1.3611 (23.6%fib).On the downside, immediate support is seen at 1.3522(38.2%fib), a break below could take the pair towards 1.3491(Lower BB).
USD/JPY: The dollar dipped against Japanese yen on Friday on the final trading day of a roller-coaster year marked by aggressive interest-rate hikes to curb inflation, the Russia-Ukraine war and recession fears. The U.S. dollar was down around 0.91% against the Japanese yen, at 131.820.The Bank of Japan's ultra-dovish stance has seen the dollar gain 14.5% versus the yen so far this year, in the yen's worst performance since 2013. But the Bank of Japan's surprise decision to tweak its bond yield control program saw the yen jump to a four-month high against the U.S. dollar earlier in December.Strong resistance can be seen at 133.02(5DMA), an upside break can trigger rise towards 133.30(38.2%fib).On the downside, immediate support is seen at 130.97(23.6%fib), a break below could take the pair towards 129.95 (Lower BB).
Equities Recap
European shares slipped in the last trading day of a rough year marked by geopolitical tensions and fears of a recession as central banks hike rates, while London stocks outperformed their counterparts on the continent due to heavy commodity exposure.
UK's benchmark FTSE 100 closed down by 0.81 percent, Germany's Dax ended down by 1.05 percent, France’s CAC finished the day down by 1.52 percent.
U.S. stocks closed out 2022 lower on Friday, capping a year of sharp losses driven by aggressive interest rate hikes to curb inflation, recession fears, the Russia-Ukraine war and rising concerns over COVID cases in China.
Dow Jones closed down by 0.22 %percent, S&P 500 closed down by 0.25 % percent, Nasdaq settled down by 0.11 % percent.
Treasuries Recap
The U.S. U.S. 10-year Treasury yield rose on Friday and closed out the trading year with its biggest annual increase in decades, pushed higher by aggressive Fed rate hikes.
The benchmark 10-year notes were up 4.4 basis points to 3.879%, from 3.835% late on Thursday.
Commodities Recap
U.S. crude oil futures registered a second straight annual gain after a wildly volatile year marked by tight supplies due to the Ukraine war and then sliding demand from China, the world's top crude importer.
For the day, U.S. crude settled up 2.4% or $1.86 at $80.26 per barrel and Brent finished at $85.91, up $2.45 or 2.94% on the day.
Gold prices edged up on Friday as the non-yielding metal is on track to close its best quarter since June 2020 on expectations of slower interest rate hikes by the U.S. Federal Reserve after being beaten down from record highs earlier this year.
On the last trading day of 2022, spot gold rose 0.2% to $1,818.70 per ounce by 2:17 p.m. ET (1858 GMT), while U.S. gold futures settled unchanged at $1,826.2.