Posted at 08 February 2023 / Categories Market Roundups
Market Roundup
•Sweden Dec Industrial New Orders (YoY) 24.9%,-6.8% previous
•Sweden Industrial Production (MoM)-2.2%, 0.7% forecast,-2.3% previous
•Sweden Industrial Production (YoY)-2.5%,0.8% forecast,-0.5% previous
•French Non-Farm Payrolls (QoQ) (Q4)0.0%,0.2% forecast,0.4% previous
•Italian Dec Retail Sales (YoY) 3.4%,4.4% previous
•Italian Dec Retail Sales (MoM) -0.2%,-0.8% forecast,0.8% previous
Looking Ahead - Economic data (GMT)
•15:00 US Dec Wholesale Trade Sales (MoM) -0.3% forecast,-0.6% previous
•15:00 US Dec Wholesale Inventories (MoM) 0.1% forecast,0.9% previous
•15:30 US Crude Oil Imports 2.593M previous
•15:30 US Heating Oil Stockpiles -0.328M previous
•15:30 US EIA Weekly Distillates Stocks 0.097M forecast,2.320M previous
•15:30 US Gasoline Inventories 1.271M forecast,2.576M previous
•15:30 US Crude Oil Inventories 2.457M forecast,4.140M previous
Looking Ahead - Economic events and other releases (GMT)
•12:45 German Buba Balz Speaks
•14:15 US FOMC Member Williams Speaks
•14:15 US FOMC Member Williams Speaks
•15:00 US Fed Vice Chair for Supervision Barr Speaks
Fxbeat
EUR/USD: The euro edged higher on Wednesday as dollar slipped after less-hawkish-than-expected comments from Federal Reserve Chair Jerome Powell fuelled investor hopes that the central bank may soon ease monetary policy. The dollar index was down 0.21% on the day after Powell avoided hardening his tone on inflation despite a resilient labour market. Investors’ focus now turns to the U.S. Labor Department’s weekly jobless claims report ahead of the January inflation numbers next week. The euro was last up 0.14% to $1.074, after falling to $1.067 in the previous session, its lowest since Jan. 9. Immediate resistance can be seen at 1.0751(38.2%fib), an upside break can trigger rise towards 1.0799 (Feb 6th high).On the downside, immediate support is seen at 1.0685(50DMA), a break below could take the pair towards 1.0600(Psychological level).
GBP/USD: Sterling rose on Wednesday from a one-month low against the dollar after Federal Reserve Chair Jerome Powell declined to meaningfully harden his tone on inflation, renewing bets of less-aggressive U.S. monetary tightening. Despite last week's very strong U.S. employment numbers, in a question-and-answer session before the Economic Club of Washington on Tuesday, Powell reiterated he felt a process of "disinflation" was underway. Sterling was up 0.34% to $1.2091 against the dollar after hitting its lowest level since Jan. 6 on Tuesday of $1.1961. Immediate resistance can be seen at 1.2112(5DMA), an upside break can trigger rise towards 1.2154(23.6%fib).On the downside, immediate support is seen at 1.2038(Daily low), a break below could take the pair towards 1.1985 (38.2%fib).
USD/CHF: The dollar dipped against the Swiss franc on Wednesday after less hawkish than feared comments from Federal Reserve Chair Jerome Powell. In an eagerly awaited speech earlier on Tuesday, the Fed's Powell reiterated that disinflation has begun but warned that Friday's eye-popping jobs report showed why the battle against inflation will take quite a bit of time. Against a basket of currencies, the U.S. dollar index fell 0.21% to 103.10 on Wednesday, after slipping 0.3% in the previous session. Immediate resistance can be seen at 0.9220(5DMA), an upside break can trigger rise towards 0.9286(38.2%fib).On the downside, immediate support is seen at 0.9165 (23.6%fib), a break below could take the pair towards 0.9115(Lower BB).
USD/JPY: The dollar dipped against yen on Wednesday after Federal Reserve Chair Jerome Powell declined to meaningfully harden his tone on inflation, despite very strong U.S. jobs numbers last week.In a question-and-answer session before the Economic Club of Washington on Tuesday, Powell said interest rates might need to move higher than expected if the U.S. economy remained strong, but reiterated he felt a process of disinflation is underway. The dollar slipped as Powell spoke and lost more ground in early European trading on Wednesday. Strong resistance can be seen at 132.40(50DMA), an upside break can trigger rise towards 133.05 (38.2%fib).On the downside, immediate support is seen at 130.44(23.6%fib), a break below could take the pair towards 129.92 (21DMA)
Equities Recap
European stocks rose notably on Wednesday after Federal Reserve Chair Jerome Powell struck a less hawkish tone than feared in a question-and-answer session at the Economic Club of Washington, D.C.
At (GMT 12:28 ),UK's benchmark FTSE 100 was last trading up at 0.72 percent, Germany's Dax was up by 0.78 percent, France’s CAC was up by 0.49 percent.
Commodities Recap
Gold extended gains to a third session on Wednesday boosted by a weaker dollar and comments from U.S. Federal Reserve Chair Jerome Powell, while markets awaited more economic data for guidance on future rate hikes.
Spot gold rose 0.6% to $1,884.06 per ounce by 1005 GMT. U.S. gold futures added 0.4% to $1,883.20.
Oil rose for a third straight day on Wednesday as investor concern eased about U.S. interest rate hikes and an industry report pointed to a drop in U.S. crude inventories.
Brent crude rose 59 cents, or 0.7%, to $84.28 a barrel by 1153 GMT. U.S. West Texas Intermediate (WTI) crude climbed 64 cents, or 0.8%, to $77.78.