Posted at 12 April 2023 / Categories Market Roundups
Market Roundup
•Finnish Feb Current Account -0.30B,-0.30B forecast, 0.20B previous
•Italian 12-Month BOT Auction 3.390%, 3.613% previous
•German 30-Year Bund Auction 2.330% ,2.320% previous
Looking Ahead Economic Data(GMT)
•12:30 US Mar Real Earnings (MoM) -0.2% forecast,-0.4% previous
•12:30 US Mar CPI Index, s.a 302.60 forecast, 301.65 previous
•12:30 US Mar CPI, n.s.a (MoM) 0.40% forecast, 0.56% previous
•12:30 US Mar CPI (YoY) 5.2% forecast, 6.0% previous
•12:30 US Mar CPI (MoM) 0.2% forecast,0.4% previous
•12:30 US Mar Core CPI (MoM) 0.4% forecast, 0.5% previous
•12:30 US Mar Core CPI (YoY) 5.6% forecast, 5.5% previous
•12:30 US Mar CPI Index, n.s.a. 302.25 forecast,300.84 previous
•12:30 US Mar Core CPI Index 305.57 forecast, 304.07 previous
•14:00 Canada BoC Interest Rate Decision 4.50% forecast,4.50% previous
•14:30 US Crude Oil Inventories -0.583M forecast,-3.739M previous
•15:00 US Mar Cleveland CPI (MoM) 0.6% forecast,0.6% previous
Looking Ahead Events and Other Releases (GMT)
•12:30 ECB's De Guindos Speaks
•13:00 UK BoE Gov Bailey Speaks
•14:00 Canada BoC Monetary Policy Report
•14:00 Canada BoC Rate Statement
•15:00 US IMF Meetings
•18:00 US FOMC Meeting Minutes
Fxbeat
EUR/USD: The euro firmed on Wednesday as the dollar weakened ahead of U.S. inflation data . The U.S. consumer price index is expected to show March core inflation rose 0.4% on a monthly basis and 5.6% year-on-year, according to a poll of economists. Philadelphia Federal Reserve Bank President Patrick Harker said on Tuesday that he felt the U.S. central bank may soon be done raising interest rates, while Minneapolis Federal Reserve Bank President Neel Kashkari said he believed inflation, now at a rate of 5% by the Fed's preferred measure, will get to "the mid-threes" by the end of this year. The euro was up 0.12% at $1.0923.Immediate resistance can be seen at 1.0957(23.6%fib), 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 was muted against dollar on Wednesday as caution prevailed ahead of U.S. inflation data and minutes from the Federal Reserve limited gains. After the U.S. jobs report last week showed a resilient labour market, the inflation data and Fed minutes later in the day are seen as key to gauging the path of interest rate hikes in the world's largest economy.Bank of England Governor Andrew Bailey is also scheduled to speak later in the day.Meanwhile, a survey showed British home sales recovered to pre-pandemic levels in March from September lows amid market turmoil spurred by former prime minister Liz Truss' economic plan. 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 Wednesday as markets awaited crucial U.S. inflation data which could give signals on how soon the Federal Reserve will end its aggressive rate hikes. The consumer price index is expected to show core inflation, which excludes volatile food and energy prices, at 0.4% on a monthly basis and 5.6% year-over-year in March, according to a poll, which would mark a rise from February's 5.2% in a headache for the Fed. The dollar index, which measures the U.S. currency against six rivals fell 0.049%. Immediate resistance can be seen at 0.9058(5DMA), an upside break can trigger rise towards 0.9132(38.2%fib).On the downside, immediate support is seen at 0.9011 (23.6%fib), a break below could take the pair towards 0.8988(Lower BB).
USD/JPY: The dollar was little changed against the yen on Wednesday as market participants braced for a key U.S inflation report that is set to set to influence the Federal Reserve's stance on further rate hikes. All eyes are on the U.S. consumer price index data due at 1230 GMT for clues on the Federal Reserve’s rate-hike path. A strong U.S. employment report last week cemented bets that the Fed would raise interest rates next month. Markets are pricing in a 68.9% chance of a 25 basis-point hike, the CME FedWatch tool shows. Strong resistance can be seen at 134.04(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 were subdued on Wednesday as investors remained cautious ahead of U.S. inflation data that is expected to provide more clues on Federal Reserve's policy decision next month.
At (GMT 10:59 ),UK's benchmark FTSE 100 was last trading up at 0.54percent, Germany's Dax was up by 0.20 percent, France’s CAC was up by 0.38 percent.
Commodities Recap
Gold prices firmed on Wednesday as the dollar weakened, with investors awaiting the U.S. Federal Reserve's latest policy meeting minutes and inflation data for signs of how close interest rates are to peaking.
Spot gold rose 0.4% to $2,010.23 per ounce by 0921 GMT. U.S. gold futures gained 0.2% to $2,024.30.
Oil prices steadied Wednesday as the market waited for U.S. inflation data later in the day that will likely influence the Federal Reserve's policy on interest rate hikes.
Brent crude gained 14 cents, or 0.2%, to $85.75 a barrel by 0917 GMT, while U.S. West Texas Intermediate rose 10 cents, or 0.1%, to $81.63 a barrel.