Posted at 28 September 2022 / Categories Market Roundups
• German Oct GfK Consumer Climate -42.5,-39.0 forecast, -36.5 previous
• French Sep Consumer Confidence 79, 80 forecast, 82 previous
• Italian Sep Business Confidence 101.3, 102.1 forecast,104.3 previous
• Italian Jul Industrial Sales (YoY) 16.30%, 18.00% previous
•Irish Aug Retail Sales (MoM) 2.0%, -1.6% previous
• US Aug Retail Inventories Ex Auto 0.6%, 0.4% previous
• US Aug Goods Trade Balance -87.30B, -90.19B previous
• US Wholesale Inventories (MoM) 1.3%,0.6% previous
Looking Ahead - Economic Data (GMT)
•14:00 US Aug Pending Home Sales (MoM) -1.4% forecast, -1.0% previous
•14:30 US Gasoline Production 0.006M previous
•14:30 US EIA Weekly Distillates Stocks -0.069M forecast, 1.231M previous
•14:30 US Cushing Crude Oil Inventories 0.343M previous
• 14:30 US Crude Oil Inventories 0.443M forecast, 1.142M previous
•14:30 US Gasoline Inventories 0.709M forecast, 1.569M previous
Looking Ahead - Economic events and other releases (GMT)
•12:40 US FOMC Member Bostic Speaks
•14:10 US FOMC Member Bullard Speaks
•14:15 US Fed Chair Powell Speaks
•15:00 US FOMC Member Bowman Speaks
EUR/USD: The euro declined on Wednesday as an intensifying energy crisis in Eurozone fuelled worries about a recession. Geopolitical tensions intensified as Europe investigated what Germany, Denmark and Sweden said were attacks on two Nord Stream pipelines at the centre of an energy standoff.A media report said the European Union had threatened a "robust and united response" to probable pipeline attacks. Denmark and Sweden on Tuesday said major leaks on the two Nord Stream pipelines in the Baltic Sea were caused by deliberate acts of sabotage carried out in each of the two countries' exclusive economic zones.The euro fell for a sixth straight day, dropping 0.3% to $0.9567 narrowly off last week's 20-year low of $0.9528.Immediate resistance can be seen at 0.9631(Daily high), an upside break can trigger rise towards 0.9673(38.2%fib).On the downside, immediate support is seen at 0.9551(23.6%fib), a break below could take the pair towards 0.9500(Psychological level).
GBP/USD: Sterling tumbled again on Wednesday after the Bank of England (BOE) said it would step in to prop up the gilt market, the latest sign of nerves in financial markets which helped nudge the dollar to its latest two-decade peak.The BOE said it would buy as many long-dated government bonds as needed between now and Oct. 14 to stabilise financial markets, and added that it would postpone next week's start of its gilt sale programme. As markets tried to digest what this meant for the pound, the currency whipsawed, jumping as high as $1.084 then falling, and was last down 1.5% at $1.0583.Immediate resistance can be seen at 1.0820(Daily high), an upside break can trigger rise towards 1.1034(50%fib).On the downside, immediate support is seen at 1.0559(23.6%fib),a break below could take the pair towards 1.0500(Psychological level).
USD/CHF: The dollar dipped against the Swiss franc on Wednesday as fears of a more aggressive U.S. Federal Reserve and a global economic slowdown sent investors into the arms of the safe-haven Swiss franc. Chicago Fed President Charles Evans, St. Louis Fed President James Bullard and Minneapolis Fed Bank President Neel Kashkari echoed the U.S. central bank’s pledge to focus on tackling soaring inflation. At 12:20 GMT, the dollar was 0.60 percent lower versus the Swiss franc at 0.9853 .Immediate resistance can be seen at 0.9900 (Daily high), an upside break can trigger rise towards 0.9958(23.6% fib).On the downside, immediate support is seen at 0.9837(38.2% fib), a break below could take the pair towards 0.9798(Sep 26th low).
USD/JPY: The dollar steadied against yen on Wednesday after Chicago Fed President Charles Evans reiterated a hawkish stance towards inflation. The U.S. Federal Reserve will need to raise interest rates to a range between 4.50% and 4.75%, Chicago Fed President Charles Evans said on Tuesday, a more aggressive stance than he has previously embraced that underscores the central bank's hardening resolve to quash excessively high inflation. Evans also said that he does not see "recession-like" unemployment rate numbers ahead, even as the Fed's actions result in below-trend economic growth and a softening in the labor market to bring inflation back down to the central bank's 2% goal. The dollar is scaling fresh two-decade highs nearly every day, which is keeping Japanese yen on back foot . Strong resistance can be seen at 144.90(23.6%fib), an upside break can trigger rise towards 145.79(Higher BB).On the downside, immediate support is seen at 144.00(5DMA), a break below could take the pair towards 142.55(38.2%fib).
European shares slid 1% on Wednesday, in line with a sell-off in Asian markets, as an intensifying energy crisis in the region and the relentless surge in global bond yields fuelled worries about a recession.
At (GMT 12:20),UK's benchmark FTSE 100 was last trading up at -0.78%percent, Germany's Dax was down by -0.79% percent, France’s CAC was last up by -1.07% percent.
Gold prices dropped to their lowest level since April 2020 on Wednesday, as a rally in the U.S. dollar and Treasury yields on prospects of more aggressive rate hikes by the Federal Reserve diminished its appeal.
Spot gold fell 0.6% to $1,619.79 per ounce, as of 0854 GMT. U.S. gold futures slipped 0.5% to $1,627.60.
Oil prices were broadly stable on Wednesday as pressure from a strengthening dollar and crude storage builds was offset by U.S. production cuts caused by Hurricane Ian.
Brent crude futures were up 5 cents, or 0.06%, at $86.32 per barrel by 0937 GMT, while U.S. West Texas Intermediate (WTI) crude futures were down 9 cents, or 0.1%, at $78.41 per barrel.