Posted at 11 April 2023 / Categories Market Roundups
Market Roundup
•US Redbook (YoY) 1.5% ,3.7% previous
• French 12-Month BTF Auction 3.170%, 3.158% previous
•French 6-Month BTF Auction 3.093%, 2.861% previous
•French 3-Month BTF Auction 2.901%, 2.881% previous
Looking Ahead Economic Data(GMT)
•23:50 Japan Mar Bank Lending (YoY) 1.8% forecast,3.3% previous
•23:50 Japan Feb Core Machinery Orders (YoY) 2.9% forecast, 4.5% previous
•23:50 Japan Mar PPI (MoM) -0.3% forecast, -0.4% previous
•23:50 Japan Feb Core Machinery Orders (MoM) -7.8% forecast,9.5% previous
•23:50 Japan Mar PPI (YoY) 7.1% forecast, 8.2% previous
•01:30 Australia Private House Approvals -13.8% forecast, -13.5% previous
Looking Ahead Events And Other Releases(GMT)
•04:45 Australia RBA Assist Gov Bullock Speaks
Currency Summaries
EUR/USD: The euro strengthened on Tuesday as single currency was boosted by a rise in European bond yields as traders in the region returned after markets were closed on Friday and Monday for the Easter holiday. 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 . The dollar index fell 0.26% to 102.20. The euro gained 0.41% to $1.0906. 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 risk-sentiment improved, helping to push sterling towards the 10-month high it reached last week. 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. The pound was last up 0.4% at $1.2431, having dropped on the four previous trading sessions. 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/CAD: The Canadian dollar strengthened against its U.S. counterpart on Tuesday, with the currency recovering from a 10-day low as oil prices rose and investors awaited a Bank of Canada interest rate decision this week. The Canadian central bank is expected to take in stride surprising recent economic strength and leave its benchmark rate unchanged at a 15-year high of 4.50% at its policy announcement on Wednesday, betting that activity will cool as higher borrowing costs sink in. Last month, the BoC paused its tightening campaign after eight consecutive rate hikes.The loonie was up 0.3% at 1.3470 to the greenback . On Monday, it touched its weakest intraday level since March 31 at 1.3553. .Immediate resistance can be seen at 1.3448 (5DMA), an upside break can trigger rise towards 1.3541 (50% fib).On the downside, immediate support is seen at 1.3465(38.2% fib), a break below could take the pair towards 1.3402 (April 4th Low).
USD/JPY: The dollar strengthened against the yen on Tuesday as Bank of Japan Governor Kazuo Ueda signaled no hurry to dial back its massive stimulus. Japan's new central bank governor Kazuo Ueda said it was appropriate to maintain the bank's ultra-loose monetary policy for now as inflation has yet to hit 2% as a trend, suggesting he will be in no rush to dial back its massive stimulus. Markets have been rife with speculation the BOJ could soon phase out yield curve control (YCC), a policy that caps the 10-year bond yield around zero. The dollar was last up 0.08% against the Japanese currency at 133.73.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 hit a one-month high on Tuesday, lifted by mining stocks, in an upbeat start to a week filled with economic data, including a closely-watched U.S. inflation report..
UK's benchmark FTSE 100 closed up by 0.57 percent, Germany's Dax ended up by 0.37 percent, France’s CAC finished the day up by 0.89 percent.
Wall Street stocks ended mixed on Tuesday, losing steam late in the session as investors awaited crucial inflation data and the unofficial kick-off of first-quarter reporting season.
Dow Jones closed up by 0.29% percent, S&P 500 closed down by 0.00% percent, Nasdaq settled down by 0.43 % percent.
Treasuries Recap
U.S. Treasury yields crawled higher in mostly uneven trading on Tuesday, with no real conviction in the moves, as investors geared up for Wednesday's highly anticipated inflation report that should determine the future path of interest rates.
In afternoon trading, the yield on 10-year Treasury notes US10YT=RR was up 1.7 bps at 3.432%.
Commodities Recap
Gold climbed back up above the key $2,000 level on Tuesday as the dollar came off last session's peak, while traders hunkered down for Wednesday's U.S. inflation data for cues on future interest rate hikes.
Spot gold rose 0.8% to $2,005.79 per ounce by 2:00 p.m. EDT (1800 GMT) while U.S. gold futures settled 0.8% higher at $2,019.00.
Oil prices rose about 2% on Tuesday on hopes that the Federal Reserve might ease up on its policy tightening after a key U.S. inflation report this week, though concerns remain over Chinese demand.
Brent crude futures settled up $1.43, or 1.7%, to $85.61 a barrel. U.S. West Texas Intermediate futures rose $1.79, or 2.2%, to $81.53 a barrel.