Posted at 16 February 2023 / Categories Market Roundups
Market Roundup
•US Initial Jobless Claims 194K,200K forecast,196K previous
•US Continuing Jobless Claims 1,696K,1,695K forecast,1,688K previous
•US Jan PPI (MoM) 0.4% forecast,-0.4% previous
•US Jobless Claims 4-Week Avg. 189.50K,189.25K previous
•US Jan PPI ex. Food/Energy/Transport (YoY) 4.5%,4.6% previous
•US Jan PPI ex. Food/Energy/Transport (MoM) 0.6%,0.1% previous
• US Feb Philly Fed CAPEX Index 7.50, 10.50 previous
• US Feb Philly Fed Employment 5.1,10.9 previous
• US Feb Philly Fed Prices Paid 26.50,24.50 previous
• US Jan Housing Starts 1.309M,1.360M forecast,1.382M previous
• US Jan Building Permits 1.339M, 1.350M forecast,1.337M previous
• US Feb Philly Fed Business Conditions 1.7, 4.9 previous
• US Jan Building Permits (MoM) 0.1%, -1.0% previous
• US Jan Core PPI (MoM) 5.0%,0.3% forecast,0.1% previous
•US Jan PPI (YoY) 6.0%,5.4% forecast, 6.2% previous
•US Jan PPI (MoM) 0.7%,0.4% forecast,-0.4% previous
•US Feb Philadelphia Fed Manufacturing Index -24.3 ,-7.4 forecast,-8.9 previous
Looking Ahead Economic data (GMT)
•No data ahead
Looking Ahead Events and other Releases (GMT)
•No significant events
Currency Summaries
EUR/USD: The euro dipped on Thursday as dollar rose after data showed the strongest rise in producer prices in seven months fed into fears that the Federal Reserve will keep raising interest rates to tame inflation. Thursday’s data followed strong economic numbers on Tuesday and Wednesday. Data from the U.S. Commerce Department showed on Wednesday that U.S. retail sales rebounded sharply in January after two-straight monthly declines. That came just a day after U.S. inflation figures showed consumer prices slowing, but still sticky. Data from earlier this month also showed that U.S. job growth accelerated sharply in January, pointing to a resilient economy. Immediate resistance can be seen at 1.0709(9DMA), an upside break can trigger rise towards 1.0806(Feb 14th).On the downside, immediate support is seen at 1.0641(38.2%fib), a break below could take the pair towards 1.0601(Lower BB).
GBP/USD: Sterling dipped against the dollar on Thursday as greenback was bolstered by stronger-than-expected producer prices and falling jobless claims, hinting that the Federal Reserve would have to maintain its inflation-fighting interest rate hikes for longer. The U.S. producer price index bounced to 0.7% in January, after declining 0.2% in December. Meanwhile, jobless claims unexpectedly fell to 194,000, compared to the 200,000 claims expected, according to poll. Sterling slid 0.5% to $1.1985, after having lost more than 1% on Wednesday.Immediate resistance can be seen at 1.2063(5DMA), an upside break can trigger rise towards 1.2094(23.6%fib).On the downside, immediate support is seen at 1.1950 (38.2%fib), a break below could take the pair towards 1.1982(Lower BB).
USD/CAD: The Canadian dollar fell to a near four-week low against its U.S. counterpart on Thursday as U.S. inflation data weighed on sentiment and despite the Bank of Canada acknowledging the impact of last week’s strong jobs report. Bank of Canada Governor Tiff Macklem said that the economy remains overheated and the jobs market is too tight .The Canadian dollar fell to a near four-week low against its U.S. counterpart on Thursday as U.S. inflation data weighed on sentiment and despite the Bank of Canada acknowledging the impact of last week’s strong jobs report.The loonie was trading 0.2% lower at 1.3425 to the greenback, after touching its weakest level since Jan. 20 at 1.3475.Immediate resistance can be seen at 1.3473 (38.2% fib), an upside break can trigger rise towards 1.3505 (higher BB).On the downside, immediate support is seen at 1.3430(50%fib), a break below could take the pair towards 1.3396 (5 DMA).
USD/JPY: The dollar steadied against yen on Thursday after unexpectedly strong inflation data and a drop in weekly jobless claims boosted dollar.Data showed the U.S. producer price index bounced to 0.7%, higher than consensus forecast of 0.4%, while jobless claims data showed a resilient labour market. Number of Americans filing new claims for unemployment benefits unexpectedly fell last week, offering more evidence that the labor market remains tight.Two additional rate hikes of 25 basis points are expected by the U.S. central bank in March and May. Financial markets are now betting on another increase in June. Strong resistance can be seen at 134.37(50%fib), an upside break can trigger rise towards 135.34 (Higher BB).On the downside, immediate support is seen at 133.51(5DMA), a break below could take the pair towards 131.89(38.2%fib)
Equities Recap
European stocks are broadly higher a little past noon on Thursday as investors continued to shrug off concerns about higher interest rates .
UK's benchmark FTSE 100 closed down by 0.18 percent, Germany's Dax ended up by 0.18 percent, France’s CAC finished the day up by 0. 89percent.
Wall Street ended sharply lower on Thursday after unexpectedly strong inflation data and a drop in weekly jobless claims added to fears that the U.S. Federal Reserve will keep raising interest rates to tame high prices.
Dow Jones closed down by 1.26 percent, S&P 500 ended down by 1.38 percent, Nasdaq finished the day down by 1.78 percent.
Commodities Recap
Oil prices settled slightly lower on Thursday after trading in a narrow range as the market weighed mixed U.S. economic signals and prospects for a Chinese demand recovery with a build in U.S. crude stockpiles.
Brent crude futures settled at $85.14 a barrel, losing 24 cents. U.S. West Texas Intermediate crude (WTI) settled at $78.49 a barrel, shedding 10 cents.
Gold prices bounced off one-month lows on Thursday, as some investors seized the chance to pick up the bullion at relatively cheaper levels.
Spot gold firmed 0.4% to $1,842.67 per ounce by 2:45 p.m. ET (1945 GMT).U.S. gold futures rose 0.4% to settle at $1,851.80.