Posted at 26 April 2023 / Categories Market Roundups
Market Roundup
• US Feb S&P/CS HPI Composite - 20 s.a. (MoM) 0.1%, -0.4% forecast,-0.4% previous
• US Feb House Price Index (YoY) 4.0%, 3.9% forecast,5.3% previous
• US Feb S&P/CS HPI Composite - 20 n.s.a. (YoY) 0.4%, 0.1% forecast,2.5% previous
• US Feb House Price Index 394.8, 392.8 forecast,393.2 previous
• US Feb House Price Index (MoM) 0.5%, -0.1% forecast,0.2% previous
• US Feb S&P/CS HPI Composite - 20 n.s.a. (MoM) 0.2%, -0.7% forecast,-0.6% previous
•US Building Permits 1.430M, 1.413M forecast,1.550M previous
•US Building Permits (MoM) -7.7%,-8.8% forecast,15.8% previous
•US Apr Richmond Manufacturing Shipments -7, 2 previous
• US Mar New Home Sales (MoM) 9.6%,1.1% forecast, 1.1% previous
• US Apr CB Consumer Confidence 101.3, 104.0 forecast,104.2 previous
• US Apr Richmond Services Index 2 forecast,-17 previous
• US Apr Richmond Manufacturing Index 4 forecast,-5 previous
• US Mar New Home Sales 683K,630K forecast,640K previous
Looking Ahead Economic Data(GMT)
• 01:30 Australia Weighted mean CPI (YoY) (Q1) 5.9% forecast, 5.8% previous
• 01:30 Australia Trimmed Mean CPI (YoY) (Q1) 6.7% forecast, 6.9% previous
• 01:30 Australia Trimmed Mean CPI (QoQ) (Q1) 1.4% forecast,1.7% previous
• 01:30 Australia CPI Index Number (Q1) 132.40 forecast,130.80 previous
• 01:30 Australia Weighted mean CPI (QoQ) (Q1)1.3% forecast,1.6% previous
• 01:30 Australia CPI (QoQ) (Q1) 1.3% forecast,1.9% previous
•01:30 Australia CPI (YoY) (Q1) 6.9% forecast,7.8% previous
•03:00 New Zealand Credit Card Spending (YoY) 28.0% forecast, 25.6% previous
Looking Ahead Events and Other Releases(GMT)
•No data ahead
Fxbeat
EUR/USD: The euro declined 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 1.2473 (5DMA), an upside break can trigger rise towards 1.2513(Higher BB).On the downside, immediate support is seen at 1.2379(38.2%fib), a break below could take the pair towards 1.2343(Higher BB).
USD/CAD: The Canadian dollar weakened to a four-week low against its U.S. counterpart on Tuesday as worries about the global banking sector resurfaced, driving a flight to quality. The Canadian dollar weakened to a four-week low against its U.S. counterpart on Tuesday as worries about the global banking sector resurfaced, driving a flight to quality.U.S. stocks fell and the safe-haven U.S. dollar rallied against a basket of major currencies as First Republic Bank disclosed it lost more than half its deposits during last month’s banking crisis. The loonie was trading 0.7% lower at 1.3640 to the greenback, after touching its weakest since March 28 at 1.3647.Immediate resistance can be seen at 1.3647 (23.6%fib), an upside break can trigger rise towards 1.3688 (March 28th high).On the downside, immediate support is seen at 1.3577 (38.2% fib), a break below could take the pair towards 1.3560 (5DMA).
USD/JPY: The dollar dipped against Japan's yen on Tuesday as market sentiment turned risk-averse amid renewed worries about the banking sector and the outlook for the global economy. The yen firmed , even as the Bank of Japan's (BOJ) new governor Kazuo Ueda signaled he was not in a hurry to shift policy. This week's BOJ meeting, which concludes on Friday, is his first in charge. A weak consumer confidence report and a decline in Federal Reserve manufacturing data further added to yen's safe-haven appeal. The Japanese currency rose 0.6% to 133.49 per dollar. 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.
UK's benchmark FTSE 100 closed down at 0.27 percent, Germany's Dax closed down by 0.05 percent, France’s CAC closed down by 0.56 percent.
Wall Street's major averages suffered their deepest declines so far this month as a downbeat UPS forecast exacerbated investor concerns about a slowing U.S. economy on Tuesday while plunging deposits at regional First Republic Bank added to jitters about the bank sector's health.
Dow Jones closed down by 1.02% percent, S&P 500 closed down by 1.58% percent, Nasdaq settled down by 1.98% percent.
Treasuries Recap
Benchmark 10-year Treasury yields fell by their largest amount since March on Tuesday while short-term yields climbed as investors balanced rising concerns about the regional banking sector and the possibility of an imminent recession with worries about the U.S. debt ceiling.
The yield on 10-year Treasury notes US10YT=RR was down 11.7 basis points to 3.398%, while the yield on the 30-year Treasury bond US30YT=RR was down 7.7 basis points to 3.652%.
Commodities Recap
Gold prices rose on Tuesday as steeply lower Treasury yields countered pressure from a stronger dollar, while investors awaited a slew of U.S. economic data due later this week that could sway the Federal Reserve's interest rate-hike stance.
Spot gold was up 0.7% to $2,002.32 per ounce by 2:17 p.m. EDT (1817 GMT), while U.S. gold futures settled 0.3% higher at $2,004.50.
Oil dropped 2% to its lowest this month on Tuesday after two sessions of gains, as deepening concerns of an economic slowdown and a stronger dollar outweighed hopes of higher Chinese demand.
Brent crude fell by $1.96, or 2.4%, to settle at $80.77 a barrel, its lowest close since March 31, before OPEC announced plans to cut production.
U.S. West Texas Intermediate crude dropped $1.69, or 2.2%, to close at $77.07, also its lowest this month.