America roundup: Dollar plunges ahead of CPI report, Wall Street ends higher, gold gains, oil prices stabilize higher amid supply concerns as winter approaches – September 13, 2022

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Market overview

• US indices up: Dow 0.71%, S&P 1.06%, Nasdaq 1.27%

• French 3-month BTF auction 0.648%, previous 0.039%

• French 6-month BTF auction 0.747%, previous 0.160%

• French 12-month BTF auction 1.450%, previous 0.746%

• US consumer inflation expectations 5.7%, previous 6.2%

• US 6-Month Bill Auction 3.465%, previous 3.320

• US 3-Year Note Auction 3.564%, previous 3.202%

• Auction of US 10-year notes 3.330%, 2.755%

Future Outlook – Economic Data (GMT)

•13:30 Australia August NAB Business Confidence 7 previous

•13:30 Australia August NAB Business Survey 20 previous

Future Outlook – Economic Events and Other Releases (GMT)

• No upcoming events

Currency summaries

EUR/USD: The euro hit a more than three-week high against the dollar on Monday as European Central Bank officials argued for further aggressive monetary tightening. ECB policymakers see growing risks that they will have to raise their key interest rate to 2% or more to curb record inflation in the eurozone. a 20-year low of $0.9862 hit last week. It was up 0.88% at $1.01345. Immediate resistance can be seen at 1.0136 (38.2% fib), a break up can trigger a rise towards 1.0172 (BB upper). On the downside, immediate support is seen at 1.0059 (50% fib), a break below could take the pair towards 0.9995(9DMA).

GBP/USD: The British pound rose against a weaker dollar on Monday as the dollar attracted sellers ahead of the US CPI data. Sterling was also helped by an optimistic global mood at news of Ukrainian forces advancing into territory seized from Russian troops, their worst defeat since the first weeks of the war. Overall sentiment towards the pound remained weak, with Monday’s data highlighting that the UK economy is showing signs of strain due to soaring prices. Britain’s gross domestic product rose 0.2% in July from the previous month, while economists had expected growth of 0.4%. A broad decline in the dollar has meant respite for the battered pound, which rose 1% to $1.17, its highest level in nearly two weeks and after a 37-year low reached last week at 1.1407 $. Immediate resistance can be seen at 1.1693(38.2% fib), a break up can trigger a rise towards 1.1740(21DMA). On the downside, immediate support is seen at 1.1552(9DMA), a break below could take the pair towards 1.1505(23.6% lie).

USD/CAD: The Canadian dollar strengthened to its highest level in more than two weeks against its US counterpart on Monday as a bullish formation for the currency played out in technical charts and investors awaited data on US inflation. Investors positioned themselves for a reading of U.S. consumer prices on Tuesday that could determine the pace of further interest rate hikes by the Federal Reserve. The price of oil, one of Canada’s top exports, rose as supply concerns intensified as winter approached. US crude prices settled up 1.1% to $87.78 a barrel. The loonie was trading up 0.3% at 1.2985 against the greenback, marking its fourth straight day of gains. Immediate resistance can be seen at 1.3031 (38.2% fib), a break up can trigger a rise towards 1.3051 (14DMA). On the downside, immediate support is seen at 1.2966 (50% fib), a break below could take the pair towards 1.2874. (61.8% fiber).

USD/JPY: The dollar fell slightly against the yen on Monday as investors awaited US inflation data for further clues to the Federal Reserve’s rate hike path. All eyes are on U.S. inflation data due out on Tuesday for signs of easing price pressures and indications of how far the Federal Reserve will raise interest rates. Traders are betting on a third rate hike of 75 basis points by the US central bank next week. Expectations of an aggressive tightening of US monetary policy have boosted the dollar in recent weeks. The dollar was stable against the rate-sensitive Japanese yen at 142.59 yen, slightly off its 24-year high of 144.99 hit last week. Strong resistance can be seen at 143.25(5DMA), a break up can trigger a rise towards 144.21(23.6%fib). On the downside, immediate support is seen at 141.50 (38.2%fib), a break below could take the pair towards 140.80 (14DMA).

Summary of actions

European stocks closed higher on Monday, extending recent gains, amid improving risk sentiment despite aggressive policy from major central banks and the likely impact on global growth.

Britain’s benchmark FTSE 100 closed up 1.66%, Germany’s Dax ended up 2.40%, France’s CAC ended the day up 1.95%.

Wall Street extended its winning streak on Monday, rallying to a sharply higher close as investors awaited crucial inflation data that could provide clues to the duration and severity of the Federal Reserve’s tightening policy. .

The Dow Jones closed up 0.71%, the S&P 500 closed up 1.06%, the Nasdaq stabilized at 1.27%.

Summary of treasury bills

Treasury yields fell on Monday as investors await key consumer price data this week that are unlikely to alter another aggressive interest rate hike by the Federal Reserve next week as it attempts to slow down the US economy to stifle inflation.

The yield on the benchmark 10-year Treasury fell 1.3 basis points to 3.308% and the yield on the two-year, which generally moves in line with rate expectations, fell 1.8 basis point at 3.553%.

Summary of raw materials

Gold jumped around 1% and silver more than 5% on Monday, supported by a weaker dollar, as investors waited for key inflation data to see the pace of interest rate hikes. interest by the US central bank.

Spot gold rose 0.7% to $1,728.57 an ounce as of 1:53 p.m. EST (1753 GMT), after hitting its highest level since Aug. 30 at $1,734.99 . US gold futures were up 7% at $1,740.6.

Oil prices stabilized on Monday, shaking off weaker demand expectations as supply worries mount as winter approaches.

Brent crude futures settled down $1.16, or 1.3%, at $94.00 a barrel. U.S. West Texas Intermediate crude gained 99 cents, or 1.1%, to $87.78.

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