Posted at 25 April 2023 / Categories Market Roundups
Market Roundup
• 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
• US Apr Dallas Fed Mfg Business Index -23.4,-14.6 forecast,-15.7 previous
• US 3-Month Bill Auction 5.065%,5.080% previous
• US 6-Month Bill Auction 4.840%, 4.870% previous
Looking Ahead Economic data (GMT)
•No data ahead
Looking Ahead Events and Other Releases(GMT)
• No significant events
Currency Summaries
EUR/USD: The euro strengthened on Monday as investors bet the European Central Bank will raise its main interest rate to above 3.8% and braced for key economic data later in the week.First-quarter GDP data for the euro zone is due to be released on Friday. Inflation will also be in the spotlight on the same day, with German, French and Spanish figures potentially providing clues about the path of monetary policy. Markets currently expect the ECB to raise rates by 25 basis points next week, with around a one-in-three chance of a larger 50 basis point hike. Immediate resistance can be seen at 1.1063 (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 strengthened 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 1.2499(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/CAD: The Canadian dollar was little changed against its U.S. counterpart on Monday after earlier touching its weakest level since late March, as investors awaited the release this week of minutes from the Bank of Canada’s latest meeting.The BoC is due to release on Wednesday its monetary policy deliberations for the April 12 interest rate decision.The central bank left its benchmark rate on hold for a second straight meeting at a 15-year high of 4.50% and raised its growth forecast for 2023 to 1.4% from 1.0% in January. The Canadian dollar was trading nearly unchanged at 1.3545 to the greenback, after touching its weakest since March 30 at 1.3567. Immediate resistance can be seen at 1.3551 (Higher BB), an upside break can trigger rise towards 1.3591 (Higher BB).On the downside, immediate support is seen at 1.3504 (5DMA), a break below could take the pair towards 1.3494 (50%fib).
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 ended flat on Monday at the beginning of a week packed with high-profile earnings, while shares of Dutch health technology company Philips jumped after strong first-quarter results.
UK's benchmark FTSE 100 closed down by 0.02 percent, Germany's Dax ended down by 0.11 percent, France’s CAC finished the day down by 0.04 percent.
The Nasdaq closed lower on Monday, underperforming the S&P 500 and the Dow, with pressure from high-profile megacaps as investors awaited results from companies including Microsoft while Tesla shares fell on concerns about its spending plans.
Dow Jones closed up by 0.20 % percent, S&P 500 closed up by 0.09 % percent, Nasdaq settled down by 0.29% percent.
Commodities Recap
Gold firmed on Monday, helped by a weaker dollar, although prices were stuck in a tight range as traders turned their attention to this week's economic data that may influence the U.S. Federal Reserve's next policy decision.
Spot gold was 0.4% higher at $1,990.34 per ounce by 1:45 p.m. EDT (1745 GMT), while U.S. gold futures settled up 0.5% at $1,999.80.
Oil prices settled higher on Monday, reversing losses as investors grew optimistic that holiday travel in China would boost fuel demand in the world's largest oil importer.
Brent crude settled up $1.07, or 1.3%, at $82.73 a barrel while U.S. West Texas Intermediate crude settled up 89 cents, or 1.1%, at $78.76.