Posted at 25 January 2023 / Categories Market Roundups
Market Roundup
•UK Dec PPI Output (YoY) 14.7%,16.4% forecast, 14.8% previous
•UK Dec PPI Input (YoY) 16.5%, 18.0% forecast,19.2% previous
•UK Dec Core PPI Output (YoY) 12.4% ,13.3% previous
•UK Dec Core PPI Output (MoM) 0.1%,0.5% previous
•UK Dec PPI Input (MoM) -1.1%,-0.6% forecast,0.6% previous
•UK Dec PPI Output (MoM) -0.8%,0.3%forecast,0.3% previous
•German Jan Business Expectations 86.4,85.0 forecast,83.2 previous
•German Jan Ifo Business Climate Index 90.2,90.2 forecast,88.6 previous
•German Jan Current Assessment 94.1,95.0 forecast,94.4 previous
•France Jobseekers Total 2,817.0K,2,946.0K previous
Looking Ahead - Economic data (GMT)
•13:55 US Redbook (YoY)5.0% previous
•14:00 EU Jan Belgium NBB Business Climate -13.6 previous
•15:30 US EIA Weekly Distillates Stocks -1.121M forecast,-1.939M previous
•15:30 US EIA Weekly Refinery Utilization Rates (WoW) 1.2% forecast,1.2% previous
•15:30 US Gasoline Inventories 1.767M forecast,3.483M previous
•15:30 US Heating Oil Stockpiles -0.260M previous
•15:30 US Distillate Fuel Production 0.057M previous
•15:30 US Cushing Crude Oil Inventories 3.646M previous
•15:30 US Crude Oil Inventories 0.971M forecast,8.408M previous
Looking Ahead - Economic events and other releases (GMT)
•15:00 Canada BoC Interest Rate Decision 4.50% forecast,4.25% previous
•15:00 Canada BoC Monetary Policy Report
•15:00 Canada BoC Rate Statement
•16:00 Canada BOC Press Conference
Fxbeat
EUR/USD: The euro retreated from nine-month high against the dollar on Wednesday in subdued trading as investors looked towards the Federal Reserve's policy decision next week, Traders broadly expect the Fed to increase rates by 25 basis points (bps) next Wednesday, a step down from a 50 bps increase in December. Before that, investors will scrutinise U.S. fourth-quarter economic growth figures, due on Thursday. German business morale brightened in January, according to data on Wednesday, the latest sign that recession in Europe could be mild, or may not even materialise, echoing the tone of business activity surveys a day before. Immediate resistance can be seen at 1.0921(23.6%fib), an upside break can trigger rise towards 1.0963 (Higher BB).On the downside, immediate support is seen at 1.0830(9DMA), a break below could take the pair towards 1.0788(18th Jan low).
GBP/USD: Sterling fell against the dollar on Wednesday after data showed British manufacturers unexpectedly lowered their prices in December, which suggested inflation may be easing, ahead of next week’s Bank of England policy meeting. The declines come after data on Wednesday showing Britain’s manufacturers unexpectedly reduced their prices in December by the most since April 2020.The pound was down around 0.37% to $1.22950, and down 0.15% against the euro at around 88.40 pence.Immediate resistance can be seen at 1.2387(23.6%fib), an upside break can trigger rise towards 1.2471(Higher BB).On the downside, immediate support is seen at 1.2292(11DMA), a break below could take the pair towards 1.2186 (Jan 17th low).
USD/CHF: The dollar was little changed against the Swiss franc on Wednesday as some investors booked profit ahead of U.S. economic data that could steer the Federal Reserve's policy tightening path. Investors will be scanning the U.S. fourth quarter GDP growth estimates on Thursday and U.S. personal spending data on Friday, before the Jan. 31-Feb. 1 policy meeting. Most investors expect the Fed to raise rates by 25 basis points (bps) next week. The U.S. central bank slowed its tightening pace to 50 bps last month after four straight 75-bp hikes. Immediate resistance can be seen at 0.9225 (9DMA), an upside break can trigger rise towards 0.9301 (38.2%fib).On the downside, immediate support is seen at 0.9188 (23.6%fib), a break below could take the pair towards 0.9151 (Lower BB).
USD/JPY: The dollar dipped against yen on Wednesday as investors squared positions ahead of U.S. fourth-quarter economic growth figures. The U.S. Commerce Department is expected to unveil its initial advance fourth-quarter GDP estimates on Thursday, which could set the tone for the Federal Reserve’s Jan. 31-Feb. 1 policy meeting. Traders expect the Fed to scale back its rate hike pace further after slowing its policy tightening spree to 50 bps last month after four straight 75-bp hikes. Strong resistance can be seen at 130.44(Daily high), an upside break can trigger rise towards 131.00 (38.2%fib).On the downside, immediate support is seen at 129.40 (11DMA), a break below could take the pair towards 128.74 (23.6%fib).
Equities Recap
European stocks slipped on Wednesday as lacklustre results from U.S. software giant Microsoft weighed on the broader technology sector, while signs of improving economic outlook in the euro zone fed into worries about further interest rate hikes.
At (GMT 12:26 ),UK's benchmark FTSE 100 was last trading down at 0.06 percent, Germany's Dax was down by 0.37 percent, France’s CAC was down by 0.29 percent.
Commodities Recap
Gold prices edged lower on Wednesday from a nine-month peak hit in the previous session as the dollar steadied and investors squared positions ahead of U.S. fourth-quarter economic growth figures.
Spot gold fell 0.4% to $1,930.58 per ounce by 0943 GMT, after hitting its highest since late April on Tuesday. U.S. gold futures eased 0.2% to $1,931.40.
Oil slipped on Wednesday, adding to a decline in the previous session, as a rise in U.S. crude inventories and global recession worries edged out optimism for a demand recovery in China.
Brent crude was down 1 cent to $86.12 a barrel by 1023 GMT after declining 2.3% in the previous session.
West Texas Intermediate (WTI) U.S. crude slipped 16 cents, or 0.2%, to $79.97, after a 1.8% drop on Tuesday