Posted at 06 June 2023 / Categories Market Roundups
Market Roundup
•French 12-Month BTF Auction 3.430%, 3.359% previous
•French 3-Month BTF Auction 3.267%,3.202% previous
•French 6-Month BTF Auction 3.394%, 3.274% previous
•US S&P May Global Composite PMI 54.3,54.5 forecast,53.4 previous
•US May Services PMI 54.9, 55.1 forecast,53.6 previous
•US May CB Employment Trends Index 116.15, 116.31 forecast, 116.18 previous
•US Apr Factory Orders (MoM) 0.4%, 1.1% forecast, 0.9% previous
•US May ISM Non-Manufacturing Prices 57.8 forecast, 59.6 previous
•US May ISM Non-Manufacturing PMI 50.3, 51.8 forecast,51.9 previous
•US May ISM Non-Manufacturing Employment 49.2, 51.0 forecast,50.8 previous
•US May ISM Non-Manufacturing New Orders 52.9, 56.5 forecast,56.1 previous
•US ISM May Non-Manufacturing Business Activity 51.5 , 54.5,52.0 previous
•14:00 US Apr Durables Excluding Transport (MoM) -0.3%, 0.2% previous
•US Apr Durables Excluding Defense (MoM) -0.7%,-0.6% previous
Looking Ahead Economic data Ahead(GMT)
•01:30 Australia Net Exports Contribution (Q1) 1.3% forecast, 1.1% previous
•01:30 Australia Current Account (Q1) 6.5B forecast, 14.1B previous
•01:30 Australia Building Approvals (MoM) -8.1% forecast, -1.0% previous
•01:30 Australia Private House Approvals -3.8% forecast, -2.8% previous
Looking Ahead Events And Other Releases(GMT)
•04:30 Australia June RBA Interest Rate Decision 3.85% forecast, 3.85% previous
•04:30 Australia RBA Rate Statement
Currency Summaries
EUR/USD: The euro recovered from earlier losses against on Monday as dollar retreat after ISM data suggests slowing economy. The Institute for Supply Management (ISM) said its fell to 50.3 last month from 51.9 in April. Though the PMI remains above the 49.9 level, which the ISM says over time indicates growth in the overall economy, the slowdown in May heightened the risks of a recession. After the ISM data futures showed the probability of the Fed hiking interest rates at its policy meeting on June 14 fell to 22.9%, according to CME Group's FedWatch Tool. Immediate resistance can be seen at 1.0715(5DMA), an upside break can trigger rise towards 1.0746(38.2%fib).On the downside, immediate support is seen at 1.0659(23.6%fib), a break below could take the pair towards 1.0624(Lower BB).
GBP/USD: The pound initially dipped but recovered ground against the dollar on Monday after data showed U.S. services sector activity barely grew. The U.S. services sector barely grew in May as new orders slowed, with the Institute for Supply Management’s non-manufacturing index falling to 50.3 last month from 51.9 in April and missing expectations for an uptick to 52.2. Traders pegged the chances of the Fed pausing its interest rate hikes at its June 13-14 meeting at 78%, according to the CME FedWatch Tool. Immediate resistance can be seen at 1.2439 (50%fib), an upside break can trigger rise towards 1.2457 (21DMA).On the downside, immediate support is seen at 1.2373(38.2%fib), a break below could take the pair towards 1.2305(23.6%fib).
USD/CAD: The Canadian dollar edged lower against the greenback on Monday, but held on to much of its recent gains as oil prices rose and investors assessed prospects of the Bank of Canada resuming its interest rate hiking campaign this week. The BoC became the first major global central bank to pause its rate-hike campaign in January, but the economy's surprisingly strong performance since then will test Governor Tiff Macklem's resolve to stay on the sidelines at a policy announcement on Wednesday.The loonie was trading 0.1% lower at C$1.3435 to the greenback. Immediate resistance can be seen at 1.3466 (5DMA), an upside break can trigger rise towards 1.3497(38.2%fib).On the downside, immediate support is seen at 1.3420 (23.6%fib), a break below could take the pair towards 1.3372 (Lower BB).
USD/JPY: The U.S. dollar eased against Japanese yen on Monday on news that the U.S. services sector barely grew in May as new orders slowed, ending an initial rally sparked by strong jobs growth.The Institute for Supply Management (ISM) said its non-manufacturing PMI fell to 50.3 last month from 51.9 in April. A reading above 50 indicates growth in the services industry, which accounts for more than two-thirds of the economy. Economists polled had forecast the non-manufacturing PMI edging up to 52.2..Strong resistance can be seen at 140.78(23.6%fib) an upside break can trigger rise towards 141.36(Higher BB).On the downside, immediate support is seen 139.44(5DMA), a break below could take the pair towards 139.34(38.2%fib)
Equities Recap
European shares dipped on Monday as investors took profits after last week's rebound, as news of weak U.S. business activity stirred up economic slowdown worries and eclipsed gains in telecom stocks.
UK's benchmark FTSE 100 closed down by 0.10 percent, Germany's Dax ended down by 0.54 percent, France’s CAC finished the day down by 0.96 percent.
The S&P 500 ended lower on Monday as investors weighed whether the U.S. Federal Reserve might pause its interest rate hikes at its upcoming policy meeting, while Apple briefly hit a record high before losing ground.
Dow Jones was trading down by 0.59 percent, S&P 500 was trading up by 0.20 percent, Nasdaq was trading down by 0.09 percent.
Treasuries Recap
Treasury yields retreated on Monday after data showed new orders slowed in May, with a measure of prices paid by businesses for inputs falling to a three-year low, suggesting Federal Reserve efforts to tame high inflation are cooling the economy.
The two-year Treasury yield, which typically moves in step with interest rate expectations, fell 3.1 basis points at 4.472%. Yields on all other Treasury debt of 10 years or shorter maturities fell.
Commodities Recap’
Gold rebounded on Monday after weaker U.S. services sector growth reinforced bets for the Federal Reserve to stand pat on interest rates next week.
Spot gold gained 0.6% to $1,958.89 per ounce by 1:40 p.m. EDT (1740 GMT), erasing losses from earlier in the session, when it touched its lowest since May 30.U.S. gold futures settled up 0.2% at $1,974.30.
Oil prices rose on Monday after the world's top exporter Saudi Arabia pledged to cut production by a further 1 million barrels per day (bpd) from July to counter macroeconomic headwinds that have depressed markets.
Brent crude futures settled up 58 cents at $76.71 a barrel, after touching a session high of $78.73.
U.S. West Texas Intermediate crude gained by 41 cents to $72.15 after hitting an intraday high of $75.06.