Posted at 09 May 2023 / Categories Market Roundups
Market Roundup
•US Mar Wholesale Inventories (MoM) 0.0% ,0.1% forecast,0.1% previous
• US Mar Wholesale Trade Sales (MoM) -2.1% ,0.5% forecast,0.4% previous
• US Apr CB Employment Trends Index 116.18 , 117.37 forecast, 116.24 previous
• US 3-Month Bill Auction 5.140% ,5.120% previous
• US 6-Month Bill Auction 4.890% , 4.900% previous
Looking Ahead Economic Data(GMT)
• 03:00 China Apr Trade Balance (USD) 71.60B forecast,88.19B previous
•03:00 China Apr Imports (YoY) -5.0% forecast,-1.4% previous
•03:00 China Apr Exports (YoY) 8.0% forecast,14.8% previous
Looking Ahead Events And Other Releases(GMT)
•No events ahead
Currency Summaries
EUR/USD: The euro dipped on Monday as greenback strengthen ahead of key U.S. inflation data later this week for fresh clues on the Federal Reserve's monetary policy path. U.S. consumer prices reading for April due on Wednesday for hints on whether rate cuts in the world's largest economy are coming soon. The Fed raised rates last week in an action that may be the last of its current tightening campaign. The euro fell 0.15% to $1.1003, after rallying nearly 16% from September lows, supported by expectations the European Central Bank will keep interest rates high for longer than the Fed. Immediate resistance can be seen at 1.1015(5DMA), an upside break can trigger rise towards 1.1046(23.6%fib).On the downside, immediate support is seen at 1.0963 (38.2%fib ), a break below could take the pair towards 1.0935(Lower BB).
GBP/USD: Sterling eased against the dollar on Monday as investors prepared for U.S. inflation data to gauge the Federal Reserve's policy path. The spotlight this week will be on the Labor Department's inflation reading on Wednesday, which is expected to show the consumer price index (CPI) likely climbed 0.4% in April after gaining 0.1% in March. Producer prices, weekly jobless claims and consumer sentiment data are all lined up for the week. Sterling fell 0.12% to $1.2614. The pound hit a more than one-year peak against the dollar on Monday, with trading as high as $1.2668, its highest level since April 2022.Immediate resistance can be seen at 1.2657 (23.6%fib), an upside break can trigger rise towards 1.2672(Higher BB).On the downside, immediate support is seen at 1.2576(5DMA), a break below could take the pair towards 1.2477(38.2%fib).
USD/CAD: The Canadian dollar was little changed against its U.S. counterpart on Monday, with the currency holding near an earlier three-week high supported by higher oil prices and recent narrowing in the gap between U.S. and Canadian bond yields. Oil, one of Canada’s major exports, clawed back some recent losses for a second straight day, settling 2.6% higher at $73.16 a barrel, as U.S. recession fears eased. The loonie was trading nearly unchanged at 1.3370 to the greenback, or 74.79 U.S. cents, after touching its strongest intraday level since April 14 at 1.3316..Immediate resistance can be seen at 1.3444(38.2% fib), an upside break can trigger rise towards 1.3453(5DMA).On the downside, immediate support is seen at 1.3365 (23.6% fib), a break below could take the pair towards 1.3290(Lower BB).
USD/JPY: The dollar strengthened against Japan's yen on Monday shaking off earlier weakness as traders moved past an unsurprising loans survey toward other economic data that could provide fresh clues on the Federal Reserve's hiking path.A quarterly survey of loan officers conducted by the Federal Reserve showed that banks continue to tighten credit and that there is weaker demand for business loans. Following the survey, the dollar index , which measures the currency against six rivals, rose 0.08% to trade at 101.38, a better showing than the one-year low of 100.78 reached last month.. Strong resistance can be seen at 135.70(23.6%fib) an upside break can trigger rise towards 136.75(Higher BB).On the downside, immediate support is seen at 134.65(5DMA), a break below could take the pair towards 134.22(38.2%fib)
Equities Recap
European shares ended higher on Monday, with healthcare and bank stocks in the lead as investors awaited key U.S. inflation data later this week for fresh clues on the Federal Reserve's monetary policy path.
UK's benchmark FTSE 100 closed up by 0.22 percent, Germany's Dax ended up by 0.69% percent, France’s CAC finished the day up by 0.56 percent.
U.S. stocks paused on Monday after a strong rally in the prior session as investors shift focus to a key inflation reading later this week.
Dow Jones closed down by 1.08% percent, S&P 500 closed down by 1.16 % percent, Nasdaq settled down by 1.08% percent.
Treasuries Recap
Treasury yields rose on Monday on greater optimism that the worst stresses in the U.S. regional banking system may be over, and before the U.S. Treasury Department will this week sell $96 billion in new supply.
Benchmark 10-year yields were last at up 7 basis points on the day at 3.517%, after falling to a one-month low of 3.296% on Thursday.
Commodities Recap
Gold edged higher on Monday, regaining some ground after a retreat in the previous session and ahead of inflation data this week that could provide clues on the outlook for U.S. interest rates.
Spot gold rose 0.2% to $2,021.37 per ounce by 3:15 p.m. ET (1915 GMT). U.S. gold futures settled up 0.4% at $2,033.20.
Oil prices rose over 2% on Monday as U.S. recession fears eased and some traders saw crude's three-week slide on demand worries as overdone.
Brent crude settled up $1.71, or 2.3%, at $77.01. U.S. West Texas Intermediate (WTI) crude also gained $1.82, or 2.6%, to $73.16.