Posted at 13 January 2022 / Categories Market Roundups
Market Roundup
• Italian Nov Industrial Production (YoY) 6.3%, 3.7% forecast, 2.0% previous
•Italian Nov Industrial Production (MoM) 1.9%, 0.5% forecast, -0.6% previous
• Greek Dec CPI (YoY) 5.1%, 5.4% forecast ,4.8% previous
•US Continuing Jobless Claims 1,559K, 1,733K forecast, 1,754K previous
•US Initial Jobless Claims 230K, 200K forecast, 207K previous
•US Jobless Claims 4-Week Avg 210.75K ,204.50K previous
•US Dec Core PPI (YoY) 8.3%, 8.0% forecast, 7.7% previous
•US Dec PPI (YoY) 9.7%,9.8% forecast, 9.7% previous
•US Dec PPI (MoM) 0.2%,0.4% forecast, 0.8% previous
•US Dec Core PPI (MoM) 0.5%,0.5% forecast, 0.7% previous
Looking Ahead - Economic Data (GMT)
•16:30 US 8-Week Bill Auction 0.055% previous
•16:30 US 4-Week Bill Auction 0.050% previous
Looking Ahead - Economic events and other releases (GMT)
•18:00 US Chicago Fed President Evans Speaks
Fxbeat
EUR/USD: The euro strengthened on Thursday as relief that U.S. inflation did not surge by more than expected faded and market focus turned back to central banks' tightening policy path. But borrowing costs in Europe and the United States fell on Wednesday as the inflation reading was not as high as some had feared. Later on the day investors focus is on Fed President Evans testimony for further clues.The euro extended its rise to $1.1479 , up 0.3% on the day .Immediate resistance can be seen at 1.1479 (Daily high), an upside break can trigger rise towards 1.1504 (23.6%fib).On the downside, immediate support is seen at 1.1464 (38.2% fib), a break below could take the pair towards 1.1435(50%fib).
GBP/USD: Sterling rose higher against dollar on Thursday after weaker-than-expected producer prices data eased concerns about a faster pace of interest rate hikes from the Federal Reserve. U.S. producer price inflation slowed in December as the cost of goods fell amid signs that stretched supply chains were starting to ease, hopeful signs that inflation has probably peaked.The producer price index for final demand increased 0.2% last month after surging 1.0% in November. Wholesale services prices rose 0.5%, accounting for the increase in the PPI. That followed a 0.9% jump in November. The pound was up 0.32 percent against the dollar at $1.3740. Immediate resistance can be seen at 1.3754(23.6% fib), an upside break can trigger rise towards 1.3805 (29th Oct high).On the downside, immediate support is seen at 1.3682 (38.2%fib), a break below could take the pair towards 1.3644(50%fib).
USD/CHF: The dollar dipped against the Swiss franc on Thursday as traders interpreted a rise in U.S. consumer prices in December as insufficient to alter the Federal Reserve's plans to speed up policy normalisation. Investors waited for more economic cues and clarity on the Federal Reserve’s interest rate hike trajectory. At (GMT 15:05), greenback dipped 0.42% versus the Swiss franc to 0.9102. Immediate resistance can be seen at 0.9123 (50% fib), an upside break can trigger rise towards 0.9165 (38.2%fib).On the downside, immediate support is seen at 0.9095(Lower BB), a break below could take the pair towards 0.9081(61.8% fib).
USD/JPY: The dollar declined against the Japanese yen on Thursday as the U.S. dollar slumped after inflation data came in line with market expectations and was deemed unlikely to change the Federal Reserve's policy tightening timeline. Data released overnight showed U.S. consumer prices rose at their fastest rate in nearly 40 years in December, but were not far off from expectations. The data is unlikely to temper the Fed's plan as the U.S. central bank has already flagged higher rates this year, with markets pricing in three hikes. Strong resistance can be seen at 114.73 (38.2%fib), an upside break can trigger rise towards 114.96 (5DMA).On the downside, immediate support is seen at 114.25 (50%fib), a break below could take the pair towards 113.75(61.8%fib).
Equities Recap
European shares was trading mixed on Thursday as defensive and construction stocks fell on worries over a continuing surge in COVID-19 cases and signs of a tighter monetary policy environment.
At (GMT 14:59),UK's benchmark FTSE 100 was last trading up at 0.10 percent, Germany's Dax was up by 0.18 percent, France’s CAC finished was downby 0.38 percent.
Commodities Recap
Gold prices held a tight range on Thursday as investors waited for more economic cues and clarity on the Federal Reserve’s interest rate hike trajectory, but a retreat in the dollar kept bullion close to a one-week peak hit in the last session.
Spot gold had fallen 0.1% to $1,822.90 per ounce by 1254 GMT. U.S. gold futures fell 0.1% to $1,825.10.
Oil prices eased on Thursday, but remained near 2-month highs, with Brent crude trading near $85 a barrel, buoyed by expectations that a strong economic recovery will boost demand, but rising U.S. inventories and high inflation capped gains.
Brent crude futures fell 11 cents, or 0.1%, to $84.56 a barrel, by 1304 GMT.U.S. West Texas Intermediate (WTI) crude futures were down27 cents to $82.37 a barrel.