Posted at 06 June 2023 / Categories Market Roundups
Market Roundup
•US Redbook (YoY) 0.6% , 1.2% previous
• Canada May Ivey PMI 53.5,57.2 forecast, 56.8 previous
•Canada May Ivey PMI n.s.a 60.1, 55.6 previous
•US IBD/TIPP Economic Optimism 41.7, 45.2 forecast, 41.6 previous
•GlobalDairyTrade Price Index -0.9%, 0.0% forecast, -0.9% previous
Looking Ahead Economic Data(GMT)
•01:30 Australia GDP (YoY) (Q1) 2.7% forecast, 2.7% previous
•01:30 Australia GDP Final Consumption (Q1) 1.4% forecast, 0.4% previous
•01:30 Australia GDP Chain Price Index (Q1) 4.3% forecast,0.6% previous
•01:30 Australia GDP Capital Expenditure (Q1) -5.6% forecast, -1.4% previous
•01:30 Australia GDP (QoQ) (Q1) 0.8% forecast,0.5% previous
•03:00 China May Trade Balance (USD) 71.60B forecast,90.21B previous
•03:00 China May Imports (YoY) -8.0% forecast,-7.9% previous
•03:00 China May Exports (YoY) 8.0% forecast, 8.5% previous
Looking Ahead Events And Other Releases(GMT)
•23:50 Australia RBA Assist Gov Bullock Speaks
Currency Summaries
EUR/USD: The euro declined against dollar on Tuesday after a European Central Bank (ECB) survey showed consumers had lowered their inflation expectations.Median forecasts for inflation over the next 12 months fell to 4.1% in April from 5.0% in March, while for three years ahead, they dropped to 2.5% from 2.9%, the ECB said, based on a monthly survey in the euro zone’s biggest countries. 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 easedon Tuesday as data showed that British house building wilted in May and the dollar found a footing. The survey data showed house building in Britain fell at its fastest pace since May 2020 last month as construction companies struggled with rising interest rates.The headline purchasing managers' index (PMI) survey score for the construction sector came in at 51.6 in May, above the 50 mark which signals growth and up from 51.1 in April . Sterling was last down 0.17% at $1.2424. Immediate resistance can be seen at 1.2432 (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 strengthened to a near four-week high against the greenback on Tuesday as investors bet that the Bank of Canada would resume its tightening campaign at an interest rate decision on Wednesday or in the coming months.The loonie was trading 0.3% higher at C$1.34 to the greenback, or 74.63 U.S. cents, after touching its strongest intraday level since May 11 at 1.3391.The gain for the loonie came after a surprise move by the Reserve Bank of Australia to raise interest rates further that boosted the Australian dollar.. 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 was flat against Japanese yen on Tuesday as investors sought more clarity around the U.S. Federal Reserve's policy outlook. Data overnight showed the U.S. services sector barely grew in May as new orders slowed, pushing a measure of prices paid by businesses for inputs to a three-year low, which could aid the Fed's fight against inflation. A string of economic data along with last week's dovish rhetoric from Fed officials has emboldened bets that the Fed will likely refrain from lifting rates at its June 13-14 meeting.The services industry accounts for more than two-thirds of the U.S. economy.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 main share indices rose on Tuesday, supported by a jump in shares of healthcare giant Novo Nordisk , though gains were capped by worries of further interest rate hikes by major central banks in the face of slowing economic growth.
UK's benchmark FTSE 100 closed up by 0.37 percent, Germany's Dax ended up by 0.18 percent, France’s CAC finished the day up by 0.11 percent.
U.S. stocks closed up on Tuesday, helped by some advances in economically sensitive sectors, as investors awaited inflation data and the Federal Reserve's policy meet next week.
Dow Jones ended up by 0.03 percent, S&P 500 was ended up by 0.24 percent, Nasdaq ended up by 0.36 percent.
Treasuries Recap
Treasury yields edged higher on Tuesday as the market awaits the release next week of consumer price data followed by a Federal Reserve meeting in which futures traders expect policymakers to pause their aggressive hiking of interest rates.
The two-year Treasury yield, which typically moves in step with interest rate expectations, rose 3.3 basis points to 4.516%, while the yield on 10-year notes unchanged to 3.693%.
Commodities Recap
Gold prices traded in a tight range on Tuesday, as investors awaited more cues to assess the Federal Reserve’s interest rate path ahead of its policy meet next week.
Spot gold was up 0.1% at $1,964.27 per ounce by 1:49 EDT (1749 GMT).U.S. gold futures settled up 0.4% at $1,981.50.
Oil prices eased about 1% on Tuesday as worries that sluggish global economic growth could reduce energy demand outweighed Saudi Arabia's pledge to deepen output cuts.
Brent futures fell 42 cents, or 0.6%, to settle at $76.29 a barrel, while U.S. West Texas Intermediate (WTI) crude fell 41 cents, or 0.6%, to settle at $71.74.