Market Update
Ø The Bank of England raised borrowing costs by 25 bps on Thursday, in line with expectations, and said further tightening would be required if there were evidence of more persistent price pressures.
Ø Sterling gained 0.24% against the dollar to $1.2299, after earlier touching a seven-week high of $1.2341.
Ø The Swiss National Bank (SNB) also raised its policy rate by 50 basis points as the central bank sought to balance tackling inflation with concerns about financial market turmoil, while it reiterated it was willing to be active in the foreign exchange market.
Ø The SNB said measures announced by authorities at the weekend regarding Credit Suisse had “put a halt to the crisis”.
Ø Dollar headed on Thursday for its longest losing streak in 2-1/2 years after the U.S. Federal Reserve sounded close to calling time on interest rate hikes, while the Swiss National Bank and Bank of England pushed ahead with further rate increases. The dollar index fell 0.232% to 103.090, while sterling edged 0.34% lower to $1.2234.
Ø Bullions prices settled on a positive node, as the dollar extended its fall. Gold up 1.38%, and settled at 59565, silver up 1.30% and settled at 70212.
Ø Crude Oil retreated from the day’s high and settled at 5790, down by 0.87%. Oil has gained more than 6% after hitting their lowest since late 2021, supported by rising gasoline prices in the United States. A weaker dollar also supported fed fuel demand hopes. Brent Crude was up 0.29%, at $75.98 a barrel. U.S. West Texas Intermediate (WTI) gained 0.23%, to $70.03.
Japan
At 5.00am – National Core CPI y/y, forecast is at 3.1% previous was at 4.2%.
At 6.00am – Flash Manufacturing PMI, forecast is at 48.2 previous was at 47.7.
Both data could have a positive impact on Yen.
UK
At 12.30Pm – Retail Sales m/m, forecast is at 0.2% previous was at 0.5%.
At 3.PM – Flash Manufacturing PMI, forecast is at 49.2 previous was at 49.3.
At the same time, Flash Services PMI, forecast is 53.1 previous was at 53.5.
All the above data is expected to have a negative impact on the pound.
Eurozone
At 1.45pm – French Flash Manufacturing PMI, forecast is at 48.1 previous was at 47.4.
At 1.45pm – French Flash Services PMI, forecast is at 52.4 previous was at 53.1.
At 2.00pm – German Flash Manufacturing PMI, forecast is 47.1 previous was at 46.5.
At 2.00pm – German Flash Services PMI, forecast is 51.0 previous was at 50.9.
At 2.30pm- Flash Manufacturing PMI, forecast is at 48.9 previous was at 48.5.
At 2.45pm – German Buba President Nagel Speaks
All the above data is expected to have a mixed impact on pound.
Canada
At 6.00pm – Core Retail Sales m/m, forecast is at 0.6% previous was at -0.6%.
At 6.00pm – Retail Sales m/m, forecast is at 0.7% previous was at 0.5%.
Both data could have a positive impact on Base metals.
US
At 6.00pm – Core Durable Goods Orders m/m, forecast is at 0.2% previous was at 0.8%.
At 7.15PM – Flash Manufacturing PMI, forecast is at 47 previous was at 47.3.
At 7.15pm – Flash Services PMI, forecast is at 50.3 previous was at 50.6
Both data could have a negative impact on the dollar.