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Europe Roundup: Sterling edges up as markets await U.S. inflation data, European shares rise, Oil rises over 1% on China demand hopes, U.S. inflation in focus-January 12th,2023

Posted at 12 January 2023 / Categories Market Roundups


Market Roundup

•Greek Dec HICP (YoY)  7.6%,8.8% previous

•Greek Nov Unemployment Rate  11.4%,11.6% previous

•Greek Dec CPI (YoY)  7.2% previous

Looking Ahead - Economic Data (GMT)

•12:30 US Dec CPI Index, n.s.a.  296.70forecast, 297.71 previous

•12:30 US Dec Jobless Claims 4-Week Avg. 213.75K previous

•12:30 US Continuing Jobless Claims 1,705K forecast, 1,694K previous

•12:30 US Initial Jobless Claims 215K    forecast, 204K previous

•12:30 US Dec CPI Index, s.a   298.35 previous

•12:30  US Dec Core CPI Index  300.07 previous

•12:30  US Dec CPI (YoY)  6.5% forecast,7.1% previous

• 12:30 US Dec Core CPI (MoM)  0.3% forecast,0.2% previous

• 12:30 US Dec Core CPI (YoY)  5.7% forecast,6.0% previous

• 12:30 US Dec CPI (MoM)  0.0% forecast,0.1% previous

•12:30  US Dec Real Earnings (MoM)  0.2% previous

•12:30  US Dec CPI, n.s.a (MoM) -0.10% previous

•15:30 US Natural Gas Storage   -221B previous

•16:00 US Dec Cleveland CPI (MoM)  0.5% previous

•16:30 US 4-Week Bill Auction  4.100% previous

•16:30   US 8-Week Bill Auction  4.430%  forecast,8.5% previous

Looking Ahead - Economic events and other releases (GMT)

•No events ahead

Fxbeat

EUR/USD: The euro edged higher against the dollar on Thursday as investors awaited U.S. consumer price data later in US session . Markets will look towards U.S. inflation data due for cues on the likely path of rates this year after Federal Reserve Chairman Jerome Powell avoided speaking about rate hikes at a conference on Tuesday. The annual reading for U.S. CPI is expected to show a decline to 6.5% in December from 7.1% in the prior month. Immediate resistance can be seen at 1.0771(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: Sterling made marginal gains on Thursday against the dollar  as attention remained on U.S. inflation data due later in the session for clues on future rate hikes in the world's largest economy.Britain's murky economic backdrop remains in focus for traders, with a survey on Thursday showing its construction sector stagnated at the end of last year, with home-building particularly hard hit in the face of rising borrowing costs. The pound was up 0.18% to $1.21650 and was 0.11% higher against the euro, trading at 88.430 pence. 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 1.2091(14DMA), a break below could take the pair towards 1.2000 (Psychological level).

 USD/CHF: The dollar steadied against the Swiss franc on Thursday as traders waited for this week's U.S. consumer price data to see whether it will confirm that inflation is in retreat. Currency traders are looking to U.S. inflation data due for release on Thursday at 1330 GMT. It could give markets a glimpse into whether the Federal Reserve will slow the pace of rate hikes. The U.S. dollar index was last down 0.06% to 103.04, not far off its seven-month low of 102.93 hit earlier in the week. Immediate resistance can be seen at 0.9324 (38.2%fib), an upside break can trigger rise towards 0.9350(23.6%fib).On the downside, immediate support is seen at 0.9299(50%fib), a break below could take the pair towards 0.9276(61.8%fib).

USD/JPY: The dollar declined  against Japanese yen on Thursday as traders positioned themselves for Thursday’s inflation data that could influence the U.S. Federal Reserve’s rate-hike stance. The focus is on U.S. inflation data due at 1330 GMT, after some Federal Reserve policymakers said this week the reading will help them decide if they can slow the pace of rate hikes.The much-anticipated report is expected to show U.S. consumer prices grew 6.5% year-on-year in December, moderating from a 7.1% rise in November, according to economists polled. Strong resistance can be seen at 131.00(Psychological level), an upside break can trigger rise towards 132.38(9DMA).On the downside, immediate support is seen at 130.60(Daily low), a break below could take the pair towards 130.00(Psychological level).

Equities Recap                                           

European shares rose on Thursday ahead of U.S. inflation data that could sway the monetary policy direction at the world's largest economy, while gains were capped by a drop in shares of Ubisoft and Logitech after the companies cut their forecasts.

At (GMT 13:15),UK's benchmark FTSE 100 was last trading up at 0.76 percent, Germany's Dax was up by 0.71 percent, France’s CAC was trading up  by 0.91 percent.

Commodities Recap

Gold prices rose on Thursday, supported by a softer dollar, while market participants awaited U.S. inflation data that could influence the Federal Reserve's policy path.

Oil rose more than 1% on Thursday supported by optimism over China's demand outlook and hopes that upcoming inflation data from the United States will point to a slower increase in interest rates.

Brent crude rose $1.18, or 1.4%, to $83.85 a barrel by 1250 GMT, while U.S. West Texas Intermediate crude gained $1.15, or 1.5%, to $78.56.

 


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