Posted at 06 March 2023 / Categories Market Roundups
Market Roundup
•Swiss Feb CPI (MoM) 0.7%,0.4% forecast,0.6% previous
•Swiss Feb CPI (YoY) 3.4%,3.1% forecast,3.3% previous
•Italian Feb IHS S&P Global Construction PMI (MoM) 48.9,48.2 previous
•EU Feb M2 Money Supply (MoM) 47.6 ,46.1 previous
•French Feb IHS S&P Global Construction PMI (MoM) 45.2,48.4 previous
•German Feb IHS S&P Global Construction PMI 48.6,43.3 previous
• EU Mar Sentix Investor Confidence -11.1,-6.3 forecast,-8.0 previous
•UK Feb Construction PMI 54.6,49.1 forecast,48.4 previous
•EU Jan Retail Sales (MoM) 0.3%,1.0% forecast,-2.7% previous
•EU Jan Retail Sales (YoY) -2.3%, -1.8% forecast,-2.8% previous
Looking Ahead Economic Data (GMT)
•14:00 French 3-Month BTF Auction 2.690% previous
•14:00 French 6-Month BTF Auction 2.928% previous
•14:00 French 12-Month BTF Auction 3.240% previous
•15:00 US Jan Factory Orders (MoM) -1.8% forecast,1.8% previous
•15:00 Canada Feb Ivey PMI 55.9 forecast,60.1 previous
•15:00 Canada Feb Ivey PMI n.s.a 54.7 previous
•15:00 US Jan Durables Excluding Defense (MoM) -5.1% previous
•15:00 US Jan Durables Excluding Transport (MoM) 0.7% previous
•15:00 US Jan Factory orders ex transportation (MoM) -1.2% previous
Looking Ahead Events And Other Releases(GMT)
•16:00 German Buba Balz Speaks
Fxbeat
EUR/USD: The euro was little changed against the dollar on Monday as market focus shifted to the U.S. ahead of Federal Reserve Chair Jerome Powell’s testimony on Tuesday.Fed officials last week expressed doubt about whether recent hotter-than-expected data was a sign that higher interest rates were required.Atlanta Fed President Raphael Bostic said the central bank should stick with “steady” quarter-point rate increases, for now, to limit economic risks. The euro , which has lost around 3% against the dollar since early February, was last flat on the day at $1.0635.Immediate resistance can be seen at 1.0660 (21DMA), an upside break can trigger rise towards 1.0741 (Feb 20th high).On the downside, immediate support is seen at 1.0590 (38.2%fib), a break below could take the pair towards 1.0554(Lower BB).
GBP/USD: Sterling fell against the dollar and euro on Monday, with traders focused on global risk sentiment for direction on the currency ahead of a quiet week in Britain. On the data front, a survey on Monday showed British construction activity growing at its fastest pace in nine months in February after two months of declines, as a rebound in commercial work and civil engineering helped offset a continued fall in house-building. By 1109 GMT, the pound was 0.27% lower against the dollar at $1.201 and 0.25% lower against the euro at 88.50 pence. Immediate resistance can be seen at 1.2043(21DMA), an upside break can trigger rise towards 1.2157(23.6%fib).On the downside, immediate support is seen at 1.1976(38.2%fib), a break below could take the pair towards 1.1932(Lower BB).
USD/CHF: The dollar dipped against the Swiss franc on Monday as greenback attracted sellers ahead U.S. Federal Reserve Chair Jerome Powell’s testimony this week for hints on future rate hikes. After delivering jumbo hikes last year, the Fed has raised interest rates by 25 basis points at its last two meetings. But a slew of resilient economic data has fed a belief among investors that the central bank might have to switch back to half-point rises.Futures imply a 76% chance the Fed will raise interest rates by 25 basis points at its meeting on March 22, with a 24% chance of a 50 bps increase. Immediate resistance can be seen at 0.9386 (23.6%fib), an upside break can trigger rise towards 0.9432(March 3rd high).On the downside, immediate support is seen at 0.9320 (38.2%fib), a break below could take the pair towards 0.9293(21DMA).
USD/JPY: The dollar dipped against yen on Monday as traders tried to gauge the path for Federal Reserve policy. Powell will be testifying before Congress on Tuesday and Wednesday and investors will watch for clues on the policy outlook, after recent strong economic data and hot inflation numbers fueled bets for more interest rate hikes this year. Traders expect at least three 25-basis-point hikes this year and see interest rates peaking at 5.44% by September from 4.67% now. Strong resistance can be seen at 136.13(5DMA), an upside break can trigger rise towards 137.20(23.6%fib).On the downside, immediate support is seen at 135.28 (38.2%fib), a break below could take the pair towards 134.10 (24th Feb low).
Equities Recap
European shares rose on Monday, with Telecom Italia jumping to the top of the continent-wide STOXX 600 index, while mining companies slid after top consumer China set a modest annual growth target.
At (GMT 13:36 ),UK's benchmark FTSE 100 was last trading down at 0.46 percent, Germany's Dax was up by 0.51 percent, France’s CAC was up by 0.40 percent.
Commodities Recap
Gold prices retreated on Monday from an earlier 2-1/2 week high as traders awaited U.S. Federal Reserve Chair Jerome Powell’s testimony this week for hints on future rate hikes.
Spot gold was down 0.3% at $1,849.90 per ounce by 1238 GMT after hitting its highest since Feb. 15 at $1,858.19. U.S. gold futures edged up 0.1% to $1,855.60.
Oil prices fell on Monday after China set a lower-than-expected target for economic growth this year at around 5%, and as investors cautiously awaited U.S. Federal Reserve Chair Jerome Powell's testimony this week.
Brent crude futures were trading down $1.07, or 1.3%, at $84.76 a barrel at 1322 GMT. U.S. West Texas Intermediate (WTI) crude futures were also down 99 cents or 1.2% at $78.69.