Posted at 09 January 2023 / Categories Market Roundups
Market Roundup
•Swiss Dec Unemployment Rate n.s.a 2.1%, 2.0% previous
•Swiss Dec Unemployment Rate s.a. 1.9%, 2.1% forecast,2.0% previous
•French Nov Trade Balance -13.8B, -11.3B forecast, -12.2B previous
•French Nov Exports 51.0B, 51.8B previous
•French Nov Current Account -6.80B, -3.80B previous
•French Nov Imports 64.8B, 63.6B previous
• EU Jan Sentix Investor Confidence -17.5, -18.0 forecast,-21.0 previous
• EU Nov Unemployment Rate 6.5%, 6.5% forecast, 6.5% previous
•UK Dec Mortgage Rate 6.41% , 5.88% previous
Looking Ahead - Economic data (GMT)
•13:30 Canada Nov Building Permits (MoM) -0.1% forecast,-1.4% previous
•14:00 EU French 6-Month BTF Auction 2.432% previous
•14:00 EU French 12-Month BTF Auction 2.824% previous
•14:00 EU French 3-Month BTF Auction 2.096% previous
•15:00 US Dec CB Employment Trends Index 117.65 previous
•16:30 US 3-Month Bill Auction 4.410% previous
•16:30 US 6-Month Bill Auction 4.635% previous
•20:00 US Nov Consumer Credit 25.00B forecast, 27.08B previous
Looking Ahead - Economic events and other releases (GMT)
•No significant events
Fxbeat
EUR/USD: The euro strengthened on Monday as dollar dipped as investors scaled back their expectations for U.S. Federal Reserve rate hikes and optimism about China's borders reopening.U.S. jobs data on Friday, which showed a jump in the workforce and easing wage growth, was interpreted by investors as an indication that the Fed can be less hawkish. U.S. jobs data on Friday, which showed a jump in the workforce and easing wage growth, was interpreted by investors as an indication that the Fed can be less hawkish. The euro was up 0.28% at $1.0674, after closing 1.17% higher on Friday. Immediate resistance can be seen at 1.0711(23.6%fib), an upside break can trigger rise towards 1.0739 (Higher BB).On the downside, immediate support is seen at 1.0633(9DMA), a break below could take the pair towards 1.0526(38.2%fib).
GBP/USD: The British pound hit a two-and-a-half-week high against a broadly weak dollar on Monday ahead of comments from the Bank of England's chief economist Huw Pill later in the day and Governor Andrew Bailey on Tuesday. BoE chief economist Pill is scheduled to speak at 1530 GMT on Monday, with BoE governor Bailey due to moderate a panel discussion on Tuesday.The BoE has raised interest rates nine times since December 2021 in an attempt to lower four-decade high inflation, while also trying to avoid a severe recession, although signs are emerging it might pause rate hikes soon. Sterling was last up 0.3% against the dollar at $1.2123, after hitting its highest level since Dec. 21, 2022 at $1.2174 earlier in the session. Immediate resistance can be seen at 1.2173(23.6%fib), an upside break can trigger rise towards 1.2337(Higher BB),On the downside, immediate support is seen at 1.2037(9DMA), a break below could take the pair towards 1.1856 (50%fib).
USD/CHF: The dollar declined sharply against the Swiss franc on Monday as the dollar slipped on bets that U.S. Federal Reserve this year likely to be less-aggressive at its rate-hike trajectory. The Fed fund futures now imply around a 25% chance of a half-point hike in February, down from around 50% a month ago.The U.S. central bank raised interest rates by 50 basis points last month after delivering four consecutive 75 basis point hikes last year but said it was likely to keep interest rates higher for longer to tame inflation.The dollar index , which measures the U.S. dollar against six major currencies, fell 0.145% to 103.570 on Monday.Immediate resistance can be seen at 0.9286 (9DMA), an upside break can trigger rise towards 0.9333(38.2%fib).On the downside, immediate support is seen at 0.9209(23.6%fib), a break below could take the pair towards 0.9197(Lower BB).
USD/JPY: The dollar was little changed against Japanese yen on Monday as less aggressive rake hike expectations from U.S. Federal Reserve this year weighed on greenback. Data showed on Friday that the U.S. economy added jobs at a solid clip in December, as the labor market remains tight, but Fed officials could draw some solace from a moderation in wage gains. Traders will now turn to Fed Chair Jerome Powell’s speech at a central bank conference in Stockholm on Tuesday and U.S. consumer price index data due this week for further clues on the pace of rate hikes. Strong resistance can be seen at 132.48(11DMA), an upside break can trigger rise towards 133.55(Dec 27th high).On the downside, immediate support is seen at 131.60(23.6%fib), a break below could take the pair towards 130.00(Psychological level).
Equities Recap
European stock indexes rose in early trading on Monday, boosted by investors scaling back their expectations for U.S. Federal Reserve rate hikes and optimism about China's borders reopening.
At (GMT 12:56),UK's benchmark FTSE 100 was last trading lower at 0.03 percent, Germany's Dax was up by 0.77 percent, France’s CAC was trading up by 0.39 percent.
Commodities Recap
Gold prices hit an eight-month high on Monday, as the dollar slipped on bets for slower U.S. interest rate hikes, while investors also cheered top bullion consumer China reopening its borders.
Spot gold rose 0.3% to $1,871.84 per ounce by 1155 GMT, close to its highest since May 9, 2022. U.S. gold futures also gained 0.3% to $1,875.90.
Oil extended gains on Monday, rising about 3% after China's move to reopen its borders boosted the outlook for fuel demand and overshadowed global recession concerns.
Brent crude was up $2.29, or 2.9%, at $80.86 a barrel by 1150 GMT while U.S. West Texas Intermediate crude rose $2.46, or 3.3%, to $76.23.