News

Europe Roundup: Euro gains traction as dollar retreats , European shares gains, Gold gains, Oil slips as rising supplies balance Chinese demand hopes-March 1st,2023

Posted at 01 March 2023 / Categories Market Roundups


Market Roundup

•UK Feb Nationwide HPI (MoM)   -0.5%,   -0.4% forecast,  -0.6% previous

•UK Nationwide HPI (YoY) -1.1%, -0.9% forecast,1.1% previous

•Swiss Jan Retail Sales (YoY)  -2.2%,-2.2% forecast,-2.8% previous

•Sweden Feb Manufacturing PMI  47.0 forecast,46.8 previous

•EU Feb Spanish Manufacturing PMI  50.7,49.1 forecast,  48.4 previous

•German Manufacturing PMI  46.3, 46.5, forecast,46.5 previous

•German Feb Unemployment Change 2K,9K forecast,-15K previous

•German Feb Unemployment Rate 5.5%, 5.5%  forecast,5.5% previous

•German Feb Unemployment  2.509M,2.498M previous

•German Feb CPI (YoY) 8.7%, 8.5% previous

• German Feb CPI (YoY)  8.8%, 8.8% previous

• German Feb CPI (MoM)  0.8% forecast, 0.7% previous

•UK Jan M4 Money Supply (MoM)  1.3%, -0.9% forecast,-0.8% previous

•  UK Feb Manufacturing PMI 49.3, 49.2  forecast,49.2 previous

• German Feb CPI (MoM)  0.8%,0.6% forecast,1.0% previous

• German Feb CPI (YoY)  8.7%, 8.5% forecast,8.7% previous

Looking Ahead Economic Data(GMT)

•14:30 Canada Feb  Manufacturing PMI  51.0 previous

•14:45 US Feb Manufacturing PMI  47.8 forecast,46.9 previous

•15:00 US Jan Construction Spending (MoM)  0.2% forecast,-0.4% previous

•15:00 US Feb ISM Manufacturing PMI  48.0 forecast, 47.4 previous

•15:00 US Feb ISM Manufacturing Employment 50.6 previous

•15:00 US  Feb ISM Manufacturing New Orders Index 42.5 previous

•15:00 US Cushing Crude Oil Inventories 0.700M previous

•15:30 US  Crude Oil Inventories  0.457M forecast,7.648M previous

•15:30 US Cushing Crude Oil Inventories 0.700M previous

Looking Ahead Events And Other Releases(GMT)

• No Events Ahead

Fxbeat

EUR/USD: The euro gained against the dollar on Wednesday after regional German inflation data signalled price pressures remained high. Inflation data from German regions, a day after February numbers showed price pressures surged more than expected across France and Spain, bolstered expectations that the European Central Bank will push interest rates higher and previously thought. The euro was last up 0.9% against the dollar to $1.0672 , on track for its biggest daily gain since Feb. 1.Immediate resistance can be seen at 1.0675 (14DMA), an upside break can trigger rise towards 1.0796 (23.6%fib  ).On the downside, immediate support is seen at 1.0570 (38.2%fib), a break below could take the pair towards  1.0501(Lower BB).

GBP/USD: Sterling rose marginally against a weaker dollar on Wednesday; trimming gains made earlier in the session after Bank of England Governor Andrew Bailey said nothing had been decided in terms of whether interest rates would need to rise again. Bailey cautioned against the idea that either the central bank has finished raising rates, or that it will inevitably need to do more.His comments prompted traders to slightly trim their bets on the likelihood of a 25 bps rate increase when the BoE meets on March 23 for its next policy meeting. By 1130 GMT, the pound was 0.1% higher against the dollar at $1.20310. Immediate resistance can be seen at 1.2155(23.6%fib), an upside break can trigger rise towards 1.2258(Higher BB).On the downside, immediate support is seen at 1.2037(9DMA), a break below could take the pair towards 1.1975 (38.2%fib).

USD/CHF: The dollar declined against the Swiss franc on Wednesdayas strong Chinese economic data dented demand for dollar. China's official manufacturing purchasing managers' index (PMI) rose to 52.6 last month from 50.1 in January and was well ahead of an analyst forecast for 50.5, giving investors hope that China's recovery can offset a global slowdown. The world's second-largest economy recorded one of its worst years in nearly half a century in 2022 due to strict COVID lockdowns and subsequent widespread infections. The curbs were abruptly lifted in December as the highly transmissible Omicron spread across the country. Immediate resistance can be seen at 0.9409 (38.2%fib), an upside break can trigger rise towards 0.9443(Higher BB).On the downside, immediate support is seen at 0.9343(50%fib  ), a break below could take the pair towards 0.9308(9DMA).

USD/JPY: The dollar declined against yen on Wednesday  after China's manufacturing activity expanded at its fastest pace since April 2012.  An official index showed on Wednesday, China's manufacturing activity smashed expectations as production zoomed after the lifting of COVID-19 restrictions late last year.The manufacturing purchasing managers' index (PMI) shot up to 52.6 from 50.1 in January, according to China's National Bureau of Statistics, above the 50-point mark that separates expansion and contraction in activity. The PMI far exceeded an analyst forecast of 50.5 and was the highest reading since April 2012.The dollar fell 0.65% against the Japanese yen to 135.36, having spiked close to 5% against the yen in February, its largest monthly gain since last June.Strong resistance can be seen at 138.03(23.6%fib), an upside break can trigger rise towards 138.48(Higher BB).On the downside, immediate support is seen at 135.67 (38.2%fib), a break below could take the pair towards 135.12 (9DMA).

Equities Recap

Miners and luxury firms lifted European shares on Wednesday after strong data from China brought relief to investors fearful of an economic slowdown, while declines in shares of euro-zone's biggest bank BNP Paribas kept gains in check.

At (GMT 13:33),UK's benchmark FTSE 100 was last trading up at 0.78 percent, Germany's Dax was up  by 0.39 percent, France’s CAC   was up  by 0.43 percent.

Commodities Recap

Gold rose on Wednesday as strong Chinese economic data dented the dollar and drove some bets for better physical demand from the top bullion consumer, but the risk of elevated U.S. interest rates capped gains.

Spot gold was up 0.5% to $1,835.60 per ounce, as of 1209 GMT, after hitting a two-month low in the previous session. U.S. gold futures rose 0.4% to $1,843.00.

Oil slipped on Wednesday, giving up an earlier gain, as signs of ample supply and rising U.S. crude inventories countered hopes for higher demand arising from a jump in manufacturing in top crude importer China.

Brent crude was down 41 cents, or 0.4%, to $83.04 a barrel at 1240 GMT., U.S. West Texas Intermediate (WTI) crude fell 60 cents, or 0.7%, to $76.45.


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