Posted at 16 January 2023 / Categories Market Roundups
Market Roundup
•German Dec WPI (MoM) -1.6%, -0.3% forecast,-0.9% previous
•German Dec WPI (YoY) 12.8%, 14.9% previous
•French Nov Government Budget Balance -159.3B, -143.2B previous
Looking Ahead Economic Data(GMT)
•13:30 Canada Nov Manufacturing Sales (MoM) 0.5% forecast,2.8% previous
•14:00 French 12-Month BTF Auction 2.796% previous
•14:00 French 3-Month BTF Auction 2.164% previous
•14:00 French 6-Month BTF Auction 2.413% previous
Looking Ahead - Economic events and other releases (GMT)
•No significant ahead
Fxbeat
EUR/USD: The euro steadied near nine-month high against dollar on Monday aided by expectations of slower interest rate hikes from the U.S. Federal Reserve.. Data from last week showed U.S. consumer prices fell for the first time in over 2-1/2 years in December, boosting the case for the central bank to ease off from its hawkish monetary policy. Market participants are mostly expecting a 25 basis points (bps) rate hike increase at the Fed’s next policy meeting. The euro hit a fresh nine-month top of $1.0874 in early trade before retreating to $1.0861, down 0.16% by 0920 GMT, Immediate resistance can be seen at 1.0896(23.6%fib), an upside break can trigger rise towards 1.0950 (Higher BB).On the downside, immediate support is seen at 1.0778(5DMA), a break below could take the pair towards 1.0693(38.2%fib).
GBP/USD: Sterling dipped against dollar on Monday as investors looked ahead to release of key domestic economic data including UK inflation print. Inflation and labour market data will be in focus ahead of the Feb. 2 Bank of England (BoE) meeting after Friday's upside surprise in GDP numbers, which signalled UK may avoid a technical recession as of Q4 2022. BoE Governor Andrew Bailey and other central bank officials are expected to speak at 1500 GMT on the central bank's response to the market mayhem that occurred last autumn.Trading volumes are expected to be thin due to the Martin Luther King Day holiday in the United States. Immediate resistance can be seen at 1.2279(Daily high), an upside break can trigger rise towards 1.2417(23.6%fib).On the downside, immediate support is seen at 1.2175 (5DMA), a break below could take the pair towards 1.2026(38.2%fib).
USD/CHF: The dollar declined against the Swiss franc on Monday as investors seized on hints that easing U.S. inflation may give the Federal Reserve a leeway to scale back the size of its future interest rate hikes. Against a basket of currencies, the U.S. dollar index slumped 0.46% to a seven-month trough at 101.79, as the greenback extended its selloff from last week after data showed that U.S consumer prices fell for the first time in more than 2-1/2 years in December.With decades-high inflation in the world’s largest economy showing signs of cooling, investors are now betting that the Fed may be nearing the end of its rate-hike cycle, and that rates would not go as high as previously feared.Immediate resistance can be seen at 0.9272 (9DMA), an upside break can trigger rise towards 0.9371 (Psychotically level).On the downside, immediate support is seen at 0.9227 (23.6%fib), a break below could take the pair towards 0.9198 (Lower BB).
USD/JPY: The dollar declined against the Japanese yen Monday as traders ramped up bets the Bank of Japan will tweak its yield control policy further. A particular focus for currency markets this week is the Japanese yen, due to speculation that the Bank of Japan will make further tweaks to, or fully abandon, its yield control policy at its meeting this week. The dollar slipped to a more than seven-month low on the yen in early trading, before recovering and was last at 128.35 yen, up 0.4%. Strong resistance can be seen at 130.25 (5DMA), an upside break can trigger rise towards 130.50 (38.2% fib).On the downside, immediate support is seen at 127.50 (23.6% fib), a break below could take the pair towards 127.11 (Lower BB).
Equities Recap
European shares inched up on Monday as gains in healthcare stocks helped the benchmark index extend its sharp rally thus far into the new year, while UK's FTSE 100 hovered close to a record high.
At (GMT 12:41 ),UK's benchmark FTSE 100 was last trading up at 0.14 percent, Germany's Dax was up by 0.20 percent, France’s CAC was up by 0.19percent.
Commodities Recap
Gold prices slipped from a more than eight-month high on Monday as the dollar firmed, although expectations that the U.S. Federal Reserve will be less aggressive on raising interest rates kept bullion well above $1,900 per ounce.
Spot gold was down 0.2% to $1,917.30 as of 1119 GMT, after hitting its highest since late April at $1,929 earlier in the session.U.S. gold futures eased 0.1% to $1,919.80.
Oil prices held near this year's highs on Monday as easing COVID restrictions in China raised expectations for a demand recovery in the world's top crude importer.
Brent crude fell 41 cents, or 0.48%, to $84.87 a barrel by 1236 GMT, while U.S. West Texas Intermediate crude was down 28 cents, or 0.35%, at $79.58 a barrel, amid thin trade during Monday's U.S. public holiday.