Posted at 24 April 2023 / Categories Market Roundups
Market Roundup
• German Apr Business Expectations 92.2. 91.5 forecast,91.2 previous
• German Apr Current Assessment 95.0, 96.0 forecast, 95.4 previous
• German Apr Ifo Business Climate Index 93.6,94.0 forecast, 93.3 previous
• French 12-Month BTF Auction 3.354% ,3.329% previous
• French 6-Month BTF Auction 3.216%,3.194% previous
•French 3-Month BTF Auction 3.057%,3.056% previous
Looking Ahead Economic data (GMT)
• 14:30 US Apr Dallas Fed Mfg Business Index -14.6 forecast,-15.7 previous
•15:30 US 3-Month Bill Auction 5.080% previous
•15:30 US 6-Month Bill Auction 4.870% previous
Looking Ahead Events and Other Releases (GMT)
•No Significant Events
Fxbeat
EUR/USD: The euro strengthened on Monday after German business morale rose slightly in April. A survey showed on Monday, German business morale rose slightly in April adding to positive signs as Europe's largest economy hopes to have dodged a winter recession. The Ifo institute said its business climate index stood at 93.6 following a revised reading of 93.2 in March. The increase was weaker than expected, with a poll of analysts pointing to an April reading of 94.0. Markets are expecting the ECB to raise rates by a quarter point, with the possibility of a 50 basis points hike. Immediate resistance can be seen at 1.1040 (23.6%fib), an upside break can trigger rise towards 1.1080(Higher BB).On the downside, immediate support is seen at 1.0976 (5DMA), a break below could take the pair towards 1.0912(April 19th low).
GBP/USD: The British pound was little changed against the dollar on Monday, trading in close proximity to a 10-month high hit earlier this month as markets expect the Bank of England to continue tightening policy to bring down inflation. Data last week showed British consumer prices at 10.1% in March, the only country in Western Europe with double-digit inflation.This bolstered bets that the BoE would need to hike interest rates by more than previously expected, with a raft of banks revising upward their expectations for further monetary tightening. Traders meanwhile fully price in a 25 basis point hike at the May meeting. Immediate resistance can be seen at 1.2448(23.6%fib), an upside break can trigger rise towards 1.2523(Higher BB).On the downside, immediate support is seen at 1.2435(5DMA), a break below could take the pair towards 1.2373(38.2%fib).
USD/CHF: The dollar declined against the Swiss franc on Monday as market participants continued to focus on the U.S. Federal Reserve's interest rate strategy in their fight against surging inflation. Policymakers are widely expected to raise rates by another 25 basis points at next week's Federal Open Market Committee (FOMC) meeting, though the focus will be on guidance for future moves. On the economics front, a spate of housing data, industrial output, the Commerce Department's first stab at first-quarter GDP will be capped on Friday by the closely watched and wide ranging Personal Consumption Expenditures (PCE) report, which tracks income, spending and inflation. Immediate resistance can be seen at 0.8893 (5 DMA), an upside break can trigger rise towards 0.9002 (38.2% fib).On the downside, immediate support is seen at 0.8884 (23.6% fib), a break below could take the pair towards 0.8852 (Lower BB).
USD/JPY: The dollar strengthened against Japan's yen on Monday ahead of a closely watched Bank of Japan meeting. The Bank of Japan may conduct a comprehensive review of the impact of the monetary easing steps it has taken over the longer term, an idea recently flagged by its new governor Kazuo Ueda, three sources familiar with its thinking said.But there is uncertainty on how soon, and in what format, the central bank could launch such a review, which will be a topic of discussion at upcoming policy meetings, they said. At this week's meeting, the BOJ is expected to maintain its targets set under yield curve control (YCC), which guides short-term rates at -0.1% and the 10-year bond yield around zero. Strong resistance can be seen at 134.67(5DMA), an upside break can trigger rise towards 135.32(23.6%fb).On the downside, immediate support is seen at 133.87 (Daily low), a break below could take the pair towards 133.66(38.2%fib)
Equities Recap
European shares were subdued on Monday as investors await more economic data this week and earnings from some of the highest-valued U.S. companies, along with major European banks and consumer companies.
At (GMT 12:20),UK's benchmark FTSE 100 was last trading down at 0.01 percent, Germany's Dax was down by 0.09 percent, France’s CAC was trading down by 0.07 percent.
Commodities Recap
Gold prices edged lower on Monday for a second consecutive session, as investor focus shifted to central bank meetings for clarity on their rate-hike strategies that may shed light on whether progress has been made in taming inflation.
Spot gold was down 0.1% at $1,980.89 per ounce, as of 0613 GMT. U.S. gold futures were flat at $1,990.20.
Oil prices were down on Monday as concern over rising interest rates, the global economy and the outlook for fuel demand outweighed the prospect of tightening supplies.
Brent crude slipped 86 cents, or 1.1%, to $82.52 a barrel by 1415 GMT. U.S. West Texas Intermediate crude was down 83 cents, or 1.1%, at $78.70.