Posted at 13 February 2023 / Categories Market Roundups
Market Roundup
•French 3-Month BTF Auction 2.556%, 2.492% previous
•French 6-Month BTF Auction2.802%, 2.573% previous
•French 12-Month BTF Auction 3.017%,2.772% previous
•US Consumer Inflation Expectations 5.0%,5.0% previous
•US 3-Month Bill Auction4.680%, 4.590% previous
•US 6-Month Bill Auction 4.840%,4.755% previous
Looking Ahead - Economic data (GMT)
•00:30 Australia Jan NAB Business Confidence -1 previous
•00:30 Australia Jan NAB Business Survey 12 previous
•02:00 New Zealand Inflation Expectations (QoQ) 3.6% previous
•04:30 Japan Dec Capacity Utilization (MoM) -1.4% previous
•04:30 Japan Dec Industrial Production (MoM) -0.1%forecast,-0.1% previous
Looking Ahead - Economic events and other releases (GMT)
•No data ahead
Currency Summaries
EUR/USD: The euro edged higher against dollar on Monday as investors consolidated positions ahead of Tuesday's crucial U.S. consumer price index (CPI) data. Investors are laser-focused on January inflation data due on Tuesday to reassess their bets on the central bank's monetary policy path.Investors expect headline CPI to rise 0.5% in January on Tuesday, after falling 0.1% in December, with the core number seen advancing to 0.4% from 0.3% the previous month. The euro hit a one-month low of $1.0656 in Asia trading, but was last up 0.4% at $1.0719. 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 rose higher 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 up 0.11% at $1.2149 against the dollar. 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 strengthened to a 10-day high against its U.S. counterpart on Monday as investors bet the Bank of Canada is not yet finished raising interest rates following recent data showing surprising strength in the domestic jobs market.Canada’s central bank has signaled a pause in its tightening campaign to assess how well rate hikes are working to slow the economy and lower inflation.Data on Friday showed that the Canadian economy added 150,000 jobs in January, smashing expectations for a gain of 15,000. The Canadian dollar traded 0.1% higher at 1.3333 to the U.S. dollar , after touching its strongest intraday level since Feb. 3 at 1.3326. Immediate resistance can be seen at 1.3360 (14DMA), an upside break can trigger rise towards 1.3389(38.2%fib).On the downside, immediate support is seen at 1.3314 (23.6%fib), a break below could take the pair towards 1.3266(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 rose to 132.91 yen, the highest since Jan 6. It was last up 0.7% at 132.34 yen.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
Equities Recap
European shares rose on Monday as focus turned to inflation data from the United States due later in the week, while defence stocks jumped on news of India aiming to triple its defence exports.
UK's benchmark FTSE 100 closed up by 0.58 percent, Germany's Dax ended up by 0.58 percent, France’s CAC finished the day up by 1.11 percent.
Wall Street closed sharply higher on Monday as investors awaited inflation data likely to hint at the path of the Federal Reserve's future interest rate hikes, while Meta Platforms gained after a report that the Facebook parent was planning fresh layoffs.
Dow Jones closed up by 1.11% percent, S&P 500 closed by 1.14% percent, Nasdaq settled up by 1.48% percent.
Treasuries Recap
Benchmark 10-year yields turned lower after earlier hitting their highest level since Jan. 5.
Benchmark 10-year notes were down 3.4 basis points to 3.709%, from 3.743% late on Thursday. The 30-year bond was last down 4.1 basis points to yield 3.7853%, from 3.826%.
Commodities Recap
Gold prices dipped on Monday as investors braced for much awaited U.S. January consumer price index data that could steer the Federal Reserve’s rate-hike strategy.
Spot gold fell 0.5% to $1,854.79 per ounce by 1:42 p.m. ET (1842 GMT), while U.S. gold futures settled 0.6% lower at $1,863.50.
Oil prices edged higher on Monday, rebounding from early losses, as investors weighed Russia's plans to cut crude production and short-term demand concerns ahead of U.S. inflation data this week.
Brent futures for April delivery rose 22 cents, or 0.3%, to $86.61 a barrel, while U.S. crude rose 42 cents, or 0.5%, to $80.14 per barrel gain.