Posted at 26 May 2023 / Categories Market Roundups
Market Roundup
•US Real Consumer Spending (Q1) 3.8% ,3.7% forecast,1.0% previous
•US GDP (QoQ) (Q1) 1.3%, 1.1% forecast, 2.6% previous
•US PCE Prices (Q1) 4.2%, 4.2% forecast, 3.7% previous
•US GDP Sales (Q1) 3.4%,3.4% forecast,1.1% previous
•US Core PCE Prices (Q1) 5.00%, 4.90% forecast,4.40% previous
•US GDP Price Index (QoQ) (Q1) 4.1%, 4.0% forecast, 3.9% previous
•US Apr Chicago Fed National Activity 0.07, -0.02 forecast,-0.19 previous
•US Initial Jobless Claims 229K, 250K forecast, 242K previous
•US Continuing Jobless Claims 1,794K, 1,800K forecast,1,799K previous
•US Jobless Claims 4-Week Avg. 231.75K, 258.97K forecast,244.25K previous
•US Apr Pending Home Sales Index 78.9, 78.9 forecast, 78.9 previous
•US Apr Pending Home Sales (MoM) 0.0%, 0.0%, 0.5% forecast, -5.2% previous
Looking Ahead Economic Data(GMT)
• 01:30 Australia Apr Retail Sales (MoM) 0.3% forecast, 0.4% previous
Looking Ahead Events And Other Releases(GMT)
•No Events Ahead
Currency Summaries
EUR/USD: The euro fell on Thursday as Europe's largest economy Germany was confirmed to be in a recession, while the dollar hit a two-month peak, benefitting from safe-haven demand as worries mounted about a U.S. default. The latest sign of weakness came from Germany, where the economy contracted slightly in the first quarter, and so was in recession after negative growth in the fourth quarter of 2022. The euro slipped about 0.2%, enough to refresh a two-month low at $1.0715.Immediate resistance can be seen at 1.0762(38.2%fib), an upside break can trigger rise towards 1.0772(23.6%fib).On the downside, immediate support is seen at 1.0709 (50%fib), a break below could take the pair towards 1.0633(61.8%fib).
GBP/USD: The pound fell to its lowest level in almost two months on Thursday after an inflation report sowed doubts about the health of Britain’s economy. Data on Wednesday showed that Britain’s core inflation rate - which strips out volatile energy and food costs - rose to a 31-year high of 6.8% in April.The overall inflation rate fell to 8.7% from 10.1% in March, but economists expected a bigger fall to 8.2%.Sterling dropped to $1.2313 , the lowest since April 3. Immediate resistance can be seen at 1.2397 (5DMA), an upside break can trigger rise towards 1.2431 (23.6%fib).On the downside, immediate support is seen at 1.2312 (38.2%fib), a break below could take the pair towards 1.2289(Lower BB).
USD/CAD: The Canadian dollar weakened to a near one-month low against the greenback on Thursday as U.S. bond yields moved higher and the outcome of talks in Washington to raise the debt ceiling remained uncertain. U.S. Treasury yields rose as data suggested persistent strength in the U.S. labor market, while jitters about negotiations to lift the cap on U.S. government borrowing could be seen in Treasury bills that are due to mature in the coming days. The loonie was trading 0.3% lower at C$1.3635 to the greenback, or 73.34 U.S. cents, after touching its weakest intraday level since April 28 at 1.3644. Immediate resistance can be seen at 1.3648(23.6%fib), an upside break can trigger rise towards 1.3674 (Higher BB).On the downside, immediate support is seen at 1.3598 (Daily low), a break below could take the pair towards 1.3571 (38.2%fib).
USD/JPY: The U.S. dollar steadied against Japan's yen on Thursday as U.S. data pointed to a resilient economy boosted greenback. The second estimate of first-quarter gross domestic product growth confirmed the economy grew more slowly, but the increase was revised up to 1.3% from an initial 1.1%.Weekly initial jobless claims rose by 4,000 last week to 229,000, below the estimate of 225,000 while data from the prior week was revised sharply lower, an indication the labor shows little signs of cracking. The dollar index rose 0.433% at 104.280 after hitting 104.31, its highest since March 17.Strong resistance can be seen at 140.02(23.6%fib) an upside break can trigger rise towards 140.76(Higher BB).On the downside, immediate support is seen 138.86(5DMA), a break below could take the pair towards 138.28(38.2%fib)
Equities Recap
European stocks slipped on Thursday as concerns over the U.S. debt ceiling standoff and a global economic slowdown resurfaced and outweighed initial optimism from upbeat corporate earnings, while luxury stocks stabilized after a bruising selloff.
UK's benchmark FTSE 100 closed down by 0.74 percent, Germany's Dax ended down by 0.31 percent, France’s CAC finished the day down by 0.33 percent.
Wall Street ended sharply higher on Thursday after a blowout forecast from Nvidia sent the chipmaker's stock soaring and fueled a rally in AI-related companies, while investors watched for signs of progress in U.S. debt ceiling talks.
Dow Jones closed down by 0.11% percent, S&P 500 closed up by 0.88 % percent, Nasdaq settled up by 1.71 %percent.
Commodities Recap
Gold slid to its lowest in two months on Thursday as optimism around the U.S. debt ceiling talks lowered safe-haven demand for bullion and robust economic data fueled bets of another rate hike by the Federal Reserve.
Spot gold was down 0.8% at $1,941.85 per ounce by 2:47 p.m. EDT (1847 GMT), having hit its lowest since March 22. U.S. gold futures settled down 1.1% at $1,943.70.
Oil prices settled lower on Thursday after Russian Deputy Prime Minister Alexander Novak played down the prospect of further OPEC+ production cuts at its meeting next week.
Brent crude futures settled down $2.10, or 2.7%, to $76.25 a barrel. U.S. West Texas Intermediate crude (WTI) settled down $2.51, or 3.4%, to $71.83. At their session low, both benchmarks were down by more than $3.