Posted at 19 January 2023 / Categories Market Roundups
Market Roundup
•US Dec Building Permits 1.330M 1.370M forecast, 1.351M previous
•US Continuing Jobless Claims1,647K, 1,660K forecast, 1,634K previous
•US Initial Jobless Claims 190K, 214K forecast, 205K previous
• US Jobless Claims 4-Week Avg. 206.00K,212.50K previous
• Canada Nov Wholesale Sales (MoM) 1.9% forecast, 2.1% previous
•US Jan Philly Fed CAPEX Index 10.50,18.00 previous
•US Jan Philly Fed Employment 10.9 , -1.8 previous
•US Jan Philly Fed New Orders -10.9, -25.8 previous
•US Jan Philly Fed Prices Paid 24.50,26.40 previous
•US Dec Housing Starts (MoM) -1.4%,-0.5% previous
• US Dec Housing Starts 1.382M, 1.359M forecast,1.427M previous
•US Jan Philadelphia Fed Manufacturing Index -8.9,-11.0 forecast,-13.8 previous
•US Dec Building Permits (MoM) -1.6%, -10.6% previous
• US Jan Philly Fed Business Conditions 4.9, 3.8 previous
• US Crude Oil Inventories 8.408M,-0.593M forecast,18.962M previous
•23:10 Japan Dec CPI, n.s.a (MoM) 0.2% previous
•23:10 Japan Dec National Core CPI (YoY) 4.0% forecast, 3.7% previous
•23:10 Japan Dec National CPI (YoY) 3.8% previous
•01:15 China PBoC Loan Prime Rate 3.65% forecast, 3.65% previous
Currency Summaries
EUR/USD: The euro strengthened on Thursday as dollar slid after a slew of data continued to show that the U.S. economy was slowing down in the wake of multiple hefty interest rate hikes from the Federal Reserve, with the market anticipating a pause in tightening this year. Thursday's data showed overall housing starts declined 1.4% to a rate of 1.382 million units last month. Building permits dropped as well, down 1.6% to a rate of 1.330 million units.Manufacturing activity in the Mid-Atlantic region softened as well in January. The Philadelphia Fed's monthly manufacturing index rose to negative 8.9 this month, from negative 13.7 in December, an improvement from the median estimate of negative 11.The survey also showed inflation pressures. The latter measured by the prices paid index dropped to 24.5 in January from 36.3 last month. That was the lowest in nearly 2-1/2 years. The euro rose 0.4% against the dollar to $1.0831 . 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 held onto the bulk of its yesterday’s gains against the dollar on Thursday as inflation data suggested the Bank of England may have to raise rates more aggressively . Data released Wednesday showed headline UK consumer price inflation cooled, but inflation in services prices - which some BoE officials view as signalling more persistent inflation pressures and the secondary impact of higher energy and wage costs rose to the highest since March 1992. The pound was last trading against the dollar at $1.2387, having spiked to an intraday one-month high of $1.2435 a day earlier.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/CAD: The Canadian dollar strengthened against its U.S. counterpart on Thursday, recovering from a nearly two-week low, as investors cheered comments by Federal Reserve officials that could point to a slower pace of interest rate hikes. Boston Fed President Susan Collins said it was now appropriate to slow the pace of rate hikes, while Fed Vice Chair Lael Brainard noted signs of slowing economic growth.The loonie was trading 0.3% higher at 1.3450 to the greenback, or 74.35 U.S. cents, after touching its weakest intraday level since Jan. 6 at 1.3520.Immediate resistance can be seen at 1.3509 (38.2% fib), an upside break can trigger rise towards 1.3583(23.6% fib).On the downside, immediate support is seen at 1.3458 (50% fib), a break below could take the pair towards 1.3427 (9 DMA).
USD/JPY: The dollar dipped against yen on Thursday as yen rebounded as traders continued to bet the Bank of Japan will shift away from ultra-loose monetary policy. Defying market expectations, the BOJ kept its interest rate targets and policy of yield curve control intact, and instead crafted a new weapon to prevent long-term rates from rising too much in a show of resolve. The dollar fell against the Japanese yen and was last 0.4% lower at 128.40 yen. That went a small way to undoing the previous day’s rise, which came after the BOJ’s decision to stand pat on its ultra-loose monetary policy.Strong resistance can be seen at 130.00 (Psychological level), an upside break can trigger rise towards 130.24 (38.2% fib).On the downside, immediate support is seen at 127.62 (23.6% fib), a break below could take the pair towards 126.25 (Lower BB).
Equities Recap
European shares recorded their worst single-day selloff of the year on Thursday, as disappointing earnings reports, weak U.S. economic data and hawkish comments from central bankers rekindled fears of a global economic slowdown.
UK's benchmark FTSE 100 closed down by 1.07 percent, Germany's Dax ended down by 1.72 percent, France’s CAC finished the day down by 1.86 percent.
U.S. stock indexes closed lower on Thursday after data pointing to a tight labor market renewed concerns the Federal Reserve will continue its aggressive path of rate hikes that could lead the economy into a recession..
Dow Jones closed down by 0.76% percent, S&P 500 closed down by 0.76% percent, Nasdaq settled down by 0.96% percent.
Commodities Recap
Gold prices rose over 1% on Thursday, supported by a weaker dollar and some safe-haven demand as weak U.S. economic readings and hawkish comments from Federal Reserve officials fuelled recession worries.
Spot gold shot up 1.1% to $1,924.09 per ounce by 1:52 a.m. ET (1852 GMT), close to its 9-month peak of $1,929 reached on Monday. U.S. gold futures settled up 0.9% at $1,923.9.
Oil prices settled 1% higher on Thursday, extending a recent rally built around rising Chinese demand, while the market wrote off a second straight week of large builds in U.S. crude inventories.
Brent crude futures gained $1.18, or 1.4%, to settle at $86.16 per barrel, while U.S. West Texas Intermediate (WTI) crude futures rose by 85 cents, or 1.1%, to settle at $80.33 per barrel. Those were the highest closing levels for both contracts since Dec. 1.