Market Roundup
•German Nov Factory Orders (MoM) 3.7%, 2.1% forecast, -6.9%previous
•UK Dec Composite PMI 53.6, 53.2 forecast, 57.6 previous
•UK Dec Services PMI 53.6, 53.2 forecast, 58.5 previous
•EU Nov PPI (MoM) 1.8%,1.2% forecast, 5.4% previous
•EU Nov PPI (YoY) 23.7%,22.9% forecast, 21.9% previous
Looking Ahead - Economic Data (GMT)
•13:30 US Dec Challenger Job Cuts 14.875K previous
•13:30 US Challenger Job Cuts (YoY) -77.0% previous
•13:30 German Dec CPI (MoM) 0.4% forecast, -0.2% previous
•13:30 US Continuing Jobless Claims 1,688K forecast, 1,716K previous
•13:30 US Jobless Claims 4-Week Avg 199.25K previous
•13:30 US Initial Jobless Claims 197K, 198K previous
•13:30 US Imports 290.70B previous
•13:30 US Exports 223.60B previous
•13:30 Canada Nov Trade Balance 2.03B forecast, 2.09B previous
•13:30 Canada Nov Exports 56.18B previous
Looking Ahead - Economic events and other releases (GMT)
•15:00 US Dec ISM Non-Manufacturing Prices 82.3 previous
•15:00 US Dec ISM Non-Manufacturing Employment 56.5 previous
•15:00 US Dec ISM Non-Manufacturing Business Activity 71.0 forecast, 74.6 previous
•15:00 US Nov Factory Orders (MoM) 1.5% forecast, 1.0% previous
•15:00 US Nov Factory orders ex transportation (MoM) 1.6% previous
•15:00 US Dec ISM Non-Manufacturing PMI 66.9 forecast, 69.1 previous
Fxbeat
EUR/USD: The euro edged lower against dollar on Wednesday as investors ramped up expectations for a European Central Bank rate hike, a day after minutes from the Federal Reserve's last meeting pointed to faster-than-expected U.S. rate rises. Money market futures dated to the ECB's October meeting, showed a 10 basis point rate hike was almost fully priced in.Markets also priced in 15 basis points worth of tightening by December, versus around 13 bps on Wednesday . The euro stood at $1.1310 as it continued to consolidate in the middle of its trading range since mid-November. Immediate resistance can be seen at 1.1340(23.6%fib), an upside break can trigger rise towards 1.1382 (Higher BB).On the downside, immediate support is seen at 1.1303 (38.2%fib), a break below could take the pair towards 1.1277 (50%fib).
GBP/USD: The pound fell versus the dollar and euro on Thursday, pulling back from some its recent gains in a dip driven by dollar strength following the release of more hawkish than expected Federal Reserve minutes.Risk-sensitive currencies such as the British pound, Australian dollar and Canadian dollar were down on the day versus the U.S. dollar, which was boosted late on Wednesday and overnight by the minutes of the Fed's December meeting.At 0900 GMT, the pound was down 0.4% against the stronger dollar at $1.3499 .Immediate resistance can be seen at 1.3558 (23.6%fib), an upside break can trigger rise towards 1.3593 (Higher BB).On the downside, immediate support is seen at 1.3526(5DMA), a break below could take the pair towards 1.3488(38.2%fib).
USD/CHF: The dollar rose against the Swiss franc on Wednesday as minutes of the latest Federal Reserve policy meeting fuelled expectations of a U.S. rate increase as early as March.The Fed's December meeting minutes showed officials had discussed shrinking the U.S. central bank's overall asset holdings as well as raising interest rates sooner than expected to fight inflation . Money markets are now pricing nearly an 80% probability of a U.S. interest rate rise by March and more than 80 basis points of cumulative rate increases in 2022, a breathtaking shift in expectations considering that only three months ago investors were not expecting the first U.S. rate hike until the summer of 2023. Immediate resistance can be seen at 0.9187(23.6%fib), an upside break can trigger rise towards 0.9202(50DMA).On the downside, immediate support is seen at 0.9143 (38.2%fib), a break below could take the pair towards 0.9106(38.2%fib).
USD/JPY: The dollar hovered near a five-year high to the yen on Thursday, supported by a surge in U.S. Treasury yields on rising bets for a Federal Reserve rate hike by March. The greenback stood at 116.115 yen , little changed from Wednesday, when it rallied back toward Tuesday's high of 116.355, lifted by more hawkish rhetoric from Fed official and a strong U.S. jobs report. Fed officials said the "very tight" U.S. labour market might warrant raising rates sooner, and indicated they could also reduce the central bank's overall asset holdings to tame high inflation a process dubbed quantitative tightening (QT) -minutes of their Dec. 14-15 policy meeting showed.Strong resistance can be seen at 116.23(23.6%fib), an upside break can trigger rise towards 117.00 (Psychological level).On the downside, immediate support is seen at 115.67 (38.2%fib), a break below could take the pair towards 115.18(50%fib).
Equities Recap
European stocks sank more than 1% on Thursday as hawkish signals from the minutes of the U.S. Federal Reserve's December policy meeting crushed global investor sentiment and sparked a rout in technology stocks.
At (GMT 11:10 ),UK's benchmark FTSE 100 was last down at 0.63 percent, Germany's Dax was down by 1.18 percent, France’s CAC was last down by 1.28 percent.
Commodities Recap
Gold prices slid to one-week low on Thursday as minutes of the U.S. Federal Reserve’s December meeting signalled quicker increases to interest rates, boosting the dollar and Treasury yields.
Spot gold fell 0.3% to $1,804.60 an ounce by 1038 GMT, having touched its lowest since Dec. 29 at $1,792.30. U.S. gold futures dropped 1.5% to $1,797.70.
Oil prices rose sharply on Thursday, extending a rally from the previous session, on escalating unrest in OPEC+ oil producer Kazakhstanand supply outages in Libya.
The global benchmark Brent crude futures rose $1.09, or 1.4%, to $81.89 a barrel, by 1054 GMT. U.S. West Texas Intermediate (WTI) crude futures gained $1.17, or 1.5%, to $79.02 a barrel.
