News

Europe Roundup: Sterling falls against dollar after weak business activity data points to recession, European shares slip, Gold slips, Oil rebounds after biggest drop in decades at start of year-January 5th,2023

Posted at 05 January 2023 / Categories Market Roundups


Market Roundup

•German Nov Imports (MoM)  -3.3%,-0.5%forecast,-3.7%previous

•Finnish Nov Trade Balance  0.42B forecast, -0.97B previous

•German Nov Trade Balance 10.8B,7.5B  forecast,6.9B previous

•German Nov Exports (MoM)  -0.3%,0.2% forecast,-0.6% previous

•UK  Dec Composite PMI  49.0,49.0 forecast,48.2 previous

•UK  Dec Services PMI  49.9,50.0 forecast,48.8 previous

•EU Nov PPI (MoM)  -0.9%,-0.9% forecast,-2.9% previous

•EU Nov PPI (YoY)  27.1%,27.5% forecast,30.8% previous

•EU Dec Italian CPI (YoY) 11.6%,11.6% forecast, 11.8% previous

•Italian Dec CPI (MoM)  0.3%,0.1% forecast,0.5% previous

•Italian Dec HICP (YoY)  12.3%,12.3% forecast, 12.6% previous

Looking Ahead - Economic data (GMT)

•12:30   US Dec Challenger Job Cuts  76.835K previous

•12:30   US Challenger Job Cuts (YoY) 416.5% previous

•13:15   US Dec ADP Nonfarm Employment Change  150K forecast,127K previous

•13:30   Canada Nov Exports  67.04B previous

•13:30   US Imports 334.80B previous

•13:30 US Exports 256.60B previous

•13:30 US Continuing Jobless Claims 1,708K forecast, 1,710K previous

•13:30   US Jobless Claims 4-Week Avg.  221.00K previous

•13:30US Initial Jobless Claims   225K, 225K previous

•13:30   US Nov Trade Balance  -73.00B   forecast,-78.20B previous

•13:30   Canada Nov Trade Balance  0.61B forecast,1.21B previous

•13:30   Canada Nov Imports  65.82B previous

•14:45   US Dec Services PMI  44.4 forecast,46.2 previous

•14:45   US Dec S&P Global Composite PMI  44.6 forecast,46.4 previous

•15:30   US Natural Gas Storage -228B forecast,-213B previous

•16:00   US  Crude Oil Inventories 1.154M forecast, 0.718M previous

•16:30   US  4-Week Bill Auction 3.830% previous

•16:30 US 8-Week Bill Auction 4.250% previous

Looking Ahead - Economic events and other releases (GMT)

• No significant event

Fxbeat

EUR/USD: The euro inched up on Thursday but struggled to make bigger gains investors squared positions ahead of the closely watched U.S. jobs data that could influence the Federal Reserve's rate-hike path. Minutes from the Fed's Dec. 13-14 policy meeting released overnight showed policymakers still focused on controlling the pace of price increases that threatened to run hotter than anticipated. Market focus now turns to the ADP National Employment Report due at 1315 GMT, followed by the U.S. Labor Department's nonfarm payrolls (NFP) data on Friday. Immediate resistance can be seen at 1.0632(9DMA), an upside break can trigger rise towards 1.0710(23.6%fib).On the downside, immediate support is seen at 1.0532(38.2%fib), a break below could take the pair towards  1.0506(Lower BB).

GBP/USD: Sterling fell against   the U.S. dollar on Thursday after business data highlighted the likelihood that Britain is already in recession.The S&P Global/CIPS UK Services Purchasing Managers' Index (PMI) for December was revised slightly lower. While it marked an improvement from November's reading, new business contracted for a second month running and the survey's employment index fell to its lowest level since February 2021.The pound fell 0.33% versus the U.S. dollar to $1.2019. Immediate resistance can be seen at 1.2055(14DMA), an upside break can trigger rise towards 1.2146(Dec 20th high),On the downside, immediate support is seen at 1.1918(38.2% fib), a break below could take the pair towards 1.1809 (Lower BB).

 USD/CHF: The dollar declined against the Swiss franc on Thursday in choppy trading on Thursday after the release of the latest Federal Reserve minutes.Details of the discussion from the central bank's December policy meeting, released on Wednesday, showed policymakers remain focused on curbing inflation and do not envisage interest rate cuts in 2023. At ( GMT 12:11),greenback edged lower 0.23% versus the Swiss franc to 0.9269.Immediate resistance can be seen at 0.9313 (21DMA), an upside break can trigger rise towards 0.9373(38.2%fib).On the downside, immediate support is seen at 0.9253(23.6%fib), a break below could take the pair towards 0.9194(Lower BB).

USD/JPY: The dollar inched up against Japanese yen on Thursday  but struggled to make bigger gains as the boost from a still hawkish Federal Reserve was tempered by investors' growing appetite for riskier assets, driven by China's reopening. Minutes of the Fed's December policy meeting released overnight showed while officials agreed that the central bank should slow the pace of aggressive interest rate increases, they remained focused on curbing inflation, and were worried about any misperception in financial markets that their commitment was flagging. At ( GMT 12:12),greenback was lower 0.11% versus the Japanese yen to 132.46. Strong resistance can be seen at 132.63(14DMA), an upside break can trigger rise towards 134.01(38.2%fib).On the downside, immediate support is seen at 131.48(23.6%fib), a break below could take the pair towards 129.31(Lower BB).

Equities Recap                                           

European shares slipped on Thursday, led lower by drugmakers ahead of euro zone inflation data, while minutes from the U.S. Federal Reserve's December meeting showed the central bank was committed to taming inflation.

At (GMT 12:12),UK's benchmark FTSE 100 was last trading higher at 0.47percent, Germany's Dax was down by 0.07 percent, France’s CAC was trading down by 0.03 percent.

Commodities Recap

Gold prices slipped on Thursday from a near seven-month peak, as the dollar steadied and investors squared positions ahead of the closely watched U.S. jobs data that could influence the Federal Reserve's rate-hike path.

Spot gold fell 0.3% to $1,848.40 per ounce by 1106 GMT, after hitting its highest since June 13 in the previous session. U.S. gold futures also edged 0.3% lower to $1,854.20.

Oil rebounded over 2% on Thursday after posting the biggest two-day loss for the start of a year in three decades with the shutdown of a U.S. fuel pipeline providing support, though economic concerns capped gains.

Brent crude was up $1.75, or 2.3%, to $79.59 a barrel at 1116 GMT, while U.S. West Texas Intermediate crude gained $1.63, or 2.2%, to $74.47.


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