News

Europe Roundup: Sterling hovers just below 10-month high, with focus on U.S. job numbers, European shares rise, Gold eases, Oil heads for third weekly gain after shock OPEC+ cuts-April 6th,2023

Posted at 06 April 2023 / Categories Market Roundups


Market Roundup

•Swiss Mar Unemployment Rate n.s.a 2.0%,2.0% forecast,2.1% previous

•Swiss Mar Unemployment Rate s.a 1.9%,1.9% forecast,1.9% previous

•German Feb Industrial Production (MoM) 2.0%,0.1% forecast,  3.5% previous

•UK Mar Halifax House Price Index (YoY)  1.6%,0.3% forecast, 2.1% previous

•Sweden Feb Industrial New Orders (YoY) -4.7% ,7.2% forecast,-10.5% previous

•UK Mar Halifax House Price Index (MoM)  0.8%, -0.3% forecast,1.1% previous

•EU Mar M2 Money Supply (MoM)  45.0,49.1 forecast,47.6 previous

•UK Mar Construction PMI  50.7, 53.5 forecast,54.6 previous

•UK Housing Equity Withdrawal (QoQ)-14.9B, -5.8B previous

Looking Ahead Economic Data(GMT)

•11:30   US Mar Challenger Job Cuts  65.000K forecast,77.770K previous

•11:30   US Challenger Job Cuts (YoY) 148.0% forecast,410.1% previous

•12:30   Canada Mar Unemployment Rate  5.1% forecast,5.0% previous

•12:30   US  Continuing Jobless Claims 1,699K forecast,1,689K previous

•12:30   US  Jobless Claims 4-Week Avg.196.50K forecast,198.25K previous

•12:30   US Initial Jobless Claims 200K forecast,198K previous

•12:30   Canada Mar Participation Rate  65.5% forecast,65.7% previous

•12:30 Canada Mar Part Time Employment Change  15.0K forecast,-9.3K previous

•12:30  Canada Mar Full Employment Change  -5.0K forecast,31.1K previous

•12:30 Canada Mar Employment Change 12.0K   forecast,21.8K previous

•14:00 Canada Mar Ivey PMI n.s.a  50.8 previous

•14:00  Canada Mar Ivey PMI 56.1 forecast,51.6 previous

•14:00 US Natural Gas Storage-21B forecast,-47B previous

•15:30   US 8-Week Bill Auction  4.600% previous

•15:30   US 4-Week Bill Auction  4.600% previous

•17:00 U.S. Baker Hughes Oil Rig Count  592 previous

•17:00   U.S. Baker Hughes Total Rig Count 755 previous

Looking Ahead Events And other Releases(GMT)

•14:00   US FOMC Member Bullard Speaks

Fxbeat

EUR/USD: The euro steadied   on Thursday as investors awaited U.S. non-farm payrolls report, as investors sought clarity on whether the Federal Reserve might take a breather on its monetary tightening path. Investors now awaited Friday's U.S. non-farm payrolls report for March. However, market reactions can be gauged only by Monday as most financial markets will remain shut for the Good Friday holiday. Economists polled   expect to see U.S. employers added 240,000 new workers in March, down from 311,000 the previous month. Average earnings growth is also expected to have slowed to 4.3% year-over-year, from 4.6% in March. Immediate resistance can be seen at 1.0984(Higher BB), an upside break can trigger rise towards 1.1000(Psychological level).On the downside, immediate support is seen at 1.0884(14DMA), a break below could take the pair towards 1.0782(April 3rd low).

GBP/USD: The pound hovered just below its highest level in 10 months on Thursday as investor focus turned to Friday's U.S. jobs numbers. Markets were subdued across the board on Thursday ahead of the release of the U.S. non-farm payrolls employment data on Friday.It will be a key factor in the Federal Reserve's next interest rate decision and could cause volatility in markets. The U.S. jobs market has remained resolutely strong, keeping the pressure on the Fed to raise interest rates to tackle inflation. Yet analysts expect the U.S. to have added 239,000 jobs in March, a slowdown from February’s 311,00 figure. Sterling was last flat at $1.246, having touched its highest level since June - $1.253 - on Tuesday. Immediate resistance can be seen at 1.2516(23.6%fib), an upside break can trigger rise towards 1.2606(Higher BB).On the downside, immediate support is seen at 1.2420(5DMA), a break below could take the pair towards 1.2301(38.2%fib).

 USD/CHF: The dollar dipped against the Swiss franc on Thursday as traders weighed up how pivotal U.S. jobs data coming out on a stock trading holiday might impact Federal Reserve policy, and unleash a potentially volatile market reaction. The closely watched U.S. non-farm payrolls report on Friday, when many markets around the world are closed, will follow disappointing manufacturing and services sector data from the Institute for Supply Management (ISM) and private employment figures on Wednesday.While the slew of sluggish economic data has caused traders to scale back bets on how much longer U.S. rates would need to stay in restrictive territory, it has simultaneously reignited concerns about the risk of recession. Immediate resistance can be seen at 0.9088(5DMA), an upside break can trigger rise towards 0.9159(38.2%fib).On the downside, immediate support is seen at 0.9034(23.6%fib), a break below could take the pair towards 0.8987(Lower BB).

USD/JPY: The dollar little changed against the yen on Thursday as investors awaited U.S. jobs data and its implications for the Federal Reserve's monetary policy. Investors will be closely looking at Friday's U.S. non-farm payrolls report for March, when many markets globally are closed. While a slew of sluggish economic data this week has caused traders to scale back bets on how much longer U.S. rates would need to stay in restrictive territory, it has simultaneously reignited recession fears. The Japanese yen , which has also some support from safe haven bids, was last flat on the day at 131.35 per dollar. Strong resistance can be seen at 131.92 (5DMA), an upside break can trigger rise towards 133.14 (38.2%fib).On the downside, immediate support is seen at 130.68(23.6%fib), a break below could take the pair towards 129.68(Lower BB).

Equities Recap

European shares edged higher on Thursday, heading into a long Easter weekend break, as real estate and travel stocks helped outweigh concerns over a U.S. economic slowdown that were triggered by lacklustre data.

At (GMT 11:54 ),UK's benchmark FTSE 100 was last trading up at 0.77 percent, Germany's Dax was up  by 0.36 percent, France’s CAC   was up by 0.30 percent.

Commodities Recap

Oil steadied on Thursday and remained on track for a third weekly gain as further production cuts targeted by OPEC+ and a drop in U.S. oil inventories overshadowed fears over global economic growth.

Brent and U.S. crude have both gained more than 6% this week after the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia - a group known as OPEC+ - on Sunday pledged surprise production cuts.

Gold prices eased slightly on Thursday as the dollar edged up and markets hunkered down for cues from the U.S. jobs report.

Spot gold fell 0.1% to $2,018.99 per ounce by 1041 GMT, but is still up 2.6% so far this week on economic slowdown concerns. U.S. gold futures remained unchanged at $2,035.70.


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