Posted at 13 January 2023 / Categories Market Roundups
Market Roundup
•U.S. consumer prices fall in December
•US indexes: Dow up 0.6%, S&P 500 up 0.3%, Nasdaq up 0.6%
•US Dec CPI Index, n.s.a. 296.80,, 296.70forecast, 297.71 previous
•US Dec Jobless Claims 4-Week Avg 212.50K, 213.75K previous
• Continuing Jobless Claims 1,634K, 1,705K forecast, 1,694K previous
•US Initial Jobless Claims205K, 215K forecast, 204K previous
•US Dec CPI Index, s.a 298.11, 298.35 previous
•US Dec Core CPI Index 300.97, 300.07 previous
•US Dec CPI (YoY) 6.5%, 6.5% forecast,7.1% previous
• US Dec Core CPI (MoM) 0.3%,0.3% forecast,0.2% previous
• US Dec Core CPI (YoY) 5.7%,5.7% forecast,6.0% previous
• US Dec CPI (MoM) -0.1%,0.0% forecast,0.1% previous
•US Dec Real Earnings (MoM) 0.1%, 0.2% previous
•US Dec CPI, n.s.a (MoM) -0.31%, -0.10% previous
•US Natural Gas Storage 11B,-221B previous
•US Dec Cleveland CPI (MoM) 0.4%,0.5% previous
•US 4-Week Bill Auction 4.370%, 4.100% previous
•US 8-Week Bill Auction 4.465%,4.430% forecast,8.5% previous
Looking Ahead - Economic Data (GMT)
•00:30 Australia Home Loans (MoM)-3.0% forecast,-2.9% previous
•00:30 Australia Invest Housing Finance (MoM) -2.2% previous
•03:00 China Dec Trade Balance (USD) 76.20B forecast, 69.84B previous
•03:00 China Dec Exports (YoY) -10.0% forecast,-8.7% previous
•03:00 China Dec Imports (YoY) -9.8% forecast,-10.6% previous
Looking Ahead - Economic events and other releases (GMT)
•No events ahead
Currency Summaries
EUR/USD: The euro rose on Thursday as dollar fell after a reading of consumer prices fed expectations that Federal Reserve may have to scale back the size of future interest rate hikes. U.S consumer prices fell in December for the first time in more than 2-1/2 years as prices fell for gasoline and other goodseral Reserve may have leeway to scale back the size of future interest rate hikes. Following the CPI report, the dollar plunged as much as 1% against the euro, its weakest versus the common currency since April 21. Final euro zone inflation data for December is due next week. Readings so far from major economies such as Germany, Spain and Italy show a definite cooling in headline inflation, although the underlying core measures remain well above the ECB's 2% target rate. Immediate resistance can be seen at 1.0897(23.6%fib), an upside break can trigger rise towards 1.0914(Higher BB).On the downside, immediate support is seen at 1.07986 (5DMA), a break below could take the pair towards 1.0711(38.2%fib).
GBP/USD: The pound strengthened on Thursday as dollar dipped after data showed easing U.S. inflation strengthened bets that the Federal Reserve would switch to smaller rate hikes. U.S. data showed the consumer price index (CPI) dipped 0.1% last month, marking the first decline in the data since May 2020, when the economy was reeling from the first wave of COVID-19 infections. Risk appetite had taken a hit last year after aggressive interest rate hikes by the Fed had raised worries about a potential recession, diverting flows towards safer assets. Sterling was last trading at $1.2215, up 0.60% on the day. Immediate resistance can be seen at 1.2274 (23.6%fib), an upside break can trigger rise towards 1.2319(Higher BB),On the downside, immediate support is seen at 1.2173(5DMA), a break below could take the pair towards 1.2082 (Jan 9th low).
USD/CAD: The Canadian dollar strengthened to its highest level in nearly seven weeks against its U.S. counterpart on Thursday as oil prices rose and investors cheered data showing that U.S. inflation pressures are subsiding. The U.S. dollar fell against a basket of major currencies and equity markets globally rose as U.S consumer prices unexpectedly fell for the first time in more than 2-1/2 years in December. Canada’s inflation report for December is due for release next Tuesday, which could guide expectations for further tightening by the Bank of Canada. The loonie was trading 0.4% higher at 1.3365 to the greenback, or 74.82 U.S. cents, after touching its strongest since Nov. 25 at 1.3346.. Immediate resistance can be seen at 1.3397 (5DMA), an upside break can trigger rise towards 1.3450 (38.2%fib A).On the downside, immediate support is seen at 1.3345(23.6%fib), a break below could take the pair towards 1.3309(Lower BB).
USD/JPY: The dollar declined against Japanese yen on Thursday as yen was boosted by a Yomiuri report that the Bank of Japan (BOJ) will review the side effects of its monetary easing at next week's policy meeting and may take additional steps to correct distortions in the yield curve. The news follows the BOJ's surprise tweak in December to its bond yield curve control (YCC), though the move has failed to address distortions caused in the bond market by the central bank's massive bond buying. The greenback slumped as much as 2.7% against the yen, hitting a 6-1/2-month low against the Japanese currency. Strong resistance can be seen at 130.00(Psychological level), an upside break can trigger rise towards 132.24(21DMA).On the downside, immediate support is seen at 128.69(23.6%fib), a break below could take the pair towards 128.28(Lower BB).
Equities Recap
European stocks closed higher on Thursday as soft U.S. inflation data helped outweigh concerns about interest rates. Optimism about economic growth following China reopening contributed as well to markets' positive performance.
UK's benchmark FTSE 100 closed up by 0.89 percent, Germany's Dax ended up by 0.74 percent, France’s CAC finished the day up by 0.74 percent.
U.S. stocks closed higher on Thursday, extending recent gains as data showing a fall in consumer prices in December bolstered expectations of less aggressive interest rate hikes from the Federal Reserve.
Dow Jones closed up by 0.64% percent, S&P 500 closed up by 0.34% percent, Nasdaq settled up by 0.64% percent.
Treasuries Recap
U.S. Treasury yields were mixed in choppy trading, with the front end of the curve lower on Thursday, after data showing an unexpected fall in consumer prices in December, affirming expectations that the Federal Reserve will continue to slow the pace of rate increases.
U.S. benchmark Treasury 10-year yield was flat at 3.55% .U.S. two-year yield slid 5.6 bps to 4.171%.U.S. 30-year yields rose 2.1 bps to 3.70.
Commodities Recap
Gold prices rose over 1%, hovering near the $1,900 per ounce pivot on Thursday after data showing signs of cooling inflation in the United States boosted bets for slower rate hikes from the Federal Reserve.
Spot gold jumped 1.1% to $1,896.30 per ounce by 2:40 p.m. ET (1940 GMT). It earlier hit $1,901.4, its highest since May.
Oil prices gained about $1 a barrel on Thursday, supported by figures showing U.S consumer prices unexpectedly fell in December and by optimism over China's demand outlook.
Brent crude settled at $84.03 a barrel, rising $1.36, or 1.7%. U.S. West Texas Intermediate crude settled at $78.39 a barrel, gaining 98 cents, or 1.3%.