Posted at 10 May 2023 / Categories Market Roundups
Market Roundup
•US Redbook (YoY) 1.3%,1.3% previous
•French 12-Month BTF Auction 3.215% ,3.254% previous
•French 3-Month BTF Auction 3.205% ,3.089% previous
•French 6-Month BTF Auction 3.079% ,3.204% previous
•US IBD/TIPP Economic Optimism 41.6 , 48.2 forecast,47.4 previous
Looking Ahead Economic Data (GMT)
• 01:30 Australia May Westpac Consumer Sentiment -1.7% forecast, 9.4% previous
• 05:00 Japan Mar Leading Index (MoM) 1.3% previous
• 05:00 Japan Mar Coincident Indicator (MoM) 2.5% previous
Looking Ahead Events And Other Releases(GMT)
•No data events ahead
Currency Summaries
EUR/USD: The euro declined on Tuesday as investors awaited US inflation data for a clearer picture of the economic outlook and the Federal Reserve's likely rate-hiking path. The release of closely watched U.S. inflation data on Wednesday is likely to set the tone for markets, after stronger-than-expected jobs data last week. The dollar index , which measures the currency against six rivals, pared gains that took it to a nearly one-week high earlier in the session, and was last seen at 101.63 or up 0.2% in afternoon trading. The euro fell 0.39% to $1.0962.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 1.0960 (38.2%fib ), a break below could take the pair towards 1.0935(Lower BB).
GBP/USD: Sterling was little changed against the U.S. dollar on Tuesday but stayed close to the previous day's one-year high, ahead of the Bank of England (BoE) policy decision later this week. Stronger-than-expected economic data in the UK, which has so far dodged a deep recession, is one factor behind the pound's robust performance, as well as a weaker dollar, which has been dragged down by slower U.S. inflation and by growing expectations that the Federal Reserve is nearing the end of its rate hiking cycle. 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 Tuesday, consolidating recent gains, as investor’s awaited U.S. inflation data for clues on the Federal Reserve's interest rate outlook. The price of oil, one of Canada's major exports, settled 0.8% higher at $73.71 a barrel as markets weighed U.S. government plans to refill the nation's emergency oil reserve and anticipated higher seasonal demand. The Canadian dollar was nearly unchanged at 1.3377 to the greenback, after moving in a range of 1.3366 to 1.3406. On Monday, it touched its strongest intraday level in three weeks at 1.3313.Immediate resistance can be seen at 1.3405(5DMA), an upside break can trigger rise towards 1.3462 (38.2%fib).On the downside, immediate support is seen at 1.3360 (23.6%fib), a break below could take the pair towards 1.3288 (Lower BB).
USD/JPY: The dollar strengthened against yen as investors grew more cautious ahead of Wednesday's U.S. consumer price index report.. Investors will look for clues on whether inflation is continuing to ease following the Labor Department's consumer price index (CPI) report on Wednesday. Talks over the U.S. debt ceiling also added to caution in the market as traders were also waiting for an update on plans for the debt ceiling from a meeting between U.S. President Joe Biden, Republican House Speaker Kevin McCarthy and other congressional leaders at the White House. 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 fell on Tuesday after a slew of weak corporate earnings soured sentiment, while investors keenly awaited crucial U.S. economic data for more clarity on the Federal Reserve's monetary policy plans.
UK's benchmark FTSE 100 closed down by 0.18 percent, Germany's Dax ended up by 0.02 percent, France’s CAC finished the day down by 0.59 percent.
U.S. stock indexes closed lower on Tuesday as investors grew more cautious ahead of a U.S. consumer price index report and a meeting between U.S. political leaders to discuss the debt ceiling.
Dow Jones closed down by 0.17% percent, S&P 500 closed down by 0.46 % percent, Nasdaq settled down by 0.63% percent.
Treasuries Recap
Treasury yields rose slightly on Tuesday as investors awaited April consumer price inflation data on Wednesday for clues on whether price pressures are continuing to ease.
Benchmark 10-year yields rose almost one basis point to 3.526% and two-year yields were up around one basis point at 4.026%.
Commodities Recap
Gold gained on Tuesday as investors sought cover from economic uncertainty while also positioning for the U.S. inflation print for cues on the trajectory of interest rates.
Spot gold was up 0.8% at $2,036.56 per ounce by 1:41 p.m. EDT (1741 GMT), while U.S. gold futures settled 0.5% higher at $2,042.90.
Oil prices ticked up on Tuesday, reversing a more than 2% drop earlier in the session, as markets weighed U.S. government's plans to refill the nation's emergency oil reserve and anticipated higher seasonal demand.
Brent crude settled 43 cents, or 0.6% higher, at $77.44 a barrel, while U.S. West Texas Intermediate (WTI) crude closed up 55 cents, or 0.8%, at $73.71.