Posted at 17 March 2023 / Categories Market Roundups
•US Import Price Index (YoY) -1.1%, 0.8% previous
•US Export Price Index (YoY) -0.8%,2.3% previous
•US Initial Jobless Claims 192K,205K , 211K previous
•US Continuing Jobless Claims1,684K, 1,715K forecast,1,718K previous
•US Jobless Claims 4-Week Avg. 196.50K,197.00K previous
•Canada Jan Wholesale Sales (MoM) 2.4%, 3.0% forecast, -0.8% previous
•US March Philly Fed CAPEX Index -3.80,7.50 previous
•US March Philly Fed Employment -10.3,5.1 previous
•US March Philly Fed Business Conditions-8.0, 1.7 previous
•US Feb Building Permits (MoM) 13.8% , 0.1% previous
•US Mar Philadelphia Fed Manufacturing Index -23.2,-15.6 forecast,-24.3 previous
•US Building Permits 1.524M, 1.340M forecast, 1.339M previous
•US Feb Housing Starts 1.450M, 1.309M previous
•US Feb Housing Starts (MoM) 9.8%,-4.5% previous
•US Feb Export Price Index (MoM) 0.2%, -0.1% forecast, 0.8% previous
•US March Philly Fed Prices Paid 23.50,26.50 previous
•EU May ECB Interest Rate Decision 3.50%,3.50% forecast, 3.00% previous
•EU Mar Deposit Facility Rate 3.00%,3.00% forecast, 2.50% previous
Looking Ahead Economic data (GMT)
•No data ahead
Looking ahead Events and other Releases(GMT)
•No significant events
EUR/USD: The euro strengthened on Thursday after the European Central Bank raised interest rates as planned despite market chaos in recent days, in a sign the Federal Reserve also will likely raise rates next week as both stay on track to tame inflation. The European Central Bank pressed forward with a 50-basis-point rate hike despite recent turmoil in financial markets. The euro fell as much as 0.25% after the ECB's decision but later reversed course. The euro was up 0.38% to $1.0615 while the dollar index fell 0.258%. Immediate resistance can be seen at 1.0665(5DMA), an upside break can trigger rise towards 1.0744(23.6%fib).On the downside, immediate support is seen at 1.0560(50%fib), a break below could take the pair towards 1.0517(Lower BB).
GBP/USD: The British pound strengthened against the dollar on Thursday as sentiment improved after news of official support for Credit Suisse. The European Central Bank's decision to hike interest rates, as expected, also supported sterling. Some calm was restored to markets after the Swiss lender said on Thursday it would borrow up to $54 billion from the Swiss National Bank to shore up liquidity and investor confidence, after its shares on Wednesday plunged as much as 30%. Sterling was up 0.1% at $1.2045, and the dollar index, which tracks the unit against six main peers, was down 0.34% at 104.29.Immediate resistance can be seen at 1.2106 (9DMA), an upside break can trigger rise towards 1.2197(23.6%fib).On the downside, immediate support is seen at 1.2029(38.2%fib), a break below could take the pair towards 1.1932(March 3rd low).
USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Thursday as weaker dollar and higher oil prices boosted loonie. Brent crude futures rose $1.37, or 1%, to settle at $74.70 a barrel, while the West Texas Intermediate crude futures (WTI) gained 74 cents, or 1.1%, to settle at $68.35 a barrel. Canadian government 10-year bond yields rose 13 basis points to 2.916%. The yield on similar U.S. government benchmark debt rose to 3.5827%. U.S. April crude futures rose 74 cents to settle at $68.35 a barrel on Thursday. Canadian wholesale trade grew by 2.4% in January. The loonie was trading 0.3% higher at C$1.3727 to the greenback, or 72.85 U.S. cents, after trading in a range of 1.3722 to 1.3787. Immediate resistance can be seen at 1.3798(23.6%fib), an upside break can trigger rise towards 1.3852(March 10th high).On the downside, immediate support is seen at 1.3750(9DMA), a break below could take the pair towards 1.3708(38.2%fib).
USD/JPY: The dollar declined against yen on Thursday as the greenback eased after the European Central Bank raised interest rates as planned and some calm was restored in markets after an emergency lifeline for embattled lender Credit Suisse by Swiss authorities. Currency and other markets were broadly calmer on Thursday after Credit Suisse said it would borrow up to $54 billion from the Swiss National Bank to shore up liquidity and investor confidence. Investors' focus will now shift to next week's U.S. Federal Reserve policy meeting, with markets largely expecting the U.S. central bank to raise rates by 25 bps. Strong resistance can be seen at 133.57(5DMA), an upside break can trigger rise towards 134.54(38.2%fib).On the downside, immediate support is seen at 132.16(38.2%fib), a break below could take the pair towards 131.31(Lower BB).
European stocks rallied on Thursday after the ECB jacked up its interest rates by a hefty 50 basis points less than 12 hours after Credit Suisse was handed a 50 billion Swiss franc ($53.94 billion) lifeline.
UK's benchmark FTSE 100 closed up by 0.89 percent, Germany's Dax ended up by 1.57 percent, France’s CAC finished the day up by 2.03 percent.
A strong rebound by financials helped Wall Street's main indexes close firmly positive on Thursday, after some of the country's largest lenders came to the rescue of embattled First Republic Bank.
Dow Jones closed up by 1.17 percent, S&P 500 closed up by 1.76 percent, Nasdaq settled up by 2.48 % percent.
Oil prices settled 1% higher on Thursday, ending a three-session losing streak, after reports that Saudi Arabia and Russia met to discuss ways to enhance market stability.
Brent crude futures rose $1.37, or 1%, to settle at $74.70 a barrel, while the West Texas Intermediate crude futures (WTI) gained 74 cents, or 1.1%, to settle at $68.35 a barrel.
Gold prices edged higher on Thursday, bouncing towards last session's 1-1/2 month peak as concerns about the banking crisis continue after the European Central Bank hiked interest rates despite the ongoing financial stability risks.
Spot gold was up 0.1% at $1,919.31 per ounce by 01:53 p.m. EDT (1753 GMT), after jumping to its highest since early February at $1,937.28 on Wednesday.U.S. gold futures settled 0.4% lower to $1,923 per ounce.
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