Posted at 03 March 2023 / Categories Market Roundups
Market Roundup
•German Jan Imports (MoM) -3.4%,2.0%forecast,-6.1% previous
•German Jan Trade Balance 16.7B,11.0B forecast,10.0B previous
•German Jan Exports (MoM) )2.1%,1.5% forecast,-6.3% previous
•Italian Feb Composite PMI 52.2,51.2 previous
•Italian Feb Services PMI 51.6,53.1 forecast,51.2 previous
•French Feb S&P Global Composite PMI 51.7,51.6 forecast,49.1 previous
•French Feb Services PMI 53.1,52.8 forecast,49.4 previous
•German Feb Composite PMI 50.7,51.1 forecast,49.9 previous
•German Feb Services PMI 50.9, 51.3 forecast,50.7 previous
•EU Feb Services PMI 52.7,53.0 forecast,50.8 previous
•EU Feb S&P Global Composite PMI 52.0,52.3 forecast,50.3 previous
•UK Feb Composite PMI 53.1, 53.0 forecast,48.5 previous
•UK Feb Services PMI 53.5,53.3 forecast,48.7 previous
•EU Jan PPI (MoM)-2.8%,-0.3% forecast,1.1% previous
•EU Jan PPI (YoY) 15.0%,17.7% forecast,24.6% previous
Looking Ahead Economic Data(GMT)
•14:45 US Feb Services PMI 50.5 forecast,46.8 previous
•14:45 US Feb S&P Global Composite PMI 50.2 forecast,46.8 previous
•15:00 US Feb ISM Non-Manufacturing PMI 54.5 forecast,55.2 previous
•15:00 US Feb ISM Non-Manufacturing Business Activity 60.4 previous
•15:00 US Feb ISM Non-Manufacturing New Orders 60.4 previous
•15:00 US Feb ISM Non-Manufacturing Prices 67.8 previous
•15:00 US Feb ISM Non-Manufacturing Employment 50.0 previous
•18:00 US U.S. Baker Hughes Total Rig Count 753 previous
•18:00 US U.S. Baker Hughes Oil Rig Count 600 previous
Looking Ahead - Economic events and other releases (GMT)
•16:00 US Fed Logan Speaks
•16:00 UK BoE Hauser Speaks
•16:45 US FOMC Member Bostic Speaks
Fxbeat
EUR/USD: The euro strengthened against the dollar on Friday after sticky inflation data from euro zone countries drove market expectations for the European Central Bank terminal rate to around 4%.Meanwhile, the ECB continued to sound hawkish, with Governing Council member Pierre Wunsch saying the central bank could raise its key interest rate as high as 4% if underlying inflation remains high. The euro rose 0.16% to $1.0614, after climbing off a nearly two-month low of $1.0533 at the start of the week. Immediate resistance can be seen at 1.0620 (11DMA), an upside break can trigger rise towards 1.07779 (23.6%fib).On the downside, immediate support is seen at 1.0559 (38.2%fib), a break below could take the pair towards 1.0537(Lower BB).
GBP/USD: The pound rose on Friday, boosted by data that showed business activity expanded at its fastest pace in eight months in February, which added to the view among investors that UK rates will continue to rise beyond March.The final version of the S&P Global/CIPS UK services Purchasing Managers’ Index (PMI) increased to 53.5 last month, up from 48.7 in January, the strongest rate of growth since June last year. Any reading above 50 represents an expansion. Immediate resistance can be seen at 1.2054(21DMA), an upside break can trigger rise towards 1.2102(23.6%fib).On the downside, immediate support is seen at 1.1932(9DMA), a break below could take the pair towards 1.1883 (Lower BB).
USD/CHF: The dollar declined against the Swiss franc on Friday as traders assessed prospects of further rate hikes by the Federal Reserve. The impact of higher U.S. interest rates on the economy may only begin to “bite” in earnest this spring, an argument for the Fed to stick with “steady” quarter-point rate increases, Atlanta Fed President Raphael Bostic said on Thursday. The dollar index eased 0.2% and was headed for its first weekly loss since January. Immediate resistance can be seen at 0.9443 (38.2%fib), an upside break can trigger rise towards 0.9518(23.6%fib).On the downside, immediate support is seen at 0.9356(50%fib), a break below could take the pair towards 0.9344(11DMA).
USD/JPY: The dollar dipped against yen on Friday as traders tried to gauge the path for Federal Reserve policy. Taking some steam out of the dollar were comments from Atlanta Fed President Raphael Bostic overnight that "slow and steady is going to be the appropriate course of action," despite new labour figures adding to the run of strong data of late. The dollar index , which measures the currency against the yen, euro and four other major peers, eased 0.25% to 104.7The dollar eased 0.54% to 136.02 yen , after climbing to 137.10 overnight, the highest since Dec. 20. For the week, the dollar is down 0.3% versus the yen. Strong resistance can be seen at 136.97(38.2%fib), an upside break can trigger rise towards 138.00(Psychological level).On the downside, immediate support is seen at 135.57 (11DMA), a break below could take the pair towards 134.59 (50%fib).
Equities Recap
European stocks rose on Friday and Wall Street was set to open higher as investor risk appetite was boosted by data pointing to economic growth, even as expectations for rate hikes kept euro zone government bond yields near multi-year highs.
At (GMT 13:40 ),UK's benchmark FTSE 100 was last trading dolwn at 0.19 percent, Germany's Dax was up by 1.16 percent, France’s CAC was up by 0.57 percent.
Commodities Recap
Gold prices rose on Friday and looked set to post their biggest weekly gain since mid-January, as the U.S. dollar eased, while traders assessed prospects of further rate hikes by the Federal Reserve.
Spot gold was up 0.4% at $1,843.00 per ounce, as of 0717 GMT, rising about 1.8% so far in the week. U.S. gold futures advanced 0.5% to $1,849.50.
Oil prices dipped on Friday but were poised to register a weekly gain, with renewed optimism on China's demand recovery outweighing worries over recession, growing U.S. crude inventories and tightening monetary policy in Europe.
Brent crude futures slipped by 51 cents, or 0.6%, to $84.24 a barrel by 1207 GMT. U.S. West Texas Intermediate (WTI) crude futures were down 41 cents, or 0.5%, at $77.75.