Posted at 22 February 2023 / Categories Market Roundups
Market Roundup
•U.S. business activity expands for first time in 8 months
•US indexes down: Dow 2.06%, S&P 2%, Nasdaq 2.5%
•Canada Jan Core CPI (YoY) 5.0%,5.5% forecast, 5.4% previous
•Canada Dec Core Retail Sales (MoM) -0.6%,-0.3% forecast,-0.6% previous
•Canada Jan Core CPI (MoM) 0.3%,0.2% forecast,-0.3% previous
•Canada Jan CPI (YoY) 5.9%, 6.1% forecast,6.3% previous
•Canada Jan CPI (MoM) 0.5%,0.7% forecast,-0.6% previous
•Canada Dec Retail Sales (MoM) 0.5%,0.4% forecast,-0.1% previous
•Canada Jan Common CPI (YoY) 6.6%, 6.6% previous
•Canada Jan Median CPI (YoY) 5.0%, 5.0% previous
•Canada Jan Trimmed CPI (YoY) 5.1%, 5.3% previous
•US Feb Manufacturing PMI 47.8,47.1 forecast,46.9 previous
•US Feb S&P Global Composite PMI 50.2,47.5forecast,46.8 previous
•US Feb Services PMI 50.5,47.2 ,46.8 previous
•US Jan Existing Home Sales 4.00M, 4.10M forecast,4.02M previous
•US Jan Existing Home Sales (MoM) -0.7%, 2.0% forecast,-1.5% previous
Looking Ahead economic data(GMT)
•00:00 Australia Jan MI Leading Index (MoM) -0.1% previous
•00:30 Australia Wage Price Index (QoQ) (Q4) 1.0% forecast,1.0% previous
•00:30 Australia Wage Price Index (YoY) (Q4) 3.5% forecast,3.1% previous
•00:30 Australia Construction Work Done (QoQ) (Q4) 1.5% forecast,2.2% previous
•01:00 New Zealand RBNZ Interest Rate Decision 4.75% forecast,4.25% previous
• Looking Ahead events and Other Releases(GMT)
• 01:00 New Zealand RBNZ Monetary Policy Statement
• 01:30 Japan BoJ Tamura Speaks
• 02:00 New Zealand RBNZ Press Conference
Currency Summaries
EUR/USD: The euro declined on Tuesday after data showed euro zone manufacturing activity deteriorated this month, although a rebound in the more inflation-sensitive services sector kept losses in check.The euro has been struggling against the dollar in particular over the past couple of weeks, after strong U.S. labour data and signs of persistent inflation have raised the chances that U.S. interest rates will rise further than many previously anticipated.S&P Global's flash Composite Purchasing Managers' Index (PMI) for the euro zone, seen as a good gauge of overall economic health, rose to its highest in nine months. 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: The pound strengthened on Tuesday after data showed an unexpected bounce in British business activity, suggesting the economy could be sidestepping a deep recession. The move followed the release of Britain's preliminary "flash" Purchasing Managers' Index, which jumped to 53.0 in February from 48.5 in January, above the 50 threshold for growth for the first time since July. It also beat all forecasts in a poll of more than 20 economists, which had pointed to a reading of 49.0. The pound gained 0.6% against the dollar to $1.2107 .Immediate resistance can be seen at 1.2171(23.6%fib), an upside break can trigger rise towards 1.2263(Feb 14th high).On the downside, immediate support is seen at 1.2074 (9DMA), a break below could take the pair towards 1.1986(38.2%fib).
USD/CAD: The Canadian dollar weakened to its lowest level in nearly seven weeks against its U.S. counterpart on Tuesday as Wall Street tumbled and domestic inflation data supported the Bank of Canada’s move to signal a pause in its tightening campaign.Canada’s annual inflation rate eased more than expected in January to 5.9%, which should allow the BoC to keep its benchmark interest rate steady at 4.50% at its next meeting in March while it lets previous rate increases sink in. The Canadian dollar was trading 0.6% lower at 1.3535 to the greenback, after touching its weakest since Jan. 6 at 1.3549.Immediate resistance can be seen at 1.3552 (23.6% fib), an upside break can trigger rise towards 1.3575 (Higher BB).On the downside, immediate support is seen at 1.3494(38.2% fib), a break below could take the pair towards 1.3446(50% fib).
USD/JPY: The dollar steadied against yen on Tuesday as traders waited for more economic data to gauge the U.S. Federal Reserve’s rate-hike strategy. Investors are now awaiting minutes of the Fed’s latest policy meeting due to be released on Wednesday. Money markets expect the U.S. central bank to raise benchmark rates above 5% by May, with a peak in rates seen at 5.3% in July. The focus this week will also be on U.S. Gross domestic product data on Thursday and Friday’s core PCE price index.Against the yen, the dollar was up 0.28% at 134.91. Strong resistance can be seen at 135.30(38.2%fib), an upside break can trigger rise towards 136.30 (Higher BB ).On the downside, immediate support is seen at 134.24(5DMA), a break below could take the pair towards 133.56(50%fib)
Equities Recap
European shares slipped on Tuesday after strong economic data fuelled expectations of higher interest rates, while London-listed HSBC rallied on a quarterly profit surge.
UK's benchmark FTSE 100 closed down by 0.46 percent, Germany's Dax ended down by 0.52 percent, France’s CAC finished the day down by 0. 037 percent.
Wall Street posted its worst performance of the year on Tuesday, with the main benchmarks ending down as investors interpreted a rebound in U.S. business activity in February to mean interest rates will need to stay higher for longer to control inflation.
Dow Jones closed down by 2.06 percent, S&P 500 ended down by 2.00 percent, Nasdaq finished the day down by 2.50 percent.
Commodities Recap
Gold prices eased on Tuesday as the dollar strengthened and bond yields rose, while investors looked toward U.S. economic data later this week for more clues on the rate-hike trajectory of the Federal Reserve.
Spot gold fell 0.5% to $1,832.78 per ounce by 2:21 p.m. ET (1921 GMT). U.S. gold futures slipped 0.4% to settle at $1,842.50.
Brent crude oil slipped more than 1% in a volatile session on Tuesday as persistent concerns about global economic growth outweighed supply curbs and prompted investors to take profits on the previous day's gains.
U.S. West Texas Intermediate crude (WTI) for March, which expired on Tuesday, fell 18 cents, or 0.2%, to $76.16 a barrel. The second-month contract slipped 19 cents, or 0.2%, at $76.27.