Posted at 23 November 2022 / Categories Market Roundups
•Canada Manufacturing Sales (MoM) 2.0%,0.2% forecast, 0.0% previous
•Canada Wholesale Sales (MoM) 1.3%, 0.4% forecast, 0.1% previous
•Canada New Housing Price Index (MoM) -0.2%,0.2% forecast, -0.1% previous
•Canada Sep core Retail Sales (MoM) -0.7%, -0.6% forecast, 0.7% previous
•US Redbook (YoY) 7.5%,6.8% previous
•US Nov Richmond Manufacturing Index -9, -9 forecast, -10 previous
•US Nov Richmond Services Index -2,-8 previous
•US Nov Richmond Manufacturing Shipments -8,-3 previous
•EU Nov Consumer Confidence -23.9,-26.0 forecast, -27.6 previous
Looking Ahead Economic Data(GMT)
•01:00 New Zealand RBNZ Interest Rate Decision 4.25% forecast, 3.50% previous
Looking Ahead - Events, Other Releases (GMT)
•01:00 New Zealand RBNZ Monetary Policy Statement
•01:00 New Zealand RBNZ Rate Statement
•02:00 New Zealand RBNZ Press Conference
EUR/USD: The euro strengthened on Tuesday as the dollar eased, as focus turned to minutes from the U.S. Federal Reserve’s latest meeting for clues on future rate hikes. The Fed’s November meeting minutes are due on Wednesday, with most traders betting on a 50-basis point hike in the December meeting. San Francisco Federal Reserve President Mary Daly said on Monday the real-world impact of the U.S. central bank’s interest rate hikes is likely greater than what its short-term rate target implies. Meanwhile, Cleveland Fed President Loretta Mester said the central bank can downshift to smaller interest rate hike increments from next month as it fine-tunes its policy actions to help bring down high inflation.Immediate resistance can be seen at 1.0307 (38.2%fib), an upside break can trigger rise towards 1.0395(Nov 18th high).On the downside, immediate support is seen at 1.0240(Daily low), a break below could take the pair towards 1.0189(38.2%fib).
GBP/USD: The pound rose on Tuesday as the dollar retreated following three days of gains. The greenback typically the driver of global currency markets rose sharply on Monday as a jump in COVID-19 cases in China sparked growth fears and sent investors towards the safe-haven currency, causing the pound to drop 0.59%.Still, the U.S. currency was down against its major peers on Tuesday, with sterling rising 0.33% to $1.185. The pound has rallied sharply in recent weeks after touching a record low of $1.0327 in September, when the government unveiled plans for large unfunded tax cuts. Immediate resistance can be seen at 1.1898 ( 23.6%fib), an upside break can trigger rise towards 1.2037 (Higher BBb).On the downside, immediate support is seen at 1.1782 (11DMA), a break below could take the pair towards 1.1615 (38.2%fib).
USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Tuesday as Wall Street rallied and investors weighed whether the Bank of Canada might have to act more aggressively than currently expected to cool the domestic economy. Canada’s central bank has raised borrowing costs aggressively this year in an attempt to reduce demand so that supply can catch up. Money markets expect the BoC to hike a further 25 basis points, rather than 50, at a policy decision next month. Adding to support for the loonie, the price of oil, one of Canada’s major exports, settled 1.1% higher as top exporter Saudi Arabia said OPEC+ was sticking with output cuts.Immediate resistance can be seen at 1.3412 (38.2% fib), an upside break can trigger rise towards 1.3450 (Daily high).On the downside, immediate support is seen at 1.3341(9MA), a break below could take the pair towards 1.3308 (50% fib).
USD/JPY: The dollar dipped against the Japanese yen on Tuesday as greenback retreated following an overnight rally that saw investors flocking to the safe-haven currency on worries over China's COVID flare ups. The major factor driving dollar moves in recent months has been market expectations of how aggressively the Federal Reserve will raise rates. Cleveland Fed President Loretta Mester said the central bank can downshift to smaller interest rate hike increments from next month, and San Francisco Fed President Mary Daly said the real-world impact of interest rate hikes is likely greater than its short-term rate target implies. Strong resistance can be seen at 142.22 (50% fib), an upside break can trigger rise towards 142.96 (14DMA).On the downside, immediate support is seen at 140.40 (38.2%fib), a break below could take the pair towards 138.96 (Nov 17th low).
European stocks closed higher on Tuesday, as a rally in commodity prices triggered some hectic buying in materials and energy sectors.
UK's benchmark FTSE 100 closed up by 0.29 percent, Germany's Dax ended up by 1.03 percent, France’s CAC finished the day up by 0. 35 percent.
U.S. stocks rallied on Tuesday, with the S&P 500 closing at its highest level in 2-1/2 months, as a sales forecast by Best Buy dampened concerns high inflation would lead to a dismal holiday shopping season while a bounce in oil prices helped lift energy shares.
Dow Jones closed up by 1.18 percent, S&P 500 ended up by 1.36 percent, Nasdaq finished the day up by 1.36 percent.
U.S. Treasury yields eased on Tuesday amid thin trading and lingering concerns over more COVID-19 infections in China, with investors waiting for clues on the outlook for inflation and monetary policy from the Federal Reserve's minutes due on Wednesday.
Benchmark 10-year Treasury yields went down nearly 7 basis points to 3.759% while the yield on the two-year note eased by a smaller extent to 4.518%.
Gold prices on Tuesday steadied above last session’s low as a retreat in the dollar and benchmark U.S. Treasury yields was offset by a rise in equities, while investors awaited cues on the U.S. Federal Reserve’s monetary policy path.
Spot gold were unchanged at $1,737.19 per ounce by 2:04 p.m. ET (1904 GMT), while U.S. gold futures settled broadly unchanged at $1,739.9.
Oil prices rose about 1% on Tuesday after top exporter Saudi Arabia said OPEC+ was sticking with output cuts and could take further steps to balance the market.
Brent crude rose 91 cents, or 1%, to settle at$88.36. U.S. West Texas Intermediate (WTI) crude was up 91 cents, or 1.1%, at $80.95.