Posted at 18 February 2023 / Categories Market Roundups
Market Roundup
•U.S. crude falls more than 4% during the week
•U.S. markets closed on Monday for Presidents' Day
•US Indexes: S&P 500 -0.28%, Nasdaq -0.58%, Dow +0.39%
• US Export Price Index (MoM) 0.8%, -0.2% forecast, -2.6% previous
•Canada Jan IPPI (MoM) 0.4%, -0.1% forecast,-1.1% previous
•Canada Dec Foreign Securities Purchases by Canadians -2.29B,14.13B previous
•Canada Dec Foreign Securities Purchases 21.22B,-1.25Bforecast,12.76B previous
•Canada Jan RMPI (MoM) -0.2%,forecast,-3.1% previous
•US Jan Import Price Index (MoM) -0.2%, -0.2%forecast,0.4% previous
•Canada Jan IPPI (YoY) 5.4%,7.6% previous
•Canada Jan 1.2%,7.5% previous
•US Jan Leading Index (MoM) -0.3%,-0.3% forecast,-0.8% previous
•U.S. Baker Hughes Total Rig Count 760,761 previous
•U.S. Baker Hughes Oil Rig Count 607,609 previous
Looking Ahead Economic data (GMT)
• No economic data ahead
Looking Ahead Events and other Releases (GMT)
•No significant events
Currency Summaries
EUR/USD: The euro edged higher against dollar on Friday as the market readjusted ahead of the long weekend and awaited clues on how the Federal Reserve plans to continue tackling still-high inflation. Several Federal Reserve officials signaled this week that the U.S. central bank likely has to raise interest rates higher to bring inflation back to its desired levels. That hawkish speak coupled with hotter-than-expected economic data has led some banks to forecast three additional rate hikes this year. The euro rose 0.22% to $1.0694, after earlier falling to $1.0612, the lowest since Jan. 6.Immediate resistance can be seen at 1.0697(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 initially dipped but recovered most of the ground as dollar gains eroded ahead of long weekend. 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. Economists polled had expected a 0.3% fall. The market is currently pricing in an almost 75% chance of a 25 bp rate hike from the Bank of England at its March meeting. Sterling was up 0.48% at $1.2044 .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/CAD: The Canadian dollar edged lower against its U.S. counterpart on Friday, adding to this week’s losses, as investors favored the U.S. currency in anticipation of additional interest rate hikes by the Federal Reserve. Domestic data showed that producer prices rose by 0.4% in January from December, compared with forecasts for a decline of 0.1%, and that foreign investors bought a net C$21.2 billion ($15.7 billion) in Canadian securities in December. The loonie was trading 0.1% lower at 1.3470 to the greenback, or 74.24 U.S. cents, after touching its weakest since Jan. 6 at 1.3537. For the week, it was down 0.9%. Immediate resistance can be seen at 1.3487(38.2%fib), an upside break can trigger rise towards 1.3552 (23.6%fib).On the downside, immediate support is seen at 1.3437 (50%fib), a break below could take the pair towards 1.3397(5 DMA).
USD/JPY: The dollar initially gained against yen on Friday but rally fizzled as investors booked profits ahead of long weekend. 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. Fed funds futures traders are now pricing for the fed funds rate to reach 5.29% in July, and remain above 5% all year. The Fed's target range stands at 4.5% to 4.75%, having risen rapidly from 0% to 0.25% in March 2022. The dollar index was last down 0.24% at 103.83, after earlier reaching 104.67, the highest since Jan. 6. 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 on Friday retreated further from one-year highs touched earlier in the week as energy and technology stocks spearheaded losses on mounting concerns that the Federal Reserve would stick to its monetary tightening trajectory for longer .
UK's benchmark FTSE 100 closed down by 0.10 percent, Germany's Dax ended down by 0.33 percent, France’s CAC finished the day down by 0. 25 percent.
The S&P 500 ended lower on Friday, weighed down by Microsoft and Nvidia as investors worried that inflation and a strong U.S. economy could put the Federal Reserve on pace for more interest rate hikes.
Dow Jones closed up by 0.39 percent, S&P 500 ended down by 0.28 percent, Nasdaq finished the day down by 0.58 percent.
Commodities Recap
Gold prices edged higher on Friday but were still on track for their third straight weekly dip, weighed down by an overall stronger dollar and bond yields following fresh hawkish rhetoric from U.S. Federal Reserve officials.
Spot gold was up 0.3% at $1,842.27 per ounce by 2:40 p.m. ET (1940 GMT), after earlier falling to its lowest since late December. Prices have fallen 1.2% so far this week.U.S. gold futures settled 0.1% lower at $1,850.20.
Oil settled down $2 a barrel on Friday and ended the week markedly lower, as traders worried that future U.S. interest rate hikes could weigh on demand and got nervous about mounting signs of ample crude and fuel supply.
Brent crude futures settled down $2.14 or 2.5%, to $83.00 a barrel, falling 3.9% week on week. West Texas Intermediate (WTI) U.S. crude settled down $2.15, or 2.7%, to $76.34, falling 4.2% from last Friday's settlement.