Posted at 19 January 2023 / Categories Market Roundups
Market Roundup
•Swiss Dec PPI (MoM) -0.7%,-0.5% previous
•Swiss Dec PPI (YoY) 3.2%,3.8% previous
• EU Nov Current Account n.s.a 13.4B, -4.4B previous
• EU Nov Current Account 13.6B, -11.6B forecast,-0.4B previous
Looking Ahead - Economic Data (GMT)
•13:30 US Dec Building Permits 1.370M forecast, 1.351M previous
•13:30 US Continuing Jobless Claims 1,660K forecast, 1,634K previous
•13:30 US Initial Jobless Claims 214K forecast, 205K previous
• 13:30 US Jobless Claims 4-Week Avg.212.50K previous
•13:30 Canada Nov Wholesale Sales (MoM) 1.9% forecast, 2.1% previous
•13:30 US Jan Philly Fed CAPEX Index 18.00 previous
•13:30 US Jan Philly Fed Employment -1.8 previous
•13:30 US Jan Philly Fed New Orders -25.8 previous
•13:30 US Jan Philly Fed Prices Paid 26.40 previous
•13:30 US Dec Housing Starts (MoM) -0.5% previous
• 13:30 US Dec Housing Starts 1.359M forecast,1.427M previous
•13:30 US Jan Philadelphia Fed Manufacturing Index -11.0 forecast,-13.8 previous
•13:30 US Dec Building Permits (MoM) -10.6% previous
• 13:30 US Jan Philly Fed Business Conditions 3.8 previous
•15:30US Natural Gas Storage -71B forecast,11B previous
•16:00 US Crude Oil Inventories -0.593M forecast,18.962M previous
Looking Ahead - Economic events and other releases (GMT)
• 14:00 US Fed Collins Speaks
•17:00 EU ECB's Schnabel Speaks
•18:15 US Fed Vice Chair Brainard Speaks
Fxbeat
EUR/USD: The euro strengthened on Thursday as dollar weakened after investors weighed the chances of the U.S. Federal Reserve slowing its pace of interest rate hikes. Few Fed officials signalled on Wednesday that they would push on with more interest rate hikes, while Philadelphia Fed President Patrick Harker and Dallas Fed President Lorie Logan said they supported a slower pace of tightening.Traders are mostly pricing in a 25-basis point rate hike at the Fed’s Jan. 31-Feb. 1 meeting. Last year, the U.S. central bank slowed its pace of hikes to 50 bps in December after four straight 75-bp increases. The euro was last up 0.2% against the dollar at $1.0813. 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 held onto the bulk of its yesterday’s gains against the dollar on Thursday as inflation data suggested the Bank of England may have to raise rates more aggressively . Data released Wednesday showed headline UK consumer price inflation cooled, but inflation in services prices - which some BoE officials view as signalling more persistent inflation pressures and the secondary impact of higher energy and wage costs - rose to the highest since March 1992. The pound was last trading against the dollar at $1.2341, having spiked to an intraday one-month high of $1.2435 a day earlier Immediate resistance can be seen at 1.2383(23.6%fib), an upside break can trigger rise towards 1.2438(Higher BB).On the downside, immediate support is seen at 1.2265 (5DMA), a break below could take the pair towards 1.2173 (Jan 17th low).
USD/CHF: The dollar was little changed against the Swiss franc on Thursday after a raft of data showed the U.S. economy is losing momentum. U.S. data released on Wednesday showed retail sales fell by the most in a year in December and manufacturing output suffered its biggest drop in nearly two years, prompting a sharp drop in bond yields. The dollar index, which measures the U.S. currency against a basket of peers, was last down 0.1% to 102.23. Immediate resistance can be seen at 0.9214 (5DMA), an upside break can trigger rise towards 0.9268 (38.2%fib).On the downside, immediate support is seen at 0.9145 (23.6%fib), a break below could take the pair towards 0.9100 (Psychological level).
USD/JPY: The dollar dipped on Thursday as yen rebounded as traders continued to bet the Bank of Japan will shift away from ultra-loose monetary policy. Defying market expectations, the BOJ kept its interest rate targets and policy of yield curve control intact, and instead crafted a new weapon to prevent long-term rates from rising too much in a show of resolve. The dollar fell against the Japanese yen and was last 0.2% lower at 128.60 yen. That went a small way to undoing the previous day’s rise, which came after the BOJ’s decision to stand pat on its ultra-loose monetary policy.Strong resistance can be seen at 130.00 (Psychological level), an upside break can trigger rise towards 130.24 (38.2% fib).On the downside, immediate support is seen at 127.62 (23.6% fib), a break below could take the pair towards 126.25 (Lower BB).
Equities Recap
European shares fell on Thursday, after lacklustre U.S. economic data and hawkish comments from central bankers rekindled fears of a global economic slowdown while downbeat corporate earnings at home soured investor appetite further.
At (GMT 13:12 ),UK's benchmark FTSE 100 was last trading down at 1.27 percent, Germany's Dax was up by 1.68 percent, France’s CAC was down by 1.72 percent.
Commodities Recap
Gold prices rose on Thursday and are set to snap a three-day losing streak, helped by a weaker dollar and as signs of cooling U.S. inflation raised bets on smaller rate hikes by the Federal Reserve.
Spot gold rose 0.3% to $1,909.49 per ounce by 1125 GMT. U.S. gold futures edged 0.2% higher to $1,910.50.
Oil futures fell by about 1% on Thursday, extending losses from the previous day, as a surprise jump in U.S. crude stocks weighed on the market along with fears of a recession that were heightened by disappointing U.S. retail sales and output data.
Brent crude futures lost 65 cents, or 0.8%, to $84.33 a barrel at 1030 GMT, after earlier easing to $83.76. U.S. West Texas Intermediate (WTI) crude futures declined 79 cents, or 1%, to $78.69 a barrel. It earlier fell to a low of $78.13.