Posted at 08 June 2023 / Categories Market Roundups
Market Roundup
• US Continuing Jobless Claims 1,757K ,1,800K forecast,1,795K previous
• US Initial Jobless Claims 261K , 235K forecast, 232K previous
•US Jobless Claims 4-Week Avg. 237.25K ,209.67K forecast,229.50K previous
•US Apr Wholesale Trade Sales (MoM) 0.2%, 0.4% forecast, -2.1% previous
•US Apr Wholesale Inventories (MoM) ) -0.1% ,-0.2% forecast, 0.0% previous
•US Natural Gas Storage 104B ,104B forecast,110B previous
•US 4-Week Bill Auction 5.090%, 5.130% previous
•US 8-Week Bill Auction 5.120% ,5.220% previous
Looking Ahead Economic Data(GMT)
•01:30 China May CPI (YoY) 0.4% forecast, 0.1% previous
•01:30 China May PPI (YoY) -3.6% previous
•01:30 China May CPI (MoM) -0.1% previous
Looking Ahead Events And Other Releases(GMT)
•No data Ahead
Currency Summaries
EUR/USD: The euro edged higher against dollar on Thursday as investors leaned toward bets that the U.S. Federal Reserve is likely to abstain from raising interest rates next week.This view was bolstered by Thursday's data showing the number of Americans filing new claims for unemployment benefits surged to their highest in over 1-1/2 years. Following the jobs data, the dollar slipped 0.7% to a two-week low against its rivals. The U.S. consumer inflation report for May, due on June 13, could provide more clarity about the health of the world’s largest economy.Immediate resistance can be seen at 1.0745(38.2%fib), an upside break can trigger rise towards 1.0766(21DMA).On the downside, immediate support is seen at 1.0663(23.6%fib), a break below could take the pair towards 1.0645(Lower BB).
GBP/USD: Sterling ticked higher on Thursday on expectations for more interest rate hikes by the Bank of England (BoE) after a forecast showed UK inflation is set to remain elevated this year. Britain will have the highest inflation of any leading economy in 2023 at 6.9%, forecasts from the Organisation for Economic Co-operation and Development (OECD) released on Wednesday showed.Sterling rose 0.35% to $1.2482 and was set for its second consecutive weekly rise. Immediate resistance can be seen at 1.2495 (23.6%fib), an upside break can trigger rise towards 1.2539(Higher BB).On the downside, immediate support is seen at 1.2432(21DMA), a break below could take the pair towards 1.2367(38.2%fib).
USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Thursday, but the move was limited as oil prices fell and investors weighed signs of weakening in the U.S. economy. The number of Americans filing new claims for unemployment benefits surged to the highest level in more than 1-1/2 years last week. The loonie was trading 0.1% higher at 1.3355 to the greenback, or 74.88 U.S. cents, the smallest gain among G10 currencies. On Wednesday, it touched a four-week high at 1.3319 as the Bank of Canada restarted its tightening campaign. Canada’s employment report for May, due on Friday, could offer clues on prospects for further rate hikes.Immediate resistance can be seen at 1.3382(38.2%fib), an upside break can trigger rise towards 1.3426 (50%fib).On the downside, immediate support is seen at 1.3338 (23.6%fib), a break below could take the pair towards 1.3318 (Lower BB).
USD/JPY: The U.S. dollar dipped against Japanese yen on Thursday after data showed that U.S. jobless claims rose more than expected in the latest week, though the market was generally viewed as consolidating ahead of key inflation data and the Federal Reserve’s interest rate decision next week.The number of Americans filing new claims for unemployment benefits surged to the highest level in more than 1-1/2 years last week with a 28,000-claim jump to a seasonally adjusted 261,000. Economists polled by Reuters had forecast 235,000 claims for the latest week .Strong resistance can be seen at 139.62. (11DMA) an upside break can trigger rise towards 139.97(23.6%fib).On the downside, immediate support is seen 138.34 (38.2%fib), a break below could take the pair towards 137.38(50%fib)
Equities Recap
European shares were subdued on Thursday as rate-sensitive technology shares and consumer staples slipped on expectations of further interest rate hikes by major central banks, while a sharp slide in Vodafone shares weighed on the telecoms sector.
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 higher on Thursday regaining some of their momentum thanks to a rebound by technology stocks, while volatility dropped to record lows ahead of an eventful economic and policy calendar next week.
Dow Jones was trading up by 0.03 percent, S&P 500 was trading up by 0.24 percent, Nasdaq was trading up by 1.02 percent.
Treasuries Recap
Treasury yields fell on Thursday after the number of Americans filing new claims for unemployment benefits rose more than expected last week, suggesting the labor market is cooling and that the Federal Reserve could pause hiking interest rates.
The two-year Treasury yield, a barometer for where the market perceives future Fed policy, dropped 2.9 basis points to 4.521%, while the yield on benchmark 10-year notes slid 6.8 basis points to 3.716%.
Commodities Recap
Gold prices climbed more than 1% on Thursday as the dollar and bond yields slipped after data showed U.S. weekly jobless claims surged last week, cementing expectations that the Federal Reserve will pause its interest rate hiking cycle.
Spot gold rose 1.2% to $1,962.49 per ounce by 01:42 p.m. EDT (1742 GMT).U.S. gold futures settled up 1% at $1,978.60.
Oil prices settled lower on Thursday but rebounded from earlier losses after the U.S. and Iran both denied a report that they were close to a nuclear deal.
Brent crude settled down 99 cents, or 1.3%, at $75.96 a barrel while U.S. West Texas Intermediate crude settled down $1.24, or 1.7%, to $71.29.