Posted at 02 June 2023 / Categories Market Roundups
Market Roundup
•US Unit Labor Costs (QoQ) (Q1) 4.2%, 6.3% forecast,3.2% previous
•US Nonfarm Productivity (QoQ) (Q1) -2.1%,-2.7% forecast,1.7% previous
•US Initial Jobless Claims 235K forecast ,229K previous
•US Jobless Claims 4-Week Avg. 232K, 231.75K previous
•US Continuing Jobless Claims 1,795K,1,800K forecast , 1,794K previous
•US May Manufacturing PMI 48.4,48.5 forecast ,50.2 previous
•US Apr Construction Spending (MoM) 1.2%, 0.1% forecast ,0.3% previous
•US May ISM Manufacturing PMI 46.9,47.0 forecast ,47.1 previous
•US May ISM Manufacturing Prices 44.2,52.0 forecast ,53.2 previous
•US May ISM Manufacturing New Orders Index42.6,44.9 forecast ,45.7 previous
•US Natural Gas Storage110B,113B forecast, 96B previous
•US Crude Oil Inventories 4.488M.-1.101M forecast,-12.456M previous
Looking Ahead Economic Data(GMT)
•01:30 Australia Invest Housing Finance (MoM) 3.7% previous
•01:30 Australia I Home Loans (MoM) 3.0% forecast, 6.5% previous
Looking Ahead Events And Other FReleases(GMT)
•No data Ahead
Currency Summaries
EUR/USD: The euro recovered from a two-month low on Thursday after European Central Bank (ECB) President Christine Lagarde said further policy tightening was necessary. The euro was last up 0.64% to $1.0757, coming off a two-month low of $1.0635 on Wednesday, after some European countries released national inflation data showing signs that price pressures have eased.While data on Thursday showed that inflation in the 20 nations sharing the euro eased to 6.1% in May from 7.0% in April, below expectations for 6.3% in a Reuters poll of economists, the current level is more than three times the ECB's 2% inflation target. Immediate resistance can be seen at 1.0712(5DMA), an upside break can trigger rise towards 1.0748(23.6%fib).On the downside, immediate support is seen at 1.0697(38.2%fib), a break below could take the pair towards 1.0657(50%fib).
GBP/USD: The pound strengthened on Thursday, taking advantage of a dip in the dollar after Federal Reserve officials indicated the central bank might skip a rate hike this month, while UK data painted a picture of an increasingly gloomy economy. Data from the Bank of England (BoE) showed British lenders approved fewer mortgages in April than in March and the value of new loans also fell, highlighting the softness in the housing market.Sterling was last up 0.2% against the dollar at $1.2467 and flat against the euro at 85.90 pence, close to its strongest in six months. 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 1.2358 (5DMA), a break below could take the pair towards 1.2331(38.2%fib).
USD/CAD: The Canadian dollar strengthened to a two-week high against its U.S. counterpart on Thursday along with gains for other commodity-linked currencies as investors cheered progress toward passing a U.S. debt ceiling bill. The price of oil, one of Canada’s major exports, settled nearly 3% higher at $70.70 a barrel, recouping some recent declines ahead of an OPEC+ meeting on Sunday. Wall Street stocks also rose.Domestic data showed manufacturing activity slowed in May as high inflation and inventory cutting held back customer demand.The loonie was trading 0.9% higher at 1.3445 to the greenback, or 74.38 U.S. cents, after touching its strongest intraday level since May 16 at 1.3434.Immediate resistance can be seen at 1.3485 (38.2%fib), an upside break can trigger rise towards 1.3533 (5DMA).On the downside, immediate support is seen at 1.3430 (50%fib), a break below could take the pair towards 1.3354 (61.8%fib).
USD/JPY: The U.S. dollar dipped against Japanese yen on Thursday as U.S. manufacturing data and comments by Federal Reserve officials reinforced expectations the Federal Reserve will likely skip an interest rate hike at its upcoming meeting. Fed officials pointed toward a rate hike "skip" at its June 13-14 meeting, giving time for the central bank to assess the impact of its tightening cycle thus far against still-strong inflation data. The dollar index , which measures the currency against a basket of six peers, fell 0.547% at 103.580, off a two-month high of 104.7 touched on Wednesday. Strong resistance can be seen at 139.59(5DMA) an upside break can trigger rise towards 140.59(Higher BB).On the downside, immediate support is seen 138.81(11DMA), a break below could take the pair towards 138.32(May 24th Low)
Equities Recap
European stocks rose on Thursday as investors awaited regional inflation data for clues on how much longer the European Central Bank will hike interest rates, with hopes that the U.S. will avoid a debt default aiding the sentiment.
UK's benchmark FTSE 100 closed up by 0.59 percent, Germany's Dax ended down by 1.21 percent, France’s CAC finished the day down by 0.54 percent.
The Nasdaq and S&P 500 surged to nine-month closing highs on Thursday as signs of slowing wage pressure raised hopes the Federal Reserve will pause hiking interest rates and investors cheered a vote in Congress to suspend the U.S. debt ceiling.
Dow Jones closed up by 0.47% percent, S&P 500 closed up by 0.99% percent, Nasdaq settled down by 1.28% percent.
Commodities Recap
Gold hit a more than one-week peak on Thursday, as the dollar tumbled after weaker U.S. economic data on expectations of the Federal Reserve skipping an interest rate hike at its June policy meeting.
Spot gold was up 0.7% at $1,976.81 per ounce by 1:45 p.m. EDT (1745 GMT), after rising 1.1% to its highest since May 24. U.S. gold futures settled 0.7% higher at $1,995.50.
Oil prices rose on Thursday by the most in two weeks ahead of an OPEC+ meeting on Sunday, while House of Representatives passage of a bill to suspend the U.S. debt ceiling helped to offset the impact of rising inventories in the country.
U.S. West Texas Intermediate crude (WTI) rose $2.01, or 3%, to settle at $70.10 a barrel, recording its biggest daily gains since May 5.
Brent crude futures settled at $74.28 a barrel, up by $1.68, or 2.3%, to $74.65 a barrel, their biggest daily gains since May 17.