Posted at 28 March 2023 / Categories Market Roundups
Market Roundup
•US Consumer confidence rose unexpectedly in March
•US Indexes: Dow down 0.1%, S&P 500 down 0.2%, Nasdaq down 0.5%
•US Wholesale Inventories (MoM) 0.2% ,0.2% forecast, -0.4% previous
•US Feb Goods Trade Balance -91.63B,91.00B,-91.09B previous
•US Feb Retail Inventories Ex Auto 0.4%,0.1% previous
•US Redbook (YoY) 2.8%,3.2% previous
•US Jan S&P/CS HPI Composite - 20 n.s.a. (YoY) 2.5%,2.5% forecast,4.6% previous
•US Jan House Price Index (YoY) 5.3%.6% previous
•US Jan S&P/CS HPI Composite - 20 s.a. (MoM) -0.4%, -0.5% forecast,-0.5% previous
•US Jan House Price Index 393.2,392.1 previous
•US Jan House Price Index (MoM) 0.2%, -0.2% forecast,-0.1% previous
•US Richmond Services Index -17,-3 previous
•US Richmond Manufacturing Shipments 2,-15 previous
•US Mar CB Consumer Confidence 104.2,101.0 forecast,102.9 previous
•US Mar Texas Services Sector Outlook -18.0,-9.3 previous
•US Dallas Fed Services Revenues 5.5, 6.6 previous
Looking Ahead Economic Data(GMT)
•00:30 Australia CPI (YoY) 7.1% forecast,7.4% previous
Looking Events and Other Releases (GMT)
•No Events Ahead
Currency Summaries
EUR/USD: The euro strengthened on Tuesday after efforts by regulators to allay fears over the global banking system fuelled risk appetite as investors scaled back on safe-havens in favour of riskier assets .A U.S. regulator-backed deal by First Citizens BancShares to buy failed Silicon Valley Bank soothed worries about a banking crisis which recently triggered a rush into safe-haven assets. The dollar index , which measures the currency against six rivals, was 0.31 % lower on the day at 102.43 , inching closer to the near seven-week low of 101.91 touched on Thursday. The euro was last up 0.26% to $1.0839.Immediate resistance can be seen at 1.0858(23.6%fib), an upside break can trigger rise towards 1.0898(Higher BB).On the downside, immediate support is seen at 1.0813(5DMA), a break below could take the pair towards 1.0785(38.2%fib).
GBP/USD: Sterling hovered around a two-month high on Tuesday as the Bank of England (BoE) said Britain was not experiencing stress linked to the demise of Silicon Valley Bank (SVB) and Credit Suisse.BoE Governor Andrew Bailey told parliament's Treasury Committee in a hearing on SVB: I don't think that any, and we've said this, that any of these features cause stress in the UK banking system. The BoE raised interest rates last week by 25 basis points to 4.25%, but said a surprise resurgence in inflation would fade fast, prompting speculation it had ended its run of hikes. Risk-sensitive sterling rose 0.2% against the U.S. dollar at $1.2313, not far from an almost two-month high touched on Thursday. Immediate resistance can be seen at 1.2350 (23.6%fib), an upside break can trigger rise towards 1.2381(Higher BB).On the downside, immediate support is seen at 1.2267(5DMA), a break below could take the pair towards 1.2148(38.2%fib).
USD/CAD: The Canadian dollar strengthened to a three-week high against its U.S. counterpart on Tuesday as easing of banking sector stress reduced demand for safe-haven assets and investors awaited the presentation of Canada's budget. Investors were also awaiting a speech by Bank of Canada Deputy Governor Toni Gravelle on Wednesday. U.S. crude oil futures settled 0.5% higher at $73.20 a barrel, adding to sharp gains the day before, while the safe-haven U.S. dollar fell against a basket of major currencies as investors' appetite for riskier currencies increased. The loonie was trading 0.4% higher at 1.3602 to the greenback, its strongest level since March 7. Immediate resistance can be seen at 1.3663 (38.2% fib), an upside break can trigger rise towards 1.3683(9DMA).On the downside, immediate support is seen at 1.3584 (50% fib), a break below could take the pair towards 1.3559(Lower BB).
USD/JPY: The dollar dipped against the Japanese yen on Tuesday as easing worries about the banking system revived investor appetites for riskier currencies.The dollar found little support from data on Tuesday that showed the U.S. trade deficit in goods widened modestly in February as exports declined, potentially setting up trade to be a drag on economic growth in the first quarter. The U.S. dollar fell against a basket of currencies for a second straight day as easing worries about the banking system revived investor appetites for riskier currencies. The Japanese yen strengthened 0.54% versus the greenback at 130.94 per dollar .Strong resistance can be seen at 131.00(Psychological level), an upside break can trigger rise towards 132.80 (38.2%fib).On the downside, immediate support is seen at 130.32(23.6%fib), a break below could take the pair towards 129.21(Lower BB).
Equities Recap
European stocks rose for a second session on Tuesday, lifted by commodity and banking shares, after a buyout deal for failed Silicon Valley Bank raised hopes that the banking crisis would be contained.
UK's benchmark FTSE 100 closed up by 0.17percent, Germany's Dax ended up by 0.09 percent, France’s CAC finished the day up by 0. 14 percent.
U.S. stocks ended slightly lower on Tuesday as investors weighed comments from a top U.S. regulator on struggling banks and sold shares of technology-related names after their recent strong run.
Dow Jones closed down by 0.12 percent, S&P 500 ended down by 0.16 percent, Nasdaq finished the day down by 0.45 percent.
Commodities Recap
Gold prices rose on Tuesday, drawing support from a weaker U.S. dollar even as higher bond yields and easing worries about a full-blown banking crisis limited gains for the safe-haven asset.
Following two sessions of declines, spot gold gained 0.7% to $1,970.88 per ounce by 1:40 p.m. EDT (1740 GMT). U.S. gold futures settled 1% higher at $1,973.50.
Crude oil prices edged up on Tuesday, extending sharp gains from the previous session on supply disruption risks from Iraqi Kurdistan and hopes that banking sector turmoil is contained.
Brent crude futures settled at $78.65 a barrel, up 53 cents, or 0.7%. West Texas Intermediate U.S. crude settled at $73.20 a barrel, gaining 39 cents, or 0.5%.