News

Europe Roundup: Euro gains momentum as dollar slips, European shares hit fresh nine-month high ,Gold gains, Oil prices steady after U.S. stockpiles swell-February 9th,2023

Posted at 09 February 2023 / Categories Market Roundups


Market Roundup

•German Jan CPI (YoY)  8.7%,8.9%forecast,8.6% previous

•German Jan CPI (MoM)  1.0%,0.8% forecast,-0.8% previous

•German Jan HICP (MoM)  0.5%, 1.2% forecast,-1.2% previous

•German Jan HICP (YoY)  9.2%,  10.0%    forecast,9.6% previous

•Sweden Interest Rate Decision    3.00%,3.00% forecast,2.50% previous

Looking Ahead - Economic data (GMT)

•13:30   US  Initial Jobless Claims 190K forecast,183K previous

•13:30   US Jobless Claims 4-Week Avg 191.75K previous

•13:30   US  Continuing Jobless Claims 1,658K   forecast,1,655K previous

•15:30  US Natural Gas Storage -195B  forecast,-151B previous

•16:00   EU German Buba Mauderer Speaks       

•16:30 US 4-Week Bill Auction    4.490% previous

•16:30   US 8-Week Bill Auction  4.505% previous

Looking Ahead - Economic events and other releases (GMT)

•No significant events

Fxbeat

EUR/USD: The euro edged higher   on Thursday as dollar slipped as investors expected the U.S. Federal Reserve will  slow down the pace of its rate hikes. U.S. Fed officials on Wednesday hinted that more rate hikes were on the table to further cool inflation, although none suggested that January's hot jobs report could trigger a more aggressive monetary policy stance. On the economic front, German consumer prices, harmonized to compare with other European Union countries, rose in January by a less-than-anticipated 9.2% year-on-year. Immediate resistance can be seen at 1.0815(9DMA), an upside break can trigger rise towards 1.0875 (23.6%fib).On the downside, immediate support is seen at 1.0685(38.2%fib), a break below could take the pair towards  1.0644(Lower BB).

GBP/USD: Sterling rose on Thursday as increased  risk appetite and hawkish comments from Bank of England officials boosted sterling , even after evidence of further deterioration in the British housing marke. A survey on Thursday showed Britain’s housing market suffered the most widespread price falls since 2009 last month as the run of interest rate increases over the past year weighed on would-be buyers. At 1050 GMT, the pound was up 0.58% to $1.21440 and was 0.08% higher against the euro, trading at 88.680 pence. Immediate resistance can be seen at 1.2198(38.2%fib), an upside break can trigger rise towards 1.2238(11DMA).On the downside, immediate support is seen at 1.2041(50%fib), a break below could take the pair towards 1.2000 (Psychological level).

USD/CHF: The dollar dipped against the Swiss franc on Thursday  as investors digested comments from a slew of Federal Reserve officials, while crucial consumer inflation data loomed next week. A number of Federal Reserve speakers echoed Chair Jerome Powell on Wednesday in saying that interest rates are set to go higher, capping risk sentiment. The dollar index slid 0.37% but held close to a 1-month high at 103.05 against major peers. Immediate resistance can be seen at 0.9197 (14DMA), an upside break can trigger rise towards 0.9286(38.2%fib).On the downside, immediate support is seen at 0.9173 (23.6%fib), a break below could take the pair towards 0.9098(Lower BB).

USD/JPY: The dollar dipped against yen on Thursday   as investors looked forward to more economic data to gauge the U.S. Federal Reserve's rate-hike strategy. Powell provided fuel for both sides of the argument on Tuesday, saying rates might need to move higher if the U.S. economy remained strong, but he reiterated “disinflation” was underway.A few Fed officials on Wednesday said more interest rate rises were likely. Market participants are awaiting U.S. consumer price data next week for further clues on the Fed’s policy path. Weekly U.S. jobless claims data, due at 1330 GMT, is also in focus. Strong resistance can be seen at 131.31(5DMA), an upside break can trigger rise towards 132.35 (Higher BB).On the downside, immediate support is seen at 130.66(23.6%fib), a break below could take the pair towards 130.00 (Psychological level)

Equities Recap

European shares hit a nine-month high on Thursday as Germany's Siemens AG  and British drugmaker AstraZeneca   boosted earnings euphoria, and helped offset the risk-off sentiment after hawkish Federal Reserve speakers stressed the need for more rate hikes..

At (GMT 13:12 ),UK's benchmark FTSE 100 was last trading up at 0.72 percent, Germany's Dax was up by 1.23 percent, France’s CAC   was up by 1.21 percent.

Commodities Recap          

Gold rose on Thursday, helped by a pullback in the dollar, although prices are expected to be range-bound as traders await economic data for clues on the U.S. Federal Reserve’s rate-hike path.

Spot gold was up 0.3% at $1,881.60 per ounce, as of 1204 GMT. U.S. gold futures rose 0.2% to $1,881.00.

Oil prices were steady on Thursday, as optimism over recovering Chinese demand was offset by U.S. oil inventories hitting their highest in months and signs the U.S. Federal Reserve could keep raising interest rates.

Brent crude futures dipped 12 cents to $84.97 a barrel by 1227 GMT, while U.S. West Texas Intermediate (WTI) crude futures inched down 15 cents to $78.32 a barrel. Both benchmarks have gained over 6% so far this week.


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