Posted at 17 June 2023 / Categories Market Roundups
Market Roundup
•Canada Apr Foreign Securities Purchases by Canadians 2.37B forecast, -5.59B previous
•Canada Apr Wholesale Sales (MoM) -1.4%,1.6% forecast,-0.1% previous
•Canada Apr Foreign Securities Purchases 13.52B forecast,-19.07B previous
•US Jun Michigan 5-Year Inflation Expectations 3.0% ,3.1% forecast ,3.1% previous
•US Jun Michigan Inflation Expectations 3.3% ,4.4% forecast , 4.2% previous
•US Jun Michigan Consumer Expectations 61.3 , 56.5 forecast ,55.4 previous
•US Jun Michigan Consumer Sentiment 63.9 ,60.0 forecast ,59.2 previous
•US Jun Michigan Current Conditions 68.0 ,61.6 forecast ,64.9 previous
•U.S. Baker Hughes Total Rig Count 687, 695 previous
•U.S. Baker Hughes Oil Rig Count 552,556 previous
Looking Ahead Economic Data(GMT)
•No data ahead
Looking Events And Other Releases(GMT)
•No data ahead
Currency Summaries
EUR/USD: The euro steadied against dollar on Friday as European Central Bank suggested that the tightening cycle was not over. The ECB delivered a widely expected 25 bps rate hike on Thursday, with president Christine Lagarde reiterating there was more ground to cover. It also reviewed to the upside its inflation forecasts leading some analysts to raise their projections for the ECB depo rate to peak at 4%.Immediate resistance can be seen at 1.0973 (23.6%fib), an upside break can trigger rise towards 1.1000(Psychological level).On the downside, immediate support is seen at 1.0937(Daily low), a break below could take the pair towards 1.0883( (38.2%fib).
GBP/USD: The pound was set for its biggest weekly rise in six months on Friday after days of economic data and central bank rate decisions, and ahead of the Bank of England’s monetary policy meeting next week. Range of factors have boosted the pound against the dollar this week, including data which showed British wages rising far quicker than expected, raising investors' expectations that the Bank of England will have to hike interest rates further. The BoE’s main rate currently stands at 4.5%, and on Friday traders expected it to rise to around 5.75% by the start of next year, according to pricing in derivatives markets. Immediate resistance can be seen at 1.2849(23.6%fib), an upside break can trigger rise towards 1.2900 (Psychological level).On the downside, immediate support is seen at 1.2769(Daily low), a break below could take the pair towards 1.2716(38.2%fib).
USD/CAD: The Canadian dollar strengthened to a nine-month high against its U.S. counterpart on Friday as oil prices rose and investors recalibrated bets on the peak level of interest rates this cycle from the Bank of Canada and the Federal Reserve. Investors expect the Canadian central bank's benchmark rate to peak at about 5.10% this year, up 32 basis points from the beginning of June. Last week, the BoC tightened by 25 basis points to 4.75%, its first move since January.The loonie was trading 0.2% higher at 1.3195 per greenback, or 75.79 U.S. cents, after touching its strongest intraday level since September at 1.3189. For the week, it was up 1.1%, its third straight week of gains.Immediate resistance can be seen at 1.3368 (14DMA), an upside break can trigger rise towards 1.3455 (38.2% fib).On the downside, immediate support is seen at 1.3324(23.6% fib), a break below could take the pair towards 1.3231 (Nov 16th low).
USD/JPY: The U.S. dollar strengthened against Japanese yen on Friday after the Bank of Japan (BOJ) kept ultra-low interest rates and forecast that inflation will slow later this year. As widely expected, the BOJ maintained its -0.1% short-term interest rate target and a 0% cap on the 10-year bond yield set under its yield curve control (YCC) policy. BOJ Governor Kazuo Ueda said he expects inflation to moderate, but the "pace of decline is somewhat slow. The dollar rose 1.1% against the Japanese currency to 141.795 , after earlier touching its highest since November. It was on pace for its largest daily percentage gain since late April. Strong resistance can be seen at 141.85(Daily high) an upside break can trigger rise towards 142.48(23.6%fb).On the downside, immediate support is seen 140.51(38.2%fib), a break below could take the pair towards 139.80(14DMA)
Equities Recap
European shares closed at a three-week high on Friday, underpinned by luxury and defensive stocks at the end of a week that was dominated by major central bank policy decisions.
UK's benchmark FTSE 100 closed up by 0.19 percent, Germany's Dax ended up by 0.41 percent, France’s CAC finished the day up by 1. 34 percent.
The S&P 500 ended lower on Friday, weighed down by Microsoft and other market heavyweights as comments from two Federal Reserve officials curtailed optimism that the central bank is nearing the end of its aggressive interest rate hikes.
Dow Jones closed down by 0.32 percent, S&P 500 ended down by 0.37 percent, Nasdaq finished the day down by 0.68 percent.
Treasuries Recap
U.S. Treasury yields rose on Friday, with the benchmark 10-year yield gaining ground after two straight days of declines as comments from two Federal Reserve officials pointed to more interest rate hikes this year from the central bank.
The yield on 10-year Treasury notes was up 4.7 basis points at 3.775%. The yield on the 30-year Treasury bond was up 1 basis point at 3.859%.
Commodities Recap
Gold prices were choppy on Friday as investors juggled a hawkish Federal Reserve outlook on interest rates, which offset support from the dollar’s overall retreat this week.
Spot gold edged up 0.1% to $1,958.83 per ounce by 12 p.m. EDT (1800 GMT), en route to a 0.1% weekly dip. U.S. gold futures settled nearly unchanged at $1,971.20.
Oil rose on Friday and posted a weekly gain, as higher Chinese demand and OPEC+ supply cuts lifted prices, despite expected weakness in the global economy and the prospect for further interest rate hikes.
Brent crude gained 94 cents to settle at $76.61 a barrel. U.S. West Texas Intermediate (WTI) crude rose $1.16 to $71.78.