Posted at 07 March 2023 / Categories Market Roundups
Market Roundup
•Swiss Feb Unemployment Rate n.s.a 2.1%,2.2% forecast,2.2% previous
•Swiss Feb Unemployment Rate s.a 1.9%,1.9% forecast, 1.9% previous
•UK Feb Halifax House Price Index (MoM) 1.1%, -0.3% forecast,0.2% previous
•UK Feb Halifax House Price Index (YoY) 2.1%, 2.1% previous
• German Jan Factory Orders (MoM) 1.0%,-0.9% forecast,3.2% previous
•French Feb Reserve Assets Total 209,146.0M,228,704.0M previous
Looking Ahead Economic Data(GMT)
•13:55 US Redbook (YoY)5.3% previous
•15:00 US IBD/TIPP Economic Optimism 45.1 previous
•15:00 GlobalDairyTrade Price Index -1.5% previous
•15:00 US Jan Wholesale Inventories (MoM) -0.4% forecast,0.1% previous
•15:00 US Jan Wholesale Trade Sales (MoM) -0.3% forecast,-1.4% previous
•18:00 US 3-Year Note Auction 4.073% previous
•20:00 US Jan Consumer Credit 20.00B forecast, 11.56B previous
Looking Ahead Events And Other Releases(GMT)
•15:00 US Fed Chair Powell Testifies
• 18:30 SNB Chairman Thomas Jordan speaks
Fxbeat
EUR/USD: The euro steadied against the dollar on Tuesday as market participants kept upgrading their expectations about the European Central Bank policy rate peak. The U.S. Fed and the European Central Bank are both set to hike interest rates in their policy meetings in the next couple of weeks, as markets and central banks grow increasingly anxious of stickier-than-expected inflation.The ECB's chief economist Philip Lane said on Monday that the central bank is likely to increase rates further in the coming months to fight high inflation in the euro zone even if there are some signs that price pressures are easing. Immediate resistance can be seen at 1.0660 (21DMA), an upside break can trigger rise towards 1.0741 (Feb 20th high).On the downside, immediate support is seen at 1.0590 (38.2%fib), a break below could take the pair towards 1.0554(Lower BB).
GBP/USD: Sterling fell on Tuesday as dollar strengthened ahead of U.S. Federal Reserve Chair Jerome Powell's testimony.Powell is set to testify before Congress on Tuesday and Wednesday. Investors will watch for clues on monetary policy plans. In February, concern that U.S. interest rates would stay higher for longer hurt risk sentiment. Recent commentary from other Fed officials has calmed jitters, with markets now pricing in three 25-basis-point rate hikes. Immediate resistance can be seen at 1.2061(21DMA), an upside break can trigger rise towards 1.2150(23.6%fib).On the downside, immediate support is seen at 1.1986(38.2%fib), a break below could take the pair towards 1.1924(Lower BB).
USD/CHF: The dollar strengthened against the Swiss franc on Tuesday ahead of Federal Reserve Chair Jerome Powell's testimony that could offer a steer on the outlook for U.S. rates.Powell starts his semi-annual two-day testimony before Congress on Tuesday. Investors will monitor his remarks for any insight into his thinking on where U.S. rates will likely head.Futures traders are pricing in a 76% probability the Fed will raise rates by 25 basis points at its March 21 to 22 meeting and a 24% likelihood of a 50 bp increase. Immediate resistance can be seen at 0.9347 (Daily high), an upside break can trigger rise towards 0.9371(38.2%fib).On the downside, immediate support is seen at 0.92940 (21DMA), a break below could take the pair towards 0.9263(23.6%fib).
USD/JPY: The dollar dipped against yen on Tuesday as investors cautiously awaited the monthly U.S. jobs data and Federal Reserve Chair Jerome Powell's Congressional testimony, both of which could influence interest rate policy. Fed’s Powell is due to deliver his semi-annual testimony before Congress on Tuesday and Wednesday, which will be closely watched for any hints on the U.S. central bank’s tightening path. The U.S. February employment report is expected on Friday and any softening in the robust jobs market will be seen as a sign that the Fed's rate hikes are having their desired effect. Strong resistance can be seen at 136.26(Daily high), an upside break can trigger rise towards 136.96(23.6%fib).On the downside, immediate support is seen at 135.85 (11DMA), a break below could take the pair towards 134.47(38.2%fib).
Equities Recap
European shares edged higher on Tuesday as a sharp jump in online fashion retailer Zalando offset weakness in luxury stocks on bleak China data, while markets awaited U.S. Federal Reserve Chair Jerome Powell's testimony.
At (GMT 12:43 ),UK's benchmark FTSE 100 was last trading down at 0.31 percent, Germany's Dax was up by 0.15percent, France’s CAC was up by 0.11 percent.
Commodities Recap
Oil prices were little changed on Tuesday after five sessions of gains, with weak oil data from top crude importer China balanced by concern over supply.
Brent crude futures fell 22 cents, or 0.26%, to $85.96 a barrel by 1043 GMT. U.S. West Texas Intermediate crude was down 16 cents, or 0.2%, at $80.30.
Gold prices eased on Tuesday, as investors awaited Federal Reserve Chair Jerome Powell’s testimony later in the day for clues on the future path of U.S. interest rate hikes.
Spot gold was down 0.2% at $1,843.25 per ounce by 1112 GMT. U.S. gold futures fell 0.3% to $1,848.40.