Posted at 22 May 2023 / Categories Market Roundups
Market Roundup
•French 12-Month BTF Auction 3.324%,3.249% previous
•French 3-Month BTF Auction 3.115%,3.121% previous
•French 6-Month BTF Auction 3.234%,3.128% previous
•EU May Consumer Confidence -17.4,-17.0 forecast,-17.5 previous
•USD 3-Month Bill Auction 5.250%,5.060% previous
•US 6-Month Bill Auction 5.170%, 4.980% previous
Looking Ahead Economic Data(GMT)
•00:30 Japan Services PMI 55.2 forecast, 55.4 previous
•00:30 Japan May Manufacturing PMI 49.5 forecast, 49.5 previous
•05:00 Japan BoJ Core CPI (YoY) 2.8% forecast, 2.9% previous
Looking Ahead Events And Other Releases(GMT)
•No events Ahead
Currency Summary
EUR/USD: The euro initially gained but gave up ground against dollar on Monday as investors waited on fresh signals on whether the U.S. Federal Reserve is likely to continue hiking interest rates and watched for news on the U.S. debt ceiling. Investors are also focused on negotiations to raise the U.S. debt limit, with the risk of a default seen as denting risk sentiment even as it is viewed as unlikely. The euro gained 0.12% to $1.0819, having hit a more than seven-week low of $1.0760 on Friday .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 eased on Monday dollar steadied as investors awaited fresh signals on whether the Federal Reserve could continue hiking interest rates and a meeting between U.S. President Joe Biden and House Republican Speaker Kevin McCarthy to discuss raising the U.S. debt ceiling. Markets await the minutes of the latest U.S. Federal Open Market Committee meeting due on Wednesday. Markets are pricing in a 68.6% chance of rates being held steady next month, yet a 31.4% chance of a 25-basis-point hike, the CME FedWatch tool showed. 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/CAD:Canadian dollar edged lower against greenback as the dollar firmed ahead of fresh U.S. debt ceiling talks. House Republican Speaker Kevin McCarthy said Monday morning's debt talks were on the right path ahead of a meeting with U.S. President Joe Biden. June 1 remains a "hard deadline after which Treasury expects the federal government will struggle to pay its debts, a stance the agency reiterated on Monday. The loonie was trading 0% lower at C$1.3504 to the greenback, or 74.05 U.S. cents, after trading in a range of 1.3486 to 1.3517. Immediate resistance can be seen at 1.3513 (38.2%fib), an upside break can trigger rise towards 1.3571 (23.6% fib).On the downside, immediate support is seen at 1.3493(5DMA) a break below could take the pair towards 1.3474 (50% fib)
USD/JPY: The dollar rose against the Japanese yen on Monday, holding just below a six-month high, as investors waited on fresh data to signal whether the U.S. Federal Reserve is likely to continue hiking interest rates, while watching for news of a congressional deal to raise the U.S. debt ceiling.The greenback has gained for the past two weeks as stronger than expected economic reports and hawkish Fed officials keep the prospect of further interest rate increases alive. The greenback was last up 0.46% on the day at 138.55 yen , just below a six-month high of 138.75 reached on Thursday. 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 flat on Monday as investors awaited the outcome of U.S. debt ceiling talks while assessing monetary policy outlook in the United States and Europe, with UK's Dechra Pharmaceuticals slumping after a profit warning.
UK's benchmark FTSE 100 closed up by 0.18 percent, Germany's Dax ended down by 0.32 percent, France’s CAC finished the day down by 0. 18 percent.
Wall Street shares were mixed and European stocks finished little-changed as talks in Washington resumed to avert a U.S. default, while gold prices retreated under pressure from hawkish remarks by Federal Reserve officials.
Dow Jones closed down by 0.42 percent, S&P 500 ended up by 0.02 percent, Nasdaq finished the day up by 0.50 percent.
Commodities Recap
Oil prices edged up 1% on Monday with a rise in U.S. gasoline futures and forecasts for oil demand to rise in the second half of the year, while supplies from Canada and OPEC+ declined in recent weeks.
U.S. West Texas Intermediate (WTI) crude for June delivery rose 44 cents, or 0.6%, to settle at $71.99 per barrel, while the more active July contract , which is now the new front-month, rose 0.5% to settle at $72.05.
Gold prices inched lower as hawkish comments from two U.S. Federal Reserve officials on Monday weighed on non-yielding bullion and markets looked for more clarity around U.S. debt ceiling negotiations.
Spot gold was down 0.1% to $1,974.90 per ounce by 2:13 p.m. ET (1813 GMT). U.S. gold futures settled 0.2% lower at $1,977.10.