Posted at 23 November 2023 / Categories Market Roundups
Market Roundup
•US Jobless Claims 4-Week Avg. 220.00K, 220.25K previous
•US Continuing Jobless Claims 1,840K,1,865K previous
•US Initial Jobless Claims 209K ,225K forecast, 231K previous
•US Oct Core Durable Goods Orders (MoM) 0.0%, 0.1%forecast, 0.5% previous
•US Oct Goods Orders Non Defense Ex Air (MoM) -0.1%, 0.1% forecast, 0.6% previous
•US Oct Durable Goods Orders (MoM) -5.4%, -3.1% forecast, 4.7% previous
•US Oct Durables Excluding Defense (MoM) -6.7%,5.7% previous
•US Nov Michigan Consumer Expectations 56.8, 56.9 forecast,59.3 previous
•US Nov Michigan Current Conditions 68.3,65.7 forecast,70.6 previous
•US Nov Michigan Consumer 61.3, 60.4 forecast,63.8 previous
•Eurozone Nov Consumer Confidence -16.9,-17.6 forecast,-17.9 previous
•US Nov Michigan 5-Year Inflation Expectations 3.2%,3.2% forecast,3.0% previous
•US Nov Michigan 1-Year Inflation Expectations 4.5%,4.4% forecast,4.2% previous
•US Cushing Crude Oil Inventories 0.858M,1.925M previous
•US Crude Oil Inventories 1.160M forecast,3.592M previous
• U.S. Baker Hughes Oil Rig Count 500, 500 previous
• U.S U.S. Baker Hughes Total Rig Count 622, 618 previous
Looking Ahead Economic Data(GMT)
•00:30 Japan Nov Manufacturing PMI 48.8 forecast, 48.7 previous
•00:30 Japan Services PMI 51.6 previous
•05:00 Japan Leading Index 108.7 forecast, 109.2 previous
Looking Ahead Events And Other Releases (GMT)
•No Events Ahead
Currency Summaries
EUR/USD: The euro dipped against dollar on Wednesday after economic data showed the number of Americans filing new claims for unemployment benefits fell more than expected last week. Initial claims for state unemployment benefits dropped by 24,000 to a seasonally adjusted 209,000 for the week ended Nov. 18, the Labor Department said on Wednesday, the lowest level in more than a month. Economists polled had forecast 226,000 claims for the latest week .The greenback extended gains after the University of Michigan's survey of consumer sentiment showed U.S. consumers' inflation expectations rose for a second straight month in November. The euro was down 0.24% at $1.0883 .Immediate resistance can be seen at 1.0919(Daily high), an upside break can trigger rise towards 1.0973( 23.6%fib).On the downside, immediate support is seen at 1.0882 (38.2%fib), a break below could take the pair towards 1.0856(Daily low).
GBP/USD: Sterling dipped against a stronger dollar on Wednesday, as traders gear up for finance minister Jeremy Hunt's Autumn Statement budget update due early afternoon. Hunt is expected to announce tax cuts for businesses as he tries to boost Britain's sluggish economy, although any major policy announcements are likely to come closer to an election expected next year, according to analysts. On Tuesday, the pound hit a 10-week high against a weaker dollar, as BoE Governor Andrew Bailey reiterated the central bank's stance on interest rates did not need changing. Sterling was last trading at $1.249, down 0.37% on the day.Immediate resistance can be seen at 1.2495(5DMA), an upside break can trigger rise towards 1.2520 (23.6%fib).On the downside, immediate support is seen at 1.2448 (38.2%fib), a break below could take the pair towards 1.2383(50%fib).
USD/CAD: The Canadian dollar steadied against its U.S. counterpart on Wednesday, with the currency clawing back its earlier decline ahead of a U.S. holiday and as Bank of Canada Governor Tiff Macklem said that interest rates may be at their peak. Interest rates may now be restrictive enough to return inflation to a 2% target given that excess demand has vanished and weak growth is expected to persist for many months, Macklem said. The Canadian central bank has remained on the sidelines since July after lifting its benchmark interest rate to a 22-year high of 5%.The loonie was unchanged at 1.37 to the greenback, or 72.99 U.S. cents after trading in a range of 1.3691 to 1.3765. Immediate resistance can be seen at 1.3703(5DMA), an upside break can trigger rise towards 1.3753 (23.6%fib).On the downside, immediate support is seen at 1.3685 (38.2%fib), a break below could take the pair towards 1.3635 (50%fib).
USD/JPY: The dollar strengthened against the yen on Wednesday as strong initial jobless claims data unsettled a market that expects the Federal Reserve to start cutting rates around June as the U.S. economy slows. Initial claims for state unemployment benefits dropped by 24,000 to a seasonally adjusted 209,000 for the week ended Nov. 18, the Labor Department said on Wednesday. Other data, however, showed orders for long-lasting U.S. manufactured goods fell more than expected in October as orders for motor vehicles and parts dropped amid strikes by the United Auto Workers (UAW) union against Detroit's Big Three automakers. The dollar index rose 0.37% to 103.9, on track for its biggest one-day percentage gain since Nov 9.The Japanese yen weakened 0.82% to 149.61 per dollar. Strong resistance can be seen at 149.79 (38.2%fib),an upside break can trigger rise towards 150.00(Psychological level).On the downside, immediate support is seen 149.00 (50%fib)a break below could take the pair towards 147.28(61.8%fib).
Equities Recap
European shares hit a two-month high on Wednesday, led by rate-sensitive real estate stocks, while British software firm Sage jumped to a record high after reporting strong annual operating profit and announcing a share buyback plan.
UK's benchmark FTSE 100 closed down by 0.17 percent, Germany's Dax ended down by 0.36 percent, France’s CAC finished the day up by 0.43 percent.
U.S. stocks ended higher on Wednesday on optimism that the Federal Reserve may be done raising interest rates and that the economy is still resilient.
Dow Jones closed up by 0.53% percent, S&P 500 closed up by 0.41% percent, Nasdaq settled up by 0.46% percent.
Treasuries Recap
Treasury yields rebounded from early declines on Wednesday after rather strong initial jobless claims data unsettled a market that expects the Federal Reserve to start cutting interest rates around next June as the U.S. economy slows.
The yield on benchmark 10-year notes rose 1.3 basis points (bps) to 4.431%, after earlier sliding to 4.363%, a new two-month low. The two-year's yield, which reflects interest rate expectations, rose 5.1 bps to 4.934%.
Commodities Recap
Gold prices fell below the key $2,000 per ounce level on Wednesday as the U.S. dollar rebounded from lows and Treasury yields pared losses, while expectations that the Federal Reserve will pause rate hikes limited the slide in bullion.
Spot gold was down 0.4% at $1,991.16 per ounce by 3:05 p.m. ET (2005 GMT) and set for its biggest daily decline since Nov. 10. U.S. gold futures settled 0.4% lower at $1,991.30.
Oil prices fell nearly 1% in a volatile session on Wednesday as OPEC+ producers unexpectedly delayed a meeting on production cuts, raising questions about global crude supplies.
Brent futures settled 49 cents lower to $81.96 a barrel, after falling more than 4% to a low of $78.41 earlier in the session. U.S. West Texas Intermediate crude settled 67 cents lower at $77.10, after declining more than 5% to a session low of $73.79 earlier in the day.