Posted at 23 February 2023 / Categories Market Roundups
Market Roundup
•US Weekly jobless claims fall, GDP grows 2.7% in Q4
•US Indexes up: Dow 0.33%, S&P 0.53%, Nasdaq 0.72%
•US Jobless Claims 4-Week Avg 191.25K, 189.50K previous
•US Continuing Jobless Claims 1,654K, 1,700K forecast, 1,696K previous
•US Initial Jobless Claims 192K, 200K forecast, 194K previous
•US Corporate Profits (QoQ) (Q4) 0.8% previous
•US GDP Price Index (QoQ) (Q4) 3.9%,3.5% forecast, 4.4% previous
•US Core PCE Prices (Q4) 4.30%, 3.90% forecast,3.90% previous
•US PCE Prices (Q4) 3.7%, 3.2% previous
•US GDP (QoQ) (Q4) 2.7%,2.9%forecast,3.2% previous
•US GDP Sales (Q4) 1.2%,1.4% previous
•US Real Consumer Spending (Q4) 1.4% ,2.1% previous
•US Jan Chicago Fed National Activity 0.23, -0.49 previous
•US Natural Gas Storage-71B,-67B forecast-100B previous
•US Crude Oil Inventories 7.648M,2.083M forecast, 16.283M previous
Looking Ahead Economic Data(GMT)
•23:30 Japan Foreign Bonds Buying 716.5B previous
•23:30 Japan Foreign Investments in Japanese Stocks 105.1B previous
Looking Ahead Events and Other Releases (GMT)
•No significant events
Currency Summaries
EUR/USD: The euro eased on Thursday as dollar was bolstered by strong economic data that continues to suggest the U.S. Federal Reserve's monetary policy tightening could be extended if it is to bring down the highest inflation in decades. A succession of stronger-than-expected data and recent rhetoric from "a few" policymakers in favor of larger interest-rate increases have been supporting the greenback this month. Adding to that, the number of Americans filing new claims for unemployment benefits unexpectedly fell last week, showing a still-tight labor market and a resilient U.S. economy. The dollar index , which tracks the greenback against six major peers, up 0.06% higher than its previous close at 104.57. The euro was down 0.09% in late New York trading . 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 1.0590(38.2%fib), a break below could take the pair towards 1.0541(Lower BB).
GBP/USD: Sterling eased against the dollar on Thursday, shaking off hawkish remarks by a Bank of England policymaker. Bank of England Monetary Policy Committee member Catherine Mann said that it was too soon to say the risks posed by the surge in inflation last year had eased and the central bank should continue to raise borrowing costs. Positive economic signals from a PMI survey earlier this week raised the likelihood of another Bank of England interest rate rise in March, with the market now pricing in a 95% chance of a 25 bps rate hike, after which it is expected to halt hiking rates .Immediate resistance can be seen at 1.1996(5DMA), an upside break can trigger rise towards 1.2168(23.6%fib).On the downside, immediate support is seen at 1.2025(Daily low), a break below could take the pair towards 1.1987(38.2%fib).
USD/CAD: The Canadian dollar edged higher against its U.S. counterpart on Thursday as oil and stocks rebounded, but the currency stayed within reach of an earlier seven-week low. Canada’s annual inflation rate eased more than expected in January to 5.9%, data on Tuesday showed, which should allow the BoC to keep its policy rate steady at 4.50% at its next meeting in March while it lets previous rate increases sink in.The price of oil, one of Canada’s major exports, settled nearly 2% higher at $75.39 a barrel on expectations of steep cuts to Russian production next month, but was still down since the start of the week.The loonie was trading 0.1% higher at 1.3543 to the U.S. currency , after touching its weakest intraday level since Jan. 6 at 1.3581 .Immediate resistance can be seen at 1.3584 (23.6% fib), an upside break can trigger rise towards 1.3607 (Higher BB).On the downside, immediate support is seen at 1.3526(5DMA), a break below could take the pair towards 1.3516 (38.2% fib).
USD/JPY: The dollar dipped against yen on Thursday as investors awaited a speech from incoming Bank of Japan Governor Kazuo Ueda, hoping for clues on its bond yield control policy. Incoming Bank of Japan (BOJ) Governor Kazuo Ueda will speak in parliament on Friday, offering markets a first glimpse of how the new-look central bank could steer an exit from ultra-low interest rates.Ueda's confirmation hearing at the lower house, which will last for nearly three hours from 9:30 a.m. (0030GMT), comes as markets renew their attack on the central bank's yield curve control (YCC) policy on bets of a near-term rate hike. Strong resistance can be seen at 135.45(23.6%fib), an upside break can trigger rise towards 136.37 (Higher BB).On the downside, immediate support is seen at 134.35 (5DMA), a break below could take the pair towards 133.87(38.2%fib)
Equities Recap
European shares inched higher on Thursday, after two straight sessions of declines, supported by financial stocks and upbeat guidance by regional companies, while U.S. semiconductor designer Nvidia's positive sales forecast sparked a rally in chip stocks.
UK's benchmark FTSE 100 closed down by 0.29 percent, Germany's Dax ended up by 0.49 percent, France’s CAC finished the day up by 0.25 percent.
Wall Street ended a topsy-turvy Thursday in positive territory, with the S&P 500 snapping a four-session losing streak, as investors grappled with how interest rate policy might affect the U.S. economy.
Dow Jones closed up by 0.33% percent, S&P 500 closed up by 0.53% percent, Nasdaq settled up by 0.72% percent.
Treasuries Recap
U.S. Treasury yields slid in choppy trading on Thursday, with investors already factoring in strong economic data that has supported expectations of a few more interest rate hikes by the Federal Reserve this year.
In afternoon trading, the yield on 10-year Treasury notes was down 4.6 bps at 3.876%.
The U.S. two-year yield, which typically reflects interest rate expectations, was little changed at 4.697%.
Commodities Recap
Gold prices slipped to their lowest in about two months on Thursday, after a drop in U.S. weekly jobless claims numbers favoured the Federal Reserve’s stance that interest rates would have to go higher to control inflation.
Spot gold was down 0.1% at $1,823.16 per ounce by 2:16 p.m. ET (1916 GMT), having touched their lowest level since Dec. 30 earlier. U.S. gold futures fell 0.8% to settle at $1,826.80.
Oil prices settled up 2% on Thursday on expectations of steep cuts to Russian production next month, but a stronger dollar and a sharper-than-expected jump in U.S. inventories added to demand concerns.
Brent crude futures settled up $1.61, or 2%, to $82.21 a barrel, compared with about $98 a barrel on the eve of Russia's invasion of Ukraine a year ago.
West Texas Intermediate crude futures (WTI) settled up $1.44, or 2%, to $75.39 a barrel, ending a sixth session losing streak.