Posted at 10 January 2023 / Categories Market Roundups
Market Roundup
•Investors await CPI data onThursday
•US indexes: Dow up 0.6%, S&P 500 up 0.7%, Nasdaq up 1%
•US Redbook (YoY) 5.3%,10.2% previous
•US IBD/TIPP Economic Optimism 42.3, 41.7 forecast, 42.9 previous
•US Wholesale Inventories (MoM) 1.0%, 1.0% forecast, 1.0% previous
•US Nov Wholesale Trade Sales (MoM) -0.6%, 0.5% forecast, 0.4% previous
•US 3-Year Note Auction 3.977%, 4.093% previous
Looking Ahead - Economic Data (GMT)
•23:50 Japan Dec Foreign Reserves (USD) 1,226.3B previous
• 00:00 New Zealand ANZ Commodity Price Index (MoM) -3.9% previous
•00:30 Australia Nov Retail Sales (MoM) 0.6% forecast, -0.2% previous
•00:30 Australia CPI (YoY) (Q4) 7.0% forecast, 6.9% previous
•05:00 Japan Nov Leading Index (MoM) 0.4% previous
•05:00 Japan Nov Coincident Indicator (MoM) -1.2% previous
•05:00 Japan Leading Index 97.5 forecast, 98.6 previous
Looking Ahead - Economic events and other releases (GMT)
•No events ahead
Currency Summaries
EUR/USD: The euro was little changed against dollar on Tuesday as traders awaited U.S. inflation data later this week to help firm up interest rate hike expectations. U.S. Consumer Price Index (CPI) data for December is due on Thursday and is one of the last major economic reports before the Fed's Jan. 31-Feb. 1 policy meeting. The dollar has been trending lower as investors and traders question whether the Federal Reserve will have to increase its target interest rate beyond 5% to curb stubbornly high inflation, as the effects of the U.S. central bank's aggressive hikes in borrowing costs in 2022 have already begun to show. Immediate resistance can be seen at 1.0761(23.6%fib), an upside break can trigger rise towards 1.0787 (Higher BB).On the downside, immediate support is seen at 1.0643(9DMA), a break below could take the pair towards 1.0526(38.2%fib).
GBP/USD: The pound dipped on Tuesday, as a week-old rally ran out of steam following downbeat data and a reminder from the Bank of England’s chief economist that inflation could prove persistent, even as domestic energy prices retreat.A series of surveys on Tuesday showed British consumer spending rose in December seemingly defying the cost-of-living crisis but lagged inflation. The British Retail Consortium said spending in store chains rose by 6.9% in annual terms in December, but this was a long way off consumer price inflation, which hit 10.7% in November. The pound was last down 0.2% against the dollar at $1.2141 and down 0.2 %. Immediate resistance can be seen at 1.2207(38.2%fib), an upside break can trigger rise towards 1.22847Higher BB),On the downside, immediate support is seen at 1.2051(14DMA), a break below could take the pair towards 1.2000 (Psychological level).
USD/CAD: The Canadian dollar weakened against its U.S. counterpart on Tuesday, with the currency pulling back from a six-week high as investors await U.S. inflation data this week that could offer clues on the Federal Reserve policy outlook.On Monday, the currency touched its strongest intraday level in more than six weeks at 1.3355. It was helped by recent improvement in investor sentiment and data last Friday showing the Canadian economy adding many more jobs than expected in December. The loonie was trading 0.2% lower at 1.3420 to the greenback, after moving in a range of 1.3377 to 1.3445. Immediate resistance can be seen at 1.3460 (38.2%fib), an upside break can trigger rise towards 1.3508 (10DMA).On the downside, immediate support is seen at 1.3350(50%fib), a break below could take the pair towards 1.3324(Lower BB).
USD/JPY: The dollar was little changed against Japanese yen on Tuesday as investors waited anxiously for U.S. inflation data due later in the week. The U.S. dollar was little changed versus the yen and other major currencies as investors positioned themselves ahead of the December consumer price data due on Thursday. The U.S. consumer price index (CPI) is expected to show December's headline inflation at 6.5% versus 7.1% in November. The dollar edged 0.2% higher versus the yen to 132.12. Strong resistance can be seen at 132.38(5DMA), an upside break can trigger rise towards 133.85(38.2%fib).On the downside, immediate support is seen at 131.33(23.6%fib), a break below could take the pair towards 130.00(Psychological level).
Equities Recap
European stocks closed lower on Tuesday as concerns about interest rate hikes resurfaced after some Fed officials said the U.S. central bank needs to raise interest rate beyond 5% and hold it at higher levels for a longer duration in order to rein in inflation.
UK's benchmark FTSE 100 closed down by 0.39 percent, Germany's Dax ended down by 0.12 percent, France’s CAC finished the day down by 0.55 percent.
U.S. stocks ended solidly higher on Tuesday, led by a 1% gain in the Nasdaq, on relief that Federal Reserve Chair Jerome Powell refrained in a speech from commenting on rate policy.
Dow Jones closed up by 0.56% percent, S&P 500 closed up by 0.70% percent, Nasdaq settled down by 1.01% percent.
Treasuries Recap
U.S. Treasury yields rose as investors prepared themselves for how inflation numbers might influence the Federal Reserve's interest rate hiking path as it has been prioritizing its fight against decades-high inflation.
Benchmark 10-year notes were up 9.2 basis points to 3.610%, from 3.517% late on Monday. The 30-year bond was last up 8.9 basis points to yield 3.7387%, from 3.65%.
Commodities Recap
Gold prices on Tuesday steadied near an eight-month high scaled in the last session, with cautious traders largely focusing on Federal Reserve Chair Jerome Powell’s upcoming speech for more insight into the U.S. central bank’s rate-hike trajectory.
Spot gold held ground at $1,872.60 per ounce, as of 0651 GMT. U.S. gold futures fell 0.1% to $1,876.50.
Oil prices edged slightly higher on Tuesday as the U.S. government forecast record global petroleum consumption next year and as the dollar hovered at seven-month lows.
Brent futures rose 45 cents or 0.6%, to settle at $80.10 a barrel, while U.S. crude ended 49 cents, or 0.6% higher at $75.12 per barrel.