Posted at 06 February 2023 / Categories Market Roundups
Market Roundup
•German Dec Factory Orders (MoM) 3.2%,2.0% forecast, -5.3%previous
•French Jan IHS S&P Global Construction PMI (MoM) 48.4,41.0 previous
•Italian Jan IHS S&P Global Construction PMI (MoM) 48.2, 47.0 previous
•EU Jan M2 Money Supply (MoM) 46.1, 42.6 previous
•German Jan IHS S&P Global Construction PMI 43.3,41.7 previous
•UK Jan Construction PMI 48.4,49.6 forecast,48.8 previous
•EU Feb Sentix Investor Confidence -8.0,-12.8 forecast,-17.5 previous
• EU Dec Retail Sales (MoM) -2.7%,-2.5% forecast,0.8% previous
• EU Dec Retail Sales (YoY) -2.8%,-2.7% forecast, -2.8% previous
Looking Ahead - Economic data (GMT)
•14:00 French 12-Month BTF Auction 2.875% previous
•14:00 French 3-Month BTF Auction 2.330% previous
•14:00 French 6-Month BTF Auction 2.578% previous
•15:00 Canada Jan Ivey PMI 42.3 forecast,33.4 previous
•15:00 Canada Jan Ivey PMI n.s.a 40.6 previous
•15:00 US Jan CB Employment Trends Index 116.31 previous
•16:30 US3-Month Bill Auction 4.595% previous
•16:30 US 6-Month Bill Auction 4.680% previous
Looking Ahead - Economic events and other releases (GMT)
•17:30 UK BoE MPC Member Mann
Fxbeat
EUR/USD: The euro declined against the dollar on Monday as fears that the global rate-hiking cycle may persist for longer kept investors on edge. Markets will focus on comments from ECB’s Isabel Schnabel and Federal Reserve Chair Jerome Powell, due on Tuesday.Analysts reckoned Powell could answer the question of whether a strong U.S. labour market might derail expectations that the Fed’s tightening cycle is nearing its end.ECB’s Schnabel might clarify how much the ECB monetary policy could diverge from the Fed. Immediate resistance can be seen at 1.0876(38.2%fib), an upside break can trigger rise towards 1.0968 (Higher BB).On the downside, immediate support is seen at 1.0720(50%fib), a break below could take the pair towards 1.0685(50DMA).
GBP/USD: Sterling hit a one-month low against the dollar on Monday, at the start of a week where traders are focussing on British growth data and remarks from Bank of England policy makers about the pace of interest rate hikes.The pound weakened 0.2% to trade at $1.2031, extending declines after losing 2.8% against the greenback last week its worst such decline in more than four months - when blowout U.S. jobs data sent the greenback higher against almost all currencies. Immediate resistance can be seen at 1.2913(23.6%fib), an upside break can trigger rise towards 1.22266(Feb 3rd high).On the downside, immediate support is seen at 1.2001(38.2%fib), a break below could take the pair towards 1.1956 (Lower BB).
USD/CHF: The dollar steadied against the Swiss franc on Monday as traders expected that U.S. Federal Reserve will lift its benchmark rate above 5% to squeeze inflation after data showed the labour market remained strong. he Fed on Wednesday raised rates by 25 basis points and said it had turned a corner in the fight against inflation, leading investors to price in a slowdown in the pace of rate hikes going forward.But an eye-popping U.S. nonfarm payrolls number on Friday along with a services industry rebound in January sent the dollar to a mid-January high, with investors pricing in the Fed's policy rate peaking at 5.05% in June. Immediate resistance can be seen at 0.9274(50DMA), an upside break can trigger rise towards 0.9316 (38.2%fib).On the downside, immediate support is seen at 0.9236 (Daily low), a break below could take the pair towards 0.9194(23.6%fib).
USD/JPY: The dollar was little changed against yen on Monday after stronger-than-expected US jobs data fanned concerns that the Federal Reserve might keep hiking interest rates. Data on Friday showed U.S. job growth accelerated sharply last month, with nonfarm payrolls surging by 517,000 jobs - well above an estimate of 185,000. The unemployment rate hit more than a 53-1/2-year low of 3.4%. The dollar was last up 0.7% on the day at 132.08 yen, pushing up its index by 0.13% to 103.26 Strong resistance can be seen at 132.63(50DMA), an upside break can trigger rise towards 134.448 (38.2%fib).On the downside, immediate support is seen at 131.31(23.6%fib), a break below could take the pair towards 131.00 (Psychological level).
Equities Recap
European shares fell on Monday, led by losses in Aurubis AG, the continent's largest copper producer, while fears that the global rate-hiking cycle may persist for longer kept investors on edge.
At (GMT 13:25 ),UK's benchmark FTSE 100 was last trading down at 0.72 percent, Germany's Dax was down by 0.86 percent, France’s CAC was down by 1.31 percent.
Commodities Recap
Gold prices regained some ground on Monday but a firmer dollar and concerns that the U.S. Federal Reserve might keep hiking interest rates kept bullion below the $1,900-an-ounce level.
Spot gold was up 0.5% at $1,875.20 per ounce as of 0748 GMT, after hitting its lowest level since Jan. 6. U.S. gold futures rose 0.6% to $1,887.60.
Oil prices rose on Monday from an 8% drop last week on supply concerns, but was still trading near three-week lows, driven by worries that slower growth in major economies may limit fuel use.
Brent crude futures rose 37 cents, or 0.5, to $80.31 a barrel at 1218 GMT, while U.S. West Texas Intermediate (WTI) crude futures slipped 13 cents or 0.2% to $73.52.