America’s Roundup: Dollar steadies after hitting seven-month low, Gold prices edged lower, Oil holds in sight of recent highs on Chinese demand recovery hopes-January 17th,2023

Posted at 16 January 2023 / Categories Market Roundups

Market Roundup

•Canada Nov Manufacturing Sales (MoM) 0.0%,   0.5% forecast,2.8% previous

•French 12-Month BTF Auction 2.822%, 2.796% previous

•French 3-Month BTF Auction 2.164%,2.164% previous

•French 6-Month BTF Auction 2.526%, 2.413% previous

Looking Ahead Economic Data(GMT)

•02:00   Chinese Unemployment Rate    6.0% forecast, 5.7% previous

•02:00   Chinese Dec Retail Sales YTD (YoY)  -0.09% previous

•02:00   China Dec Industrial Production (YoY) 0.2% forecast, 2.2% previous

•02:00   China  Dec Retail Sales (YoY)   -8.6% forecast,-5.9% previous

•02:00 Chinese Dec Industrial Production YTD (YoY) 3.8% previous

• 02:00  Chinese Dec Fixed Asset Investment (YoY)  5.0% forecast, 5.3% previous

• 02:00  China  GDP (QoQ) (Q4)  -0.8% forecast,3.9% previous

•02:00   China  GDP (YoY) (Q4)    1.8% forecast,3.9% previous

•02:00   China Chinese GDP YTD (YoY) (Q4)3.0% previous              

•04:30 Japan Tertiary Industry Activity Index (MoM) 0.2% forecast, 0.2% previous

Looking Ahead - Economic events and other releases (GMT)

•No events ahead


EUR/USD: The euro steadied near nine-month high  against dollar on Monday aided by expectations of slower interest rate hikes from the U.S. Federal Reserve. Data from last week showed U.S. consumer prices fell for the first time in over 2-1/2 years in December, boosting the case for the central bank to ease off from its hawkish monetary policy. Market participants are mostly expecting a 25 basis points (bps) rate hike increase at the Fed’s next policy meeting. The euro hit a fresh nine-month top of $1.0874 in early trade before retreating to trade last at $1.0828. Immediate resistance can be seen at 1.0896(23.6%fib), an upside break can trigger rise towards 1.0950 (Higher BB).On the downside, immediate support is seen at 1.0778(5DMA), a break below could take the pair towards  1.0693(38.2%fib).

GBP/USD: Sterling fell against the U.S. dollar on Monday, with traders awaiting UK jobs and inflation data due later this week for clues on Bank of England (BoE) monetary policy plans. Adding to pressure on sterling, hopes for further progress in talks between British and European Union negotiators on post-Brexit trade rules for Northern Ireland are fading.The British prime minister’s spokesperson said on Monday significant differences remained between Britain and the EU.Sterling was down 0.3% against the dollar at $1.2194 after rising to its highest against the greenback since mid-December. Immediate resistance can be seen at 1.2279(Daily high), an upside break can trigger rise towards 1.2417(23.6%fib).On the downside, immediate support is seen at 1.2175 (5DMA), a break below could take the pair towards 1.2026(38.2%fib).

 USD/CAD: The Canadian dollar was little changed against its U.S. counterpart on Monday and bond yields fell as a Bank of Canada survey showed businesses growing more pessimistic about the economic outlook.The loonie was trading nearly unchanged at 1.34 to the greenback, after moving in a range of 1.3353 to 1.3417.Most Canadian businesses expect a mild recession over the next year because higher interest rates are curbing investment plans and consumer spending, while at the same time more see inflation staying high for longer, the BoC said. Canadian consumer price data for December, due on Tuesday, could provide further clues on the rate outlook. It is expected to show the annual rate of inflation slowing to 6.4%.Immediate resistance can be seen at 1.3424 (9DMA), an upside break can trigger rise towards 1.3462 (38.2%fib).On the downside, immediate support is seen at 1.3352(23.6%fib), a break below could take the pair towards 1.3321(Lower BB).

USD/JPY: The dollar declined against the Japanese yen Monday as traders ramped up bets the Bank of Japan will tweak its yield control policy further. A particular focus for currency markets this week is the Japanese yen, due to speculation that the Bank of Japan will make further tweaks to, or fully abandon, its yield control policy at its meeting this week. The dollar slipped to a more than seven-month low on the yen in early trading, before recovering and was last at 128.24 yen, down 0.`15%.  Strong resistance can be seen at 130.25 (5DMA), an upside break can trigger rise towards 130.50 (38.2% fib).On the downside, immediate support is seen at 127.50 (23.6% fib), a break below could take the pair towards 127.11 (Lower BB).

Equities Recap

European shares hit a near nine-month high on Monday, albeit in light trading due to a U.S. holiday, with real estate and retail stocks helping offset losses in commodity-linked sectors.

UK's benchmark FTSE 100 closed up by  0.39 percent, Germany's Dax ended up by 0.23 percent, France’s CAC finished the day up by 0.50 percent.                

Wall Street was closed in observance of Martin Luther King Jr. Day.

Commodities Recap

Gold prices edged lower from a more than eight-month high on Monday, but held above the key $1,900 per ounce level on expectations that the U.S. Federal Reserve will be less aggressive on raising interest rates.

Spot gold fell 0.3% to $1,914.16 per ounce by 1:47 p.m. ET (1847 GMT), after hitting its highest since late April at $1,929 in the session.U.S. gold futures fell 0.3% to $1,917.30.

Oil prices slipped on Monday but were holding near their highest levels this month as easing COVID restrictions in China raised hopes of a demand recovery in the world's top crude importer.

Brent crude fell $1.08, or 1.3%, to $84.20 a barrel by 2041 GMT.U.S. West Texas Intermediate crude was down $1.01, or 1.3%, at $78.85 in thin trade on a U.S. public holiday.

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