Europe Roundup: Euro edges higher after Spanish CPI data, European shares falls, Gold slips, Oil steadies as rate hikes loom, Russian flows stay strong-January 30th,2023

Posted at 30 January 2023 / Categories Market Roundups

Market Roundup

•U.S. Fed, ECB and BoE all seen hiking rates this week

•Sweden GDP (YoY) (Q4)-0.6%,1.2% forecast, 2.5% previous

• Sweden GDP (QoQ) (Q4) -0.6%,0.6% previous

•German GDP (YoY) (Q4)0.5%,  0.8% forecast,1.2% previous

•Spanish CPI (YoY)5.8%,  4.9% forecast,5.7% previous

•Spanish CPI (MoM)-0.3%,0.2% previous

•Spanish Jan HICP (YoY)  5.8%,4.7% forecast,5.5% previous

•German GDP (QoQ) (Q4)-0.2%,0.0% forecast, 0.4% previous

•Greek Dec PPI (YoY)  16.5%, 26.2% previous

•EU Jan Business and Consumer Survey  99.9, 97.0 forecast,95.8 previous

• EU Jan Business Climate  0.69,0.54 previous

• EU Jan Consumer Inflation Expectation  17.7, 23.7 previous

• EU Jan Industrial Sentiment  1.3, -0.6 forecast,-1.5 previous

• EU Jan Services Sentiment  10.7,7.9 forecast,6.3 previous

Looking Ahead - Economic data (GMT)

•14:00 French 12-Month BTF Auction 2.833% previous

•14:00   French 3-Month BTF Auction 2.285% previous

•14:00   French 6-Month BTF Auction 2.536% previous

•15:30   US Jan Dallas Fed Mfg Business Index   -18.8 previous

•16:30   US 3-Month Bill Auction 4.575% previous

•16:30   US 6-Month Bill Auction 4.685% previous

Looking Ahead - Economic events and other releases (GMT)


EUR/USD: The euro edged higher against the dollar on Monday as higher Spanish inflation data supported the euro ahead of euro area readings on Wednesday. Spain's consumer prices inched up 5.8% in January compared with the same month last year, faster than the 5.7% annual rate recorded in December and the first increase since last July. Movement was still relatively subdued ahead of policy meetings at the Fed, the European Central Bank (ECB) and the Bank of England (BoE) later this week. The euro rose 0.14% to $1.0885. Immediate resistance can be seen at 1.0930(23.6%fib), an upside break can trigger rise towards 1.0990 (Higher BB).On the downside, immediate support is seen at 1.0863(5DMA), a break below could take the pair towards  1.0788(18th Jan low).

GBP/USD: Sterling edged lower on Monday as  investors were  cautious ahead of major central bank decisions this week. Major central banks including the U.S. Federal Reserve, the European Central Bank and the Bank of England (BoE) will announce monetary policy decisions next week, with traders betting on a 50-basis-point rate hike from the BoE. On Friday, data showed that U.S. consumer spending fell in December, while inflation continued to subside, which could give the Fed room to further slow the pace of its rate hikes.Immediate resistance can be seen at 1.2421(23.6%fib), an upside break can trigger rise towards 1.2521(Higher BB).On the downside, immediate support is seen at 1.2366(9DMA), a break below could take the pair towards 1.2284 (Jan 24th low).

USD/CHF: The dollar dipped  against the Swiss franc on Monday as investors awaited  a slew of central bank meetings due this week. Investors expect the Federal Reserve to raise rates by 25 basis points on Wednesday, followed the day after by half-point hikes from the Bank of England and European Central Bank, and any deviation from that script would be a shock. Besides the central bank meetings, a gathering on Wednesday of key ministers from the Organization of the Petroleum Exporting Countries and allies led by Russia, known as OPEC+, will also be in focus.Immediate resistance can be seen at 0.9249 (Jan 25th high), an upside break can trigger rise towards 0.9277 (38.2%fib).On the downside, immediate support is seen at 0.9198 (9DMA), a break below could take the pair towards 0.9165 (23.6%fib).

USD/JPY: The dollar edged higher against yen on Monday  after Bank of Japan governor Haruhiko Kuroda on Monday said the central bank must continue its easy policy. A panel of academics and business executives on Monday urged the Bank of Japan (BOJ) to make its 2% inflation target a long-term goal instead of one that must be met as soon as possible, in light of the rising cost of prolonged monetary easing. With rising raw material costs pushing up inflation well above its 2% target, the BOJ has seen its ultra-loose policy come under attack by investors betting it will hike interest rates when Governor Haruhiko Kuroda's second, five-year term ends in April. Strong resistance can be seen at 130.33(Jan 27th high), an upside break can trigger rise towards 131.00 (38.2%fib).On the downside, immediate support is seen at 129.42 (9DMA), a break below could take the pair towards 128.41 (23.6%fib).

Equities Recap

European shares fell on Monday, as cautious investors anticipated a slew of interest rate hikes by prominent central banks this week, with shares of rate-sensitive sectors including technology among the major laggards.

At (GMT 12:03 ),UK's benchmark FTSE 100 was last trading up at 0.06 percent, Germany's Dax was down by 0.68 percent, France’s CAC   was down by 0.57 percent.


Commodities Recap

Gold prices edged lower on Monday as investor attention moved to several central bank meetings this week for more clarity on their rate hike strategies, with key focus on the U.S. Federal Reserve.

Spot gold was 0.2% lower at $1,923.35 per ounce, as of 0924 GMT. U.S. gold futures fell 0.3% to $1,922.90.

Oil steadied on Monday as looming interest rate hikes by major central banks and signs of strong Russian exports balanced rising Middle East tension over a drone attack in Iran and hopes of higher Chinese demand.

Brent crude rose 20 cents, or 0.2%, to $86.86 a barrel by 1110 GMT while U.S. West Texas Intermediate crude added 8 cents, or 0.1%, to $79.76.

Simply the best forex trading platform. Mobile platform also available.

download mt4

Start trading forex in 5 minutes. Get 20% deposit bonus.

Open Live Account

Free $10000 forex virtual trading account. Practice makes perfect.

Open Demo Account