Posted at 01 May 2023 / Categories Market Roundups
Market Roundup
•Canada Apr Manufacturing PMI 50.2,50.2 forecast,48.6 previous
•US Apr Manufacturing PMI 50.2,50.4 forecast, 49.2 previous
•US Mar Construction Spending (MoM) 0.3%,0.1% forecast,-0.1% previous
•US Apr ISM Manufacturing New Orders Index 45.7,45.5 forecast,44.3 previous
•US Apr ISM Manufacturing Employment 50.2,47.9 forecast, 46.9 previous
•US Apr ISM Manufacturing PMI 47.1,46.8 forecast,46.3 previous
•US Apr ISM Manufacturing Prices 53.2, 49.0 forecast,49.2 previous
•US 3-Month Bill Auction 5.120%,5.065% previous
•US 6-Month Bill Auction 4.900%, 4.840% previous
Looking Ahead Economic Data (GMT)
•No data ahead
Looking Ahead Events and Other Releases(GMT)
•04:30 Australia May RBA Interest Rate Decision 3.60% forecast, 3.60% previous
•04:30 Australia RBA Rate Statement
Currency Summaries
EUR/USD: The euro fell on Monday as the dollar ticked up ahead of the U.S. Federal Reserve's policy meeting due this week. U.S. manufacturing pulled off a three-year low in April as new orders improved slightly and employment rebounded, but activity remained depressed amid higher borrowing costs and tighter credit, which have raised the risk of a recession this year.The ISM said its manufacturing PMI increased to 47.1 last month from 46.3 in March, which was the lowest reading since May 2020. Economists polled by Reuters had forecast 46.8. The Federal Open Market Committee (FOMC) will meet on May 2-3, and investors are largely expecting a 25 basis-point interest rate hike. Immediate resistance can be seen at 1.1023 (Daily high), an upside break can trigger rise towards 1.1080(Higher BB).On the downside, immediate support is seen at 1.0976 (5DMA), a break below could take the pair towards 1.0912(April 19th low).
GBP/USD: Sterling eased against the dollar on Friday as traders braced for a packed week of central bank meetings that would offer the latest guidance on future rate hikes across continents. The BoE is widely expected to raise borrowing costs again on May 11 after its monthly monetary policy meeting, with inflation running at five times its 2% target. Investors are putting a 92% probability on a 25 basis-point increase in Bank Rate to 4.5% and roughly 50 chance of hitting 5% by August. Immediate resistance can be seen at 1.2567 (Daily high), an upside break can trigger rise towards 1.2582(May 28th high).On the downside, immediate support is seen at 1.2515(Daily low), a break below could take the pair towards 1.2352(38.2%fib).
USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Monday as investors digested Monday's data and waited for the U.S. Federal Reserve's interest rate decision due on Wednesday as well as key upcoming economic data and quarterly earnings reports. Later in the week, the U.S. Federal Reserve is expected to announce another rate hike on Wednesday and the European Central Bank is expected to lift borrowing costs by 25 basis points. The loonie was trading 0.1% higher at C$1.3543 to the greenback, or 73.84 U.S. cents, after trading in a range of 1.3531 to 1.3583.Immediate resistance can be seen at 1.3582 (38.2% fib), an upside break can trigger rise towards 1.3655 (23.6% fib).On the downside, immediate support is seen at 1.3522(50% fib), a break below could take the pair towards 1.3493 (21DMA).
USD/JPY: The dollar rose against Japan's yen on Monday as dollar was boosted after US manufacturing data. U.S. manufacturing pulled off of a three-year low in April as new orders improved slightly and employment rebounded, but activity remained depressed amid higher borrowing costs and tight credit. Monday's data gave the dollar a boost. The dollar index , which measures the greenback against a basket of major currencies, rose 0.393%, with the euro down 0.44% to $1.0971.The Japanese yen weakened 0.87% versus the greenback to 137.50 per dollar Strong resistance can be seen at 137.50(Daily high), an upside break can trigger rise towards 138.00(Psychological level).On the downside, immediate support is seen at 136.05 (Daily low), a break below could take the pair towards 135.88(March 9th low)
Equities Recap
European stock market is closed on account of Labour Day holiday.
U.S. stocks ended little changed on Monday as investors took in the weekend auction of First Republic Bank and braced for this week's expected interest rate hike from the Federal Reserve.
Dow Jones closed down by 0.14 percent, S&P 500 ended down by 0.04 percent, Nasdaq settled down by 0.11 percent.
Commodities Recap
Gold prices edged lower on Monday as the dollar rose after better-than-expected U.S. manufacturing data, while markets await the Federal Reserve's interest rate hike decision this week.
Spot gold was down 0.4% at $1,982.20 per ounce by 1:55 p.m. ET (1755 GMT), reversing nearly 1% gains made earlier in the session.U.S. gold futures settled down 0.3% at $1,992.20.
Oil prices dropped by a dollar a barrel on Monday after weak economic data from China and expectations of another U.S. interest rate hike outweighed support from OPEC+ supply cuts that take effect this month.
Brent crude fell $1.02, or 1.3%, to settle at $78.45 a barrel, while U.S. West Texas Intermediate (WTI) crude slid $1.12, or 1.5%, to settle at $75.66.