Market Roundup
• Spanish CPI (YoY) 4.0%,3.5%forecast, 3.3% previous
• Spanish Sep HICP (YoY) 4.0%forecast, 3.7%forecast, 3.3% previous
• Italian Aug PPI (YoY) 11.6%forecast, 10.4% previous
• Swiss Sep ZEW Expectations 25.7, -7.8 previous
• UK Aug BoE Consumer Credit 0.351B, 0.300B forecast,-0.042B previous
• UK Aug Mortgage Approvals 74.45K, 73.00K forecast, 75.15K previous
•EU Sep Business Climate 1.72 forecast, 1.75 previous
•EU Sep Industrial Sentiment 14.1, 12.5 forecast, 13.7 previous
•Belgium Sep CPI (YoY) 2.86%,2.73% previous
Looking Ahead Economic Data (GMT)
•12:30 Canada Aug IPPI (MoM) 0.1%forecast, -0.4% previous
•12:30 Brazil Aug Budget Surplus -12.150B forecast, -10.283B previous
•12:30 Canada Aug RMPI (MoM) 2.2% previous
•12:30 Canada Aug RMPI (YoY) 37.7% previous
•14:00 US Aug Pending Home Sales (MoM) 1.4% forecast, -1.8% previous
•14:00 US Crude Oil Inventories-1.652M forecast, -3.481M previous
Looking Ahead - Events, Other Releases (GMT)
•13:00 US FOMC Member Harker Speaks
•13:15 ECB's Elderson Speaks
•15:45 Fed Chair Powell Speaks
•15:45 UKBoE Gov Bailey Speaks
•16:30 ECB President Lagarde Speaks
•18:00 US FOMC Member Bostic Speaks
•21:00 US FOMC Member Williams Speaks
Fxbeat
EUR/USD: The euro edged lower on Wednesday as dollar rose along with U.S. yields on investors were concerned that the Federal Reserve will start to withdraw policy support just as global growth slows. U.S. Treasury yields have surged in recent days as tapering looms before the end of the year and as inflation starts to look stickier than first thought. The benchmark 10-year yield eased on Wednesday but at 1.5132% is still up some 20 basis points in a week. The euro fell to $1.1657, its lowest since November 2020 and the dollar index rose to an 11-month high of 93.891.Immediate resistance can be seen at 1.1694 (38.2%fib), an upside break can trigger rise towards 1.1724(50%fib).On the downside, immediate support is seen at 1.1652(23.6%fib), a break below could take the pair towards 1.1600(Psychological level).
GBP/USD: Sterling fell to its lowest levels since January against the dollar on Wednesday, sustaining much of its losses the previous day after a selloff in equity markets hit risk sentiment and pushed the currency over 1% lower. On Wednesday, sterling extended its Tuesday losses and fell 0.2% more to its lowest since Jan. 11 against the dollar at $1.35045.It traded flat against the euro near a two-month low of 86.40 pence per euro. Bank of England governor Andrew Bailey is scheduled to speak at a forum in Sintra, Portugal later on Wednesday. Immediate resistance can be seen at 1.3548(38.2%fib),an upside break can trigger rise towards 1.3598 (50%fib).On the downside, immediate support is seen at 1.3495(23.6%fib), a break below could take the pair towards 1.3400(Psychological level).
USD/CHF: The dollar gave back some ground against Swiss franc on Wednesday but remained near recent high as global financial markets were nervous as energy prices surge and concerns mount about the growth outlook in China. The currency slipped to 0.9287 as rising U.S. Treasury yields, which supported the dollar, and more evidence of slowing growth in China amid a power shortage dented risk appetite. Immediate resistance can be seen at 0.9307 (Daily high), an upside break can trigger rise towards 0.9330 (23.6% fib).On the downside, immediate support is seen at 0.9273(38.2% fib), a break below could take the pair towards 0.9227(23.6%fib).
USD/JPY: The dollar retreated from recent high against yen on Wednesday as investors braced for future rate hikes from global central banks, most notably the U.S. Federal Reserve. Investors will focus on central bank speakers on the second day of the Sintra online forum featuring a high-level policy panel late on Wednesday. The yen, which is sensitive to U.S. yields as higher rates can draw flows from Japan, touched an 18-month low of 111.685 per dollar , before rebounding a fraction to 111.33. Strong resistance can be seen at 111.48(23.6%fib), an upside break can trigger rise towards 111.69(Daily high).On the downside, immediate support is seen at 111.21(Daily low), a break below could take the pair towards 110.99(38.2%fib).
Equities Recap
European stocks steadied on Wednesday after one of the worst market routs this year, with investors turning to defensive healthcare stocks amid lingering concerns about growth and inflation.
At (GMT 11:00 ),UK's benchmark FTSE 100 was last trading up at 0.87 percent, Germany's Dax was up by 1.04 percent, France’s CAC was last up by 1.24 percent.
Commodities Recap
Gold prices edged higher on Wednesday as a slight dip in U.S. bond yields provided support against growing expectations of quicker-than-expected U.S. interest rate hikes that also pushed the dollar to a multi-month high.
Spot gold rose 0.3% to $1,739.36 per ounce by 0746 GMT, recovering from a one-month low hit on Tuesday.U.S. gold futures edged 0.2% higher to $1,741.00.
