News

Europe Roundup: Sterling rises against dollar after better than expected UK GDP data, European shares falls, Gold edges up, Oil prices set for 5% weekly drop on U.S. rate hike jitters-March 10th,2023

Posted at 10 March 2023 / Categories Market Roundups


Market Roundup

•UK Jan Construction Output (MoM)  -1.7%,-0.1% forecast,-0.5% previous

•UK Jan U.K. Construction Output (YoY) 0.6%,2.4% forecast,3.7% previous

•UK Jan GDP (MoM)  0.3%,0.1%  forecast,-0.5% previous

•UK Jan Monthly GDP 3M/3M Change 0.0%, -0.1% forecast,0.0% previous

•UK Jan Trade Balance -17.86B, -17.75B forecast,-19.27B previous

• UK Jan Trade Balance Non-EU  -7.81B,   -7.48B previous

• German Feb HICP (YoY)  9.3%, 9.3% forecast,9.2% previous

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

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

•German Feb HICP (MoM) 1.0% ,1.0% forecast,0.5% previous

• German Jan Industrial Production (MoM)  -0.3%,-0.1%  forecast,0.3% previous

• German Jan Industrial Production (YoY) -4.3%,   -4.0% forecast,-4.0% previous

• UK Jan Manufacturing Production (MoM)  -0.4%,-0.1%  forecast,0.0% previous

•UK Jan Manufacturing Production (YoY)  -5.2%,   -5.0% forecast,  -5.7% previous

•French Jan Imports  62.4B, 65.9B previous

•French Jan French Current Account  -3.60B,-8.50B previous

•French Jan Exports  49.4B,50.6B previous

Looking Ahead Economic Data(GMT)

•13:30   Canada Feb Part Time Employment Change  28.9K previous

•13:30   Canada Capacity Utilization Rate (Q4)82.6% previous

•13:30   Canada Feb Full Employment Change  121.1K previous

•13:30   Canada Feb Unemployment Rate  5.1% forecast,5.0% previous

•13:30   Canada Feb Participation Rate  65.7% previous

•13:30   Canada Feb Employment Change  10.0K forecast,150.0K previous

•13:30   US  Feb Unemployment Rate  3.4% forecast,3.4% previous

13:30   US Feb Nonfarm Payrolls  205K forecast,517K previous

•13:30   US Feb Average Hourly Earnings (YoY) (YoY)  4.7% forecast,4.4% previous

•13:30   US Feb Participation Rate   62.4% previous

•13:30   US Feb U6 Unemployment Rate  6.6% previous

•13:30   US Feb Average Hourly Earnings (MoM)  0.3% forecast,0.3% previous

•13:30   US Private Nonfarm Payrolls  210K forecast,443K previous

•13:30   US Feb Manufacturing Payrolls  12K forecast,19K previous

•13:30   US Feb Government Payrolls 74.0K previous

•13:30   US  Feb Average Weekly Hours  34.6 forecast,34.7 previous

•18:00   U.S. Baker Hughes Oil Rig Count 592 previous

•18:00   U.S. Baker Hughes Total Rig Count 749 previous

•19:00   US Feb Federal Budget Balance  -256.0B forecast,-39.0B previous

Looking ahead Events and Other Releases(GMT)

•15:00   EU  ECB President Lagarde Speaks           
Fxbeat

EUR/USD: The euro edged higher against the dollar on Friday ahead of closely watched U.S. jobs data that could offer clues on the Federal Reserve's next steps for monetary policy .According to a   survey of economists, nonfarm payrolls likely increased by 205,000 jobs in February after surging by 517,000 in January. Against a basket of currencies, the U.S. dollar index fell 0.12% to 105.12 but remained on track for a weekly gain of nearly 0.6%. It surged earlier in the week after Fed Chair Jerome Powell struck a more hawkish tone than markets had expected at his semi-annual testimony before the Senate Banking Committee. Immediate resistance can be seen at 1.0596 (9DMA), an upside break can trigger rise towards 1.0699(38.2%fib).On the downside, immediate support is seen at 1.0521 (50%fib), a break below could take the pair towards  1.0490(Lower BB).

GBP/USD: Sterling strengthened against a softer dollar   on Friday after upbeat UK GDP data boosted sterling. The Office for National Statistics (ONS) said Britain's economy expanded 0.3% month-on-month, after a drop of 0.5% in December - a reading that is likely to further allay recession fears, at least in the short term.A poll of economists had pointed to growth of 0.1%.The pound rose against the dollar and euro on the back of the figures, which showed growth was powered entirely by services Immediate resistance can be seen at 1.2061(21DMA), an upside break can trigger rise towards 1.2150(23.6%fib).On the downside, immediate support is seen at 1.1981(38.2%fib), a break below could take the pair towards 1.1924(Lower BB).

USD/CHF: The dollar declined against the Swiss franc on Friday  after a rise in jobless claims in the United States implied possibly easing conditions in the labour market and tempered expectations of further aggressive rate hikes from the Federal Reserve. Data released on Thursday showed that the number of Americans filing new claims for unemployment benefits increased by the most in five months last week, though the underlying trend remained consistent with a tight labor market.Nonetheless, the jump in jobless claims was enough to cause traders to unwind some bets that U.S. rates would rise much higher than previously expected. Immediate resistance can be seen at 0.9354 (38.2%fib), an upside break can trigger rise towards 0.9371(9DMA).On the downside, immediate support is seen at 0.9262(23.6%fib), a break below could take the pair towards 0.9205(Feb 21st low).

USD/JPY: The dollar strengthened against yen on Friday after the Bank of Japan kept stimulus settings steady. The yen slid more than 0.6% in a knee-jerk plunge after the BOJ kept policy unchanged in Governor Haruhiko Kuroda's last policy meeting before he steps down in April. It later recouped some of those losses and was last roughly 0.4% lower at 136.66 per dollar. While the decision was expected by most market watchers, many see the days of the BOJ's bond yield curve control (YCC) as numbered, which led to some pricing in a slim chance of a policy tweak at Kuroda's last policy meeting. Strong resistance can be seen at 136.54(5DMA), an upside break can trigger rise towards 138.11(Higher BB).On the downside, immediate support is seen at 136.08 (38.2%fib), a break below could take the pair towards 134.38(50%fib).

Equities Recap

European banking stocks headed for their largest one-day fall in nine months on Friday, a day after a sharp sell-off in U.S. banks.

At (GMT 11:59 ),UK's benchmark FTSE 100 was last trading down at 1.57 percent, Germany's Dax was down by 1.21 percent, France’s CAC   was down by 1.10 percent.

Commodities Recap

Gold prices edged up but headed for a weekly fall on Friday as prospects of further interest rate rises dented its allure, while traders awaited a U.S. non-farm payrolls report due later in the day.

Spot gold was up 0.3% at $1,836.18 per ounce, as of 0909 GMT. Prices have fallen more than 1% this week.U.S. gold futures also rose 0.2% to $1,838.70.

Oil fell for a fourth session on Friday, heading for its biggest weekly loss in five weeks on worries about the prospect of steep interest rate hikes in the United States hitting fuel demand.

Brent dipped 41 cents, or 0.5%, to $81.18 a barrel by 0852 GMT. U.S. West Texas Intermediate crude (WTI) was down 56 cents, or 0.7%, at $75.16.


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