Market Roundup
• Spanish CPI (YoY) 8.3%, 9.0% forecast, 9.8% previous
•Spanish HICP (MoM) -0.2%,0.2% forecast, 3.9% previous
•Italian Apr Business Confidence 110.0, 110.0 forecast, 110.3 previous
• Italian Feb Industrial Sales (YoY) 20.90%, 16.90% previous
• Italian Apr Consumer Confidence 100.0, 100.4 forecast, 100.8 previous
•Belgium Apr CPI (YoY) 8.31%, 8.31% previous
•Belgium Apr CPI (MoM) 0.33%, 0.52% previous
Looking Ahead - Economic Data (GMT)
•11:30 German Apr HICP (MoM) 0.4% forecast, 2.5% previous
•11:30 German Apr CPI (MoM) 0.6% forecast,2.5% previous
•12:30 US Real Consumer Spending (Q1) 2.5% previous
•12:30 US GDP Sales (Q1) 1.5% previous
•12:30 US Core PCE Prices (Q1) 5.40% forecast, 5.00% previous
•12:30 US GDP (QoQ) (Q1) 1.1% forecast, 6.9% previous
•12:30 US GDP Price Index (QoQ) (Q1) 7.3% forecast, 7.1% previous
•12:30 US Initial Jobless Claims 180K forecast,184K previous
•12:30 US Jobless Claims 4-Week Avg 177.25K previous
•12:30 US Continuing Jobless Claims 1,403K forecast, 1,417K previous
•14:30 US Natural Gas Storage 38B forecast,53B previous
•15:00 US Apr KC Fed Composite Index 37 previous
•15:00 US Apr KC Fed Manufacturing Index 46 previous
•15:30 US 4-Week Bill Auction 0.500% previous
Looking Ahead - Economic events and other releases (GMT)
• No significant events
Fxbeat
EUR/USD: The euro fell against a broadly strong U.S. dollar on Thursday as investors focused on inflation data while, sudden disruption of Russian gas supplies to Europe continued to weigh on euro. Looming over markets is uncertainty about the economic fallout of the war in Ukraine, highlighted by Russia halting gas supply to Poland and Bulgaria on Wednesday, and lingering lockdowns in China. A key gauge of euro zone long-term inflation expectations was at 2.39% after rising recently above 2.4% to its highest in a decade.German consumer prices data will be released at 1200 GMT. Immediate resistance can be seen at 1.0583(38.2%fib), an upside break can trigger rise towards 1.0629 (5DMA).On the downside, immediate support is seen at 1.0488(23.6%fib), a break below could take the pair towards 1.0400 (Psychological level).
GBP/USD: The British pound edged lower on Thursday and was trading near a 21-month low against a buoyant U.S. dollar . Expectations of aggressive Fed tightening this year have pushed yields on U.S. 10-year notes around 45 basis points this month, in turn sending the dollar index to a five-year high.Meanwhile, the Bank of England’s Monetary Policy Committee is scheduled to meet next week and looks set to lift its policy interest rate by 25 basis points, marking the fourth consecutive meeting in which rates have been increased. Immediate resistance can be seen at 1.2569 (38.2%fib), an upside break can trigger rise towards 1.2641(50%fib).On the downside, immediate support is seen at 1.2441 (23.6%fib), a break below could take the pair towards 1.2400(Psychological level).
USD/CHF: The dollar strengthened against the Swiss franc on Thursday as expectations of aggressive U.S. policy tightening spurred the dollar. The dollar has been bolstered by bets that the Federal Reserve will hike interest rates aggressively this year, starting with a 50 basis point move in May. U.S. growth data is due later on Thursday and could pause the dollar’s advance, especially since overnight data showed a blowout in the U.S. trade deficit and prompted forecast downgrades. Immediate resistance can be seen at 0.9744(23.6 % fib), an upside break can trigger rise towards 0.9785(Higher BB).On the downside, immediate support is seen at 0.9674(Daily low), a break below could take the pair towards 0.9645(38.2 % fib ).
USD/JPY: The dollar rose past the psychological level of 130 yen on Thursday for the first time since 2002, after the Bank of Japan (BOJ) doubled-down on its super-low yield policy . There had been some market speculation the BOJ might step back a little given the pressure building across foreign exchange markets but it showed no hesitation. The BOJ’s commitment to its zero-rate programme puts it at odds with the U.S. Federal Reserve, for which markets are pricing over 150 basis points of hikes in just three meetings. Strong resistance can be seen at 130.95(23.6%fib), an upside break can trigger rise towards 131.78(Higher BB).On the downside, immediate support is seen at 128.19(38.2%fib), a break below could take the pair towards 128.35(Daily low).
Equities Recap
European shares extended gains for a second straight session on Thursday, as a slew of forecast-beating earnings reports helped set aside fears around slowing global economic growth.
At (GMT 11:24 ),UK's benchmark FTSE 100 was last trading up at 1.06 percent, Germany's Dax up by 1.64 percent, France’s CAC finished was up by 1.64 percent.
Commodities Recap
Gold prices hovered near their lowest level in two months on Thursday, as expectations of aggressive U.S. policy tightening spurred the dollar and added pressure on non-yielding bullion.
Spot gold was up 0.1% at $1,888.50 per ounce, as of 1004 GMT. It hit $1,871.81, its lowest since Feb. 17 earlier in the session. U.S. gold futures inched up 0.1% at $1,889.80.
Oil prices firmed slightly but were trading in and out of positive territory on Thursday as investors weighed up tightening Russian supplies and the prospect of dwindling fuel demand in China.
Brent crude futures were up 17 cents, or 0.2%, at $105.49 a barrel by 0939 GMT. U.S. West Texas Intermediate crude gained 26 cents, or 0.3%, to $102.28.
