Posted at 01 February 2023 / Categories Market Roundups
Market Roundup
•UK Jan Nationwide HPI (MoM) -0.6%,-0.3% forecast,-0.1% previous
•UK Jan Nationwide HPI (YoY) 1.1%,1.9% forecast,2.8% previous
•Italian Jan Manufacturing PMI 50.4,49.6 forecast,48.5 previous
•French Jan Manufacturing PMI 50.5,50.8 forecast,49.2 previous
•German Jan Manufacturing PMI 47.3,47.0 forecast,47.1 previous
•Greek Jan Manufacturing PMI 49.2,47.2 previous
•EU Jan Manufacturing PMI 48.8,48.8 forecast,47.8 previous
•UK Jan Manufacturing PMI 47.0,46.7 forecast,46.7 previous
•EU Jan CPI (YoY )8.5%, 9.0% forecast,9.2% previous
• EU Jan CPI, n.s.a 120.06 forecast,120.52 previous
• Italian Jan CPI (MoM)0.2%,0.1% forecast,0.3% previous
• EU Dec Unemployment Rate 6.6%,6.5% forecast,6.5% previous
•Greek Dec Unemployment Rate 11.6% ,11.4% previous
• EU CPI (MoM) -0.4%,-0.3% forecast, -0.4% previous
• EU Core CPI (YoY) 5.2%, 5.4% forecast, 5.2% previous
Looking Ahead - Economic data (GMT)
•13:15 US Jan ADP Nonfarm Employment Change 178K forecast,235K previous
•14:30 Canada Jan Manufacturing PMI 49.2 previous
•14:45 US Jan Manufacturing PMI 46.8 forecast,46.8 previous
•15:00 US Jan ISM Manufacturing New Orders Index 45.2 previous
•15:00 US Dec Construction Spending (MoM) -0.1% forecast, 0.2% previous
•15:00 US Jan ISM Manufacturing Employment 49.0 forecast, 51.4 previous
•15:00 US Jan ISM Manufacturing PMI (Jan) 48.0 forecast,48.4 previous
•15:00 US Jan ISM Manufacturing Prices 39.5 forecast, 39.4 previous
•15:00 US Dec JOLTs Job Openings 10.250M forecast, 10.458M previous
•15:30 US Crude Oil Inventories 0.376M forecast,0.533M previous
•15:30 US Gasoline Inventories 1.442M forecast,1.763M previous
•15:30 US EIA Weekly Distillates Stocks -1.300M forecast,-0.507M previous
•15:30 US Heating Oil Stockpiles -0.234M previous
•15:30 US Crude Oil Imports -1.791M previous
Looking Ahead - Economic events and other releases (GMT)
•19:00 US Fed Interest Rate Decision 4.75% forecast, 4.50% previous
•19:00 US FOMC Statement
•19:30 US FOMC Press Conference
Fxbeat
EUR/USD: The euro barely moved on Wednesdays after data showed inflation in Eurozone bloc had eased for a third straight month in January. Euro zone inflation eased for the third straight month in January but relief may be limited as underlying price growth held steady and concerns have already been raised about the reliability of the figures. Inflation in the 20-nation currency bloc fell to 8.5% last month from 9.2% in December data from Eurostat, the European Union's statistics agency, showed on Wednesday. The figure was well below a poll expectation for 9%. Immediate resistance can be seen at 1.0930(23.6%fib), an upside break can trigger rise towards 1.0990 (Higher BB).On the downside, immediate support is seen at 1.0863(5DMA), a break below could take the pair towards 1.0788(18th Jan low).
GBP/USD: Sterling strengthened on Wednesday but gains were tempered by concerns about a slowing British economy and upcoming interest rate decisions from major central banks. The U.S. central bank is set to issue its policy statement at 1900 GMT, followed by a press conference from Fed Chair Jerome Powell at 1930 GMT. The European Central Bank and the Bank of England are scheduled to publish their policy decisions on Thursday and expectations are both the central banks will hike rates by 50 bps each. Immediate resistance can be seen at 1.2324(11DMA), an upside break can trigger rise towards 1.2454(23.6%fib).On the downside, immediate support is seen at 1.2247(38.2%fib), a break below could take the pair towards 1.2175 (50DMA).
USD/CHF: The dollar was little changed against the Swiss franc on Wednesday ahead of an eagerly-awaited Federal Reserve policy decision that investors hope will signal the end of the U.S. central bank's interest rate hiking cycle. The market is all but certain of a 25 basis points (bps) increase in interest rates later on Wednesday. The spotlight, however, will be on Fed Chair Jerome Powell's news conference as traders attempt to gauge how long the Fed is likely to stay hawkish. The dollar index , which measures the U.S. currency against six major peers, fell 0.029% at 102.06. It slipped 0.16% in the previous session, in part because of a report showing U.S. labour costs had increased in the fourth quarter at their slowest pace in a year. Immediate resistance can be seen at 0.9190(5DMA), an upside break can trigger rise towards 0.9249 (38.2%fib).On the downside, immediate support is seen at 0.9132 (23.6%fib), a break below could take the pair towards 0.9095 (Lower BB).
USD/JPY: The dollar dipped against yen on Wednesday as signs of slowing U.S. wage growth supported expectations that the Federal Reserve could signal an end to interest-rate hikes at its meeting later in the day. The Fed will announce its rate decision at 1900 GMT, followed by a news conference with Chair Jerome Powell.Interest-rate markets have priced in a slowdown in the cracking pace of hikes, with Wednesday's expected 25 basis point (bps) hike seen bringing the Fed funds rate target range to 4.5-4.75%. Strong resistance can be seen at 130.44(Jan 31st high), an upside break can trigger rise towards 131.12 (38.2%fib).On the downside, immediate support is seen at 129.64 (11DMA), a break below could take the pair towards 128.63 (Lower BB).
Equities Recap
European shares edged higher on Wednesday as industrial stocks gained, while investors awaited the outcome of the U.S. Federal Reserve's first policy meeting this year.
At (GMT 12:08 ),UK's benchmark FTSE 100 was last trading up at 0.23 percent, Germany's Dax was up by 0.27 percent, France’s CAC was up by 0.23 percent.
Commodities Recap
Gold prices ticked lower on Wednesday as investors kept to the sidelines ahead of the U.S. Federal Reserve’s policy decision on its interest rate path due later in the day.
Spot gold was 0.2% lower at $1,924.26 per ounce as of 0929 GMT, after falling to its lowest since Jan. 19 in the previous session. U.S. gold futures fell 0.3% to $1,939.70.
Oil prices were broadly stable as the market is looking towards a meeting of OPEC and its allies as well as a Federal Reserve rate decision and U.S. government data on crude and fuel stockpiles on Wednesday.
Brent crude futures dipped 11 cents, or 0.1%, to $85.35 a barrel at 0949 GMT. West Texas Intermediate (WTI) U.S. crude futures rose 8 cents, or 0.1%, to $78.95 a barrel.