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America’s Roundup: Dollar retreats from recent high, Wall Street ends down sharply, Gold little changed, Oil settles lower after hitting $90/bbl as OPEC+ considers output cut-September 30th,2022

Market Roundup

•US indexes end: S&P 500 -2.11%, Nasdaq -2.84%, Dow -1.54%

•US Corporate Profits (QoQ) (Q2) 6.2%,9.1% forecast,  -4.9% previous

•US GDP Sales (Q2) 1.3%, 1.3%  forecast, -1.2% previous

• US GDP (QoQ) (Q2)-0.6%, -0.6% forecast,-1.6% previous

•US Continuing Jobless Claims 1,347K,1,388K forecast,  1,379K previous

•US Initial Jobless Claims 193K, 215K forecast,  213K previous

•US Jobless Claims 4-Week Avg 207.00K,216.75K previous

•Canada Jul GDP (MoM) 0.1%,-0.1% forecast,  0.1% previous

•US Core PCE Prices (Q2) 7.3%, 7.1% forecast,  7.1% previous

•US Real Consumer Spending (Q2) 2.0%, 1.5% previous

•Canada GDP (YoY) 4.30%,4.56% previous

•US Natural Gas Storage 103B, 94B forecast,   103B previous

• US 4-Week Bill Auction 2.660%, 2.660% previous

Looking Ahead - Economic Data (GMT)

•01:30 China Sep Non-Manufacturing PMI   52.6 previous

•01:30 Chinese Sep Composite PMI 51.7 previous

•01:30 Australia  Aug Private Sector Credit (MoM)  0.7% previous

•01:30 Australia  Sep Manufacturing PMI  49.6    forecast,  49.4 previous

•01:30 China Sep Caixin Manufacturing PMI 49.5 previous

Looking Ahead - Economic events and other releases (GMT)

•No significant events

EUR/USD: The euro rose   on Thursday after German inflation data reignited ECB will raise interest-rates. ECB policymakers voiced more support on Thursday for another big interest rate hike as inflation in the euro zone's biggest economy hit double digits, blasting past expectations and heralding another record reading for the bloc as a whole.The European Central Bank has raised rates by a combined 125 basis points over its last two meetings and promised further increases as sky-high food and energy prices filter into the rest of the economy and intensify underlying price pressures. The euro rose 0.7% against the dollar to $0.9824. Immediate resistance can be seen at 0.9915(38.2%fib), an upside break can trigger rise towards 1.1000 (Psychological level).On the downside, immediate support is seen at 0.9754(23.6%fib), a break below could take the pair towards 0.9607(Lower BB).

GBP/USD: Sterling rose sharply in volatile trading on Thursday, rallying from record lows hit on Monday, after the Bank of England conducted a second day of bond buying to stabilize financial markets.The pound posted its largest one-day percentage gain since March 2020 and last traded at $1.1076, up 1.8%. After hitting an all-time trough of $1.0327 three days ago, sterling has rallied more than 7% against the dollar.The recovery in the British currency was due in part to the BoE's action. On Thursday, the BoE bought 1.415 billion pounds ($1.55 billion) of British government bonds with maturities of more than 20 years, the second day of a multi-billion pound program designed to stabilize the market. Sterling initially fell on Thursday as Prime Minister Liz Truss defended her government tax-cutting budget. Immediate resistance can be seen at 1.1158(38.2%fib), an upside break can trigger rise towards 1.1358 (50%fib).On the downside, immediate support is seen at 1.0918 (5DMA), a break below could take the pair towards 1.0863(23.6%fib).

USD/CAD: The Canadian dollar weakened against its U.S. counterpart on Thursday as a relief rally in global financial markets proved short-lived and despite data showing surprising growth in Canada's economy in July.Investors began another cycle of selling both stocks and bonds as British Prime Minister Liz Truss said she would stick to her controversial plan to reignite economic growth and Fed officials gave no indication the U.S. central bank would moderate its plans to aggressively raise interest rates to bring down high inflation. The Canadian economy grew 0.1% in July, compared with analysts' forecast for a 0.1% decline, while activity in August was most likely flat . Immediate resistance can be seen at 1.2702 (5DMA), an upside break can trigger rise towards 1.3738(23.6%fib).On the downside, immediate support is seen at 1.3647 (38.2%fib), a break below could take the pair towards 1.3550 (50%fib).

USD/JPY: The dollar strengthened against the Japanese yen on Thursday after Federal Reserve officials gave no signs  that Federal Reserve would slow its plans to aggressively raise interest rates to bring down high inflation. Cleveland Fed President Loretta Mester saidshe does not see distress in U.S. financial markets that would alter the central bank's campaign to lower inflation through rate hikes that have taken the fed funds rate to a range of 3.0%-3.25%. Japan intervened last week to shore up a struggling yen. Finance Minister Shunichi Suzuki said on Thursday Japan's recent currency intervention was conducted to rectify market distortion caused by speculative currency moves. He signalled his readiness to intervene again if speculation persists. The dollar rose 0.2% to 144.355 yen. Strong resistance can be seen at 145.89 (23.6%fib), an upside break can trigger rise towards 145.66(Higher BB). On the downside, immediate support is seen at 143.98 (5DMA), a break below could take the pair towards 143.48(38.2%fib).

Equities Recap

European shares tumbled on Thursday as relief from the Bank of England's bond buy-back plan to soothe distressed markets fizzled out, while grim inflation data from Germany fed fears about soaring prices and aggressive central bank moves.

UK's benchmark FTSE 100 closed down  by  1.77 percent, Germany's Dax ended down by 1.71 percent, France’s CAC finished the day down by 1.53 percent.                

Wall Street ended sharply lower on Thursday on worries that the Federal Reserve's aggressive fight against inflation could hobble the U.S. economy, and as investors fretted about a rout in global currency and debt markets.

Dow Jones closed down by 1.54%percent, S&P 500 closed down by 2.11% percent, Nasdaq settled down  by  2.84 % percent.

Commodities Recap

Gold prices were largely flat on Thursday as elevated Treasury yields and concerns over the U.S. Federal Reserve’s aggressive monetary policy pressured bullion, but a drop in the U.S. dollar supported the precious metal.

Spot gold was little changed at $1,659.09 per ounce by 2:06 p.m. EDT (1806 GMT), having slid over 1% to $1,640.30 earlier.U.S. gold futures settled 0.1% lower at $1,668.60.

Oil prices settled lower on Thursday in choppy trading, rising above $90 per barrel and then retreating as traders weighed a worsening economic outlook against potential OPEC+ output cuts next week.

Brent crude futures settled down 83 cents at $88.49 per barrel, after rising as high as $90.12 during the session. U.S. crude futures for November settled 92 cents lower at $81.23 a barrel.

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