Market Roundup
• UK Aug Public Sector Net Cash Requirement 5.321B, -4.693B previous
• UK Aug Public Sector Net Borrowing 11.06B, 8.20B forecast, 4.18B previous
• UK Sep CBI Industrial Trends Orders-2 , -11 forecast, -7 previous
•US Mortgage Market Index 264.7, 255.0 previous
•US MBA 30-Year Mortgage Rate 6.25% ,6.01% previous
•US MBA Mortgage Applications (WoW) 3.8%, -1.2% previous
Looking Ahead - Economic Data (GMT)
•14:00 US Aug Existing Home Sales (MoM) -5.9% previous
•14:00 US Aug Existing Home Sales 4.70M forecast, 4.81M previous
•14:30 US EIA Weekly Distillates Stocks 0.420M forecast, 4.219M previous
•14:30 US Gasoline Inventories -0.431M forecast, -1.767M previous
•14:30 US Gasoline Production -0.399M previous
•14:30 US Cushing Crude Oil Inventories -0.135M previous
•14:30 US Crude Oil Inventories 2.161M forecast, 2.442M previous
•18:00 US Fed Interest Rate Decision 3.25% forecast, 2.50% previous
•18:00 US Interest Rate Projection - Longer (Q3) 2.5 previous
•18:00 US Interest Rate Projection - 1st Yr (Q3) 3.80 previous
•18:00 US Interest Rate Projection - Current (Q3) 3.4 previous
Looking Ahead - Economic events and other releases (GMT)
•18:00 US FOMC Statement
•18:00 US FOMC Economic Projections
•18:30 US FOMC Press Conference
Fxbeat
EUR/USD: The euro declined against dollar on Wednesday as euro bore the brunt of selling as Putin's comments exacerbated concern about the economic outlook for a region already hit hard by Russia's squeeze on gas supplies to Europe. In a speech announcing a partial mobilisation for the country's military campaign in Ukraine, Putin said Russia had lots of weapons to reply to what he called Western threats and that he was not bluffing. The euro fell to a two-week low of $0.9885 , within sight of two-decade lows hit earlier this month. It was last down 0.4% at $0.9930.. Immediate resistance can be seen at 0.9998(38.2%fib), an upside break can trigger rise towards 1.0021 (30DMA).On the downside, immediate support is seen at 0.9898(23.6%fib), a break below could take the pair towards 0.9850(Lower BB).
GBP/USD: The pound touched a new 37-year low against the dollar on Wednesday after Russian President Vladimir Putin’s accusation of nuclear blackmail by the West boosted the safe-haven dollar. An expected interest rate hike by the U.S Federal Reserve (Fed) later in the day played into market sentiment, with eyes also on a Bank of England rate decision and a new government mini-budget this week. The pound has lost 16% in value against the dollar so far this year, as fears of a global recession have mounted, alongside flaring geopolitical tensions and soaring inflation. By 1143 GMT, the pound was down 0.31% against the dollar at $1.13460 pence, having earlier hit $1.13000 its lowest since 1985. Immediate resistance can be seen at 1.1407(5DMA), an upside break can trigger rise towards 1.1476 (38.2%fib).On the downside, immediate support is seen at 1.1302 (23.6%fib), a break below could take the pair towards 1.1258(Lower BB).
USD/CHF: The dollar dipped against the Swiss franc on Wednesday as anxious investors fled risk assets after Russian President Vladimir Putin on Wednesday ordered a mobilisation over Ukraine and accused the West of nuclear blackmail .Putin said he had signed a decree on partial mobilisation beginning on Wednesday, saying he was defending Russian territories and that the West wanted to destroy the country. Later on Wednesday, the Fed is expected to lift interest rates by three-quarters of a percentage point for a third straight time and signal how much further and how fast borrowing costs may need to rise to tame inflation. The policy decision, due at 1800 GMT, will mark the latest move in a synchronized policy shift by global central banks that is testing the resilience of the world economy.Immediate resistance can be seen at 0.9684 (38.2%fib), an upside break can trigger rise towards 0.9695 (Sep 19th high).On the downside, immediate support is seen at 0.9635 (5DMA), a break below could take the pair towards 0.9622(50%fib).
USD/JPY: The dollar strengthened against the Japanese yen on Wednesday as a decision by Russia's President Vladimir Putin to mobilise more troops for the conflict in Ukraine rattled markets just before another expected aggressive U.S. Federal Reserve rate hike. Putin on Wednesday called up 300,000 reservists to fight in Ukraine and said Moscow would respond with the might of all its vast arsenal if the West pursued what he called its "nuclear blackmail" over the conflict there. The news propelled the dollar index, which measures the greenback's value against other major currencies, more than 0.5% higher to 110.87 its highest level since 2002.It was last trading at 110.62, up about 0.4% on the day. Strong resistance can be seen at 144.31 (23.6%fib), an upside break can trigger rise towards 145.00(Psychological level). On the downside, immediate support is seen at 143.53 (5DMA), a break below could take the pair towards 142.56(38.2%fib).
Equities Recap
European shares fell at the opening on Wednesday as Russia partially mobilising more troops added to investors worries over U.S. Federal Reserve's likely third straight super-sized interest rate hike later in the day.
At (GMT 12:20),UK's benchmark FTSE 100 was last trading up at 0.68 % percent, Germany's Dax was down by 0.03 % percent, France’s CAC was last up by 0.07% percent.
Commodities Recap
Gold rose on Wednesday after Russian President Vladimir Putin's partial mobilisation announcement re-ignited some safe-haven interest in bullion, although a strong dollar and expected U.S. rate hikes capped gains.
Spot gold was up 0.7% at $1,673.91 per ounce as of 1004 GMT. U.S. gold futures rose 0.7% to $1,682.60.
Oil jumped nearly 3% on Wednesday after Russian President Vladimir Putin announced a partial military mobilisation, escalating the war in Ukraine and raising concerns of tighter oil and gas supply.
Brent crude futures rose $2.26, or 2.5%, to $92.88 a barrel by 1051 GMT. U.S. West Texas Intermediate crude was at $86.09 a barrel, up $2.15, or 2.6%.
