Posted at 13 April 2023 / Categories Market Roundups
Market Roundup
•US Mar Core PPI (MoM) -0.1% ,0.3% forecast, 0.0% previous
• US Mar PPI (MoM -0.5% ,0.1% forecast,-0.1% previous
• US Mar PPI (YoY) 2.7%, 3.0% forecast,4.6% previous
• US Mar Core PPI (YoY) 3.4% ,3.4% forecast, 4.4% previous
• US PPI ex. Food/Energy/Transport (YoY) 3.6% , 3.1% forecast,4.4% previous
• US Mar PPI ex. Food/Energy/Transport (MoM) 0.1%, 0.1% forecast, 0.2% previous
• US Initial Jobless Claims 239K , 232K forecast, 228K previous
• US Jobless Claims 4-Week Avg. 240.00K ,253.17K forecast, 237.75K previous
• US Continuing Jobless Claims 1,810K ,1,814K forecast ,1,823K previous
•US Natural Gas Storage 25B,28B forecast , -23B previous
•US 4-Week Bill Auction 4.030%,4.440% previous
•US8-Week Bill Auction 4.790%, 4.650% previous
•US 30-Year Bond Auction 3.661%,3.877% previous
Looking Ahead Economic Data (GMT)
•No data ahead
Looking Ahead Events And Other Releases(GMT)
•No events ahead
Currency Summaries
EUR/USD: The euro strengthened on Thursday as single currency is being boosted by a relatively more hawkish European Central Bank that is expected to keep raising rates to tackle inflation.The ECB needs to keep raising rates given stubbornly high underlying inflation and its next move could be either a 25 or a 50 basis point increase, Governing Council member Bostjan Vasle said on Thursday.ECB policymaker Joachim Nagel also said that core inflation rates in the euro zone will begin improving in the coming months, but the ECB still has a way to go with monetary policy. The euro reached $1.10680, the highest since April 1, 2022. Immediate resistance can be seen at 1.1068(Daily high), an upside break can trigger rise towards 1.1100(23.6%fib).On the downside, immediate support is seen at 1.0935(5DMA ), a break below could take the pair towards 1.0866(38.2%fib).
GBP/USD: Sterling rose to its highest since last June on Thursday, as the dollar hovered at a two-month low after a slowdown in U.S. inflation, while data showed the UK economy essentially stagnated in February. Britain’s economy showed no growth in February as strikes by public workers hit output, but a bounce in January was stronger than first thought, meaning a recession is a bit less likely to be brewing in early 2023. The upward revision to January’s growth to 0.4% from 0.3% means Britain is likely to avoid the first-quarter contraction that the Bank of England predicted last month, but data due next week is seen as more important for monetary policy. Immediate resistance can be seen at 1.2521(23.6%fib), an upside break can trigger rise towards 1.2547(Higher BB).On the downside, immediate support is seen at 1.2442(5DMA), a break below could take the pair towards 1.2390(38.2%fib).
USD/CAD: The Canadian dollar rose to a near two-month high against its U.S. counterpart on Thursday, as softer-than-expected U.S. inflation data put pressure on speculators that have raised their bearish bets on the currency to the most in four years. U.S. dollar added to recent declines against a basket of major currencies after U.S. producer prices unexpectedly fell in March, boosting prospects that the Federal Reserve is near the end of its rate hiking cycle. The Canadian dollar was trading 0.8% higher at 1.3335 to the greenback, or 74.99 U.S. cents, its strongest level since Feb. 15. Immediate resistance can be seen at 1.3304 (38.2%fib), an upside break can trigger rise towards 1.3444 (9DMA).On the downside, immediate support is seen at 1.3323 (23.6%fib), a break below could take the pair towards1.3304 (Lower BB).
USD/JPY: The dollar dipped against the yen on Thursday after data showed a moderation in the rise in producer prices last month and an uptick in jobless claims, suggesting the Federal Reserve's aggressive tightening over the past year was taking a toll on the economy. Further, U.S. consumer prices barely rose in March as the cost of gasoline declined, but stubbornly high rents kept underlying inflation pressures simmering. This comes after U.S. Fed minutes on Wednesday indicated that several policymakers considered pausing rate increases and projected that recent banking sector stress would tip the economy into recession . The dollar fell 0.32% against the yen to 132.54.Strong resistance can be seen at 133.52 (38.2%fib), an upside break can trigger rise towards 133.90(Higher BB).On the downside, immediate support is seen at 132.50(50%fib), a break below could take the pair towards 132.15(21DMA).
Equities Recap
European shares climbed on Thursday on a boost from luxury stocks after LVMH posted upbeat first-quarter sales, while hopes of a pause in the Federal Reserve's rate hikes after signs of cooling U.S. inflation also aided sentiment.
UK's benchmark FTSE 100 closed up by 0.24 percent, Germany's Dax ended up by 0.16 percent, France’s CAC finished the day up by 1.31 percent.
U.S. stocks ended sharply higher on Thursday as economic data showed cooling inflation and a loosening labor market, fueling optimism that the Federal Reserve could be nearing the end of its aggressive interest rate hike cycle.
Dow Jones closed up by 1.14 percent, S&P 500 closed up by 1.33 percent, Nasdaq settled up by 1.99% percent.
Treasuries Recap
U.S. Treasury yields turned higher on Thursday after spending most of the session in negative territory, as investors consolidated positions that pushed yields lower over the last few days amid a surprise decline in producer prices in March and an uptick in jobless claims.
U.S. two-year yields edged higher to 3.979% , while the benchmark 10-year yield rose 3.3 bps to 3.454% .
Commodities Recap
Gold surged on Thursday as more weak U.S. economic readings bolstered bets for a pause in interest rate hikes, with prospects of a mild recession also sending investors scurrying for the safe-haven.
Spot gold was up 1.4% at $2,042.50 per ounce by 1:40 p.m. EDT (17:40 GMT), its highest since March 2022, and about $30 shy of its record high hit in 2020. U.S. gold futures settled 1.5% higher at $2,055.30.
Oil prices fell a dollar a barrel on Thursday, as an OPEC report stoked summer demand worries and traders took profits after benchmarks scaled multi-month highs in the previous session.
Brent crude fell $1.24, or 1.4%, to settle at $86.09 a barrel, only the second time this month that the global benchmark has finished lower. The U.S. West Texas Intermediate (WTI) slipped $1.10, or 1.3%, to close at $82.16 a barrel.