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Europe Roundup: Pound little changed as market awaits economic data , European shares flat ,Gold ticks up, Oil rises on China demand hopes and supply concerns-February 20th,2023

Posted at 20 February 2023 / Categories Market Roundups


Market Roundup

•Sweden Jan  (YoY)  11.7%, 11.8% forecast, 12.3% previous

•Sweden Jan  CPIF  (YoY) 9.3%,9.4% forecast, 10.2% previous

•Sweden Jan CPIF  MoM) -1.3%,              -1.2% forecast, 1.9% previous

•Sweden Jan CPI (MoM) -1.1%,                -1.1% forecast, 2.1% previous

•Greek Dec Current Account (YoY)  -2.663B, -3.929B previous

•EU Dec Construction Output (MoM)  -2.52%, -0.81% previous

•Belgium Feb Consumer Confidence -8, -12 previous

Looking Ahead - Economic data (GMT)

•14:00   EU  French 12-Month BTF Auction 3.017% previous

•14:00 EU   French 6-Month BTF Auction  2.802% previous

•14:00 EU French 3-Month BTF Auction  2.556% previous

•15:00   EU Consumer Confidence -19.0 forecast,-20.9 previous

Looking Ahead - Economic events and other releases (GMT)

•17:00  German Buba Balz Speaks           

•19:30  UK  BoE Deputy Governor Woods Speaks

Fxbeat

EUR/USD: The euro declined against dollar on Monday as investors recently scaled back expectations of a short monetary tightening cycle. Trading will likely be subdued as markets await data on euro area Global flash PMIs on Tuesday, Federal Reserve minutes on Wednesday and the U.S. Personal Consumption Expenditures index  the Fed’s preferred measure of inflation  on Friday. U.S. markets are closed on Monday for Presidents’ Day. The euro was little changed against the dollar at $1.0687, just above Friday's six-week low of $1.06125. Immediate resistance can be seen at 1.0692(5DMA), an upside break can trigger rise towards 1.0808(23.6%fib).On the downside, immediate support is seen at 1.0602(38.2%fib), a break below could take the pair towards  1.0541(Lower BB).

GBP/USD: Sterling fell slightly against the dollar on Monday, in a quiet session ahead of flash composite PMIs due on Tuesday which will give more hints on the state of the UK economy.Traders will also be   closely watching  to speeches from Monetary Policy Committee members Sam Woods and Catherine Mann this week for hints over the BoE’s next move as it battles to bring down inflation. By 1130 GMT on Monday, the pound was down 0.1% against the dollar to $1.2032   .Immediate resistance can be seen at 1.2049 (5DMA), an upside break can trigger rise towards 1.2120(23.6%fib).On the downside, immediate support is seen at 1.1927 (38.2%fib), a break below could take the pair towards 1.1873(Lower BB).

USD/CHF: The dollar declined against the Swiss franc on Monday as investors awaited upcoming U.S. economic data to chart out the path of future interest rate hikes from the Federal Reserve. Economic data last week showed signs of a resilient U.S. economy and a tight labour market, sparking concerns that the Fed would keep interest rates higher for longer.Investor attention will be on the release of the Federal Open Market Committee’s (FOMC) January meeting minutes  which occurred prior to the month’s bumper payrolls and retail sales reports and U.S. GDP data. Immediate resistance can be seen at 0.9283 (38.2%fib), an upside break can trigger rise towards 0.9329(Higher BB).On the downside, immediate support is seen at 0.9236(5DMA), a break below could take the pair towards 0.9166(23.6%fib).

USD/JPY: The dollar dipped against yen on Monday but kept close to Friday's   high, after a flurry of economic data reinforced market expectations of tighter monetary policy from the Federal Reserve.The U.S. dollar index , which measures the dollar against six other major currencies, slipped 0.1% to 103.91. It is still up almost 1.8% for the month, keeping it on track for its first monthly gain since last September. It hit a six-week high of 104.67 on Friday. Liquidity is expected to be thin on Monday, with U.S. markets closed for Presidents' Day. The dollar was down 0.1% against the yen to 134 . It hit a two-month high of 135.12 yen on Friday. Strong resistance can be seen at 135.75(38.2%fib), an upside break can trigger rise towards 135.95 (Higher BB ).On the downside, immediate support is seen at 133.20(5DMA), a break below could take the pair towards 132.92(23.6%fib)

Equities Recap

European shares were flat on Monday, with the sustained gains in miners on bets of a demand recovery in China countering a fall in Telecom Italia that led the decliners in eurozone stocks.

At (GMT 13:12 ),UK's benchmark FTSE 100 was last trading down at 0.05 percent, Germany's Dax was down  by 0.02 percent, France’s CAC   was down  by 0.15 percent.

Commodities Recap

Gold prices edged higher on a weaker dollar on Monday as investors awaited upcoming U.S. economic data to chart out the path of future interest rate hikes from the Federal Reserve.

Spot gold rose 0.2% to $1,844.59 per ounce by 1135 GMT, after falling to its lowest since late December in the previous session. U.S. gold futures rose 0.2% to $1,853.50.

Oil prices rose on Monday, buoyed by optimism over Chinese demand, continued production curbs by major producers and Russia's plans to rein in supply.

Brent crude rose 51 cents, or 0.6%, to $83.51 a barrel by 1210 GMT. U.S. West Texas Intermediate (WTI) crude for March, which expires on Tuesday, was up 43 cents, or 0.6%, at $76.77 while the more active April contract gained 0.6% to $77.02.


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