News

Europe Roundup: Sterling hits 10-month peak against dollar, European shares rise, Gold edges lower, Oil extends gains on OPEC+ surprise cuts-April 4th,2023

Posted at 04 April 2023 / Categories Market Roundups


Market Roundup

•German Feb Imports (MoM) 4.6%,1.0%forecast,4.6% previous

•German Feb Trade Balance  16.0B,17.0B forecast,16.7B previous

•German Feb Exports (MoM)  4.0%,1.6% forecast,4.0% previous

•Spanish Unemployment Change-48.8K,   8.5K forecast,2.6K previous        

•EU Feb PPI (YoY) 13.2%,13.3% forecast,15.0% previous

•EU Feb PPI (MoM) -0.5%,-0.3%               forecast,-2.8% previous

Looking ahead Economic Data(GMT)

•12:30 Canada Feb Imports  65.10B previous

•12:30 Canada Feb Exports  67.02B previous

•12:30 Canada Feb Trade Balance  1.80B forecast,1.92B previous

•12:30 Canada Feb Building Permits (MoM)  2.0% forecast,-4.0% previous

•12:55  US Redbook (YoY)2.8% previous

•14:00 US Feb Factory orders ex transportation (MoM) -0.8% forecast,1.2% previous

•14:00 US Feb Durables Excluding Transport (MoM)  0.7% previous

•14:00 US Feb Durables Excluding Defense (MoM)  -0.5% previous

•14:00 US Feb Factory Orders (MoM ) -0.5% forecast, -1.6% previous

•14:00 US Feb JOLTs Job Openings 10.400M forecast,10.824M previous

•14:00 US  IBD/TIPP Economic Optimism 47.0   forecast,46.9 previous

•15:00GlobalDairyTrade Price Index -2.6% previous

Looking Ahead Events And Other Releases(GMT)

•14:30   UK BoE MPC Member Pill Speaks

•17:30 US Fed Governor Cook Speaks   

•17:30 US  FOMC Member Rosengren Speaks

Fxbeat

EUR/USD: The euro initially gained against dollar on Tuesday but   pared some gains after  data showed Euro zone producer prices fell in February .Euro zone producer prices fell for a fifth consecutive month and by more than expected in February, almost entirely due to declining energy prices.EU statistics office Eurostat said on Tuesday that prices at factory gates in the 20 countries sharing the euro declined by 0.5% month-on-month in February for a 13.2% year-on-year increase. Economists polled   had expected a monthly fall in prices of 0.3% and a year-on-year deceleration to 13.3%. Immediate resistance can be seen at 1.0950(23.6%fib), an upside break can trigger rise towards 1.0972(higher BB).On the downside, immediate support is seen at 1.0846(5DMA), a break below could take the pair towards 1.0734(38.2%fib).

GBP/USD: The British pound rose to a new 10-month high against the dollar on Tuesday  as the U.S. currency continued to suffer from market bets that the end of the U.S. rate-hiking cycle is near. The latest data to support a slowing in rate increases was from a Monday survey by the Institute for Supply Management (ISM) that showed that manufacturing activity fell to the lowest in nearly three years in March as new orders continued to contract, with all sub-components of its manufacturing PMI below the 50 threshold for the first time since 2009.  Immediate resistance can be seen at 1.2480(23.6%fib), an upside break can trigger rise towards 1.2525(Higher BB).On the downside, immediate support is seen at 1.2403(Daily low), a break below could take the pair towards 1.2339(5DMA).

 USD/CHF: The dollar initially dipped against the Swiss franc on Tuesday  but pared some of its losses incurred when data showed U.S. manufacturing activity fell last month. The dollar had tumbled after the Institute for Supply Management (ISM) survey showed on Monday that U.S. manufacturing activity fell to the lowest in nearly three years in March. The dollar index , which measures the safe-haven currency against six major rivals, was last up 0.05% at 102.08. Immediate resistance can be seen at 0.9157(9DMA), an upside break can trigger rise towards 0.9218(38.2%fib).On the downside, immediate support is seen at 0.9093(23.6%fib), a break below could take the pair towards 0.9040(Lower BB).

USD/JPY: The dollar strengthened against the yen on Tuesday as greenback regained some of the ground lost as investors gauged the U.S. Federal Reserve's path on further rate hikes. Market players took into account weak manufacturing data from the U.S. that pointed to the possibility of the world's largest economy slipping into recession, while trying to gauge the U.S. Federal Reserve's path on further rate hikes. The  dollar was up 0.37% against the yen, at  132.83.Strong resistance can be seen at 133.46 (38.2%fib), an upside break can trigger rise towards 134.00 (Psychological level).On the downside, immediate support is seen at 131.90(9DMA), a break below could take the pair towards 130.89(23.6%fib).

Equities Recap

European shares rose on Tuesday as investors rebuffed concerns over surprise output cuts by the OPEC and its allies.

At (GMT 12:20 ),UK's benchmark FTSE 100 was last trading up at 0.04 percent, Germany's Dax was up  by 0.89 percent, France’s CAC   was up by 0.57 percent.

Commodities Recap

Oil prices rose on Tuesday after OPEC+ plans to cut more production jolted markets the previous day, with investors' attention shifting to demand trends and the impact of higher prices on the global economy.

Brent crude futures were up 43 cents, or 0.5%, to $85.36 a barrel by 0925 GMT. U.S. West Texas Intermediate (WTI) crude futures were trading at $80.89 a barrel, up 47 cents, or 0.6%.

Gold eased into a tight range on Tuesday, after rallying in the previous session as traders hunkered down for the U.S. Federal Reserve's next move after an OPEC+-led surge in oil prices clouded inflation outlook.

Spot gold fell 0.2% to $1,979.69 per ounce by 1131 GMT, while U.S. gold futures were also down equally to $1,996.40.


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