Posted at 13 January 2022 / Categories Market Roundups
•US Continuing Jobless Claims 1,559K, 1,733K forecast, 1,754K previous
•US Initial Jobless Claims 230K, 200K forecast, 207K previous
•US Jobless Claims 4-Week Avg 210.75K ,204.50K previous
•US Dec Core PPI (YoY) 8.3%, 8.0% forecast, 7.7% previous
•US Dec PPI (YoY) 9.7%,9.8% forecast, 9.7% previous
•US Dec PPI (MoM) 0.2%,0.4% forecast, 0.8% previous
•US Dec Core PPI (MoM) 0.5%,0.5% forecast, 0.7% previous
• US 8-Week Bill Auction 0.050%, 0.055% previous
• US 4-Week Bill Auction 0.040%,.0.050% previous
Looking Ahead - Economic Data (GMT)
•23:50 US Dec PPI (MoM) 0.3% forecast,0.6% previous
•23:50 US Dec PPI (YoY) 8.8% forecast, 9.0% previous
Looking Ahead - Economic events and other releases (GMT)
•06:00 Australia Invest Housing Finance (MoM)1.1% previous
•07:30 China Dec Trade Dec Balance (USD) 74.50B forecast, 71.72B previous
•07:30 China Dec Exports (YoY) 20.0% forecast, 22.0% previous
EUR/USD: The euro strengthened on Thursday as relief that U.S. inflation did not surge by more than expected faded and market focus turned back to central banks' tightening policy path. But borrowing costs in Europe and the United States fell on Wednesday as the inflation reading was not as high as some had feared. Later on the day investors focus is on Fed President Evans testimony for further clues.The euro extended its rise to $1.1479 , up 0.3% on the day .Immediate resistance can be seen at 1.1479 (Daily high), an upside break can trigger rise towards 1.1504 (23.6%fib).On the downside, immediate support is seen at 1.1464 (38.2% fib), a break below could take the pair towards 1.1435(50%fib).
GBP/USD: Sterling hit an 11-week high against a weakening dollar on Thursday as investors expect a February rate hike from the Bank of England to back the pound and see limited risks linked to Prime Minister Boris Johnson’s party scandal.The dollar lost ground against most rival currencies after data showed U.S. inflation was no hotter than expected in December, which prompted traders to cut crowded long positions. The pound reached a high of $1.3749, a level unseen since October 29 2021. Immediate resistance can be seen at 1.3754(23.6% fib), an upside break can trigger rise towards 1.3805 (29th Oct high).On the downside, immediate support is seen at 1.3682 (38.2%fib), a break below could take the pair towards 1.3644(50%fib).
USD/CAD: The Canadian dollar on Thursday strengthened for a third day against its U.S. counterpart as global financial markets stabilized and the greenback lost ground against a basket of major currencies.The loonie was trading 0.4% higher at 1.2461 to the greenback, or 80.25 U.S. cents, after touching its strongest level since Nov. 10 at 1.2458 Canada's central bank is due to make a policy announcement and update its economic forecasts on Jan. 26. It has not hiked rates since October 2018. Canada is a major producer of commodities, including oil, so the loonie tends to be sensitive to moves in risk appetite. Immediate resistance can be seen at 1.2540(38.2%fib), an upside break can trigger rise towards 1.2601 (23.6%fib).On the downside, immediate support is seen at 1.2491 (50%fib), a break below could take the pair towards 1.2438 (61.8%fib)
USD/JPY: The dollar declined against the Japanese yen on Thursday as day after data that showed an expected surge in U.S. consumer prices in December fell short of offering any new impetus for the Federal Reserve's policy normalization effort.The U.S. Dollar Currency Index , which tracks the greenback against six major currencies, was down 0.1% at 94.866, its lowest since Nov. 10. The index, which rose 6.3% in 2021, is down about 1% for the week, on pace for its worst weekly performance in about eight months. Strong resistance can be seen at 114.73 (38.2%fib), an upside break can trigger rise towards 114.96 (5DMA).On the downside, immediate support is seen at 114.25 (50%fib), a break below could take the pair towards 113.75(61.8%fib).
European shares look set for slight losses at the open after two days of strong gains driven by commodity stocks and helped by easing bond yields that took pressure off the tech sector.
The UK's benchmark FTSE 100 closed up by 0.13% percent, Germany's Dax ended up 0.13%percent, and France’s CAC finished the day up by 0.50%percent.
The Nasdaq and S&P 500 were falling on Thursday as investors took profits from technology stocks ahead of the fourth quarter earnings season and after a three-session rally.
Dow Jones was down by 1.05 percent, S&P 500 was down by 1.07 percent, Nasdaq was down by 2.00 percent.
U.S. Treasury yields on Thursday drifted lower within narrow ranges, with investors consolidating positions that pushed 2- and 5-year rates to two-year highs earlier in the week, as they prepared for an interest rate hike in March and at least two more by the end of the year.
The benchmark U.S. 10-year yield slipped a basis point to 1.7164%
Oil prices edged lower on Thursday as investors took profits after two days of gains amid fears of aggressive U.S. interest rate hikes, but the losses were cushioned by expectations that a strong economic recovery will boost demand.
U.S. West Texas Intermediate (WTI) crude futures were down 29 cents, or 0.4%, to $82.35 a barrel by 1:43 p.m. ET (1843 GMT), after rising 5.6% over the last 2 days.
Brent crude futures fell 2 cents, or 0.5%, to $84.65 a barrel. It had gained 4.7% over Tuesday and Wednesday.
Gold prices retreated on Thursday, as U.S. Treasury yields edged up with the Federal Reserve likely to raise interest rates in March.
Spot gold fell 0.3% to $1,820.71 per ounce by 14:17 ET (1917 GMT). U.S. gold futures settled down 0.3% at $1,821.4.