Posted at 25 May 2023 / Categories Market Roundups
Market Roundup
•Canada Corporate Profits (QoQ) -5.6% ,-8.1% previous
•EU May Belgium NBB Business Climate -9.2,-6.0 forecast, -7.8 previous
•US Gasoline Inventories -2.053M,-0.695M forecast,-1.381M previous
•US Crude Oil Imports -1.249M, -2.132M forecast,-0.127M previous
•US Cushing Crude Oil Inventories 1.762M, 0.804M forecast,1.461M previous
•US EIA Weekly Distillates Stocks -0.562M, 0.057M forecast,0.080M previous
•US Heating Oil Stockpiles 0.481M, 0.024M forecast, 0.454M previous
•US Gasoline Production 0.833M,-0.103M forecast, -0.341M previous
•US Crude Oil Inventories -12.456M,-0.920M forecast, 5.040M previous
•US Distillate Fuel Production 0.019M, 0.009M forecast, 0.250M previous
Looking ahead Economic Data(GMT)
•No Data Ahead
Looking ahead Events and Other Releases(GMT)
•No significant events
Currency Summaries
EUR/USD: The euro initially dipped against dollar on Wednesday but recovered some ground as talks over the U.S. debt ceiling continued without resolution. Representatives of President Joe Biden and congressional Republicans ended another round of debt ceiling talks on Tuesday with no signs of progress.Treasury Secretary Janet Yellen has warned that the federal government could no longer have enough money to pay all its bills as soon as June 1, raising the risk of a damaging default. The euro eased against the dollar it was last trading at 1.0750. Immediate resistance can be seen at 1.0777(5DMA), an upside break can trigger rise towards 1.0800(23.6%fib).On the downside, immediate support is seen at 1.0742 (23.6%fib), a break below could take the pair towards 1.0711(Mar 24th low).
GBP/USD: The pound slipped on Wednesday after data showed British inflation cooled by much less than expected in April. Sterling initially rose after the data, which adds to the pressure on the Bank of England to raise interest rates but was last down 0.17% at $1.239.Britain's year-on-year inflation rate slowed to 8.7% in April from 10.1% in March. Economists polled had expected a drop to 8.2%.Core inflation, which strips out volatile energy and food costs, unexpectedly jumped to 6.8%, a 31-year high. Immediate resistance can be seen at 1.2401 (5DMA), an upside break can trigger rise towards 1.2469(Daily high).On the downside, immediate support is seen at 1.2347 (38.2%fib), a break below could take the pair towards 1.2285(Lower BB).
USD/CAD: The Canadian dollar weakened to a near three-week low against U.S. counterpart on Wednesday, tracking declines for other risk-sensitive currencies, as investors worried that U.S. debt ceiling talks are not making sufficient progress. The price of oil settled nearly 2% higher at $74.34 a barrel after a large unexpected drawdown in U.S. crude inventories and a warning from the Saudi energy minister that raised the prospect of further OPEC+ production cuts. Oil is one of Canada’s major exports.The loonie was trading 0.6% lower at C$1.3592 to the greenback, after touching its weakest intraday level since May 4 at 1.3605.Immediate resistance can be seen at 1.3614(38.2%fib), an upside break can trigger rise towards 1.3690(23.6%fib).On the downside, immediate support is seen at 1.3551(50%fib), a break below could take the pair towards 1.3537 (5DMA).
USD/JPY: The U.S. dollar eased against Japan's yen on Wednesday as greenback was bolstered by recent signs of a resilient U.S. economy, while unease over U.S. debt ceiling talks kept investors moving to safe havens. Market bets that the Fed will raise rates at its next meeting in June rose slightly after minutes from its policy-setting meeting in early May were released. The dollar index , which tracks the U.S. currency against six major peers, earlier hit 103.91, its highest since March 20. The index last rose 0.319% at 103.86. Strong resistance can be seen at 139.56(23.6%fib) an upside break can trigger rise towards 139.99(Higher BB).On the downside, immediate support is seen 138.78(5DMA), a break below could take the pair towards 137.98(38.2%fib)
Equities Recap
A fresh wave of selling saw European stocks notch their steepest one-day fall in two months on Wednesday as little progress in the U.S. debt ceiling negotiations, a jump in UK core inflation and more losses in heavyweight luxury names hit risk sentiment.
UK's benchmark FTSE 100 closed down by 1.75 percent, Germany's Dax ended down by 1.92 percent, France’s CAC finished the day down by 1.70 percent.
Wall Street's main indexes ended lower on Wednesday as talks between the White House and Republican representatives on raising the U.S. debt ceiling dragged on without a deal.
Dow Jones closed down by 0.77% percent, S&P 500 closed down by 0.73 % percent, Nasdaq settled down by 0.61 %percent.
Treasuries Recap
Benchmark U.S. Treasury yields edged lower on Wednesday after minutes released from the Federal Reserve's last meeting showed agreement that the case for further interest-rate tightening had become less certain.
The yield on 10-year Treasury notes was up 0.9 basis points at 3.707%.
Commodities Recap
Gold eased on Wednesday as the dollar firmed, cutting some safe- haven flows into bullion from the looming risk of a U.S. debt default as talks entered a critical stretch, while investors awaited minutes of the Federal Reserve's recent policy meeting.
Spot gold was down 0.4% at $1,966.99 per ounce by 10:22 a.m. EDT (1422 GMT) after rising as much as 0.5% earlier. U.S. gold futures fell 0.3% to $1,969.00.
Oil prices rose 2% on Wednesday, after a large unexpected drawdown in U.S. crude inventories and a warning from the Saudi energy minister that raised the prospect of further OPEC+ production cuts.
Brent crude futures rose $1.52, or 2%, to settle at $78.36 a barrel. U.S. West Texas Intermediate crude (WTI) gained $1.43, or 2%, to $74.34.