Posted at 29 May 2023 / Categories Market Roundups
Market Roundup
• Turkish lira hits new low
• Economists see Brazil inflation at 5.71% by 2023 end
• Biden, McCarthy finalise agreement to suspend debt ceiling
Looking Ahead Economic Data(GMT)
•01:30 Australia Apr Private House Approvals 11.3% previous
•01:30 Australia Apr Building Approvals (MoM) 2.0% forecast,-0.1% previous
Looking Ahead Events And Other Releases(GMT)
•No events ahead
Currency Summaries
EUR/USD: The euro eased against dollar on Monday as the deal to suspend the U.S. government’s debt ceiling ended a months-long stalemate and angst for investors. After weeks of negotiations, McCarthy and Biden forged a agreement late on Saturday to avert an economically destabilising default to suspend the $31.4 trillion debt ceiling until 2025. The deal will now have to passes through the narrowly divided Congress.Trading was light with markets in the U.S., the UK and several European countries closed. The U.S. dollar index was little changed at 104.25 and the euro was a touch lower at $1.0706 . 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 1.0704 (50%fib), a break below could take the pair towards 1.0633(61.8%fib).
GBP/USD: The pound was flat against dollar on Monday as a tentative deal sealed over the weekend to suspend the U.S. debt ceiling coupled with jitters around higher-for-longer interest rates kept investors cautious. U.S. President Joe Biden and top congressional Republican Kevin McCarthy reached a tentative deal on Saturday to raise the federal government's $31.4 trillion debt ceiling, aiming to stop the U.S. from defaulting on its debt. The deal is expected to provide only short-term relief for markets, as worries linger about inflation and further rate increases. 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 edged higher against its U.S. counterpart on Monday, clawing back some recent declines, as a deal to temporarily suspend the U.S. debt ceiling boosted investor sentiment. Democratic President Joe Biden and Republican House of Representatives Speaker Kevin McCarthy on Sunday signed off on the deal which could help prevent the U.S. defaulting on its debt.The loonie was trading 0.2% higher at 1.3584 to the greenback, or 73.62 U.S. cents, after moving in a range of 1.3584 to 1.3618. It touched on Friday its weakest intraday level since April 28 at 1.3654.Immediate resistance can be seen at 1.3617(Daily high), an upside break can trigger rise towards 1.3642 (23.6% retracement level).On the downside, immediate support is seen at 1.3575 (38.2%fib), a break below could take the pair towards 1.3359 (9 DMA).
USD/JPY: The U.S. dollar pulled back from six-month peaks against the yen as a U.S. debt ceiling deal dented the greenback's safe-haven appeal. The greenback notched a fresh six-month high of 140.91 before easing and was headed for a monthly gain of more than 3% against the Japanese currency. The yen’s renewed decline has come on the back of rising U.S. Treasury yields, as bets grow that interest rates in the United States would stay higher for longer. Yields on U.S. Treasuries jumped on the back of the data, with the two-year yield, which typically reflects near-term interest rate expectations, rising more than 10 basis .Strong resistance can be seen at 140.84(23.6%fib) an upside break can trigger rise towards 141.34(Higher BB).On the downside, immediate support is seen 139.49(5DMA), a break below could take the pair towards 138.94(38.2%fib)
Equities Recap
European stock indexes slipped slightly on Monday, lacking momentum in thin trade while optimism about the U.S. having reached a debt ceiling deal over the weekend kept Wall Street futures positive.
UK's benchmark FTSE 100 ended up at 0.74 percent, Germany's Dax ended down by 0.20 percent, France’s CAC ended down by 0.21percent.
The U.S. stock market was closed for Memorial Day
Commodities Recap
Gold prices hovered near two-month lows in holiday-thinned trading on Monday as the U.S. debt ceiling agreement eased investor worries, while chances of the Federal Reserve raising rates dampened the demand for bullion.
Spot gold was mostly unchanged at $1,946.28 per ounce by 9:51 a.m. EDT (1351 GMT), while U.S. gold futures inched up 0.1% to $1,945.50.
Oil prices edged higher in choppy trading on Monday, as markets weighed a tentative U.S. debt ceiling deal that would avert a default by the world's top oil consumer against further Federal Reserve interest rate hikes that could curb energy demand.
Brent crude futures settled up 12 cents, or 0.2%, to $77.07 a barrel, while U.S. West Texas Intermediate crude was up 25 cents, or 0.3%,at $72.92 a barrel.