Posted at 14 February 2023 / Categories Market Roundups
Market Roundup
•US Jan CPI (YoY) 6.4, 6.2% forecast, 6.5% previous
•US Jan Real Earnings (MoM) 0.7%,0.1% previous
•US Jan CPI Index, s.a 299.17, 298.99 previous
•US Jan CPI, n.s.a (MoM) 0.80%,-0.31% previous
•US Jan CPI Index, n.s.a 299.17, 298.66 forecast, 296.80 previous
•US Jan Core CPI Index 302.70,301.46 previous
•US Jan Core CPI (MoM) 0.4%,0.4% forecast, 0.3% previous
•US Jan CPI (MoM) 0.5%, 0.5% forecast,-0.1% previous
•US Jan Core CPI (YoY) 5.6%,5.5% forecast,5.7% previous
•US Redbook (YoY) 4.9%,4.3% previous
•US Jan Cleveland CPI (MoM) 0.7%, 0.6% previous
Looking Ahead - Economic Events(GMT)
•04:30 Japan Tertiary Industry Activity Index (MoM)0.1% forecast, -0.2% previous
Looking Ahead - Events, Other Releases (GMT)
•01:00 Australia RBA Governor Lowe Speaks
Currency Summaries
EUR/USD: The euro gave up earlier ground on Tuesday as the dollar gained ground after initial declines following a U.S. inflation reading that did little to change interest rate hike expectations. The consumer price index increased 6.4% in the 12 months through January, marking its smallest annual rise since late 2021 but faster than the 6.2% economists had expected as Americans were burdened by higher rental housing and food costs.Month-on-month, consumer prices rose 0.5% in January, after gaining 0.1% in December, the Labor Department said on Tuesday. The dollar index rose 0.029%, well above the greenback's session low,the euro up 0.14% at $1.0735 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 initially rose on Tuesday on strong British wages data but gave up ground in volatile session after data showed U.S. consumer inflation stayed sticky in January. The dollar index climbed from a roughly two-week low hit earlier in the session after data showed U.S consumer prices accelerated in January, but the annual increase was the smallest since late 2021.The mixed data did not alter market expectations that the U.S. central bank will raise interest rates by 25 basis points at least two more times. Immediate resistance can be seen at 1.2216(23.6%fib), an upside break can trigger rise towards 1.2266(Daily high).On the downside, immediate support is seen at 1.2115(5DMA), a break below could take the pair towards 1.2024 (38.2%fib).
USD/CAD: The Canadian dollar edged lower against its U.S. counterpart on Tuesday, pulling back from its highest level in nearly two weeks, as oil prices fell and U.S. inflation data pointed to additional tightening by the Federal Reserve. U.S. consumer prices rose 0.5% in January from December, with the annual rate easing to 6.4%, as Americans continued to be burdened by higher costs for rental housing and food. U.S. crude oil futures prices settled 1.4% lower at $79.06 a barrel, pressured by supply concerns after the U.S. government said it would release more crude from its Strategic Petroleum Reserve. The loonie was trading 0.1% lower at 1.3350 to the greenback. Immediate resistance can be seen at 1.3341 (38.2% fib), an upside break can trigger rise towards 1.3359(5DMA).On the downside, immediate support is seen at 1.3270(23.6% fib), a break below could take the pair towards 1.3238 (Lower BB).
USD/JPY: The dollar rose against yen on Tuesday as data for January showing the smallest annual increase in U.S. consumer prices since October 2021 did not alter market expectations that interest rates will remain elevated for some time. The greenback initially fell across the board following the inflation report, but regained its footing against yen. The Labor Department's Consumer Price Index increased 0.5% last month after gaining 0.1% in December, data showed. Monthly inflation was boosted in part by rising gasoline prices, which increased 3.6% in January. Strong resistance can be seen at 133.34(38.2%fib), an upside break can trigger rise towards 134.10 (Higher BB).On the downside, immediate support is seen at 132.40(5DMA), a break below could take the pair towards 130.83(23.6%fib)
Equities Recap
European stocks ended modestly higher on Tuesday following upbeat corporate updates but pared most early gains as investors grappled with mixed U.S. inflation data that kept alive expectations of more Federal Reserve rate hikes.
UK's benchmark FTSE 100 closed up by 0.08 percent, Germany's Dax ended down by 0.11 percent, France’s CAC finished the day up by 0.07percent.
Wall Street stocks ended mixed on Tuesday after U.S. consumer price data for January offered little to change expectations about the Federal Reserve's path forward on interest rate hikes.
Dow Jones closed down by 0.46% percent, S&P 500 closed down by 0.03% percent, Nasdaq settled up by 0.57% percent.
Treasuries Recap
U.S. Treasury yields rose on Tuesday after the release of the latest consumer price index data, reflecting market expectations of tighter monetary policy from the Federal Reserve.
Benchmark 10-year note yields rose to 3.760%, their highest since Jan. 3.Two-year yields rose to 4.624%, their highest since early November.
Commodities Recap
Oil prices settled more than 1% lower on Tuesday after the United States said it would boost supply in the market by releasing more crude from its Strategic Petroleum Reserve.
Brent futures for April delivery fell $1.03, or 1.2%, to $85.58 a barrel by 1:05 p.m. EST (1805 GMT). U.S. West Texas Intermediate crude futures for March fell by $1.08, or 1.4%, to $79.06 a barrel.
Gold prices gave up gains on Tuesday to end the session nearly unchanged as U.S. Federal Reserve officials remained hawkish on rate hikes
Spot gold was nearly flat at $1,852.94 per ounce by 2:33 p.m. ET (1933 GMT). U.S. gold futures gained 0.1% to settle at $1,851.80.