Posted at 13 February 2023 / Categories Market Roundups
Market Roundup
•Swiss Jan CPI (YoY) 3.3%,2.9%forecast, 2.8% previous
•Swiss Jan CPI (MoM) 0.6%,0.4% forecast, -0.2% previous
Looking Ahead - Economic data (GMT)
•13:30 French 3-Month BTF Auction 2.492% previous
•13:30 French 6-Month BTF Auction 2.573% previous
•13:30 French 12-Month BTF Auction 2.772% previous
•16:00 US Consumer Inflation Expectations 5.0% previous
•16:30 US 3-Month Bill Auction 4.590% previous
•16:30 US 6-Month Bill Auction 4.755% previous
Looking Ahead - Economic events and other releases (GMT)
•No data ahead
Fxbeat
EUR/USD: The euro was little against dollar on Monday as traders squared positions before the U.S. inflation data, which could influence the Federal Reserve's roadmap for interest rate hikes, comes out on Tuesday. U.S. consumer price index (CPI) is expected to have climbed 0.4% in January. Revisions to the previous data set showed consumer prices rose in December instead of falling as previously estimated. The report is due on Tuesday. The euro hit a one-month low of 1.0656 in Asia trading, but was last at $1.0693, up 0.15%. 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 1.0678(38.2%fib), a break below could take the pair towards 1.0637(Lower BB).
GBP/USD: Sterling edged lower on Monday at the start of a data-heavy week in which investors will scan inflation prints from the UK and the U.S. to make bets on the pace of further interest rate hikes.UK inflation likely eased further in January to 10.2% from 10.5% in December, having seemingly peaked at 11.1% in October. The data is due on Wednesday. The pound was down 0.2% at $1.2035 against the dollar, while against the euro it was largely stable at 88.70 pence after the single currency marked its sharpest weekly decline since October against sterling. 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 Monday hotter than expected Swiss CPI print has ramped up tension in foreign exchange markets ahead of Tuesday's U.S. inflation data for January. U.S. data on consumer prices and retail sales this week could prove a key catalyst for near-term direction for the markets, with much resting on whether inflation continued to slow in January. Money markets are positioned for a peak in U.S. interest rates of just below 5.2% around July, compared with the current target rate of 4.5-4.75%, but have mostly walked back expectations of major rate cuts later in the year. Immediate resistance can be seen at 0.9229 (21DMA), 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 strengthened against yen on Monday on reports Japan's government was likely to appoint academic Kazuo Ueda as the next Bank of Japan governor. Sources said on Friday that former Bank of Japan board member Kazuo Ueda is set to become the next governor. The surprise news sparked speculation about an early end to the BOJ's super-easy policies. The dollar was last up almost 0.8% at 132.40 yen , after bouncing from a trough of 129.80 on Friday.Strong resistance can be seen at 132.64(Higher BB), an upside break can trigger rise towards 132.92 (23.6%fib).On the downside, immediate support is seen at 132.00(Psychological level A), a break below could take the pair towards 131.96 (38.2%fib)
Equities Recap
European shares rose on Monday as defence stocks jumped on news of India aiming to triple its defence exports, while a fall in real estate stocks on disappointing quarterly results from Sweden's Castellum countered gains.
At (GMT 13:30 ),UK's benchmark FTSE 100 was last trading up at 0.26 percent, Germany's Dax was up by 0.49percent, France’s CAC was up by 0.81 percent.
Commodities Recap
Gold prices inched lower as the dollar firmed on Monday, although traders held off on big bets as they positioned themselves for key U.S. inflation data this week that could steer the Federal Reserve’s rate-hike strategy.
Spot gold was down 0.2% at $1,861.13 per ounce, as of 1150 GMT. U.S. gold futures inched 0.1% lower to $1,873.10.
Oil prices slipped on Monday as investors focused on short-term demand concerns ahead of key U.S. inflation data.
Brent crude futures fell 25 cents, or 0.2%, to $86.14 a barrel by 1150 GMT after a 2.2% gain on Friday. U.S. West Texas Intermediate crude was down 25 cents, or 0.3%, at $79.47 after a 2.1% gain in the previous session.