Posted at 18 January 2023 / Categories Market Roundups
Market Roundup
•UK Dec CPI, n.s.a 127.20, 126.70 previous
•UK Dec Core RPI (YoY)12.9%,13.5% previous
• UK Dec Core CPI (YoY) 6.3%,6.2% forecast,6.3% previous
• Italian Dec Car Registration (YoY) 21.0%,14.7% previous
• UK Dec Core CPI MoM (MoM) 0.5%,0.4% forecast,0.3% previous
•UK Housing Equity Withdrawal (QoQ) -5.8B, -7.9B forecast,-5.1B previous
•UK House Price Index (YoY) 10.3%, 10.4% forecast, 12.6% previous
•EU Dec Core CPI (YoY) 5.2%,5.2% forecast,5.0% previous
• EU Dec HICP ex Energy & Food (YoY) 6.9%,6.9% forecast,6.9% previous
• EU Dec Core CPI (MoM) 0.6%,0.6% forecast,0.6% previous
• EU Dec CPI (YoY) 9.2%, 9.2% forecast, 10.1% previous
• EU Dec CPI (MoM) -0.4%,-0.3% forecast,-0.1% previous
•EU CPI Dec ex Tobacco (MoM) -0.4%,-0.1% previous
Looking Ahead - Economic Data (GMT)
•13:30 US Dec Retail Sales (YoY) 6.48% previous
•13:30 Canada Dec RMPI (YoY) 8.0% previous
•13:30 Canada Dec IPPI (YoY) 9.7% previous
•13:30 US Dec Retail Control (MoM) -0.3% forecast, -0.2% previous
•13:30 Canada Dec RMPI (MoM) -1.3% forecast,-0.8% previous
•13:30 US Dec Retail Sales (MoM) -0.8% forecast,-0.6% previous
•13:30 US Dec Core Retail Sales (MoM) -0.4% forecast, -0.2% previous
•13:30 US Dec Retail Sales Ex Gas/Autos (MoM) -0.2% previous
•13:30 US Dec Core PPI (YoY) 5.7% forecast,6.2% previous
•13:30 US Dec PPI (YoY) 6.8% forecast, 7.4% previous
•13:30 US Dec PPI (MoM) -0.1% forecast,0.3% previous
•13:30 US Dec PPI ex. Food/Energy/Transport (MoM ) 0.3% previous
•13:30 US Dec Core PPI (MoM) 0.1% forecast, 0.4% previous
•13:30 US Dec PPI ex. Food/Energy/Transport (YoY) 4.9% previous
•13:30 Canada Dec IPPI (MoM) -0.3% forecast,-0.4% previous
•13:55 US Redbook (YoY) 5.3% previous
•14:15 US Dec Industrial Production (YoY) 2.51% previous
•14:15 US Dec Manufacturing Production (MoM) -0.3% forecast,-0.6% previous
•14:15 US Dec Capacity Utilization Rate 79.6% forecast,79.7% previous
•14:15 US Dec Industrial Production (MoM) -0.1% forecast,-0.2% previous
•15:00 US Nov Retail Inventories Ex Auto -0.3% previous
•15:00 US Nov Business Inventories (MoM) 0.4% forecast,0.3% previous
•15:00 US Jan NAHB Housing Market Index 31 forecast, 31 previous
Looking Ahead - Economic events and other releases (GMT)
•14:30 US FOMC Member Bullard Speaks
•19:00 US Beige Book
•19:00 US FOMC Member Harker Speaks
Fxbeat
EUR/USD: The euro strengthened against dollar on Wednesday after data showed Euro zone consumer inflation decelerated as expected in December. Eurostat said prices in the 20 countries sharing the euro fell 0.4% month-on-month for a 9.2% year-on-year rise. Energy prices fell 6.6% month-on-month for a 25.5 year-on-year rise, decelerating from the 34.9% year-on-year gain the month before. Trading later in the day may be impacted by reaction to a slew of U.S. economic data, including reports on producer prices, retail sales and industrial production.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 edged up against the dollar on Wednesday, as data showed British consumer price inflation fell to a three-month low of 10.5% in December but remains near 40-year highs. The UK’s inflation figures were largely in line with consensus expectations, with the downward momentum likely offering some comfort to the Bank of England (BoE) and households struggling with a cost-of-living crisis.Immediate resistance can be seen at 1.2383(23.6%fib), an upside break can trigger rise towards 1.2438(Higher BB).On the downside, immediate support is seen at 1.2265 (5DMA), a break below could take the pair towards 1.2173 (Jan 17th low).
USD/CHF: The dollar declined against the Swiss franc on Wednesday as greenback dipped on expectations of a slower pace of Federal Reserve rate hikes. Investors are increasingly expecting the Fed to reduce the size of rate hikes to 25 basis points at its next meeting, after slowing its pace to 50 bps in December, following four consecutive 75 bps increases. Investors are now looking towards the U.S. producer price index and retail sales data due later in the day. Immediate resistance can be seen at 0.9228 (5DMA), an upside break can trigger rise towards 0.9277 (38.2%fib).On the downside, immediate support is seen at 0.9130 (23.6%fib), a break below could take the pair towards 0.9100 (Psychological level).
USD/JPY: The dollar strengthened on Wednesday after the Bank of Japan maintained ultra-low interest rates, disappointing some investors who had hoped the central bank would relax its yield curve control policy further. At a two-day policy meeting, the BOJ kept intact its YCC targets, set at 0.1% for short-term interest rates and around 0% for the 10-year yield, by a unanimous vote. It also made no change to its guidance that allows the 10-year bond yield to move 50 basis points either side of its 0% target. The dollar rose as much as 2.7% to 131.58 yen before gains were pared. It was last up at 129.12 yen. Strong resistance can be seen at 130.00 (Psychological level), an upside break can trigger rise towards 131.68 (Daily high).On the downside, immediate support is seen at 128.12 (23.6% fib), a break below could take the pair towards 126.93 (Lower BB).
Equities Recap
European shares edged higher on Wednesday, supported by a slate of upbeat corporate earnings and outlook, setting the benchmark index on track for its longest winning streak since November 2021.
At (GMT 12:48 ),UK's benchmark FTSE 100 was last trading up at 0.07 percent, Germany's Dax was up by 0.18 percent, France’s CAC was up by 0.33 percent.
Commodities Recap
Gold reversed course to trade higher on Wednesday as the U.S. dollar pulled back from session highs and expectations of a slower pace of Federal Reserve rate hikes supported prices above the $1,900 threshold.
Having dipped in the last two sessions, spot gold rose 0.2% to $1,911.57 per ounce by 0917 GMT, after hitting a session low of $1,896.32 earlier. U.S. gold futures ticked up 0.2% to $1,913.60.
Oil prices rose on Wednesday to their highest since early December on optimism that the lifting of China's strict COVID-19 curbs will lead to a fuel demand recovery in the world's top oil importer.
Brent crude futures were up $1.21, or 1.41%, to $87.13 a barrel by 0942 GMT, while U.S. West Texas Intermediate (WTI) crude futures were up $1.36, or 1.7%, to $81.54. Both were at their highest since early December.