Posted at 22 May 2023 / Categories Market Roundups
Market Roundup
•Greek Mar Current Account (YoY) -2.403B,-1.325B previous
•Belgium May Consumer Confidence -9 ,-6 previous
•EU Mar Construction Output (MoM) -2.41%, 0.00% forecast,2.10% previous
Looking Ahead Economic Calendar(GMT)
•13:00 French 12-Month BTF Auction 3.249% previous
•13:00 French 3-Month BTF Auction 3.121% previous
•13:00 French 6-Month BTF Auction 3.128% previous
•14:00 EU May Consumer Confidence -17.0 forecast,-17.5 previous
•15:30 USD 3-Month Bill Auction 5.060% previous
•15:30 US 6-Month Bill Auction 4.980% previous
Looking Ahead Events And Other Releases(GMT)
•14:50 US FOMC Member Barkin Speaks
•14:50 US FOMC Member Bostic Speaks
•15:05 US FOMC Member Daly Speaks
Currency Forecast
EUR/USD: The euro strengthened against dollar on Monday as concerns about a U.S. debt ceiling deal and the outlook for monetary policies in the United States. President Joe Biden and House Republican Speaker Kevin McCarthy will meet to discuss the debt ceiling on Monday after the two leaders held a phone call on Sunday that both sides described as positive. The euro was up 0.1% against the dollar at $1.0821, having hit a seven-week low of $1.0760 on Friday. The dollar index , which measures the greenback against six other major currencies, was flat at 103.04, hovering well below last week's high of 103.63, a level last seen on March 20.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: The pound strengthened on Monday as dollar dipped as stalled U.S. debt ceiling negotiations approached crunch timeous. President Joe Biden and House Republican Speaker Kevin McCarthy will meet to discuss the debt ceiling on Monday, less than two weeks before a June 1 deadline after which Treasury expects the federal government will struggle to pay its debts.A failure to lift the debt ceiling would trigger a default, likely sparking chaos in financial markets and a spike in interest rates. Immediate resistance can be seen at 1.2478 (5DMA), an upside break can trigger rise towards 1.2572 (23.6%fib).On the downside, immediate support is seen at 1.2385 (38.2%fib), a break below could take the pair towards 1.2320(Lower BB).
USD/CHF: The dollar nursed losses against Swiss franc on Monday following a surprise breakdown in U.S. debt ceiling negotiations and after Federal Reserve chair Jerome Powell indicated a preference to slow rate hikes. Investors now await a key meeting between U.S. President Joe Biden and House Republican Speaker Kevin McCarthy to discuss the debt ceiling on Monday. Negotiations between the two sides broke off suddenly on Friday with Republican negotiators walking out of the meeting. Although talks eventually resumed, neither side cited any progress, knocking the dollar lower. Immediate resistance can be seen at 0.9012(23.6%fib), an upside break can trigger rise towards 0.9058 (Higher BB).On the downside, immediate support is seen at 0.8972 (50%fib), a break below could take the pair towards 0.8936(61.8%fib).
USD/JPY: The dollars initially dipped against Japan's yen on Monday but recovered ground as U.S. debt ceiling negotiations set to resume and Federal Reserve Chair Jerome Powell having indicated he favours a meeting-by-meeting approach when it comes to future policy moves. Investors are now waiting for a meeting between U.S. President Joe Biden and House Republican Speaker Kevin McCarthy to discuss the debt ceiling on Monday, after a phone call on Sunday that both sides described as positive.Strong resistance can be seen at 139.06(23.6%fib) an upside break can trigger rise towards 139.43(Higher BB).On the downside, immediate support is seen 137.47(5DMA), a break below could take the pair towards 136.06(38.2%fib)
Equities Recap
European stocks were broadly flat on Monday, as concerns about a U.S. debt ceiling deal and the outlook for monetary policies in the United States and Europe weighed on sentiment after a strong run in several of the region's markets recently.
At (GMT 12:40),UK's benchmark FTSE 100 was last trading up at 0.04 percent, Germany's Dax was down by 0.38 percent, France’s CAC was trading up by 0.32 percent.
Commodities Recap
Gold prices inched higher on Monday on a softer dollar, while some traders remained on the sidelines as they looked for more clarity around the U.S. debt ceiling negotiations and the Federal Reserve’s interest rate path.
Spot gold was up 0.1% to $1,978.89 per ounce by 1020 GMT, while U.S. gold futures steadied at $1,982.10.
Oil prices were steady on Monday as caution relating to U.S. debt ceiling talks dragged on optimism over demand later in the year and offset support from lower supplies from Canada and OPEC+ producers.
Brent crude futures rose 17 cents, or 0.2%, to $75.75 a barrel by 1111 GMT, while U.S. West Texas Intermediate (WTI) crude for July delivery, the more actively traded contract, rose 15 cents, or 0.2%, to $71.84.