Market Roundup
•Finnish Jan Industrial Confidence 19,18 previous
•Finnish Jan Consumer Confidence -1.7, -3.5 previous
• German Feb GfK German Consumer Climate-6.7, -7.8 forecast, -6.8 previous
•Swiss Dec Trade Balance 3.693B, 5.230B forecast, 6.161B previous
•Italian Nov Industrial Sales (MoM) 2.80% previous
• Italian Nov Industrial Sales (YoY) 16.90% previous
• UK Jan CBI Distributive Trades Survey 13 forecast, 8 previous
Looking Ahead Economic Data
•13:30 US Dec Core Durable Goods Orders (MoM) 0.4% forecast, 0.8% previous
•13:30 US Dec Durable Goods Orders (MoM) -0.5% forecast, 2.5% previous
•13:30 US Initial Jobless Claims 260K forecast, previous 286K previous
•13:30 US Jobless Claims 4-Week Avg 231.00K previous
•13:30 US Continuing Jobless Claims1,650K forecast, 1,635K 1,635K previous
•13:30 US Dec Goods Orders Non Defense Ex Air (MoM) 0.4%,-0.1% previous
•13:30 US GDP Price Index (QoQ) (Q4) 6.0% forecast,5.9% previous
•13:30 US GDP (QoQ) (Q4) 5.5% forecast, 2.3% previous
•13:30 US Core PCE Prices (Q4) 4.90% forecast, 4.60% previous
•13:30 US Dec Pending Home Sales Index 122.4 previous
•13:30 US Pending Home Sales (MoM) -0.2% forecast, -2.2% previous
•13:30 US Jan KC Fed Composite Index 24 previous
•13:30 US KC Jan Fed Manufacturing Index 10 previous
Looking Ahead - Events, Other Releases (GMT)
• No significant events
Fxbeat
EUR/USD: The euro declined on Thursday as dollar rose after the U.S. Federal Reserve signalled it is ready to kick off a round of monetary policy tightening to tame inflation. In its latest policy update, the Fed said it is likely to hike interest rates in March and reaffirmed plans to end its bond purchases in March. The euro fell 0.39% to $1.1197. Immediate resistance can be seen at 1.1231 (38.2%fib), an upside break can trigger rise towards 1.1228 (50%fib).On the downside, immediate support is seen at 1.1191 (23.6%fib), a break below could take the pair towards 1.1180(Lower BB).
GBP/USD: Sterling declined against dollar on Thursday as markets rushed to price in ever more U.S. rate hikes, battering bonds and sending dollar higher. Fed Chairman Jerome Powell struck a hawkish tone on Wednesday, flagging a rate increase in March and saying there was room for further policy tightening without hurting employment. The dollar index, as measured against six major trading currencies, rose to a level last seen on Nov. 22. Sterling fell to a one-month low at $1.3407 and was last down 0.4% on the day. Immediate resistance can be seen at 1.3467(38.2%fib), an upside break can trigger rise towards 1.3484 (5DMA).On the downside, immediate support is seen at 1.3407 (50%fib), a break below could take the pair towards 1.3374 (Lower BB).
USD/CHF: The dollar rose against the Swiss franc on Thursday after Federal Reserve chair Jerome Powell surprised investors by leaving the door open to larger and faster than expected interest rate hikes. Powell had told reporters after the Fed concluded a two-day meeting on Wednesday that board members were of a mind to begin hiking in March to tame runaway inflation.He stressed that no decisions had been taken, but answering a question about whether the central bank would consider a 50-basis point hike. Immediate resistance can be seen at 0.9272 (23.6%fib), an upside break can trigger rise towards 0.9289 (Higher BB).On the downside, immediate support is seen at 0.9212 (38.2%fib), a break below could take the pair towards 0.9185(5DMA).
USD/JPY: The dollar rose against the Japanese yen on Thursday after the U.S. Federal Reserve signalled it could start hiking interest rates in March to tame inflationary risks. The Federal Reserve on Wednesday said it is likely to hike interest rates in March and reaffirmed plans to end its bond purchases that month in what U.S. central bank chief Jerome Powell pledged will be a sustained battle to tame inflation. Investors are expecting much more this time, with pricing in federal funds future contracts anticipating four rate increases this year. The Fed's benchmark overnight interest rate is currently set at the near-zero level. Strong resistance can be seen at 115.07 (23.6% fib), an upside break can trigger rise towards 115.45 (12th Jan high ).On the downside, immediate support is seen at 114.47 (38.2%fib), a break below could take the pair towards 114.20 (5DMA).
Equities Recap
European stock futures sank 3% on Thursday tracking a global downturn in sentiment after U.S. Federal Reserve chairman Jerome Powell signalled a March interest rate hike and sustained policy tightening to control surging inflation.
At (GMT 09:30 ),UK's benchmark FTSE 100 was last trading up at 0.15 percent, Germany's Dax was down by 0.65 percent, France’s CAC finished was down by 0.35 percent.
Commodities Recap
Oil prices fell on Thursday as the U.S. dollar strengthened following signs that the Federal Reserve will tighten monetary policy soon in the world's biggest oil user.
Brent crude futures were down 31 cents, or 0.6%, to $89.44 a barrel at 0720 GMT, after earlier falling by as much as 1.1% to $89. Brent climbed 2% on Wednesday.
U.S. West Texas Intermediate (WTI) crude futures were down 58 cents, or 0.6%, to $86.77 a barrel, after falling by as much as 1.2% to $86.34.
Gold prices extended losses on Thursday, as safe-haven demand driven by concerns over Ukraine was countered by strength in the U.S. dollar and Treasury yields as the Federal Reserve signalled interest rate hikes starting in March.
Spot gold dropped 0.3% to $1,812.87 per ounce by 0537 GMT, after closing 1.6% lower on Wednesday in its worst session since Nov. 22. U.S. gold futures fell 0.9% to $1,813.40.
