News

Europe Roundup: Euro edges up ahead of ECB decision, European shares choppy, Gold steady, Oil regains some ground after Credit Suisse lifeline-March 16th,2023

Posted at 16 March 2023 / Categories Market Roundups


Market Roundup

•Italian Feb HICP (MoM)  0.1%, 0.2% forecast,-1.5% previous

•Italian Feb Italian CPI (YoY)  9.1%,9.2% forecast,10.0% previous

•Italian Feb Italian CPI (MoM) 0.2%,0.3% forecast,0.1% previous

•Italian Feb  HICP (YoY)  9.8%, 9.9% forecast,10.7% previous

•Irish Feb  CPI (MoM) 1.6%, -0.8% previous

•Irish Feb CPI (YoY)  8.5%,7.8% previous

•Irish Feb HICP (MoM)  1.5%, -1.0% previous

Looking Ahead Economic Data(GMT)

•12:30 US Import Feb Price Index (MoM)  -0.2% forecast, -0.2% previous

•12:30 US Import Price Index (YoY) 0.8% previous

•12:30 US Export Price Index (YoY) 2.3% previous

•12:30 US Initial Jobless Claims 205K , 211K previous

•12:30 US Continuing Jobless Claims 1,715K forecast,1,718K previous

•12:30 US Jobless Claims 4-Week Avg.   197.00K previous

•12:30 Canada Jan Wholesale Sales (MoM)  3.0% forecast, -0.8% previous

•12:30 US March Philly Fed CAPEX Index  7.50 previous

•12:30 US March Philly Fed Employment   5.1 previous

•12:30 US March Philly Fed New Orders  -13.6 previous

•12:30 US March Philly Fed Business Conditions  1.7 previous

•12:30 US Feb Building Permits (MoM)  0.1% previous

•12:30 US Mar Philadelphia Fed Manufacturing Index  -15.6 forecast,-24.3 previous

•12:30 US Building Permits (Feb) 1.340M forecast, 1.339M previous

• 12:30 US Feb Housing Starts  1.309M previous

• 12:30 USD Feb Housing Starts (MoM) -4.5% previous

•12:30 US Feb Export Price Index (MoM) -0.1% forecast,  0.8% previous

•12:30 US March Philly Fed Prices Paid  26.50 previous

•13:15   EU May ECB Interest Rate Decision  3.50% forecast,  3.00% previous

•13:15   EU Mar Deposit Facility Rate  3.00% forecast,  2.50% previous

•13:15   ECB Marginal Lending Facility 3.25% previous

Looking Ahead Events And Other Releases (GMT)

•13:45   ECB Press Conference

•15:15   ECB President Lagarde Speaks

Fxbeat

EUR/USD: The euro   regained some lost ground on Thursday as markets awaited European Central Bank Rate decision. All eyes were on the ECB meeting later in the day for the first big test of how policymakers will respond to growing fears about banks. Money markets have pulled back some bets of a larger rate increase by the ECB at 1315 GMT amid turmoil in financial markets, with traders now seeing 49% likelihood of a 25 basis-point hike .The euro was up 0.4% at $1.06225 having lost 1.4% a day earlier, its biggest percentage fall in six months. Immediate resistance can be seen at 1.0665(5DMA), an upside break can trigger rise towards 1.0744(23.6%fib).On the downside, immediate support is seen at 1.0560(50%fib), a break below could take the pair towards  1.0517(Lower BB).

GBP/USD: The British pound recovered some ground against the dollar on Thursday as sentiment improved after news of official support for Credit Suisse. Some calm was restored to markets after the Swiss lender said on Thursday it would borrow up to $54 billion from the Swiss National Bank to shore up liquidity and investor confidence, after its shares on Wednesday plunged as much as 30%. Sterling was up 0.1% at $1.2045, and the dollar index, which tracks the unit against six main peers, was down 0.34% at 104.29.Immediate resistance can be seen at 1.2099 (5DMA), an upside break can trigger rise towards 1.2197(23.6%fib).On the downside, immediate support is seen at 1.2029(38.2%fib), a break below could take the pair towards 1.1932(March 3rd low).

USD/CHF: The dollar initially dipped against the Swiss franc on Thursday but recovered some ground as markets calmed somewhat after Credit Suisse was thrown a financial lifeline by Swiss regulators. The European Central Bank's meeting later on Thursday looms in what will be the first scheduled policy announcement since the collapse of U.S.-based Silicon Valley Bank last week, mostly due to elevated interest rates, triggered fears of a banking crisis. Traders expect the ECB to raise rates by another 50 basis points. Immediate resistance can be seen at 0.9333(38.2%fib), an upside break can trigger rise towards 0.9406(23.6%fib).On the downside, immediate support is seen at 0.9289 (50%fib), a break below could take the pair towards 0.9234(61.8%fib).

USD/JPY: The dollar declined against yen on Thursday as investors rushed back into safe-haven yen as sentiment remained volatile ahead of an ECB rate-setting meeting. Currencies and shares slid on Wednesday after fears of a global banking crisis spread across the Atlantic from the collapsed U.S.-based Silicon Valley Bank to the much larger Credit Suisse. But on Thursday, Credit Suisse said it would borrow up to $54 billion from Switzerland's central bank to shore up liquidity and investor confidence, restoring some calm, though the turmoil heightened market uncertainty about the European Central Bank's rate decision. Strong resistance can be seen at 133.57(5DMA), an upside break can trigger rise towards 134.54(38.2%fib).On the downside, immediate support is seen at 132.16(38.2%fib), a break below could take the pair towards 131.31(Lower BB).

Equities Recap

European shares gained traction  on Thursday as beleaguered lender Credit Suisse jumped after a lifeline from the Swiss National Bank allayed some fears of a global banking crisis.

At (GMT 12:19 ),UK's benchmark FTSE 100 was last trading up at 0.74 percent, Germany's Dax was up by 0.60 percent, France’s CAC   was up by 1.04 percent.

Commodities Recap          

Gold edged higher on Thursday, helped by a weaker dollar, but prices held below last session's 6-week peak as risk sentiment improved after Credit Suisse, the latest focal point of a potential banking crisis, secured funds.

Spot gold rose 0.3% to $1,924.15 per ounce by 1122 GMT, after jumping to its highest since early Feb at $1,937.28 on Wednesday. U.S. gold futures fell 0.1% to $1,928.70.

Oil prices clawed back some ground on Thursday, recovering from the previous session's 15-month lows, as markets calmed somewhat after Credit Suisse   was thrown a financial lifeline by Swiss regulators.

Brent crude futures were up 54 cents, or 0.7%, at $74.23 a barrel by 1105 GMT. West Texas Intermediate crude futures (WTI) rose 43 cents, or 0.6%, to $68.04.


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