Posted at 19 May 2023 / Categories Market Roundups
Market Roundup
•US Continuing Jobless Claims 1,799K,1,818K forecast, 1,813K previous
•US Jobless Claims 4-Week Avg. 244.25K,245.94K forecast,245.25K previous
•US Initial Jobless Claims 242K,254K forecast,264K previous
•US May Philly Fed Prices Paid 10.90,8.10 forecast, 8.20 previous
•Canada Apr New Housing Price Index (MoM) -0.1%,-0.1% forecast, 0.0% previous
•US May Philly Fed Employment -8.6,-5.2 forecast,-0.2 previous
•US May Philly Fed CAPEX Index 2.50, 2.30 forecast,-5.40 previous
•US May Philly Fed Business Conditions -10.3,-11.3 forecast,-1.5 previous
•US May Philly Fed New Orders -8.9,-25.7 forecast,-22.7 previous
•US May Philadelphia Fed Manufacturing Index -10.4,-19.8 forecast,-31.3 previous
•US Apr Existing Home Sales 4.28M, 4.30M forecast, 4.44M previous
•US Apr Existing Home Sales (MoM) -3.4%,0.1% forecast, 2.4% previous
•US Apr Leading Index (MoM) -0.6%, -0.6% forecast,-1.2% previous
•US 4-Week Bill Auction 5.370% ,5.605% previous
•US 8-Week Bill Auction 5.020% , 4.680% previous
Looking Ahead Economic Data(GMT)
• 04:30 Japan Tertiary Industry Activity Index (MoM) 0.3% forecast, 0.7% previous
Looking Ahead Events And Other Releases(GMT)
•No events ahead
Currency Summaries
EUR/USD: The euro dipped against dollar on Thursday as global risk sentiment improved on optismism that a deal would be reached in Washington to raise the debt ceiling and avoid a U.S. default that would lead to a recession. On Wednesday, the U.S President Joe Biden and top U.S. congressional Republican Kevin McCarthy underscored their determination to reach an agreement soon, pledging to negotiate directly on a deal amid estimates that the Treasury could run out of money by the start of June. The euro slipped as much as 0.3% to $1.0805, its lowest level in six weeks . Immediate resistance can be seen at 1.0824(5DMA), an upside break can trigger rise towards 1.0899(23.6%fib).On the downside, immediate support is seen at 1.0752 (38.2%fib), a break below could take the pair towards 1.0755(50%fib).
GBP/USD: Sterling slipped a three-week low against the dollar on Thursday, as investors remained cautious after the pound’s recent rally, with the economy stagnating and the labour market softening. Data on Tuesday showed Britain’s jobless rate rose to 3.9% in the three months to March, while basic pay increased 6.7%, below expectations in a poll. The pound was last down 0.4% against a broadly stronger dollar to $1.2435. On Wednesday it hit a three-week low of $1.2422.Immediate resistance can be seen at 1.2458 (5DMA), an upside break can trigger rise towards 1.2530 (23.6%fib).On the downside, immediate support is seen at 1.2381(38.2%fib), a break below could take the pair towards 1.2335(Lower BB).
USD/CAD: The Canadian dollar weakened against its U.S. counterpart on Thursday as oil prices fell and Bank of Canada Governor Tiff Macklem stopped short of endorsing the market's recent move to price in another interest rate hike by the central bank. Macklem suggested April's inflation increase - the first in 10 months - was an anomaly and said consumer prices would continue to come down, in comments following the release of the BoC's financial system report. The price of oil, one of Canada's major exports, was trading 1.7% lower at $71.59 a barrel as the U.S. dollar rallied against a basket of major currencies.The loonie was trading 0.5% lower at 1.3520 to the greenback, or 73.96 U.S. cents, after moving in a range of 1.3450 to 1.3524. Immediate resistance can be seen at 1.3532 (May 17th high), an upside break can trigger rise towards 1.3555 (23.6%fib).On the downside, immediate support is seen at 1.3492 (38.2%fib), a break below could take the pair towards 1.3446 (9 DMA).
USD/JPY: The dollars strengthened against Japan's yen on Thursday as another round of solid economic data further pared back bets on easing by the Federal Reserve, with the greenback also boosted by expectations of a U.S. debt ceiling deal to a avert potential default. Thursday's reports showed lower-than-expected U.S. initial jobless claims of 242,000 in the latest week, compared with forecasts of 254,000.Another piece of data indicated a milder-than-expected fall in the Philadelphia Federal Reserve's manufacturing index to -10.4 in May from -31.3 in April.Against the yen, the dollar rose to a six-month peak of 138.74 and was last up 0.7% at 138.715 yen . Strong resistance can be seen at 138.88(23.6%fib) an upside break can trigger rise towards 139.24(Higher BB).On the downside, immediate support is seen at 137.44(5DMA), a break below could take the pair towards 136.86(38.2%fib)
Equities Recap
European stocks climbed on Thursday boosted by hopes of a breakthrough in the U.S. debt ceiling stand-off, with Germany's blue-chip index hitting its highest level in more than a year.
UK's benchmark FTSE 100 closed up by 0.31percent, Germany's Dax ended up by 0.50 percent, France’s CAC finished the day up by 0.45 percent.
U.S. stocks rallied and the dollar reached a seven-week peak on Thursday as discount retail giant Walmart Inc raised its sales outlook and strong economic data calmed recession fears while also dampening hopes the Federal Reserve would cut interest rates before year-end.
Dow Jones closed up by 0.32% percent, S&P 500 closed up by 0.48% percent, Nasdaq settled up by 0.68% percent.
Treasuries Recap
U.S. Treasury yields rose slightly on Thursday as investors gauged the progress in Washington on raising the debt ceiling, with benchmark 10-year yields hitting their highest in over two weeks.
The 2-year Treasury yield was up just 1 bp at 4.161%, close to Wednesday's three-week high of 4.177%. Yields move inversely to prices.
Commodities Recap
Gold extended declines on Thursday after more strong economic readings from the U.S. further soured bets that the Federal Reserve may ease up on interest rates hikes, with bullion also pressured by optimism for a debt ceiling deal.
Spot gold fell 1.3% to $1,956.79 per ounce by 1:40 p.m. EDT (1740 GMT), after earlier touching its lowest since April 3 at $1,951.73.U.S. gold futures settled 1.3% lower at $1,959.80.
Oil prices slid about 1% on Thursday after solid U.S. economic data spurred the dollar to reach a two-month high on growing expectations the U.S. Federal Reserve could raise interest rates again in June.
Brent futures fell $1.10, or 1.4%, to settle at $75.86 a barrel. U.S. West Texas Intermediate (WTI) crude fell 97 cents, or 1.3%, to settle at $71.86.