Posted at 27 February 2023 / Categories Market Roundups
Market Roundup
•Italian Feb Consumer Confidence 104.0,102.7 forecast,100.9 previous
•EU Private Sector Loans (YoY)3.6%,3.9% forecast,3.8% previous
•EU Feb Services Sentiment 9.5,12.4 forecast,10.7 previous
•EU Feb Consumer Confidence -19.0,-19.0 forecast,-19.0 previous
•EU Feb Business Climate 0.72,0.69 previous
•EU Business and Consumer Survey 99.7,101.0 forecast , 99.9 previous
• EU Feb Consumer Inflation Expectation 17.7,17.7 previous
•EU Feb Selling Price Expectations 23.8 forecast, 31.9 previous
•EU Feb Industrial Sentiment 0.5,2.0 forecast, 1.3 previous
•Belgium Feb CPI (YoY) 6.62%, 8.05% previous
•Belgium Feb CPI (MoM) -0.70%,0.09% previous
Looking Ahead Economic data (GMT)
•13:30 US Jan Core Durable Goods Orders (MoM) 0.1% forecast,-0.2% previous
•13:30 US Jan Durable Goods Orders (MoM) -4.0% forecast,5.6% previous
•13:30 US Jan Goods Orders Non Defense Ex Air (MoM) -0.1% previous
•13:30 US Jan Durables Excluding Defense (MoM) 6.2% previous
•13:30 Canada Current Account (Q4)-11.0B forecast,-11.1B previous
•14:00 French 6-Month BTF Auction 2.906% previous
•14:00 French 3-Month BTF Auction 2.693% previous
•14:00 French 12-Month BTF Auction 3.132% previous
•15:00 US Jan Pending Home Sales Index 76.9 previous
•15:00 US Jan Pending Home Sales (MoM) 1.0% forecast,2.5% previous
•15:30 US Feb Dallas Fed Mfg Business Index -8.4 previous
•16:30 US 3-Month Bill Auction 4.720% previous
•16:30 US 6-Month Bill Auction 4.915% previous
Looking Ahead - Events, Other Releases (GMT)
•15:30 US Fed Governor Jefferson Speaks
Fxbeat
EUR/USD: The euro was little changed on Monday as investors took stock of last week's strong U.S. economic data and the outlook for global interest rates.Data on Friday showed U.S. consumer spending rebounded sharply in January, while inflation accelerated.Traders now expect the Fed to raise interest rates to around 5.4% by the summer, according to pricing in futures markers. At the beginning of February, they envisaged rates rising to a peak of just 4.9%.The U.S. dollar index, which measures the greenback against six major peers, has risen almost 3% in February and is on track to snap a four-month losing streak. Immediate resistance can be seen at 1.0592(5DMA), an upside break can trigger rise towards 1.0623(23.6%fib).On the downside, immediate support is seen at 1.0537(50%fib), a break below could take the pair towards 1.0496(Lower BB).
GBP/USD: Sterling strengthened against the dollar on Monday a potential deal resolving post-Brexit tensions with the European Union was supporting the pound. British Prime Minister Rishi Sunak is expected to announce a new deal on post-Brexit trade rules for Northern Ireland on Monday, gambling that the reward of better ties with the European Union is worth the discord it might cause within his own party. The deal seeks to resolve tensions caused by the 2020 post-Brexit arrangements governing the British province and its open border with EU member Ireland, but it remains to be seen whether it will go far enough to end political deadlock in Northern Ireland and satisfy critics in Britain. The pound was up 0.31% at $1.198, after falling for three straight sessions. Immediate resistance can be seen at 1.2024 (5DMA), an upside break can trigger rise towards 1.2109(23.6%fib).On the downside, immediate support is seen at 1.1915(38.2%fib), a break below could take the pair towards 1.1967(Lower BB).
USD/CHF: The dollar strengthened against the Swiss franc on Monday as investors prepared for higher interest rates in the United States and Europe and there could be more figures to underpin that argument this week.U.S. manufacturing and services data, as well as a raft of euro zone inflation figures are going to be instrumental in shaping investor expectations for March's central bank meetings. Investors will get more information on the state of the global economy this week, with U.S. ISM manufacturing and services survey data for February due on Wednesday and Friday respectively. and preliminary euro zone CPI inflation figures for February due on Thursday. Immediate resistance can be seen at 0.9431 (38.2%fib ), an upside break can trigger rise towards 0.9500(Psychological level).On the downside, immediate support is seen at 0.9355(50%fib ), a break below could take the pair towards 0.9344(5DMA).
USD/JPY: The dollar steadied against yen on Monday after a slew of strong U.S. economic data reinforced the view that the Federal Reserve will have to raise interest rates further and for longer. Data on Friday showed U.S. consumer spending rebounded sharply in January, while inflation accelerated. The personal consumption expenditures price index, the Fed's preferred gauge of inflation, shot up 0.6% last month after gaining 0.2%. Incoming Bank of Japan Governor Kazuo Ueda said on Monday the merits of the bank's current monetary policy outweigh the costs, stressing the need to maintain support for the Japanese economy with ultra-low interest rates. The dollar was last down 0.22% against the Japanese yen at 136.21 yen. Strong resistance can be seen at 136.56(38.2%fib), an upside break can trigger rise towards 137.22 (Higher BB).On the downside, immediate support is seen at 135.56(5DMA), a break below could take the pair towards 134.81(50%fib)
Equities Recap
Europe's STOXX 600 rose on Monday, supported by gains across all major sectors, rebounding from its worst weekly performance this year on worries of higher-for-longer U.S. and eurozone interest rates.
At (GMT 13:05 ),UK's benchmark FTSE 100 was last trading up at 0.76 percent, Germany's Dax was up by 1.57 percent, France’s CAC was up by 1.76 percent.
Commodities Recap
Oil prices edged lower on Monday as a stronger dollar discouraged buying though losses were limited by supply concerns after Russia halted exports to Poland via a key pipeline.
Benchmark Brent crude futures were down 51 cents, or 0.6%, at $82.65 a barrel at 1303 GMT while West Texas Intermediate U.S. crude futures (WTI) traded at $76.08, down by 24 cents or 0.3%.
Gold fell to a two-month low on Monday as strong U.S. economic data sparked concern over further increases to interest rates by the Federal Reserve, clouding the outlook for zero-yielding bullion
Spot gold was steady at $1,811.60 an ounce by 1236 GMT, having earlier hitting its lowest since late December at $1,806.50. U.S. gold futures were unchanged at $1,817.20.