News

Europe Roundup: Euro eases as dollar firms as US jobs report backs Fed hike in May ,Gold slips, Oil steadies as tighter supply balances growth concerns-April 10th,2023

Posted at 10 April 2023 / Categories Market Roundups


Market Roundup

•Greek Mar CPI (YoY) 4.6%,4.3% forecast,6.1% previous

•Greek Feb Greek Industrial Production (YoY)   5.2%,-2.3% forecast,0.5% previous

•Greek Mar Greek HICP (YoY)  5.4%,5.4% forecast,6.5% previous

Looking Ahead Economic Data (GMT)

•14:00  US Feb Wholesale Inventories (MoM)   0.2% forecast,-0.3% previous

•14:00  US Feb Wholesale Trade Sales (MoM)  0.5% forecast,0.9% previous

•14:00  US Mar  CB Employment Trends Index  118.64 forecast,118.29 previous

•15:30 US 3-Month Bill Auction                4.780% previous

•15:30  US 6-Month Bill Auction                4.705% previous

Looking Ahead and Other Releases(GMT)

•15:00 US IMF Meetings            

•20:15 US FOMC Member Williams Speaks

Fxbeat

EUR/USD: The euro dipped on Monday after strong U.S. payrolls data released last week cemented the case for another rate hike by the Federal Reserve. The United States, the world's largest economy, increased jobs at a brisk clip in March, data showed on Friday, signalling labour market resilience that is expected to keep the Fed on track to raise interest rates one more time next month. Markets are currently pricing in a 70% chance of a 25 basis-point Fed rate hike in May, while also pricing in cuts before the year-end. Markets participants are now waiting for the U.S. inflation print due on Wednesday that is expected to shape the path the Fed will take in its battle against rising prices .Immediate resistance can be seen at 1.0916(Daily high), an upside break can trigger rise towards 1.1000(Psychological level).On the downside, immediate support is seen at 1.0867(14DMA), a break below could take the pair towards 1.0804(38.2%fib).

GBP/USD: The pound eased against dollar on Monday as the dollar firmed after the U.S. non-farm payrolls report pointed to a tight labour market and raised the odds of another rate hike by the Federal Reserve at its May policy meeting. Friday’s data from the U.S. Labor Department showed non-farm payrolls increased by 236,000 jobs in March, versus expectations of 239,000. The data also showed the unemployment rate dipped to 3.5% from 3.6% in February. The data raised bets that the U.S. central bank would raise interest rates next month, with markets pricing in a 66.3% chance of the Fed hiking rates by a quarter of a percentage point, according to the CME FedWatch tool. Immediate resistance can be seen at 1.2442(23.6%fib), an upside break can trigger rise towards 1.2524(Higher BB).On the downside, immediate support is seen at 1.2359(5DMA), a break below could take the pair towards 1.2260(38.2%fib).

 USD/CHF: The dollar strengthened against the Swiss franc on Monday  after data showed an increase in jobs in the world's largest economy last month, suggesting that the Federal Reserve may have to raise interest rates next month Friday's data showed U.S. nonfarm payrolls increased 236,000 in March, in line with forecasts of 239,000. Data for February was revised higher to show 326,000 jobs were added instead of 311,000 as previously reported.The unemployment rate fell to 3.5% from 3.6% in February. Average hourly earnings, which reflect wage inflation, rose 0.3% in March after gaining 0.2% in February. Immediate resistance can be seen at 0.9112 (1DMA), an upside break can trigger rise towards 0.9116(38.2%fib).On the downside, immediate support is seen at 0.9043(23.6%fib), a break below could take the pair towards 0.8992(Lower BB).

USD/JPY: The dollar held firm against the yen on Monday as greenback started the week on the front foot after U.S. jobs data pointed to a tight labour market, firming up expectations that the Federal Reserve will again raise interest rates at its meeting next month. U.S. Labor Department data on Friday showed that nonfarm payrolls increased by 236,000 jobs last month, just shy of the 239,000 expected by economists in   poll.The closely-watched report also showed that annual wage gains slowed but remained too high to be consistent with the U.S. central bank's 2% inflation target. Dollar  was last up against yen to 0.08%  132.26. Strong resistance can be seen at 132.92 (38.2%fib), an upside break can trigger rise towards 134.92 (Higher BB).On the downside, immediate support is seen at 132.02(11DMA), a break below could take the pair towards 130.60(23.6%fib).

Equities Recap

European stock markets were closed on account of Easter holiday 

Commodities Recap

Gold prices fell on Monday after strong U.S. jobs numbers rekindled bets for another interest rate hike and buoyed the dollar, but persistent economic risks kept safe-haven bullion near the $2,000 level.

Spot gold fell 0.3% to $2,001.49 per ounce by 1143 GMT, while U.S. gold futures slipped 0.5% to $2,016.50.

Oil steadied on Monday, after rising for three straight weeks, as looming supply cuts from Saudi Arabia and other OPEC+ producers balanced concern about weakening global growth that may dampen fuel demand.

Brent crude rose 18 cents, or 0.2%, to $85.30 a barrel by 1009 GMT on Monday, while U.S. West Texas Intermediate crude gained 11 cents to $80.81.


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