Posted at 31 May 2023 / Categories Market Roundups
Market Roundup
•French 6-Month BTF Auction 3.359%,3.234% previous
•French 3-Month BTF Auction 3.202%, 3.115% previous
•French 12-Month BTF Auction 3.274%, 3.324% previous
•US Mar S&P/CS HPI Composite - 20 n.s.a. (YoY) -1.1%, -1.6% forecast,0.4% previous
•US Mar House Price Index (MoM) 0.6%, 0.2% forecast,0.5% previous
•US Mar House Price Index 398.0,393.0 forecast,394.8 previous
• US Mar House Price Index (YoY) 3.6%,2.4% forecast, 4.0% previous
• US Mar S&P/CS HPI Composite - 20 s.a. (MoM) 0.5%,-0.4% forecast,0.1% previous
• US May CB Consumer Confidence 102.3, 99.0 forecast,101.3 previous
• US May Dallas Fed Mfg Business Index -29.1, -23.4 previous
• US 3-Month Bill Auction 5.300%, 5.250% previous
Looking ahead Economic Data (GMT)
•01:30 New Zealand May NBNZ Own Activity -8.1% forecast, -7.6% previous
•01:30 Australia Apr Private Sector Credit (MoM) 0.3% forecast, 0.3% previous
•01:30 Australia Apr Housing Credit 0.3% previous
•01:30 China May Manufacturing PMI 51.4 forecast, 49.2 previous
•01:30 China May Chinese Composite PMI 54.4 previous
•01:30 Australia Construction Work Done (QoQ) (Q1) 1.5% forecast, -0.4% previous
•01:30 Australia CPI (YoY) 6.4% forecast,7.0% previous
•05:00 Japan May Household Confidence 36.1 forecast, 35.4 previous
•05:00 Japan Apr Construction Orders (YoY) 3.7% forecast,-4.1% previous
Looking Ahead Events and Other Releases(GMT)
•No data ahead
Currency Summaries
EUR/USD: The euro strengthened against dollar on Tuesday as uncertainty remained on whether Congress will clear a U.S. debt ceiling deal . A handful of hard-right Republican lawmakers said on Monday they would oppose a deal to raise Washington's $31.4 trillion debt ceiling, in a sign that the bipartisan agreement could face a rocky path through Congress before the U.S. runs out of money next week. The euro was last up 0.28% at $1.0733 , having earlier hit a two-month low. 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: Sterling rose against a weaker dollar on Tuesday, but stickier than expected British inflation remains in focus ahead of a quiet week for the country’s data calendar. Investors were largely focused on moves in the U.S. dollar as a deal to raise the U.S. debt ceiling faces its first test in Congress, and on the yen, which strengthened after an impromptu meeting of Japan’s finance ministry and central bank. At 1013 GMT, the pound was 0.5% higher against the dollar at $1.2416, and 0.35% up against the euro at 86.39 pence. Immediate resistance can be seen at 1.2450 (23.6%fib), an upside break can trigger rise towards 1.2481 (21DMA).On the downside, immediate support is seen at 1.2389 (23rd May low), a break below could take the pair towards 1.2331(38.2%fib).
USD/CAD: The Canadian dollar edged lower against its U.S. counterpart on Tuesday as a drop in oil prices offset optimism that a deal to raise the U.S. debt ceiling would be passed by Congress. The price of oil, one of Canada's major exports, settled 4.4% lower at $69.46 a barrel as mixed messages from major producers clouded the supply outlook ahead of the OPEC+ meeting this weekend. Data on Tuesday showed that Canada's current account deficit narrowed to C$6.17 billion ($4.61 billion) in the first quarter from an upwardly revised C$8.05 billion deficit in the fourth quarter. The loonie was trading 0.1% lower at 1.36 to the greenback , after moving in a range of 1.3568 to 1.3613. Immediate resistance can be seen at 1.3609 (5DMA), an upside break can trigger rise towards 1.3643 (23.6%fib).On the downside, immediate support is seen at 1.3537 (38.2%fib), a break below could take the pair towards 1.3511(50%fib).
USD/JPY: The U.S. dollar pulled back from six-month peaks against the yen as Japanese officials gave their currency a nudge, as investors kept a wary eye on policy makers. Japan will closely watch currency market moves and respond appropriately as needed, the country's top currency diplomat said on Tuesday after financial authorities met in response to a weakening in the yen to its softest in six months versus the dollar.The yen strengthened on news of the meeting, and held onto those gains, with the dollar last down 0.2% at 140.16 yen having earlier risen as high as 140.93, its highest since November 2022.Strong resistance can be seen at 141.61(23.6%fib) an upside break can trigger rise towards 141.09 (23.6%fib).On the downside, immediate support is seen 138.96(38.2%fib), a break below could take the pair towards 138.19(24th May)
Equities Recap
Europe's main stock indices fell on Tuesday on losses in shares of packaged food group Nestle and energy majors and as uncertainty over whether the U.S. Congress will clear a debt ceiling deal dented investor sentiment.
UK's benchmark FTSE 100 closed down by 1.38 percent, Germany's Dax ended down by 0.27 percent, France’s CAC finished the day down by 1.29 percent.
Stocks on Wall Street closed mixed on Tuesday, pressured by worries about U.S. lawmakers opposed to a deal to raise the $31.4 trillion debt ceiling, but supported by another surge in Nvidia shares that briefly lifted the chipmaker into the rare club of companies valued at $1 trillion.
Dow Jones closed down by 0.15% percent, S&P 500 closed down by 0.00% percent, Nasdaq settled up by 0.32% percent.
Commodities Recap
Gold bounced back from early losses on Tuesday, as the dollar pulled back and Treasury yields slid on wider market optimism about the U.S. debt ceiling deal.
Spot gold rose 0.8% to $1,958.80 per ounce by 2:30 p.m. EDT (1830 GMT), after hitting its lowest since March 17 earlier. U.S. gold futures settled 0.7% higher at $1,958.00.
Oil prices fell more than 4% on Tuesday on concerns about whether the U.S. Congress will pass the U.S. debt ceiling pact and as mixed messages from major producers clouded the supply outlook ahead of the OPEC+ meeting this weekend.
Brent crude futures settled down $3.53, or 4.6%, at $73.54 a barrel. U.S. West Texas Intermediate crude (WTI) was down $3.21, or 4.4%, from Friday's close, to $69.46 a barrel. There was no settlement on Monday because of a U.S. public holiday.