Market Roundup
•German Dec PPI (MoM) 5.0% ,0.8% forecast,0.8%previous
•French Jan Business Survey 112, 111 forecast, 111 previous
•EU Dec Core CPI (YoY) 2.6%, 2.6% forecast,2.6% previous
•EU Dec CPI (MoM) 0.4%, 0.4% forecast, 0.4% previous
•EU Dec CPI (YoY) 5.0%,5.0 forecast,5.0 previous
Looking Ahead Economic Data
•13:30 US Initial Jobless Claims 220K forecast, 230K previous
•13:30 US Jobless Claims 4-Week Avg 210.75K previous
•13:30 US Continuing Jobless Claims 1,580K forecast, 1,559K previous
•13:30 Canada ADP Nonfarm Employment Change 231.8K previous
•13:30 US Jan Philadelphia Fed Manufacturing Index 20.0 forecast, 15.4 previous
•13:30 US Jan Philly Fed CAPEX Index 20.00 previous
•13:30 US Jan Philly Fed Prices Paid 66.10 previous
•13:30 US Philly Jan Fed Employment 33.9 previous
•15:00 US Dec Existing Home Sales (MoM) 1.9% previous
•15:00 US Dec Existing Home Sales 6.44M forecast, 6.46M previous
•15:00 US Crude Oil Inventories -0.938M forecast, -4.553M previous
Looking Ahead - Events, Other Releases (GMT)
• No significant events
Fxbeat
EUR/USD: The euro edged higher on Thursday as dollar dipped as this week's rally in U.S. Treasury yields paused. The euro rose, gradually regaining some ground after suffering their worst days in a month on Tuesday, when the dollar was lifted by a jump in U.S. Treasury yields. The European single currency was last at $1.1368, up 0.2% on the day. Dollar index , which measures the greenback against six major peers, at 95.428, 0.2% lower on the session. Immediate resistance can be seen at 1.1347 (38.2%fib), an upside break can trigger rise towards 1.1385 (23.6%fib).On the downside, immediate support is seen at 1.1318 (50%fib), a break below could take the pair towards 1.1286 (61.8% fib).
GBP/USD: Sterling strengthened against dollar on Thursday as sterling was supported by expectations of BoE will rise interest rate. Money markets currently price in more than 100 basis points (bps) in interest rate rises in 2022 IRPR and an 87% chance of a 25 bps increase in February, after data showed on Wednesday that UK inflation rose faster than expected to its highest in nearly 30 years in December.Domestic politics is not damaging sentiment, after Prime Minister Boris Johnson dismissed calls to resign on Wednesday. The pound was up 0.15% against the greenback at $1.3633. Immediate resistance can be seen at 1.3634(38.2%fib), an upside break can trigger rise towards 1.3709(23.6%fib).On the downside, immediate support is seen at 1.3573 (50%fib), a break below could take the pair towards 1.3539 (21DMA).
USD/CHF: The dollar dipped against the Swiss franc on Thursday as investors continued to gauge how far and how quickly the Fed will begin raising rates this year. Encouraged by apparent lower severity of the Omicron variant, governments and central banks around the world are attempting to push their economies back into some version of normality. Fed Chair Jerome Powell said recently he sees an economy that functions right through these waves of COVID-19. Several Fed officials recently signaled interest rate rises are coming very soon.Fed is expected to raise its key interest rate three times this year, starting in March, to 0.75-1.00% by end-2022. Immediate resistance can be seen at 0.9183 (20DMA), an upside break can trigger rise towards 0.9203 (23.6%fib).On the downside, immediate support is seen at 0.9152 (38.2%fib), a break below could take the pair towards 0.9105(50%fib).
USD/JPY: The dollar declined against the Japanese yen on Thursday as easing U.S. Treasury yields nipped dollar strength .The dollar has rallied in recent sessions although it has not performed as well as expected given the dramatic rise in expectations for the U.S. Federal Reserve to begin hiking interest rates as early as March to curb soaring inflation. Traders prepare for the United States to tighten monetary policy at a faster pace than previously thought. Fed funds futures have fully priced in a rate hike in March and four in all for 2022.The dollar was last trading at 0.09 percent lower versus the yen at 114.26. Strong resistance can be seen at 114.70 (38.2% fib), an upside break can trigger rise towards 115.03 (14DMA).On the downside, immediate support is seen at 114.19 (50%fib), a break below could take the pair towards 113.80 (61.8%fib).
Equities Recap
European stocks gave up early gains to edge lower on Thursday amid concerns over the pace of recent prices increases and the prospect of higher interest rates.
At (GMT 10:56 ),UK's benchmark FTSE 100 was last trading down at 0.10 percent, Germany's Dax was down by 0.07 percent, France’s CAC finished was down by 0.35 percent.
Commodities Recap
Oil slipped on Thursday as investors took profits after a recent price rally, but strong demand and short-term supply disruptions continue to support prices close to their highest since 2014.
Brent crude futures were down 39 cents, or 0.4%, at $88.05 a barrel by 1006 GMT after dropping more than $1 in earlier trade. The global benchmark rose to $89.17 on Wednesday, its highest since October 2014.
Gold prices edged higher on Thursday, with a weaker dollar countering pressure from firm bond yields, while traders awaited clues on the pace of interest rate hikes from the Federal Reserve's policy meeting next week.
Spot gold was last up 0.1% at $1,840.96 per ounce by 0819 GMT, after hitting its highest since Nov. 22 at $1,843.94. Prices on Wednesday posted their biggest jump in three months.U.S. gold futures fell 0.1% to $1,841.30.
