Posted at 25 April 2023 / Categories Market Roundups
Market Roundup
• UK Public Mar Sector Net Borrowing 20.71B,22.94B forecast,15.86B previous
• UK Public Mar Sector Net Cash Requirement 18.886B,3.956B forecast, -0.227B previous
• Swiss Mar Trade Balance 4.532B,3.493B forecast,3.314B previous
• Spanish PPI (YoY)-1.0%,2.8% forecast, 7.8% previous
Looking Ahead Economic data (GMT)
•12:55 US Redbook (YoY) 1.1% previous
•13:00 US Feb S&P/CS HPI Composite - 20 s.a. (MoM) -0.4% forecast,-0.4% previous
•13:00 US Feb House Price Index (YoY) 3.9% forecast,5.3% previous
•13:00 US Feb S&P/CS HPI Composite - 20 n.s.a. (YoY) 0.1% forecast,2.5% previous
•13:00 US Feb House Price Index 392.8 forecast,393.2 previous
•13:00 US Feb House Price Index (MoM) -0.1% forecast,0.2% previous
•13:00 US Feb S&P/CS HPI Composite - 20 n.s.a. (MoM) -0.7% forecast,-0.6% previous
•13:30 US Building Permits 1.413M forecast,1.550M previous
•13:30 US Building Permits (MoM) -8.8% forecast,15.8% previous
•14:00 US Apr Richmond Manufacturing Shipments 2 previous
•14:00 US Mar New Home Sales (MoM) 1.1% forecast, 1.1% previous
•14:00 US Apr CB Consumer Confidence 104.0 forecast,104.2 previous
•14:00 US Apr Richmond Services Index 2 forecast,-17 previous
•14:00 US Apr Richmond Manufacturing Index 4 forecast,-5 previous
•14:00 US Mar New Home Sales 630K forecast,640K previous
•14:30 US Apr Dallas Fed Services Revenues 4.0 forecast, 5.5 previous
•14:30 US Apr Texas Services Sector Outlook -16.0 forecast,-18.0 previous
Looking Ahead Events and Other Releases(GMT)
•No data ahead
Fxbeat
EUR/USD: The euro edged lower on Tuesday even as policymakers left the door open to a 50 basis point rate hike at next week. ECB's Philip Lane told a French paper that the central bank will need to raise interest rates again at its policy meeting next week, while board member Isabel Schnabel told Politico that a 50 basis points rate hike is not off the table. Economists polled by said the ECB will almost certainly add 25 bps to its deposit rate on May 4 and then take it to 3.50% or higher in June as core inflation remains persistently high. The euro was down around 0.1% against the dollar but still holding above $1.10 .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 pound fell on Tuesday, in line with a decline in a number of European currencies, as nervousness around the outcome of the earnings season and the outlook for the global economy gave the dollar an edge.In UK news, Britain recorded a bigger-than-expected budget deficit of 21.53 billion pounds ($26.87 billion) in March, official data showed on Tuesday, capping off the fourth-highest borrowing for a financial year since records started. Sterling on Tuesday was trading down 0.2% against the dollar at $1.2463 and down 0.1% against the euro. Immediate resistance can be seen at 1.2490(23.6%fib), an upside break can trigger rise towards 1.2523(Higher BB).On the downside, immediate support is seen at 1.2455(5DMA), a break below could take the pair towards 1.2379(38.2%fib).
USD/CHF: The dollar declined against the Swiss franc on Tuesday as traders turned their attention to this week's economic data that may influence the U.S. Federal Reserve's next policy decision. Investors await a key Fed-favoured inflation gauge, the core personal consumption expenditures index, as well as the U.S. GDP quarterly growth rate, due this week. Immediate resistance can be seen at 0.8812 (5 DMA), an upside break can trigger rise towards 0.8980 (38.2% fib).On the downside, immediate support is seen at 0.8885 (23.6% fib), a break below could take the pair towards 0.8833 (Lower BB).
USD/JPY: The dollar dipped against Japan's yen on Tuesday as greenback retreated as focus tuned to U.S. economic data that could determine the Federal Reserve's rate-hike strategy. Gobally, the investor mood was cautious in a busy week for corporate earnings and economic data. Markets will look to coming U.S. data releases for clues about the Federal Reserve's next policy moves and are also grappling with financial stability concerns highlighted by recent turmoil in U.S. and Swiss banks.. Strong resistance can be seen at 134.34(5DMA), an upside break can trigger rise towards 135.50(23.6%fb).On the downside, immediate support is seen at 133.62 (38.2%fib), a break below could take the pair towards 133.00(Psychological level)
Equities Recap
European shares fell on Tuesday, as investors scrutinised more corporate earnings and weighed comments by European Central Bank policymakers on the outlook for interest rates.
At (GMT 10:53),UK's benchmark FTSE 100 was last trading down at 0.32 percent, Germany's Dax was down by 0.12 percent, France’s CAC was trading down by 0.64 percent.
Commodities Recap
Gold prices were little changed on Tuesday as investors shied away from making big bets ahead of U.S. economic data that could determine the Federal Reserve's rate-hike strategy.
Spot gold was steady at $1,988.27 per ounce by 0854 GMT, while U.S. gold futures was unchanged at $1,999.40.
Oil edged higher on Tuesday, on track for a third day of gains, supported by investor optimism that holiday travel in China would boost fuel demand and by expectations U.S. inventories would show a drop in crude stocks.
Brent crude rose 10 cents to $82.83 a barrel at 0805 GMT, while U.S. West Texas Intermediate crude gained 15 cents to $78.91. Both contracts rose over 1% on Monday.