Posted at 09 February 2023 / Categories Market Roundups
Market Roundup
•Dow down 0.73%, S&P 500 down 0.88%, Nasdaq down 1.02%
•US Initial Jobless Claims 196K ,190K forecast,183K previous
•US Jobless Claims 4-Week Avg 189.25K, 191.75K previous
•US Continuing Jobless Claims 1,688K,1,658K forecast,1,655K previous
•US Natural Gas Storage-217B, -195B forecast,-151B previous
•US 4-Week Bill Auction 4.520%,4.490% previous
•US 8-Week Bill Auction 4.600%, 4.505% previous
Looking Ahead - Economic data (GMT)
•01:30 China Jan CPI (YoY) 2.2% forecast, 1.8% previous
• 01:30 China Jan CPI (MoM) 0.7% forecast,0.0% previous
• 01:30 China Jan PPI (YoY) -0.5% forecast,-0.7% previous
Looking Ahead - Economic events and other releases (GMT)
•00:30 Australia RBA Monetary Policy Statement
Currency SUmmaries
EUR/USD: The euro edged higher on Thursday as dollar slipped following higher-than-expected jobless claims for last week, as investors re-evaluate the likely path of Federal Reserve policy following last week's surprisingly strong jobs report. Richmond Fed President Thomas Barkin on Thursday added to the Fed rhetoric on the slowing economy. He said tight monetary policy is "unequivocally slowing the U.S. economy, allowing the Federal Reserve to move more deliberately with any further interest rate increases. The dollar index fell 0.2% to 103.24 .The euro , the biggest component in the dollar index, climbed 0.2% as well to $1.0733. 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. Sterling rose 0.3% against the greenback to $1.2114. 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/CAD: The Canadian dollar edged lower against its U.S. counterpart on Thursday, with the currency giving back its earlier gains as equity markets fell and ahead of jobs data that could offer clues on the strength of the domestic economy. The Bank of Canada has already signaled a pause. Economists forecast that Canada’s economy added 15,000 jobs in January after a blockbuster 104,000 increase in December. The price of oil, one of Canada’s major exports, settled down 0.5% at $78.06 a barrel.The loonie was trading 0.1% lower at 1.3460 per greenback, or 74.29 U.S. cents, after being in a range of 1.3373 to 1.3463.Immediate resistance can be seen at 1.3473 (23.6% fib), an upside break can trigger rise towards 1.3492 (Higher BB).On the downside, immediate support is seen at 1.3433 (38.2% fib), a break below could take the pair towards 1.3400 (50% fib).
USD/JPY: The dollar dipped against yen on Thursday as investors stuck to their views that the Federal Reserve does not need to raise interest rates any more than it should as inflation is starting to get under control. A higher-than expected U.S. jobless claims number further compounded the dollar's losses, as the report suggested labor market weakness that can help bring down inflation. Initial claims for state unemployment benefits rose 13,000 to a seasonally adjusted 196,000 for the week ended Feb. 4, data showed. Economists polled had forecast 190,000 claims for the latest week. Strong resistance can be seen at 131.96(38.2% fib), an upside break can trigger rise towards 132.64 (Higher BB).On the downside, immediate support is seen at 130.70(11DMA), a break below could take the pair towards 129.53 (23.6% fib)
Equities Recap
European shares climbed for the third straight session on Thursday as cooling inflation in Germany and a slew of upbeat earnings offset concerns over hawkish comments by top central bank policymakers and alleviated fears of a steep recession.
UK's benchmark FTSE 100 closed up by 0.33 percent, Germany's Dax ended up by 0.72 percent, France’s CAC finished the day up by 0. 96 percent.
U.S. stock indexes ended lower on Thursday, erasing earlier gains as Treasury yields rose after an auction of 30-year bonds went poorly and overshadowed strong earnings from corporate giants like Disney and PepsiCo.
Dow Jones closed down by 0.73 percent, S&P 500 ended down by 0.88 percent, Nasdaq finished the day down by 1.02 percent.
Treasuries Recap
U.S. Treasury yields rose on Thursday, lifted by an auction of 30-year bonds that saw weak demand, the final of $96 billion in coupon-bearing supply this week.
Benchmark 10-year note yields were last at 3.66%, up 2.8 basis points from the previous session. The yield hit 3.692% on Wednesday, the highest since Jan. 6. Two-year yields rose as high as 4.514%, also the highest since Jan. 6.
Commodities Recap
Gold prices fell on Thursday as investors braced for more interest-rate hikes from the U.S. Federal Reserve, with focus now turning to inflation data due next week that could be an important factor for the central bank’s monetary policy plans.
Spot gold fell 0.5% to $1,865.60 per ounce by 2:09 p.m. ET (1909 GMT), going as high as $1,890.18 after U.S. jobless claims data. U.S. gold futures fell 0.7% to settle at $1,878.50
Crude prices eased on Thursday as oil infrastructure appeared to have escaped serious damage from the earthquake that devastated parts of Turkey and Syria, while U.S. inventories swelled and investors worried about Federal Reserve rate hikes.
Brent crude settled at $84.50 a barrel, losing 59 cents, or 0.7%. U.S. West Texas Intermediate (WTI) crude futures settled at $78.06 a barrel, down 41 cents, or 0.5%. Both benchmarks have gained more than 5% so far this week.