Posted at 09 February 2023 / Categories Market Roundups
Market Roundup
•US Dec Wholesale Trade Sales (MoM) 0.0%, -0.3% forecast,-0.6% previous
•US Dec Wholesale Inventories (MoM) 0.1%, 0.1% forecast,0.9% previous
•US Crude Oil Imports 0.367M, 2.593M previous
•US Heating Oil Stockpiles-0.115M, -0.328M previous
•US EIA Weekly Distillates Stocks2.932M, 0.097M forecast,2.320M previous
•US Gasoline Inventories 5.008M,1.271M forecast,2.576M previous
•US Crude Oil Inventories 2.423M,2.457M forecast,4.140M previous
Looking Ahead - Economic data (GMT)
•00:00 UK Jan RICS House Price Balance -45% forecast,-42% previous
•00:30 Australia Building Approvals (MoM) 18.5% forecast, -8.8% previous
•06:00 Japan Machine Tool Orders (YoY) 1.0% previous
Looking Ahead - Economic events and other releases (GMT)
•No significant events
Currency Summaries’
EUR/USD: The euro was little changed on Wednesday as investors paused selling the greenback a day after Federal Reserve Chair Jerome Powell did not significantly change his interest rate outlook despite a strong U.S. jobs report last week.The greenback's outlook, however, remained tilted to the downside as the Fed nears the end of its tightening cycle and the markets price in rate cuts by the end of the year, analysts said. The euro was modestly lower at $1.0724 after falling to $1.067 the previous session, its lowest since Jan. 9. It remained far above September's 20-year low of $0.953. 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 $1.2069 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/CAD: The Canadian dollar weakened against its U.S. counterpart on Wednesday, giving up nearly all of the previous day’s gain, as Wall Street shares fell and minutes from the Bank of Canada’s January meeting signaled a high bar for further tightening. The BoC issued a so-called “summary of Governing Council deliberations” for the first time, saying it wanted to convey that the bar for additional rate increases was now higher. The price of oil, one of Canada’s major exports, rose for a third day. U.S. crude oil futures settled 1.7% higher at $78.47 a barrel. The loonie was trading 0.3% lower at 1.3445 to the greenback, after moving in a range of 1.3361 to 1.3449 .Immediate resistance can be seen at 1.3449(38.2% fib), an upside break can trigger rise towards 1.3496 (Higher BB).On the downside, immediate support is seen at 1.3426(5DMA), a break below could take the pair towards 1.3393(50% fib).
USD/JPY: The dollar was little changed against yen on Wednesday as markets awaited more economic data for guidance on future US rate hikes. 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. Investors’ focus is turning to the U.S. Labor Department’s weekly jobless claims report ahead of the January inflation numbers next week. 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 closed broadly higher on Wednesday, reacting positively to somewhat dovish comments from the Federal Reserve Chair Jerome Powell, and digesting a slew of quarterly earnings updates.
UK's benchmark FTSE 100 closed up by 0.26 percent, Germany's Dax ended up by 0.60 percent, France’s CAC finished the day down by 0. 18 percent.
U.S. stocks ended down on Wednesday, paring most of the previous session's strong gains, with tech-focused shares leading the way lower.
Dow Jones closed down by 0.61 percent, S&P 500 ended down by 1.11 percent, Nasdaq finished the day down by 1.68 percent.
Commodities Recap
Gold prices edged back up in a choppy session on Wednesday, as investors looked forward to more economic data to gauge the U.S. Federal Reserve’s rate-hike strategy.
Spot gold was up 0.1% at $1,875.10 per ounce by 3:19 p.m. ET (2019 GMT). U.S. gold futures rose 0.3% to settle at $1,890.70.
Oil rose for a third straight day on Wednesday as investors felt more comfortable with risk a day after the Federal Reserve chair's remarks eased concerns about future interest rate hikes.
Brent crude settled up $1.40, or 1.7%, to $85.09 a barrel while U.S. West Texas Intermediate (WTI) crude settled up $1.33, or 1.7%, to $78.47.