Market Roundup
•US Continuing Jobless Claims1,672K, 1,683K forecast, 1,671K previous
•US Initial Jobless Claims 216K,222K forecast,211K previous
•US Jobless Claims 4-Week Avg. 221.75K,227.25K previous
•US Corporate Profits (QoQ) (Q3) 0.8%, -0.2% previous
•US Core PCE Prices (Q3) 4.70%, 4.60% forecast, 4.60% previous
•US GDP (QoQ) (Q3) 3.2%,2.9% forecast,2.9% previous
•US PCE Prices (Q3) 4.3%,4.3% previous
•US GDP Sales (Q3) 4.5%, 4.0% previous
•US Real Consumer Spending (Q3) 2.3%,1.7% previous
•US GDP Price Index (QoQ) (Q3) 4.4%,4.3% forecast, 4.3% previous
•15:00 US Nov US Leading Index (MoM) -1.0%, -0.4% forecast, -0.8% previous
•15:30 US Natural Gas Storage -87B, -93B forecast, -50B previous
•16:00 US Dec KC Fed Composite Index -9, -6 previous
Looking Ahead - Economic events(GMT)
•23:30 Japan Nov CPI, n.s.a (MoM) 0.6% previous
•23:30 Japan Nov National Core CPI (YoY) 3.7% forecast, 3.6% previous
•23:30 Japan Nov National CPI (YoY) 3.7% previous
•00:30 Australia Nov Private Sector Credit (MoM) 0.6% previous
•00:30 Australia Nov Housing Credit 0.4% previous
Looking Ahead - Economic events and other releases (GMT)
• 23:35 Japan Monetary Policy Meeting Minutes
Currency Summaries
EUR/USD: The euro edgedlower on Thursday after U.S. economic data fueled worries that the Federal Reserve would stick to its aggressive tightening path. New claims for unemployment benefits increased less than expected last week in the United States, while the economy rebounded faster in the third quarter, rising 3.2% against the previously estimated 2.9%. The euro was 0.15% lower against the U.S. dollar at $1.0599, after having risen as high as 0.5% earlier in the session. Immediate resistance can be seen at 1.0665(23.6%fib), an upside break can trigger rise towards 1.0718(Higher BB).On the downside, immediate support is seen at 1.0580(5DMA), a break below could take the pair towards 1.0495(38.2%fib).
GBP/USD: Sterling fell against the dollar on Thursday after data showed the British economy contracted slightly more than expected. Economic output fell by 0.3% during the July-September quarter, compared with a previous estimate of 0.2%.Analysts see mainly downside risks for the pound from now to year-end as the British economy remains stuck in a stagflationary environment while the data calendar is light. Immediate resistance can be seen at 1.2119( 5DMA), an upside break can trigger rise towards 1.2220(23.6%fib).On the downside, immediate support is seen at 1.2037 (38.2%fib),a break below could take the pair towards 1.1891 (50%fib).
USD/CAD: The Canadian dollar weakened against its U.S. counterpart on Thursday, with the currency tracking declines in risk-sensitive assets such as stocks and commodities even as preliminary domestic data showed wholesale trade rising in November. Canada is a major producer of commodities, including oil, so the loonie tends to be sensitive to shifts in investor sentiment. Canadian wholesale trade rose 1.9% in November from October, largely reflecting higher sales in the motor vehicles and parts subsector, Statistics Canada said in a flash estimate.The loonie was trading 0.4% lower at 1.3665 to the greenback, or 73.18 U.S. cents, after moving in a range of 1.3572 to 1.3684. Immediate resistance can be seen at 1.4071 (Daily high), an upside break can trigger rise towards 1.3688 (23.6%fib).On the downside, immediate support is seen at 1.3753(Higher BB), a break below could take the pair towards 1.3555(38.2%fib).
USD/JPY: The dollar edged higher on Thursday after U.S. data pointed to labor market strength that could keep the Federal Reserve hawkish for longer. The number of Americans filing new claims for unemployment benefits increased less than expected last week, pointing to a still-tight labor market, while the economy rebounded faster in the third quarter than previously estimated. The dollar was was slightly higher against the yen at 132.41 yen, not far from the four-month low of 130.58 yen touched on Tuesday after an unexpected tweak to the Bank of Japan's bond-yield controls spurred bullish yen bets.The greenback has so far failed to meaningfully recoup the 3.8% slump that followed Tuesday's news.Strong resistance can be seen at 132.56(Daily high), an upside break can trigger rise towards 133.95(38.2%fib).On the downside, immediate support is seen at 131.44(23.6%fib), a break below could take the pair towards 130.62(Dec 20th low).
Equities Recap
European stocks lost ground, reversing an earlier rally to follow Wall Street lower as worries over aggressive monetary policy proved contagious.
UK's benchmark FTSE 100 closed down by 0.37 percent, Germany's Dax ended down by 1.30 percent, France’s CAC finished the day down by 0.95 percent.
Wall Street's major averages closed lower on Thursday with technology-heavy Nasdaq's 2% drop leading losses as investors worried that data showing a resilient economy would lead the U.S. Federal Reserve to keep hiking interest rates for longer than feared.
Dow Jones closed down by 2.33% percent, S&P 500 closed down by 2.85% percent, Nasdaq settled down by 2.18% percent.
Treasuries Recap
Short-dated U.S. Treasury yields rose and long-dated ones erased an earlier decline on Thursday, after data showed the economy grew at a faster pace than previously thought last quarter
Benchmark 10-year yields were little changed on the day at 3.678%, but up from around 3.65% before the data was released. Two-year yields gained five basis points on the day to 4.261%.
Commodities Recap
Gold prices dropped on Thursday after U.S. economic data showed the country’s economy rebounded faster than previously estimated, boosting the dollar and potentially setting the Federal Reserve on a keener path to fight inflation.
Spot gold dipped 1.5% to $1,786.19 per ounce by 1:42 p.m. ET (1842 GMT), while U.S. gold futures settled down 1.7% at $1,795.30.
Oil fell by around $1 a barrel on Thursday in volatile trade as the impact of tighter U.S. crude stocks due to a winter storm in the United States was outweighed by fears that Federal Reserve interest rate hikes and China's rising COVID-19 cases would dent demand.
Brent crude futures settled at $80.98 a barrel, losing $1.22, while 1.5%. U.S. West Texas Intermediate (WTI) crude futures settled at $77.49, falling by 80 cents, or 1%.
