Posted at 24 November 2022 / Categories Market Roundups
•Sweden Interest Rate Decision 2.50%, 2.50% forecast, 1.75% previous
•French Nov Business Survey 101, 102 forecast, 103 previous
•German Nov Business Expectations 80.0,77.0 forecast, 75.6 previous
• German Nov Ifo Business Climate Index 86.3,85.0 forecast, 84.3 previous
•German Nov Current Assessment 93.1, 93.8 forecast, 94.1 previous
Looking Ahead Economic Data(GMT)
•14:00 Belgium Nov)NBB Business Climate -14.2 forecast, -15.5 previous
Looking Ahead - Events, Other Releases (GMT)
•13:00 EU ECB's Schnabel Speaks
•13:15 EU ECB's Enria Speaks
•13:45 UK BoE MPC Member Mann
•16:00 German Buba President Nagel Speaks
EUR/USD: The euro rose higher on Thursday as dollar declined after Federal Reserve meeting minutes pointed to a slower pace of U.S. interest rate rises from next month. A substantial majority of Fed policymakers had agreed it would "likely soon be appropriate" to slow the pace of interest rate rises, the minutes released on Wednesday showed, although "various participants" had also said rates might need to go somewhat higher than they had previously expected. The euro rose as high as $1.0447, edging it closer to its recent four-month top of $1.0481. Immediate resistance can be seen at 1.0452(23.6%fib), an upside break can trigger rise towards 1.0500(Psychological level).On the downside, immediate support is seen at 1.0340(9DMA), a break below could take the pair towards 1.0296(38.2%fib).
GBP/USD: Sterling rose on Thursday, staying near a three-month high against a faltering U.S. dollar, despite the prospect of a difficult winter ahead in the UK due to a cost-of-living crisis and soaring interest rates.A weaker dollar was largely behind the pound’s upward move according to analysts, as investors placed bets on riskier assets as minutes from the last Federal Reserve meeting raised the prospect of slower U.S. interest rate hikes. At 1022 GMT, the pound was up 0.4% against the dollar at $1.2095. It earlier hit $1.2113, the highest level since August 17. Immediate resistance can be seen at 1.2122 ( 23.6%fib), an upside break can trigger rise towards 1.2191 (Higher BBb).On the downside, immediate support is seen at 1.1971 (5DMA), a break below could take the pair towards 1.1896 (38.2%fib).
USD/CHF: The dollar declined against the Swiss franc on Thursday after minutes of the U.S. Federal Reserve’s latest policy meeting signalled slower interest rate hike. The minutes of the Fed’s Nov. 1-2 meeting showed that a substantial majority of Fed policymakers agreed it would “likely soon be appropriate” to slow the pace of interest rate hikes. Fed fund futures are now pricing in an 85% chance of 50-basis point (bps) rate increase in the December meeting, after four straight 75 bps hikes. Immediate resistance can be seen at 0.9503(5DMA), an upside break can trigger rise towards 0.9536(38.2%fib).On the downside, immediate support is seen at 0.9386(Daily low), a break below could take the pair towards 0.9300(Psychological level).
USD/JPY: The dollar declined against the Japanese yen on Thursday after the minutes from the Federal Reserve's November meeting supported the view that the central bank would downshift and raise rates in smaller steps from its December meeting.The eagerly awaited readout of the Nov. 1-2 meeting showed officials were largely satisfied they could now move in smaller steps, with a 50 basis point rate rise likely next month after four consecutive 75 basis point increases. The dollar weakened 0.6% against the Japanese yen to 138.38 yen. Strong resistance can be seen at 142.40 (38.2% fib), an upside break can trigger rise towards 143.00(Psychological level).On the downside, immediate support is seen at 138.20 (23.6%fib), a break below could take the pair towards 137.20(Lower BB).
European stocks advanced on Thursday as relatively dovish signals from the Federal Reserve helped traders look past concerns over China, with the daily COVID cases hitting a record high since the pandemic began.
At (GMT 12:29 ),UK's benchmark FTSE 100 was last trading up at 0.08 percent, Germany's Dax was up by 0.88 percent, France’s CAC finished was up by 0. 48 percent.
Gold prices rose to a near one-week high on Thursday, after minutes from the U.S. Federal Reserve’s November meeting signalled it may soon slow the pace of interest rate hikes.
Spot gold rose 0.5% to $1,757.91 per ounce, as of 1016 GMT. U.S. gold futures advanced 0.7% to $1,757.10.
Oil declined on Thursday, hovering around two-month lows, as the Group of Seven(G7) nations' proposed range for a price cap on Russian oil was higher than current trading levels, alleviating concerns over tight supply.
Brent crude futures dipped 50 cents, or 0.6%, to $84.91 a barrel by 0702 GMT, while U.S. West Texas Intermediate (WTI) crude futures fell by 46 cents, or 0.6%, to $77.48 a barrel.