Posted at 19 April 2023 / Categories Market Roundups
Market Roundup
•Canada Mar Core CPI (MoM) 0.6%,0.4% forecast,0.5% previous
•US Mar Housing Starts (MoM) -0.8%, 0.4% forecast,9.8% previous
•Canada Mar Common CPI (YoY) 5.9%,6.2% forecast,6.4% previous
•Canada Mar Core CPI (YoY) 4.3%,4.4% forecast,4.7% previous
•Canada Mar CPI (YoY) 4.3%, 4.3% forecast,5.2% previous
•Canada Mar Median CPI (YoY) 4.6%,4.8% forecast,4.9% previous
•Canada Trimmed CPI (YoY) 4.4%,4.8%forecast,4.8% previous
•US Mar Housing Starts 1.420M,1.400M forecast,1.450M previous
•US Mar Building Permits (MoM) -8.8%,-6.0% forecast,15.8% previous
•Canada Mar CPI (MoM) 0.5%,0.5% forecast,0.4% previous
•US Mar Building Permits1.413M, 1.450M forecast,1.550M previous
• Global Dairy Trade Price Index 3.2%, 0.1% forecast,-4.7% previous
Looking Ahead Economic Data(GMT)
•01:00 Australia Mar MI Leading Index (MoM) -0.1% previous
Looking Ahead Events and Other Releases (GMT)
•No events ahead
Currency Summaries
EUR/USD: The euro strengthened on Tuesday after easing U.S. dollar and signs of Europe's interest rates staying elevated boosting euro across the board. The ECB needs to keep raising interest rates even if most of its past hikes have yet to feed through to the economy as rapid price growth was at risk of getting entrenched, German central bank chief Joachim Nagel said on Friday. The euro was last up 0.4% versus the dollar at $1.0969 after two consecutive daily falls of over 0.5%.Immediate resistance can be seen at 1.0978(5DMA), an upside break can trigger rise towards 1.1000(Psychological level).On the downside, immediate support is seen at 1.0900(38.2%fib ), a break below could take the pair towards 1.0830(April 11th low).
GBP/USD: Sterling rose on Tuesday after data showed pay growth was higher than forecast, supporting investors’ expectations that the Bank of England (BoE) will continue to hike rates in an effort to tame inflation.Britain’s unemployment rate rose unexpectedly 3.8% in the three months to February rather than holding at 3.7%, as forecast by economists in a poll.But pay growth for the three months to January was revised up to 5.9% and held at that level for the three months to February - well above the forecast of 5.1% in the Reuters poll. Excluding bonuses, wage growth held at 6.6%.Sterling rose 0.5% against a weakening dollar to $1.2437. Immediate resistance can be seen at 1.2456(5DMA), an upside break can trigger rise towards 1.2566(23.6%fib).On the downside, immediate support is seen at 1.2321(38.2%fib), a break below could take the pair towards 1.2281(April 3rd low).
USD/CAD: The Canadian dollar was barely changed against its U.S. counterpart on Tuesday, with investors taking stock of recent gains for the currency as domestic data showed inflation cooling to the lowest level in 19 months. Canada's annual inflation rate eased to 4.3% in March from 5.2% in February, matching expectations, as a decline in energy prices helped offset a record spike in mortgage costs. The loonie was trading nearly unchanged at 1.3390 to the greenback, or 74.68 U.S. cents, after moving in a range of 1.3361 to 1.3399.Still, the currency has advanced more than 3% since mid-March as the price of oil, one of Canada's major exports, rallied and stress in the global banking sector eased. Immediate resistance can be seen at 1.3442(9DMA), an upside break can trigger rise towards 1.3428(38.2%fib).On the downside, immediate support is seen at 1.3352 (23.6%fib), a break below could take the pair towards 1.3307 (April 17th low).
USD/JPY: The dollar dipped against Japan's yen on Tuesday as investors weighed stronger-than-forecast GDP data from China. China's gross domestic product (GDP) grew 4.5% year-on-year in the first three months of the year, data showed on Tuesday, beating analyst forecasts for a 4% expansion as the end of COVID-19 curbs lifted the world's second-largest economy out of a slump. Separate data on March activity also released on Tuesday showed retail sales growth quickened to 10.6%, beating expectations and hitting a near two-year high, while factory output growth also sped up but was just below expectations. Strong resistance can be seen at 134.75(23.6%fib), an upside break can trigger rise towards 135.15(Higher BB).On the downside, immediate support is seen at 133.26(38.2%fib), a break below could take the pair towards 132.84(14DMA)
Equities Recap
European shares closed higher on Tuesday as travel and leisure stocks led the advance on positive earnings, while better-than-expected economic data from China boosted demand prospects and lifted shares of miners and luxury firms.
UK's benchmark FTSE 100 closed up by 0.38 percent, Germany's Dax ended up by 0.59 percent, France’s CAC finished the day up by 0.47 percent.
Major U.S. stock indexes were little changed on Tuesday as disappointing quarterly reports from Johnson & Johnson and Goldman Sachs were countered by gains in some big technology stocks as first-quarter earnings season kicked into gear.
Dow Jones closed down by 0.0329% percent, S&P 500 closed up by 0.09% percent, Nasdaq settled down by 0.04 % percent.
Commodities Recap
Oil prices were little changed on Tuesday as upbeat economic data in No. 2 oil consumer China offset concerns that possible increases in U.S. interest rates could dampen growth in the top consuming country.
Brent crude settled 1 cent, or 0.01%, higher at $84.77 a barrel, while West Texas Intermediate crude futures closed up 3 cents, or 0.04% at $80.86.
Gold prices clawed their way back above the key $2,000 level on Tuesday as the dollar and bond yields retreated, with investors weighing whether the U.S. Federal Reserve will pause its interest rate hike cycle after the May meeting.
Spot gold was up 0.5% at $2,005.41 per ounce by 1:41 p.m. EDT (17:41 GMT), after hitting a two-week low of $1,981.19 in the previous session. U.S. gold futures settled 0.6% higher at $2,019.70.