News

Europe Roundup: Sterling slides to six-week low against dollar , European shares fall, Gold set for weekly dip, Oil prices on track to finish week 2.5% lower on U.S. rate hike worries-February 17th,2023

Posted at 17 February 2023 / Categories Market Roundups


Market Roundup

•UK Jan Retail Sales (YoY) -5.1%, -5.5%  forecast,-5.8% previous

•UK Jan Core Retail Sales (YoY)                  -5.3%,-5.3% forecast,-6.1% previous

•UK Jan Core Retail Sales (MoM)  0.4%,0.0% forecast,-1.1% previous

•UK Jan Retail Sales (MoM)  0.5%,-0.3%  forecast,-1.0% previous

•German Jan PPI (MoM) -1.0%,  -1.6% forecast,-0.4% previous

•German Jan PPI (YoY)  17.8%,16.4% forecast,21.6% previous

•French Jan CPI (MoM) 0.4%,0.4% forecast,-0.1% previous

•French CPI (YoY)6.0%,6.0% forecast,6.0% previous

•French Jan French HICP (MoM)  0.4%,0.4% forecast,0.4% previous

•French Jan HICP (YoY)  7.0%,7.0% forecast,6.7% previous

•EU Dec Current Account  15.9B, 5.1B forecast,  13.6B previous

Looking Ahead Economic data (GMT)

•13:30 US Import Price Index (YoY) 3.5% previous

•13:30 US Export Price Index (YoY) 5.0% previous

•13:30 Canada Jan IPPI (MoM)  -0.1%     forecast,-1.1% previous

•13:30 Canada Dec Foreign Securities Purchases by Canadians 14.13B previous

•13:30 Canada Dec Foreign Securities Purchases   -1.25B   forecast,12.76B previous

•13:30 Canada Jan RMPI (MoM)  -0.2%  forecast,-3.1% previous

•13:30 US Jan Import Price Index (MoM)  -0.2% forecast,0.4% previous

•13:30 Canada Jan IPPI (YoY)  7.6% previous

•13:30 Canada Jan 7.5% previous

•15:00   US Jan Leading Index (MoM)  -0.3%  forecast,-0.8% previous

•18:00   U.S. Baker Hughes Total Rig Count 761 previous

•18:00   U.S. Baker Hughes Oil Rig Count   609 previous

Looking Ahead Events and other Releases (GMT)

•No significant events

Fxbeat

EUR/USD: The euro declined against dollar   on Friday as   strong U.S. economic data and comments from Federal Reserve officials boosted dollar. Data on Thursday showed the number of Americans filing new claims for unemployment benefits unexpectedly fell last week, and that monthly producer prices increased by the most in seven months in January’s Louis Fed President James Bullard said on Thursday he backed further rate increases that would take borrowing costs to around 5.25% to 5.5%.The Fed's target range currently stands at 4.5% to 4.75%, having risen rapidly from 0% to 0.25% in March 2022.Immediate resistance can be seen at 1.0693(5DMA), an upside break can trigger rise towards 1.0817(23.6%fib).On the downside, immediate support is seen at 1.0617(38.2%fib), a break below could take the pair towards  1.0545(Lower BB).

GBP/USD: Sterling dropped to a six-week low against a stronger dollar on Friday, even though January retail sales data showed British shoppers were out in force last month. Data on Friday showed British consumers unexpectedly increased their shopping in January, as sales volumes rose by 0.5% from December for only the second month-on-month increase since August 2021. The pound eased   0.4% lower against the dollar at $1.19360 having earlier fallen as far as $1.19150, its weakest since January 6.A stronger dollar was the main factor behind the drop on Friday, as the U.S. currency soared to a six-week high.Immediate resistance can be seen at 1.2054 (5DMA), an upside break can trigger rise towards 1.2108(23.6%fib).On the downside, immediate support is seen at 1.1927 (38.2%fib), a break below could take the pair towards 1.1884(Lower BB).

USD/CHF: The dollar strengthened against the Swiss franc on Friday as the dollar’s advanced following fresh hawkish rhetoric from the U.S. Federal Reserve officials. Two Fed officials said on Thursday the U.S. central bank likely should have lifted interest rates more than it did early this month.Taking cues from the comments, the dollar index surged to a six-week high. Traders now await next week’s release of the latest FOMC minutes and U.S. GDP data for more clues on rate hikes. Immediate resistance can be seen at 0.9332 (23.6%fib), an upside break can trigger rise towards 0.9364(Jan 12th  high).On the downside, immediate support is seen at 0.9279(38.2%fib), a break below could take the pair towards 0.9247(Feb 17th low).

USD/JPY: The dollar steadied against yen on Friday  as the dollar gained on bets the Federal Reserve might keep at its interest-rate hikes for longer after strong economic data in the United States. Several Fed officials this week echoed that the monetary policy needed to remain tight to bring inflation down to the central bank’s 2% target.Two Fed officials said on Thursday the U.S. central bank likely should have lifted interest rates more than it did early this month.Data on Thursday showed U.S. monthly producer prices rebounded 0.7% last month. Meanwhile, the number of Americans filing new claims for unemployment benefits slipped to 194,000 for the latest week. Strong resistance can be seen at 134.75(38.2%fib), an upside break can trigger rise towards 136.57 (50%fib ).On the downside, immediate support is seen at 132.40(38.2%fib), a break below could take the pair towards 131.86(14DMA)

Equities Recap

European shares slid nearly 1% on Friday as rate-sensitive technology slipped on renewed bets of the U.S. Federal Reserve sticking to its monetary tightening trajectory, while Mercedes-Benz rose on upbeat earnings.

At (GMT 13:12 ),UK's benchmark FTSE 100 was last trading up at 0.11 percent, Germany's Dax was down by 0.21 percent, France’s CAC   was down by 0.02 percent.

Commodities Recap

Gold prices shed nearly 1% on Friday as bullion hurtled towards a third straight weekly drop, hurt by the dollar’s advance following fresh hawkish rhetoric from the U.S. Federal Reserve officials.

Spot gold was down 0.8% at $1,823.19 per ounce by 1056 GMT, after earlier falling to its lowest since late-December. Bullion has fallen about 2.2% so far this week.U.S. gold futures slipped 1.1% to $1,832.20.


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