Posted at 11 April 2023 / Categories Market Roundups
Market Roundup
•EU Apr Sentix Investor Confidence -8.7,-9.9 forecast,-11.1 previous
•EU Feb Retail Sales (YoY) -3.0%,-3.5% forecast, -2.3% previous
•EU Feb Retail Sales (MoM) -0.8%, -0.8% forecast, 0.3% previous
•UK Mar Mortgage Rate (GBP) 7.22%, 7.00% forecast,7.02% previous
Looking ahead Economic Data (GMT)
•12:55 US Redbook (YoY) 3.7% previous
•13:00 French 12-Month BTF Auction 3.158% previous
•13:00 French 6-Month BTF Auction 2.861% previous
•13:00 French 3-Month BTF Auction 2.881% previous
Looking Ahead Events And Other Releases (GMT)
•20:00 US FOMC Member Harker Speaks
Fxbeat
EUR/USD: The euro strengthened on Tuesday as the dollar gave up some of its gains as European markets reopened after Easter, while traders positioned for more economic data for clues on the global rate-hike path. Euro zone investors await a week full of economic data as well, including retail sales for February and March inflation readings for Germany. Core inflation in the euro zone is likely to stay high for the rest of 2023, ECB policymaker Pablo Hernandez de Cos said on Monday, leaving the door open for further rate hikes . Immediate resistance can be seen at 1.0926(Daily high), an upside break can trigger rise towards 1.1000(Psychological level).On the downside, immediate support is seen at 1.0845(38.2%fib), a break below could take the pair towards 1.0812(21DMA).
GBP/USD: The pound rose against dollar on Tuesday as upbeat sentiment boosted sterling . The recent rise of the British pound against the US dollar has been largely attributed to an improvement in market sentiment, which has boosted demand for riskier assets . The Bank of England is not scheduled to hold a policy meeting until next month, but Governor Andrew Bailey is scheduled to speak on Wednesday and could give clues on the future path for monetary policy. Traders price in around a 75% chance of a 25 basis point hike in May, with around a 25% chance the central bank keeps rates unchanged. Immediate resistance can be seen at 1.2455(23.6%fib), an upside break can trigger rise towards 1.2497(23.6%fib).On the downside, immediate support is seen at 1.2399(11DMA), a break below could take the pair towards 1.2309(38.2%fib).
USD/CHF: The dollar dipped against Swiss Franc on Tuesday as the dollar eased while investors awaited this week’s U.S. inflation data that could influence the Federal Reserve’s monetary policy . A strong U.S. employment report released on Friday raised bets that the U.S. central bank would raise interest rates next month, with markets pricing in a 71.3% chance of a 25 basis-point hike, according to the CME FedWatch tool. Minutes of the Fed’s March 21-22 policy meeting will also be scanned on Wednesday. Immediate resistance can be seen at 0.9105(11DMA), an upside break can trigger rise towards 0.9145(11DMA).On the downside, immediate support is seen at 0.9033 (23.6%fib), a break below could take the pair towards 0.9002(23.6%fib).
USD/JPY: The dollar dipped against the yen on Tuesday as traders' attention turned to U.S. inflation data due on Wednesday for signs of how close U.S. rates are to peaking. Investors await the U.S. consumer price data and minutes of the Fed's March 21-22 policy meeting on Wednesday for more clarity on the path of interest rates heading into the Federal Reserve's May policy meeting. Markets also tracked the Wall Street's mixed overnight moves as investors digested Friday's employment report, which showed robust payrolls growth and a welcome, but modest wage inflation cool-down. Strong resistance can be seen at 133.75 (Daily high), an upside break can trigger rise towards 134.95(50%fib).On the downside, immediate support is seen at 132.88(38.2%fib), a break below could take the pair towards 132.28(11DMA).
Equities Recap
European shares rose on Tuesday, with investors returning from a long holiday weekend to face a week full of crucial economic data that are expected to offer more hints on the global interest rate trajectory.
At (GMT 11:28 ),UK's benchmark FTSE 100 was last trading up at 0.26 percent, Germany's Dax was up by 0.41 percent, France’s CAC was up by 0.84 percent.
Commodities Recap
Gold advanced on Tuesday as the dollar gave up some of its gains as European markets reopened after Easter, while traders positioned for more economic data for clues on the global rate-hike path.
Spot gold was up 0.7% to $2,004.10 per ounce by 1052 GMT while U.S. gold futures had gained 0.8% to $2,018.80.
Oil prices steadied on Tuesday as Chinese inflation data pointed to persistently weak demand but a softer dollar and hopes that the Federal Reserve might ease up on its policy tightening after a key U.S. inflation report this week provided support.
Brent crude futures slipped 18 cents, or 0.2%, to $84 a barrel by 1102 GMT, while U.S. West Texas Intermediate futures eased 12 cents, or 0.1%, to $79.62 a barrel. Both benchmarks had risen nearly $1 in earlier trading.