Posted at 03 May 2023 / Categories Market Roundups
Market Roundup
•French 3-Month BTF Auction 3.089%, 3.057% previous
•French 12-Month BTF Auction 3.254%, 3.354% previous
•French 6-Month BTF Auction 3.204%,3.216% previous
•US Mar Factory orders ex transportation (MoM) -0.7%,-0.3% previous
•US Mar Durables Excluding Defense (MoM) 3.4%,3.5% previous
•US Durables Excluding Transport (MoM) 0.2%,0.3% previous
•US JOLTs Job Openings 9.590M, 9.775M forecast,9.931M previous
•US Mar Factory Orders (MoM) 0.9%, 1.1% forecast,-0.7% previous
•Global Dairy Trade Price Index 3.2% previous
Looking ahead Economic Data(GMT)
•1:30 Australia Mar Retail Sales (MoM) 0.3% forecast, 0.2% previous
•1:30 Australia Retail Sales (QoQ) (Q1) -0.5% forecast,-0.2% previous
Looking ahead Events And Other Releases (GMT)
•No events ahead
Currency Summaries
EUR/USD: The euro strengthened on Tuesday as dollar fell after data showed as US job openings fell in March. U.S. job openings fell for a third straight month and layoffs increased to the highest level in more than two years, suggesting some softening in the labor market that could aid the Fed's fight against inflation.The U.S. Commerce Department also said that factory orders rose by 0.9% in March, below expectations for a 1.1% gain.The data comes as investors try to gauge whether the Fed is likely to pause rate hikes when it concludes a two-day meeting on Wednesday, or if further increases are possible if inflation remains high.. Immediate resistance can be seen at 1.1002 (5DMA), an upside break can trigger rise towards 1.1030(23.6%fib).On the downside, immediate support is seen at 1.0944(38.2%fib), a break below could take the pair towards 1.0918(April 19th low).
GBP/USD: The pound fell on Tuesday, ignoring data highlighting a few bright spots in Britain’s economy, as investors focused more closely on the outlook for UK rates relative to others, after the Reserve Bank of Australia delivered a surprise hike. Data releases on Tuesday showed British factory output and new orders contracted at the start of the second quarter of 2023, but manufacturers were more optimistic and input costs rose at the weakest rate since May 2020. The BoE meets next week. Money markets show traders fully expect another quarter-point rise to 4.50% and then again to a peak of close to 4.90% by November. Sterling slipped by 0.3% against the dollar to $1.2457. Immediate resistance can be seen at 1.2513 (5DMA), an upside break can trigger rise towards 1.2588(23.6%fib).On the downside, immediate support is seen at 1.2454(38.2%fib), a break below could take the pair towards 1.2404(April 16th low).
USD/CAD: The Canadian dollar weakened against its U.S. counterpart and most other G10 currencies on Tuesday as the price of oil tumbled and investors grew risk averse ahead of interest rate decisions by the Federal Reserve and European Central Bank this week. Oil fell more than 5% and Wall Street stocks lost ground as investors worried about a possible U.S. debt default and expected further tightening from the Fed and the ECB.The Fed rate decision is due on Wednesday, while the ECB will make its decision on Thursday. The loonie was trading 0.6% lower at 1.3625 to the greenback, or 73.39 U.S. cents, after moving in a range of 1.3529 to 1.3637. Immediate resistance can be seen at 1.3656 (23.6%fib), an upside break can trigger rise towards 1.3677 (Higher BB).On the downside, immediate support is seen at 1.3580 (38.2%fib), a break below could take the pair towards 1.3563 (5DMA).
USD/JPY: The dollar rose against Japan's yen on Tuesday as dollar fell day ahead of the Federal Reserve's interest rate decision. The dollar index dipped after disappointing U.S. data a day before that the Fed is expected to hike rates by an additional 25 basis points and give guidance on whether it plans to raise rates further in June. Data showed U.S. job openings fell for a third straight month in March even as they remained at levels consistent with a tight labor market. The Japanese yen strengthened 0.73% versus the greenback at 136.50 per dollarStrong resistance can be seen at 137.75(Daily high), an upside break can trigger rise towards 138.22( 23.8%fib ).On the downside, immediate support is seen at 136.26 (38.2%fib), a break below could take the pair towards 135.15(9DMA)
Equities Recap
Europe's STOXX 600 index closed at its lowest level in nearly a month on Tuesday at the beginning of a shortened week packed with high-profile central bank events as energy stocks slumped and Pearson led falls among media companies.
UK's benchmark FTSE 100 closed down by 1.24 percent, Germany's Dax ended down by 1.23 percent, France’s CAC finished the day down by 1.45 percent.
Major U.S. stock indexes fell more than 1% each on Tuesday as regional bank shares tumbled on renewed fears over the financial system and as investors tried to gauge how much longer the Federal Reserve may need to hike interest rates.
Dow Jones closed down by 1.08 percent, S&P 500 ended down by 1. 16 percent, Nasdaq settled down by 1.08 percent.
Commodities Recap
Gold extended gains on Tuesday and was on track for its biggest daily rise in a month, as yields dropped on renewed fears of contagion in the U.S. banking sector, ahead of the Federal Reserve's widely anticipated decision to hike interest rates.
Spot gold jumped 1.5% to $2,012.19 per ounce by 2:00 p.m. EDT (1800 GMT) after touching its highest since April 14 at $2,019.37 earlier.U.S. gold futures settled 1.6% higher at $2,023.30.
Oil prices sank about 5% to a five-week low on Tuesday on concerns about the economy as U.S. politicians discuss ways to avoid a debt default and investors prepare for more rate hikes this week.
Brent futures fell $3.99, or 5.0%, to settle at $75.32 a barrel, while West Texas Intermediate crude (WTI) fell $4.00, or 5.3%, to end at $71.66.