Posted at 24 November 2023 / Categories Market Roundups
Market Roundup
•U.S. weekly jobless claims fall, labor market still slowing
• Canada Wholesale Sales (MoM) -1.1% , 0.4% previous
• Brazil Foreign Exchange Flows -1.708B forecast,-1.767B previous
Looking Ahead Economic Data(GMT)
• 05:00 Japan Leading Index 108.7 forecast, 109.2 previous
•05:00 Japan Coincident Indicator (MoM) 0.1% previous
Looking Ahead Events And Other Relesase(GMT)
Currency Summaries
EUR/USD: The euro rose on Thursday for the first time this week, after data suggested the downturn in the euro zone economy may be starting to ease. The survey showed the euro zone economy is on track to contract again in the fourth quarter.The PMI covering the bloc's dominant services industry rose to 48.2 this month from 47.8, slightly above the poll estimate for 48.1, but firmly in contraction territory. Manufacturing activity, which has contracted every month since July 2022, fell again in November. Its PMI rose to 43.8 from 43.1, beating the poll expectation for 43.4 but was still below break even. Immediate resistance can be seen at 1.0909(5DMA), an upside break can trigger rise towards 1.0952( 23.6%fib).On the downside, immediate support is seen at 1.0884 (38.2%fib), a break below could take the pair towards 1.0832 (50%fib).
GBP/USD: Sterling gained against the dollar after UK business activity on Thursday showed companies reported a marginal return to growth in early November after three months of contraction. The S&P Global/CIPS UK Composite Purchasing Managers' Index (PMI) spanning services and manufacturing firms showed a preliminary reading of 50.1 in November.That was up from 48.7 in October, and above the 50 threshold for growth for the first time since July. Economists polled had forecast an unchanged reading of 48.7. Sterling climbed 0.5% against the dollar to $1.2560. It touched its highest of $1.2575 since Sep 6 right after the PMI data. Immediate resistance can be seen at 1.2558(23.6%fib), an upside break can trigger rise towards 1.2625 (Sep 4th high).On the downside, immediate support is seen at 1.2506 (5DMA), a break below could take the pair towards 1.2491(38.2%fib).
USD/CAD: The Canadian dollar edged lower against its U.S. counterpart on Thursday, pulling back from an earlier two-week high, as oil prices fell and preliminary domestic data showed wholesale trade falling in October. Holidays in the U.S. and Japan kept currency market trading activity muted. Canadian wholesale trade most likely fell 1.1% in October from September on lower sales in the machinery, equipment and supplies and the motor vehicle and motor vehicle parts subsectors, Statistics Canada said.Retail sales data for October, due on Friday, could offer further clues about the strength of the domestic economy . Immediate resistance can be seen at 1.3720 (11DMA), an upside break can trigger rise towards 1.3747 (23.6%fib).On the downside, immediate support is seen at 1.3674(38.2%fib), a break below could take the pair towards 1.3621 (50%fib).
USD/JPY: The dollar steadied against the yen on Thursday as Investors dialled back expectations of rate cuts in 2024 after data on Wednesday showed the number of Americans filing new claims for unemployment benefits fell more than expected last week Recent evidence of a slowing economy and disinflation in the U.S. had pushed the dollar into a three-week spell of weakness, Markets have dialled back expectations of Fed rate cuts in 2024, with futures now showing a 27% chance that it cuts its target rate at the March 2024 policy meeting, according to CME Group's FedWatch tool. Strong resistance can be seen at 149.61 (38.2%fib),an upside break can trigger rise towards 150.37(23.6%fib).On the downside, immediate support is seen 148.92 (50%fib)a break below could take the pair towards 148.32(61.8%fib).
Equities Recap
European shares inched higher on Thursday, supported by gains in energy stocks, while investors awaited minutes of the European Central Bank's (ECB) latest meeting for clues on the region's monetary policy path.
UK's benchmark FTSE 100 closed up by 0.19 percent, Germany's Dax ended up by 0.23 percent, France’s CAC finished the day up by 0.24 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.
Commodities Recap
Gold prices edged up on Thursday as the U.S. dollar ticked lower, but investors remained largely on the sidelines in holiday-thinned trading with uncertainty around the Federal Reserve's rate path.
Spot gold was up 0.1% to $1,991.79 per ounce at 3:22 p.m. ET (2022 GMT). U.S. gold futures were flat at $1,993.30.
Oil prices dipped about 1% on Thursday, extending losses on expectations that OPEC+ might not deepen output cuts next year after the producer group postponed its policy meeting.
Brent crude futures were down 68 cents, or about 0.8%, at $81.28 a barrel by 2024 GMT after falling as much as 4% on Wednesday.
U.S. West Texas Intermediate crude slid 75 cents, or 1%, to $76.35 after dropping as much as 5% in the previous session.