Posted at 19 June 2023 / Categories Market Roundups
Market Roundup
•German 12-Month Bubill Auction 3.520% forecast,3.139% previous
•Portuguese Apr Current Account -0.038B forecast, 0.380B previous
• Canada May RMPI (YoY) -18.4%,-12.8% forecast,-10.8% previous
•Canada May RMPI (MoM) -4.9%, 1.7% forecast,2.9% previous
• Canada May IPPI (YoY) -6.3%, -5.8% forecast,-3.5% previous
•Canada May IPPI (MoM) -1.0%, 1.4%forecast,-0.2% previous
Looking Ahead Economic Data(GMT)
•12:55 French 12-Month BTF Auction 3.429% previous
•12:55 French 3-Month BTF Auction 3.323% previous
•12:55 French 6-Month BTF Auction 3.410% previous
•14:00 US Jun NAHB Housing Market Index 51 forecast,50 previous
Looking Ahead Events And Other Releases(GMT)
•No Events Ahead
Currency Forecast
EUR/USD: The euro dipped against dollar on Monday as investors digested a slew of monetary policy decisions by central banks last week and looked ahead to a crunch decision by the Bank of England on Thursday. Traders will also closely watch U.S. congressional testimony scheduled to be given by Federal Reserve chair Jerome Powell on Wednesday and Thursday this week for any hints on the future path for rates in the world's largest economy. The euro dipped 0.2% to $1.09230, trading close to a one-month peak .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 1.0904(Daily low), a break below could take the pair towards 1.0883( (38.2%fib).
GBP/USD: The pound steadied on Monday as investors waited for British inflation data and a Bank of England decision later in the week. The pound was down 0.13% against the dollar at $1.281, not far below the 14-month high of $1.285 touched on Friday. Sterling has rallied against both major currency pairs over recent weeks as economic data has suggested inflation is far more stubborn in Britain than in the United States or Europe. The data has caused traders to factor in more rate hikes from the Bank of England . 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/CHF: The dollar steadied against the Swiss franc on Monday as investors assessed the path ahead for interest rates following hawkish remarks from U.S. Federal Reserve policymakers. Fed officials struck a hawkish tone in their first comments since the central bank held the policy interest rate steady at its meeting last week. Investors now await Fed Chair Jerome Powell’s congressional testimonies on Wednesday and Thursday for further cues on future rates. Traders are now pricing in an about 72% chance of Fed rate hike in July, according to the CME Fedwatch tool . Immediate resistance can be seen at 0.8959(38.2%fib), an upside break can trigger rise towards 0.8990 (23.6%fib).On the downside, immediate support is seen at 0.8930(50%fib), a break below could take the pair towards 0.8906(61.8%fib).
USD/JPY: The U.S. dollar strengthened against Japanese yen on Monday as investors continued to digest last week's raft of central bank meetings including a decision from the Bank of Japan . Later in the week include data on Japanese consumer price inflation for May on Friday. The annual core CPI rate is expected to ease to 3.1% from 3.4% in April.The Bank of Japan last week left its ultra-loose policy unchanged and signaled it is in no rush to change its dovish stance even though inflation has exceeded the BOJ's 2% target for over a year. 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 fell on Monday, with Franco-German lab equipment maker Sartorius leading the declines, while investors cautiously awaited further stimulus measures from China to revive demand.
At (GMT 12:30 ),UK's benchmark FTSE 100 was last trading down at 0.49 percent, Germany's Dax was down by 0.72 percent, France’s CAC finished was down by 0.68 percent.
Commodities Recap
Gold prices slipped in thin trade on Monday, as the U.S. dollar bounced back from last session’s lows with markets looking ahead to U.S. Federal Reserve Chair Jerome Powell’s testimony later in the week.
Spot gold was down 0.4% to $1,950.34 per ounce by 1012 GMT. U.S. gold futures fell 0.5% to $1,962.20. Trading is expected to be slow with U.S. markets closed for the Juneteenth holiday.
Oil prices fell on Monday as questions over China's economy outweighed OPEC+ output cuts and the seventh straight drop in the number of oil and gas rigs operating in the United States.
Brent crude fell 17 cents, or 0.2%, to $76.44 a barrel by 0944 GMT while U.S. West Texas Intermediate (WTI) crude lost 31 cents, or 0.4%, to $71.47.