Posted at 03 January 2023 / Categories Market Roundups
Market Roundup
•German Dec Unemployment n.s.a. 2.454M, 2.434M previous
•German Dec Unemployment 2.520M, 2.538M previous
•German Dec Unemployment Rate 5.5%, 5.6% forecast,5.6% previous
•German Dec Unemployment Change -13K, 15K forecast, 17K previous
• UK Dec Manufacturing PMI 45.3, 44.7 forecast, 46.5 previous
Looking Ahead - Economic Data (GMT)
•13:00 German Dec CPI (MoM) -0.3% forecast,-0.5% previous
•13:00 German Dec CPI (YoY) 9.1% forecast,10.0% previous
•13:00 German Dec HICP (MoM) -0.5% forecast,0.0% previous
•13:00 German Dec HICP (YoY) 10.7% forecast, 11.3% previous
•14:30 Canada Dec Manufacturing PMI 49.6 previous
•14:45 US Dec Manufacturing PMI 46.2 forecast, 47.7 previous
•15:00 US Nov Construction Spending (MoM) -0.4% forecast, -0.3% previous
•15:00 New Zealand GlobalDairyTrade Price Index -3.8% previous
•16:30 US 3-Month Bill Auction 4.350% previous
•16:30 US 6-Month Bill Auction 4.600% previous
Looking Ahead - Economic events and other releases (GMT)
• No significant events
Fxbeat
EUR/USD: The euro declined against dollar on Tuesday after regional German inflation data suggested price pressures in Europe's biggest economy cooled sharply in December. Data released at 0900 GMT showed that inflation slowed sharply in the populous German states of Bavaria and Baden-Wurttemberg in December. The figures came ahead of the release of data for the whole of Germany, due at 1300 GMT on Tuesday, which themselves come before euro zone-wide data is released on Friday. German headline inflation, adjusted to compare with the rest of the euro zone, is expected to slow to 10.7% year-on-year in December, from 11.3% in November, in part because of a government-backed discount on energy bills. Immediate resistance can be seen at 1.0616(11DMA), an upside break can trigger rise towards 1.0695(23.6%fib).On the downside, immediate support is seen at 1.0519(38.2%fib), a break below could take the pair towards 1.0453(Dec 7th low).
GBP/USD: Sterling fell against dollar on Tuesday after data showed British manufacturers reported one of the sharpest falls in activity in over a decade. Manufacturing in the UK ended 2022 with its worst month for over two and a half years.The S&P Global/CIPS UK Manufacturing PMI scored 45.3 in December, down from 46.5 in November, figures released on Tuesday show. Scores below 50 are considered to show that the sector is shrinking. Immediate resistance can be seen at 1.2069(11DMA), an upside break can trigger rise towards 1.2238(23.6%fib),On the downside, immediate support is seen at 1.1900(38.2% fib), a break below could take the pair towards 1.1826 (22nd Nov).
USD/CHF: The dollar rose against the Swiss franc on Tuesday as investors looked forward to minutes from the U.S. Federal Reserve’s latest policy meeting for more cues on its rate-hike path. Minutes from the Fed’s December policy meeting are due on Wednesday. The Fed raised rates by 50 basis points (bps) in December after four consecutive increases of 75 bps each. The dollar index , which measures the U.S. unit against six major currencies, was last up 1.25% at 104.80. The index rose 8% last year in its biggest annual jump since 2015 on the back of the Fed raising interest rates to tackle inflation. Immediate resistance can be seen at 0.9397(Daily high), an upside break can trigger rise towards 0.9445(38.2% fib).On the downside, immediate support is seen at 0.9349(38.2%fib), a break below could take the pair towards 0.9292(23.6%fib).
USD/JPY: The dollar dipped against Japanese yen on Tuesday as expectations that the Bank of Japan might move away from its ultra-easy monetary policy boosted Japanese yen. Speculation that the BOJ was set to start shifting off its ultra-loose policy flared when the central bank widened the yield cap range on 10-year Japanese government bonds (JGBs) last month, and it was further fuelled by a Nikkei report on Saturday that the BOJ was considering raising its inflation forecasts in January to show price growth close to its 2% target in fiscal 2023 and 2024. The yen strengthened 0.69% versus the greenback at 129.83 per dollar on Tuesday, having touched 129.51 earlier. Strong resistance can be seen at 1312.41(Daily high), an upside break can trigger rise towards 131.91(38.2%fib).On the downside, immediate support is seen at 129.31(23.6%fib), a break below could take the pair towards 129.00(Psychological level).
Equities Recap
European stocks rose sharply on Tuesday to extend gains from the previous session, as investors awaited German consumer price data expected to confirm the gradual easing that started last month.
At (GMT 12:05), UK FTSE 100 was last trading up at 1.41 percent, Germany's Dax was up by 0.65 percent, France’s CAC finished was up by 0.56 percent.
Commodity Recap
Oil prices edged lower on Tuesday in volatile trade as weak demand data from China and a gloomy economic outlook weighed.
Brent crude futures fell 46 cents, or 0.54%, to $85.45 a barrel by 1017 GMT. U.S. West Texas Intermediate crude was down 38 cents, or 0.47%, at $79.88.
Gold prices made a positive start to the new year, with prices touching a more than six-month peak on Tuesday as investors positioned for the Federal Reserve's latest policy minutes.
Spot gold , which had ended a volatile 2022 little changed, rose 0.5% to $1,832.59 per ounce by 1205 GMT after touching its highest since June 17 at $1,849.89. U.S. gold futures gained 0.7% to $1,839.40.