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  |   Market Roundups


Europe Roundup: Sterling tumbles after Britain's new economic plan, European shares extend falls, Gold hits more than 2-year low, Oil prices down 3% with recession fears in focus-September 23rd,2022

Market Roundup

• French Sep Manufacturing PMI  47.8, 49.8 forecast, 50.6 previous

• French Sep Services PMI  53.0,50.5 forecast, 51.2 previous

• German Sep Services PMI  45.4, 47.2 forecast, 47.7 previous

• German Sep Composite PMI 45.9, 46.0 forecast, 46.9 previous

•German Sep Manufacturing PMI  48.3, 48.3 forecast, 49.1 previous

•German Sep Services PMI  48.9               , 49.0 forecast, 49.8 previous

•German Sep Manufacturing PMI  48.5, 48.7 forecast, 49.6 previous

•EU Sep S&P Global Composite PMI  48.2, 48.2 forecast ,48.9 previous

•UK Services PMI 49.2,50.0 forecast, 50.9 previous

•UK Composite PMI 48.4, 49.0 forecast, 49.6 previous

•UK Sep CBI Distributive Trades Survey -20, 10 forecast  ,37 previous

•Canada Jul Core Retail Sales (MoM)  -3.1%,-1.2% forecast, 0.8% previous

•Canada Jul Retail Sales (MoM)-2.5%, -2.0% forecast, 1.1% previous

Looking Ahead Economic Data

•13:45 Sep  S&P Global Composite PMI 44.6 previous

•13:45 Sep  Manufacturing PMI  51.1 forecast, 51.5 previous

•13:45 US   Services Sep PMI  45.0 forecast, 43.7 previous

•17:00 US U.S. Baker Hughes Total Rig Count 763 previous

Looking Ahead - Economic events and other releases (GMT)

•15:30   Swiss SNB Chairman Thomas Jordan speaks

• 15:30  German Buba President Nagel Speaks

•18:00 US Fed Chair Powell Speaks


EUR/USD: The euro fell for a fourth straight day after data showed the downturn in the German economy has worsened in September, as consumers and businesses face an unprecedented energy crunch and spiralling inflation. The downturn in German business activity deepened in September, a preliminary survey showed on Friday, as higher energy costs hit Europe's largest economy and companies saw a drop in new business.S&P Global's flash composite Purchasing Managers' Index (PMI), which tracks both the manufacturing and services sectors which together account for more than two-thirds of Germany's economy, fell to 45.9 in September from August's final reading of 46.9.. The euro slipped 0.8% to $0.9736, its lowest level since October 2002. Immediate resistance can be seen at 0.9813(38.2%fib), an upside break can trigger rise towards 0.9853(Daily high).On the downside, immediate support is seen at 0.9734(23.6%fib), a break below could take the pair towards 0.9700(Psychological level).

GBP/USD: Sterling declined against dollar on Friday as the new government's economic plan including tax cuts and other business friendly measures did little to ease worries about a potential recession highlighted by weak economic data. Britain's new finance minister, Kwasi Kwarteng, announced an economic agenda designed to thrust Britain out of a cycle of stagnation and into a new era of higher economic growth   but with a hefty bill attached. A survey showed the downturn in British businesses steepened this month as they battled soaring costs and faltering demand, hammering home the rising risk of recession. The S&P Global/CIPS flash Composite Purchasing Managers' Index (PMI) fell to 48.4 in September. Immediate resistance can be seen at 1.1212(38.2%fib), an upside break can trigger rise towards 1.1284 (5DMA).On the downside, immediate support is seen at 1.1022(23.6%fib),a break below could take the pair towards 1.1000(Psychological level).

 USD/CHF: The dollar strengthened against the Swiss franc on Friday as dollar was buoyed by a hawkish U.S. Federal Reserve. The Fed's projections for aggressive hikes have pushed U.S. Treasury yields higher and triggered another round of dollar buying, driving the greenback to a near two-decade high. The dollar index, which measures the U.S. currency against a basket of currency including euro, sterling and yen, surged to 112.330, its highest since May 2002 and topping two-decade highs hit earlier this week. It was last up 0.8% at 112.10 and set for its best week in one month. Immediate resistance can be seen at 0.9836 (23.6% fib), an upside break can trigger rise towards 0.9865(Higher BB).On the downside, immediate support is seen at 0.9748 (38.2% fib), a break below could take the pair towards 0.9700(5DMA).

USD/JPY: The dollar strengthened against yen on Friday as investors digested the prospect of a far more aggressive rise in U.S. interest rates, while currency markets remained volatile after Japan's intervention to prop up the yen. The yen was 0.6% lower at 142.88 per dollar, but still set for its first weekly gain in more than a month after Japanese authorities intervened in markets to support the currency for the first time since 1998.The yen rallied more than 1% on Thursday on news that Japan had bought yen to defend the battered currency. Trading was thin on Friday with Japanese markets closed for a public holiday. Strong resistance can be seen at 143.21(5DMA), an upside break can trigger rise towards 144.02(23.6%fib).On the downside, immediate support is seen at 141.67(38.2%fib), a break below could take the pair towards 140.54(Sep 22nd low).

Equities Recap

European stocks extended falls on Friday, dragged down by Credit Suisse and as an array of data pointing to an economic downturn in the region added to worries over a hawkish Federal Reserve.

At (GMT 12:30 ),UK's benchmark FTSE 100 was last trading down at 1.89 percent, Germany's Dax was down by 0.24 percent, France’s CAC was down by 1.90 percent.

Commodities Recap

Gold prices dropped more than 1% to their lowest since April 2020 on Friday as a cocktail of factors from a robust dollar and elevated U.S. bond yields to worries around more U.S. interest rate hikes diminished bullion’s appeal.

Spot gold was down 1.7% at $1,642.79 per ounce by 1058 GMT and was heading for its second straight weekly decline, down 1.8%. U.S. gold futures fell 0.5% to $1,672.10.

Oil prices fell on Friday as demand fears were stoked by rising interest rates and a stronger dollar, though losses were capped by Moscow's mobilisation campaign in its war with Ukraine and apparent deadlock in talks on reviving the Iran nuclear deal.

Brent crude futures fell $2.81, or 3.11%, to $87.65 a barrel by 1051 GMT. U.S. West Texas Intermediate (WTI) crude futures were also down, retreating by $2.93, or 3.51%, to $80.56.

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