Posted at 25 August 2022 / Categories Market Roundups
Market Roundup
•German GDP (QoQ) (Q2)0.1%,0.0% forecast,0.2% previous
•German GDP (YoY) (Q2)1.8%, 1.5% forecast, 1.5% previous
•German Aug Business Expectations 80.3 ,79.0 forecast, 80.3 previous
•German Aug Ifo Business Climate Index 88.5, 86.8 forecast,88.6 previous
•German Aug Current Assessment 97.5 ,96.0 forecast, 97.7 previous
•UK Aug CBI Distributive Trades Survey 37 ,-7 forecast, -4 previous
•France Jobseekers Total 2,967.0K, 2,933.0K previous
Looking Ahead – Economic data (GMT)
•12:30 US Real Consumer Spending (Q2) 1.0% previous
•12:30 US PCE Prices (Q2) 7.1% previous
•12:30 US GDP Sales (Q2) 1.1% previous
•12:30 US GDP (QoQ) (Q2) -0.8% forecast, -0.9% previous
•12:30 US GDP Price Index (QoQ) (Q2) 8.7% forecast, 8.9% previous
• 12:30 US Initial Jobless Claims 253K forecast, 250K previous
•12:30 US Continuing Jobless Claims 1,442K forecast, 1,437K previous
•12:30 US Jobless Claims 4-Week Avg 246.75K previous
• 15:00 US AugKC Fed Composite Index 13 previous
• 15:00 US KC Fed Manufacturing Index 7 previous
• 15:30 US 4-Week Bill Auction 2.150% previous
Looking Ahead - Events, Other Releases (GMT)
•11:30 ECB Publishes Account of Monetary Policy Meeting
•13:00 US Jackson Hole Symposium
Fxbeat
EUR/USD: The euro rebounded back above parity with the dollar on Thursday as the U.S. currency's recent rally ran out of steam and investors waited to see whether Federal Reserve Chair Jerome Powell would sound a more hawkish tone at a meeting this week. Investors have also been bracing for the Fed to double down on its commitment to crushing inflation at its annual gathering in Jackson Hole, Wyoming, where Powell is due to speak. By 0810 GMT, the U.S. dollar index , which measures the greenback against six counterparts, eased 0.4% to 108.17, but remained not far from its highest since September 2002 at 109.29, touched in mid-July.The euro was 0.4% higher at $1.001 after this week hitting a 20-year low below parity. Immediate resistance can be seen at 1.0056 (9DMA), an upside break can trigger rise towards 1.0131(38.2%fib).On the downside, immediate support is seen at 0.9992(23.6%fib), a break below could take the pair towards 0.9865 (Lower BB).
GBP/USD: Sterling recouped some losses against the dollar on Thursday but was still languishing near a 2-1/2 year low ahead of upcoming speeches by Bank of England and Federal Reserve officials that could determine the near term outlook for the currency. The Kansas City Federal Reserve's Jackson Hole Symposium kicks off on Thursday, with BoE Governor Andrew Bailey scheduled to join Fed Chair Jerome Powell and other central bankers at the three-day event. The pound hit its lowest level since March 2020 on Tuesday after purchasing managers' index (PMI) data showed activity in the private sector slowed to a crawl in August. Immediate resistance can be seen at 1.1902(38.2%fib), an upside break can trigger rise towards 1.1953(5DMA).On the downside, immediate support is seen at 1.1770(38.2%fib),a break below could take the pair towards 1.1675 (Lower BB).
USD/CHF: The dollar declined against the Swiss franc on Thursday ahead of a speech in two days by Federal Reserve Chair Jerome Powell that may affirm the U.S. central bank's aggressive policy to tame inflation. The Federal Reserve’s annual monetary policy conference in Jackson Hole, Wyoming is due to start on Friday. Investors have also been bracing for the Fed to double down on its commitment to crushing inflation at its annual gathering in Jackson Hole, Wyoming, where Powell is due to speak. Powell's Friday morning speech could cement the market tone until the next Federal Open Market Committee meeting next month. Immediate resistance can be seen at 0.9679(23.6%fib), an upside break can trigger rise towards 0.9748(Higher BB).On the downside, immediate support is seen at 0.9630(5DMA), a break below could take the pair towards 0.9591(38.2%fib)
USD/JPY: The dollar dipped against yen on Thursday as investors awaited direction on rate hikes by the U.S. Federal Reserve from a key central bankers' meet this week. Investors across financial markets are bracing for the U.S. central bank to reiterate its commitment to tame inflation or signal a pivot to subdued interest rate hikes. Powell will address the annual global central banking conference at Jackson Hole on Friday. The Fed has raised its benchmark overnight interest rate by 225 basis points in total since March to fight sky-high inflation and indicated that further tightening would depend on economic data. Strong resistance can be seen at 137.76(23.6%fib), an upside break can trigger rise towards 138.00(Psychological level).On the downside, immediate support is seen at 135.59 (9DMA), a break below could take the pair towards 135.35(38.2%fib).
Equities Recap
European shares firmed on Thursday on a boost from oil stocks ahead of minutes from the last policy meeting of the bloc's central bank, although gains were capped on mounting concerns of a recession induced by an energy crisis.
At (GMT 12:20 ),UK's benchmark FTSE 100 was last trading up at 0.31percent, Germany's Dax was up by 0.45 percent, France’s CAC finished was up by 0.23 percent.
Commodities Recap
Gold prices gained for a third straight session on Thursday, helped by a softer dollar, as investors looked ahead to the Jackson Hole economic symposium for cues on inflation and the U.S. Federal Reserve's rate path.
Spot gold advanced 0.7% to $1,762.59 per ounce by 1103 GMT, its highest since Aug. 18. U.S. gold futures rose 0.8% to $1,775.80.
Oil prices steadied on Thursday as producer group OPEC+ raised the prospects of curbing oil supplies while the prospect of an agreement that could return sanctioned Iranian oil exports to the market weighed.
Brent crude eased 2 cents to $101.20 a barrel by 1033 GMT, while U.S. West Texas Intermediate crude was down 22 cents, or 0.2%, at $94.67 a barrel.