News

Europe Roundup: Sterling falls as inflation squeezes British consumers, European shares falls, Gold dips, Oil heads for weekly loss on economic uncertainty-April 21st,2023

Posted at 21 April 2023 / Categories Market Roundups


Market Roundup

•UK Mar Retail Sales (YoY) -3.1%, -3.1% forecast,-3.5% previous

•UK Mar Core Retail Sales (MoM)  -1.0% , -0.7%  forecast,1.5% previous

•UK Mar Core Retail Sales (YoY) -3.2%,-3.1% forecast,-3.3% previous

•UK Mar Retail Sales (MoM)  -0.9%, -0.5% forecast, 1.2% previous

•French Apr Services PMI 56.3, 53.4 forecast, 53.9 previous

•French Apr French Manufacturing PMI 45.5, 47.8 forecast,47.3 previous

•German Apr Services PMI  55.7               ,53.3 forecast,53.7 previous

•German Apr Manufacturing PMI 44.0,45.7 forecast, 44.7 previous

•German Apr Composite PMI 53.9, 52.7 forecast, 52.6 previous

•EU Apr  Manufacturing PMI 45.5,48.0   forecast,47.3 previous

•EU Apr S&P Global Composite PMI  54.4,53.7 forecast, 53.7 previous

•EUR Apr Services PMI  56.6,54.5 forecast, 55.0 previous

•UK Manufacturing PMI 46.6, 48.5 forecast, 47.9 previous

•UK Services PMI 54.9,  53.0 forecast, 52.9 previous

•UK Composite PMI 53.9, 52.6   forecast, 52.2 previous

Looking ahead Economic Data(GMT)

•12:30 Canada Feb Core Retail Sales (MoM)  -0.1% forecast, 0.9% previous

•12:30 Canada Feb Retail Sales (MoM) -0.6% forecast, 1.4% previous

•13:45 US Apr Manufacturing PMI  49.0 forecast, 49.2 previous

•13:45 US Apr Services PMI  51.5 forecast,52.6 previous

•13:45 US Apr S&P Global Composite PMI  52.8  forecast, 52.3 previous

• 17:00 U.S. Baker Hughes Total Rig Count 748 previous

•17:00   U.S. Baker Hughes Oil Rig Count 588 previous

Looking Ahead Events and Other Releases (GMT)

•14:30   ECB's Elderson Speaks  

Fxbeat

EUR/USD: The euro strengthened on Friday economic data showing solid business activity nudged up expectations for the European Central Bank’s hiking path. Surveys indicated the euro zone’s economic recovery unexpectedly gathered pace this month. French business activity grew more than forecast in April, while Germany saw a third straight month of expansion. The ECB is unlikely to return to providing guidance on its next policy moves given the uncertainty in the outlook, ECB Vice President Luis de Guindos said on Friday. Immediate resistance can be seen at 1.0980(5DMA), an upside break can trigger rise towards 1.1036(Higher BB).On the downside, immediate support is seen at 1.0905(38.2%fib ), a break below could take the pair towards 1.0848 (April 11th low).

GBP/USD: The pound fell on Friday after economic data showed British consumers are buckling under the pressure of inflation. British retail sales fell by a bigger-than-expected 0.9% in March compared to February, data showed on Friday, with high inflation and bad weather keeping consumers away from the shops.The pound fell 0.5% to $1.238 and was on track for a weekly loss of around 0.25%. It has slipped since hitting a 10-month high of $1.255 last Friday..Immediate resistance can be seen at 1.2415(5DMA), an upside break can trigger rise towards 1.2480(23.6%fib).On the downside, immediate support is seen at 1.2379(Daily low), a break below could take the pair towards 1.2353(38.2%fib).

 USD/CHF: The dollar dipped against Swiss Franc on Friday as investors assessedthe path for interest rates, and many expect a slowing U.S. economy could lead the Fed to start cutting rates later this year as the central bank juggles its fight against inflation. Markets are pricing in an 88% chance of a 25-basis-point hike in May, which set the dollar for its first weekly gain in over a month, making bullion expensive for overseas buyers. Fed officials said on Thursday inflation remains "far above" the central bank's 2% target. Fed Governor Michelle Bowman reiterated that more work needs to be done to bring down too-high inflation. Investors eye the U.S. GDP and PCE numbers next week for more data on inflation.. Immediate resistance can be seen at 0.8952(5DMA), an upside break can trigger rise towards 0.9026(38.2%fib).On the downside, immediate support is seen at 0.8911(23.6%fib ), a break below could take the pair towards 0.8877(Lower BB).

USD/JPY: The dollar declined against Japan's yen on Friday  as investors digested  over economic data for clues on the likelihood of more interest rate hikes and possible recession in the United States as a new earnings season unfolded. Data on Thursday added to those concerns about recession, as the number of new claims for unemployment benefits rose, while factory activity in the mid-Atlantic manufacturing heartland hit a three-year low this month.  Strong resistance can be seen at 134.24(5DMA), an upside break can trigger rise towards 135.10(23.6%fib).On the downside, immediate support is seen at 133.72(38.2%fib), a break below could take the pair towards 132.61(50%fib)

Equities Recap

European shares struggled for direction on Friday, set to close the week flat after a fourth weekly gain, as investors eyed more corporate earnings for cues on sector rebound, while the euro zone's economic recovery unexpectedly gathered pace this month.

At (GMT 12:06 ),UK's benchmark FTSE 100 was last trading up at 0.08 percent, Germany's Dax was down by 0.30 percent, France’s CAC   was down  by 0.06 percent.

Commodities Recap

Gold prices dropped about 1% on Friday as markets see the U.S. Federal Reserve committed to bringing down inflation, that would require higher rates for longer and pressure bullion as it heads for its biggest weekly decline in about two months.

Spot gold was down 0.8% at $1,988.22 per ounce by 1022 GMT. Bullion has lost about 0.7% so far this week, its biggest weekly decline since late February. U.S. gold futures dipped 1% to $1,999.70.

Oil prices were on track for a hefty weekly loss as economic and interest rate uncertainty weighed, though prices were stable on Friday as the euro zone recovery gathered pace unexpectedly.

Brent futures for June delivery rose 11 cents, or 0.14%, to $81.21 a barrel by 1148 GMT. West Texas Intermediate crude (WTI) for June delivery was up 13 cents, or 0.17%, at $77.50.


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