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23
Nov

FOMC Minutes, EU PMI, U.S. Home Sales

calendar 23/11/2022 - 09:48 UTC

The U.S. dollar traded overall weaker against other major currencies and also reversed lower in pairs like the USD/MXN and USD/ZAR.

Crypto markets started to recover on Tuesday with the upside extending into the trading day on Wednesday with Bitcoin then surpassing the $16.5k mark, while some altcoins including Ethereum, Dogecoin and in particular Litecoin performing even stronger, helping elevate the total estimated crypto market cap above the $850 billion threshold. Litecoin is trading up by more than 25% since the beginning of this week

Global stock market indices traded overall higher on Tuesday with the US 500 index moving towards the 4,000 level while in Europe the Europe 50 index moved closer to the 3,950-mark and the Germany 40 was at 14,500.

Due to the upcoming Thanksgiving Holiday some reports can be expected earlier than usual during this week. This will included the U.S. Baker Hughes Oil Rig Count, weekly initial jobless claims, the University of Michigan Consumer Sentiment survey and durable goods new orders data, which are all published on Wednesday. Another highlight might be the publication of the minutes from the last FOMC meeting from the beginning of November.

EUR/USD

As the dollar reversed from its recent local high, the EUR/USD rate as well was able to recover above the 1.03-threshold. While the euro traded fairly steady against other major currencies on Tuesday, by Wednesday morning the common European currency was not only trading somewhat higher against the greenback but also strongly appreciated against other majors like the Japanese yen (JPY) and Canadian dollar (CAD).

On Wednesday morning manufacturing and services PMI data can be expected for France, German and the eurozone. Overall expectations are that the numbers will moderately worsen compared to the last reading.

EUR/USD

NZD/USD

The New Zealand dollar spiked higher around the time the Reserve Bank of New Zealand (RBNZ) announced with a 75 basis point (bp) hike its biggest hike in history of this central bank. The central bank reiterated that it sees an inflation rate of 7.2% as being too high, while with the low rate of unemployment at 3.3% "worker shortages are increasing wages and are contributing to high domestic inflation.", though it was also clarified that "Global developments have driven a large part of the high headline inflation in New Zealand."

The Monetary Policy Committee stated that it sees the need to increase the OCR rate even more than expected back in August in order for the goals in terms of inflation and employment to be attained.

NZD/USD

WTI Oil

Oil prices for once ended the day with a clear upside with WTI crude oil traded at times above $82 per barrel and Brent crude moving very close to the $90-mark. Data published by the American Petroleum Institute in the late afternoon barely moved the markets despite the 4.8 million barrels draw from crude oil stockpiles being significantly higher than many anticipated. Gasoline inventories were down by 0.4 million barrels and distillates' stocks increased by 1.1 million barrels. Similar type of data will be published on Wednesday by the Energy Information Administration (EIA) in its Weekly Petroleum Status Report.

Bloomberg meanwhile reported that the European Union could soften its approach regarding a price-cap on Russian oil to some extent, such as extending the grace period for loading the oil up to early December and conceding to a 45 days grace period after the implementation.

WTI Oil

US 500

Stock markets were fairly bullish on Tuesday with indices like the US Tech 100 and US 500 managing to recover all the losses from Monday and turn the weekly performance for now back into the green zone as the latter again pushed above the 4,000-threshold.

Energy sector stocks (US Energy ETF +3.26%) were some of the best performers in the market that day, while chip stocks (US Semiconductors ETF +2.91%) were not far behind the curve.

Best Buy (+12.52%) was by a wide margin the best-performing component of the S&P 500 index on Tuesday after the retailer exceeded expectations for both top and bottom line results, though revenue at $10.59 billion was still significantly lower compared to the same quarter of last year, when it reached $11.91 billion. The company also intends to continue its stock buy back program with plans to spend in total close to $1 billion this year.

Shares of Autodesk declined by more than nine per cent during the extended trading session following its earnings release. While its results for the fiscal third quarter were pretty much what analysts expected, the weak guidance for the ongoing quarter might have had some impact in this price move. For Q4 the company expects earnings per share (EPS) (GAAP) to amount to $0.99 to $1.05 and revenue to reach $1,303 million to $1,318 million compared to EPS of $0.91 and revenue of $1,280 million in Q3.

US 500

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