Posted at 13 June 2023 / Categories Market Roundups
Market Roundup
•US May CPI, n.s.a (MoM) 0.25%,0.51% previous
•US May Real Earnings (MoM) -0.1%, 0.1% forecast,0.1% previous
•US May CPI Index, s.a 303.29, 303.70 forecast,302.92 previous
•US May Core CPI Index 307.82, 307.53 forecast,306.49 previous
•US May CPI (YoY) 4.0%, 4.1% forecast,4.9% previous
•US May CPI Index, n.s.a. 304.13, 304.06 forecast,303.36 previous
•US May CPI (MoM) 0.1%, 0.2% forecast,0.4% previous
•US May Core CPI (YoY) 5.3%, 5.3% forecast,5.5% previous
•US May Core CPI (MoM) 0.4% ,0.4% forecast,0.4% previous
•US May Cleveland CPI (MoM) 0.4%, 0.5% forecast,0.4% previous
Looking Ahead Economic Data(GMT)
•00:00 New Zealand May FPI (MoM) 0.3% forecast,0.5% previous
Looking Ahead Events And other Releases(GMT)
•No data Ahead
Currency Summaries
EUR/USD: The euro strengthened on Tuesday as dollar eased on news of the smallest annual increase in inflation last month in more than two years, cementing expectations that the Federal Reserve will pause interest rate hikes at its two-day meeting ending on Wednesday. Tuesday’s data showed the U.S. consumer price index (CPI) edged up 0.1% last month after increasing 0.4% in April. In the 12 months to May, the CPI climbed 4.0%, the smallest year-on-year increase since March 2021, after rising 4.9% in April. The euro rose 0.3% to $1.0793 after climbing to $1.0824, its highest since May 22. Immediate resistance can be seen at 1.0788(38.2%fib), an upside break can trigger rise towards 1.0842(Higher BB).On the downside, immediate support is seen at 1.0754(Daily low), a break below could take the pair towards 1.0708(23.6%fib).
GBP/USD: The pound rose on Tuesday, after data showed wages in Britain are growing far more quickly than expected, heaping pressure on the Bank of England to raise rates, which in turn pushed the government's borrowing costs to their highest since 2008. The BoE meets next week to discuss monetary policy. With inflation running above 8% and households .Data from the Office of National Statistics (ONS) on Tuesday showed UK wages in the three months to April grew at their fastest pace on record, excluding during the pandemic, at a clip of 7.2%, after an increase in the national minimum wage. The pound rose by as much as 0.52%, before retreating to $1.257, showing a 0.45% gain on the day. Immediate resistance can be seen at 1.2625(23.6%fib), an upside break can trigger rise towards 1.2645(Higher BB).On the downside, immediate support is seen at 1.2573(5DMA), a break below could take the pair towards 1.2534(June 9th low).
USD/CAD: The Canadian dollar strengthened to a four-month high against its U.S. counterpart on Tuesday as oil prices climbed and U.S. inflation data bolstered bets for a pause in the Federal Reserve's interest rate hiking campaign. The price of oil , one of Canada's major exports, rallied 3.8% to $69.69 a barrel. The four-month high for the currency comes after the Bank of Canada last week raised its benchmark interest rate for the first time since January, tightening by 25 basis points to 4.75%. The Canadian dollar was trading 0.5% higher at 1.33 to the greenback, or 75.19 U.S. cents. It touched its strongest intraday level since Feb. 14 at 1.3287.Immediate resistance can be seen at 1.3336 (38.2%fib), an upside break can trigger rise towards 1.3394 (11DMA).On the downside, immediate support is seen at 1.3286 (23.6%fib), a break below could take the pair towards 1.3262 (Lower BB).
USD/JPY: The U.S. dollar steadied against Japanese yen on Tuesday as investors positioned ahead Bank of Japan meeting. The Bank of Japan is due to announce a monetary policy decision on Friday and is expected to maintain its ultra-dovish stance and yield curve control settings. One of Bank of Japan Governor Kazuo Ueda's biggest challenges will be to phase out a controversial yield curve control policy, which is criticised for distorting markets by keeping long-term interest rates low despite creeping inflation. Strong resistance can be seen at 140.33(23.6%fib) an upside break can trigger rise towards 141.04(higher BB).On the downside, immediate support is seen 139.00(5DMA), a break below could take the pair towards 138.23(38.2%fib)
Equities Recap
European shares rose on Tuesday, after mild U.S. inflation data cemented bets the Federal Reserve could skip raising interest rates at its meeting this week, while miners rallied as metal prices jumped after China cut rates.
UK's benchmark FTSE 100 closed up by 0.32 percent, Germany's Dax ended up by 0.83 percent, France’s CAC finished the day up by 0.56 percent.
The S&P 500 and Nasdaq reached their highest closes in 14 months yesterday after data showed consumer prices rose modestly in May, boosting bets that the Federal Reserve will not raise interest rates .
Dow Jones was trading up by 0.43 percent, S&P 500 was trading up by 0.69 percent, Nasdaq was trading up by 0.83 percent.
Treasuries Recap
U.S. Treasury yields rebounded from a brief decline on Tuesday after economic data showed a slowing rise in inflation, a day ahead of the Federal Reserve's next interest rate decision.
The yield on 10-year Treasury notes was up 7.4 basis points at 3.839%.
Commodities Recap
Gold slipped on Tuesday as Treasury yields rebounded, while traders firmed up bets the Federal Reserve would stand pat on interest rates after data showed U.S. consumer price gains slowed in May.
Spot gold fell 0.7% to $1,942.59 per ounce by 01:53 p.m. EDT (1753 GMT), after rising as much as 0.7% on U.S. inflation data.U.S. gold futures settled 0.6% lower at $1,958.6.
Oil prices climbed over 3% on Tuesday on hopes for growing fuel demand after China's central bank lowered a short-term lending rate for the first time in 10 months, boosting crude prices after steep losses the previous session.
Brent crude futures settled up $2.45, or 3.4%, to $74.29 a barrel. U.S. West Texas Intermediate (WTI) crude gained $2.30, or 3.4%, at $69.42 a barrel.