Posted at 23 March 2023 / Categories Market Roundups
Market Roundup
•Swiss SNB Interest Rate Decision (Q1) 1.50%, 1.50% forecast, 1.00% previous
•Greek Jan Current Account (YoY) -0.125B,-2.663B previous
Looking Ahead Economic Data(GMT)
•12:00 UK Mar BoE Interest Rate Decision 4.25% forecast,4.00% previous
•12:00 UK Mar BoE MPC vote unchanged 3 forecast, 2 previous
•12:00 UK Mar BoE MPC vote hike 6 forecast, 7 previous
•12:00 UK Mar BoE MPC vote cut 0 previous
•12:30 US Current Account (Q4) -213.2B forecast,-217.1B previous
•12:30 US Feb Chicago Fed National Activity 0.23 previous
•12:30 US Jobless Claims 4-Week Avg.196.50K previous
•12:30 US Continuing Jobless Claims 1,684K forecast,1,684K previous
•12:30 US Initial Jobless Claims 197K forecast,192K previous
•14:00 US Feb New Home Sales 650K forecast, 670K previous
•14:00 US Feb New Home Sales (MoM) 7.2% previous
•14:30 US Natural Gas Storage -75B forecast, -58B previous
•15:00 US Mar KC Fed Composite Index 0 previous
•15:00 US Mar KC Fed Manufacturing Index -9 previous
•15:00 EU Mar Consumer Confidence -18.3 forecast,-19.0 previous
Looking Ahead Events and other Releases(GMT)
•15:00 EU ECB's Lane Speaks
•15:00 UK BoE MPC Member Mann
Fxbeat
EUR/USD: The euro gained on Thursday as dollar dipped after the Federal Reserve sounded close to calling time on interest rate hikes. The Fed raised its benchmark funds rate by 25 basis points, as expected, but dropped language about ongoing increases being needed in favour of "some additional" rises, as it watches how wobbling confidence in banks affects the economy.Futures imply around a 50% chance of one more quarter-point hike, in contrast to Europe where markets see around 50 bps of further tightening. The dollar index, which measures the currency against six major peers, was last down 0.2%. Euro rose to a seven-week high of $1.0930.Immediate resistance can be seen at 1.0921 (23.6%fib), an upside break can trigger rise towards 1.0940 (Feb 3rd high).On the downside, immediate support is seen at 1.0722(5DMA), a break below could take the pair towards 1.0709(38.2%fib).
GBP/USD: Sterling hovered near a seven-week high on Thursday ahead of a Bank of England meeting, with the central bank expected to rise interest rates once again in a bid to try to tame surging inflation. Markets are now fully pricing in a 25 basis point hike of the on Thursday.Also supporting bets that the BoE will raise its benchmark interest rates, there were recent similar moves from a slew of central banks including the Federal Reserve, which rose rates by 25 bps to the 4.75%-5.00% range on Wednesday. Sterling rose in early London trading to its highest point against the dollar since early February after data showed inflation unexpectedly rose last month, leading to bets the BoE will raise rates for the 11th time in a row to 4.25% from 4.0% when it meets at 1200 GMT. Immediate resistance can be seen at 1.2343 (23.6%fib), an upside break can trigger rise towards 1.2381(Higher BB).On the downside, immediate support is seen at 1.2244 (5DMA), a break below could take the pair towards 1.2168(38.2%fib).
USD/CHF: The dollar declined against the Swiss franc on Thursday after The Swiss National Bank pushed ahead with another hike. The Swiss National Bank raised its policy rate by 50 basis points as the central bank sought to balance tackling inflation with concerns about financial market turmoil, while it reiterated it was willing to be active in the foreign exchange market.The SNB also said measures announced by authorities at the weekend regarding Credit Suisse had put a halt to the crisis.The franc strengthened after the decision and was last up 0.2% against the dollar at 0.9155.Immediate resistance can be seen at 0.9196(38.2%fib), an upside break can trigger rise towards 0.9219(5DMA).On the downside, immediate support is seen at 0.9115(23.6%fib), a break below could take the pair towards 0.9100(Lower BB).
USD/JPY: The dollar dipped against yen on Thursday after the U.S. Federal Reserve signalled that its rate hike campaign could be nearing the end. The Fed on Wednesday raised interest rates by a widely expected 25 basis points (bps) and indicated it might pause further increases after the recent collapse of two U.S. banks. Fed policymakers believe beating back inflation may require just one more interest-rate hike this year. However, Fed Chair Jerome Powell in his news conference warned that the Fed would do “enough” to bring inflation down to 2%, and raise rates higher if it needed to. Strong resistance can be seen at 131.65(5DMA), an upside break can trigger rise towards 132.96 (38.2%fib).On the downside, immediate support is seen at 130.54(38.2%fib), a break below could take the pair towards 130.00(Psychological level).
Equities Recap
European stocks traded were lower on Thursday, following a weak session on Wall Street a day earlier, when the Federal Reserve delivered a widely expected 25 basis-point rate hike and signalled that a pause in policy tightening could be near..
At (GMT 11:33 ),UK's benchmark FTSE 100 was last trading down at 0.93 percent, Germany's Dax was down by 0.62 percent, France’s CAC was down by 0.51 percent.
Commodities Recap
Gold prices extended gains on Thursday after the Federal Reserve signalled a potential end to its monetary tightening cycle could be on the horizon.
Spot gold was up 0.4% at $1,976.80 per ounce, as of 0910 GMT. U.S. gold futures gained 1.5% to $1,979.20.
Oil prices dipped on Thursday, having hit their lowest since late 2021 earlier this week, after Federal Reserve Chair Jerome Powell highlighted banking sector credit risks for the world's largest economy, while U.S. crude stockpiles swelled.
Brent crude futures were down 54 cents, or 0.7%, to $76.15 a barrel at 0929 GMT, while U.S. West Texas Intermediate crude (WTI) dropped 62 cents, or 0.9%, to $70.28.