Posted at 24 November 2022 / Categories Market Roundups
•EIA gasoline stocks data shows higher than expected build
•COVID-19 controls tighten in China
• Belgium Nov)NBB Business Climate -14.2 forecast, -15.5 previous
•Brazil Nov Mid-Month CPI (MoM) 0.53% 0.56% forecast,0.16% previous
•Brazil Nov Mid-Month CPI (YoY) 6.17%,6.21% forecast, 6.85% previous
Looking Ahead Economic Data(GMT)
• 23:50 Japan Foreign Investments in Japanese Stocks 556.6B previous
• 23:50 Japan Foreign Bonds Buying -123.9B previous
• 23:50 Japan Corporate Services Price Index (CSPI) (YoY) 2.1% forecast, 2.1% previous
Looking Ahead - Events, Other Releases (GMT)
•No significant events
EUR/USD: The euro held onto gains after the account of the European Central Bank's October meeting showed policymakers feared that inflation may be getting entrenched, justifying their outlook for further rate hikes. Policymakers also put the reduction of the bank's 9 trillion euro balance sheet on the agenda inching closer to unwinding a decade worth of government debt purchases aimed at rekindling inflation that had been undershooting the ECB's objective. The single currency was last up 0.2% at $1.0406, while sterling was trading at $1.2135, up 0.7% on the day. 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/CAD: The Canadian dollar gained slightly against its broadly weaker U.S. counterpart on Thursday after the Federal Reserve sent a dovish signal on the pace of interest rate hikes and as oil prices steadied . The greenback swooped towards a three-month low against a basket of major currencies and world shares touched a two-month high after minutes from the Fed’s latest meeting, released on Wednesday, pointed to a slower pace of U.S. rate rises from next month. The loonie was up 0.1% at 1.3340 to the greenback, or 74.96 U.S. cents, in a quiet North American session with U.S. markets closed for Thanksgiving. Immediate resistance can be seen at 1.3336 (5 DMA), an upside break can trigger rise towards 1.3447 (38.2% fib).On the downside, immediate support is seen at 1.3325 (23.8% fib), a break below could take the pair towards 1.3235 (Nov 16th low).
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 index , which measures the greenback against six major peers, was down 0.2% at 105.75, after sliding 1.1% on Wednesday. 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 closed higher on Thursday with several key indices from the region rising to multi-month highs, thanks to positive reaction to the Federal Reserve's minutes which have raised hopes the central bank will likely slow its pace of interest rate hikes from next month.
UK's benchmark FTSE 100 closed up by 0.02 percent, Germany's Dax ended up by 0.78 percent, France’s CAC finished the day up by 0. 42 percent.
Wall Street is closed on Thursday on account of Thanksgiving day.
Bond market is closed on Thursday on account of Thanksgiving day.
Gold prices rose to a near one-week high on Thursday on a weaker dollar, 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 0.3% to $1,754.13 per ounce by 2:05 p.m. ET (1905 GMT), while U.S. gold futures were up 0.5% to $1,754.30.
Benchmark Brent oil edged lower on Thursday while West Texas Intermediate (WTI) crude held steady, hovering in sight of two-month lows as the level of a proposed G7 cap on the price of Russian oil raised doubts about how much it would limit supply.
Brent crude futures were down 29 cents, or 0.3%, to $85.12 a barrel by 15.15 p.m. ET (2015 GMT), while U.S. WTI crude futures rose 2 cents, to $77.96.