Posted at 22 February 2023 / Categories Market Roundups
Market Roundup
•German Jan HICP (MoM) 0.5% , 0.5% forecast, -1.2% previous
•German Feb CPI (YoY) 8.7%,8.7% forecast,8.6% previous
•German Feb CPI (MoM) 1.0%,1.0% forecast,-0.8% previous
• German Jan CPI (YoY) 8.7%, 9.1% previous
• EU Jan CPI (YoY) 8.3%,8.7% previous
•French Feb Business Survey 104,103 forecast,103 previous
•German Feb Ifo Business Climate Index 91.1,91.4 forecast,90.2 previous
•German Feb Business Expectations 88.5,88.3 forecast,86.4 previous
•German Feb Current Assessment 93.9,95.0 forecast,94.1 previous
•Italian Jan CPI (MoM) 0.1%,0.2% forecast,0.3% previous
•Italian Jan HICP (YoY) 10.7%,10.9% forecast,12.3% previous
•German Jan CPI (YoY) 8.5%, 8.5% previous
• German Jan CPI (YoY) 9.2%, 8.7% previous
• German Jan CPI (MoM) 1.2%, -0.6% previous
Looking Ahead - Economic data (GMT)
•13:30 Canada Jan New Housing Price Index (MoM) 0.1% forecast,0.0% previous
•13:55 Redbook (YoY) 4.9% previous
•14:00 Belgium Feb NBB Business Climate -12.0 forecast,-13.5 previous
•18:00 US 5-Year Note Auction 3.530% previous
Looking Ahead - Economic events and other releases (GMT)
•19:00 US FOMC Meeting Minutes
Fxbeat
EUR/USD: The euro declined on Wednesday as dollar strengthened on renewed bets of the U.S. Federal Reserve sticking to its monetary tightening trajectory. Recent data from the United States, including a hotter-than-expected January producer prices report, have added to a growing pile of evidence that the Federal Reserve's aggressive rate hikes have not yet cooled the economy to the central bank's satisfaction. On the data front, German producer prices rose more than expected in January, though the rate of increase eased for the fourth month in a row, data showed on Friday. 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 retreated on Wednesday, after surging on the back of stronger-than expected British business activity, as traders awaited consumer confidence data and focused on Britain’s political headaches . Data showed on Tuesday an unexpected bounce in Britain’s preliminary “flash” S&P Global/CIPS UK Composite Purchasing Managers’ Index, boosting speculation the country might avoid a long recession and bets the Bank of England (BoE) might keep rates higher for longer. After strengthening 0.6% against the dollar on Tuesday, sterling was down 0.24% to $1.2083 at 1151 GMT. Immediate resistance can be seen at 1.2158 (23.6%fib), an upside break can trigger rise towards 1.2263(Feb 14th high).On the downside, immediate support is seen at 1.2037 (5DMA), a break below could take the pair towards 1.1977(38.2%fib).
USD/CHF: The dollar steadied against the Swiss franc on Wednesday as investors awaited minutes of the U.S. Federal Reserve's latest policy meeting to assess prospects of further interest rate hikes. Data on Tuesday showed U.S. business activity unexpectedly rebounded in February to its highest level in eight months - the latest in a stream of data that have shown signs of a resilient U.S. economy and a tight labour market. Minutes of the Fed’s latest meeting are due at 1900 GMT on Wednesday. The Fed raised rates by 25 basis points at its Jan. 31-Feb. 1 meeting, and is expected to raise benchmark rates above 5% by May with a peak seen at 5.347% in July. Immediate resistance can be seen at 0.9290 (38.2%fib), an upside break can trigger rise towards 0.9329(Higher BB).On the downside, immediate support is seen at 0.9237(5DMA), a break below could take the pair towards 0.9166(23.6%fib).
USD/JPY: The dollar dipped against yen on Wednesday as investors waited for minutes of the latest Federal Reserve policy meeting.Survey data released on Tuesday showed U.S. business activity unexpectedly rebounded in February to reach its highest in eight months. The signs of economic strength caused traders to pencil in further interest rate hikes from the Federal Reserve on Tuesday. Investors' focus now turns to the release of the minutes from the Fed's latest meeting later on Wednesday, which could offer more insight into policymakers' plans. Strong resistance can be seen at 135.74(Higher BB), an upside break can trigger rise towards 136.42 (50%fib).On the downside, immediate support is seen at 134.27(5DMA), a break below could take the pair towards 133.26(23.6%fib)
Equities Recap
European shares were weighed down by mining stocks after metal prices dropped on Wednesday and as strong economic data sparked worries that interest rates could stay higher for longer.
At (GMT 13:11 ),UK's benchmark FTSE 100 was last trading down at 0.25 percent, Germany's Dax was down by 0.42 percent, France’s CAC was down by 0.35 percent.
Commodities Recap
Gold prices rose marginally on Wednesday, as investors awaited minutes of the U.S. Federal Reserve’s latest policy meeting to assess prospects of further interest rate hikes.
Spot gold was up 0.1% at $1,835.79 per ounce, as of 0643 GMT. U.S. gold futures firmed 0.1% to $1,844.00.
Oil prices fell for a third trading session on Wednesday as concerns about fuel demand were stoked by expectations that minutes due from the U.S. Federal Reserve will indicate a need to hike interest rates.
Brent crude futures for April delivery fell $1.13, or 1.36%, to $81.92 a barrel by 1025 GMT. West Texas Intermediate (WTI) crude futures for April dropped by $1.18, or 1.55%, to $75.18 a barrel.