Posted at 21 June 2023 / Categories Market Roundups
Market Roundup
•US May Housing Starts 1.631M, 1.400M forecast, 1.401M previous
•US May Housing Starts (MoM) 21.7%,-0.8% forecast, 2.2% previous
•US May Building Permits (MoM) 5.2% ,-1.4% previous
•US May Building Permits 1.491M, 1.425M forecast,1.147M previous
•US 3-Month Bill Auction 5.130%, 5.150% previous
• US 6-Month Bill Auction 5.170%,5.155% previous
Looking Ahead Economic Data(GMT)
•No events ahead
Looking Ahead Events and Other Releases(GMT)
•No significant events
Currency Summaries
EUR/USD: The euro edged higher against dollar on Tuesday on expectation ECB will further hike interest rate . The European Central Bank should err on the side of further interest rate hikes as inflation could come in even higher than it expects, two ECB policymakers said on Monday, even as the bank's chief economist opened the door to a pause. The ECB has raised rates by a combined four percentage points over the past year to stem a historic surge in inflation and said it would likely increase them again in July after its new forecasts put price growth above its 2% target through 2025.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 traded lower against the dollar on Tuesday, as money market traders awaited pivotal inflation data due on Wednesday, ahead of the Bank of England's monetary policy meeting this week . On Wednesday, official data for inflation in May will be published. Last month, Britain reported consumer prices eased to 8.7% in annual terms in April, down from 10.1% in March, with food and non-alcoholic drink price inflation in double digits at 19.1% in April from 19.2% the month before. The pound was $1.277 , down 0.14% against the dollar, while the euro rose 0.2% to 85.59 pence. 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 weakened against its U.S. counterpart on Tuesday, giving back some recent gains, as investors worried that a slowdown in China could weigh on the global economy, reducing the demand for commodities. Canada is a major producer of commodities, including oil. U.S. crude oil futures settled 1.8% lower at $70.50 a barrel, pressured by forecasts for slower oil demand growth in China and disappointment with the size of cuts in China's key lending rates.The loonie was trading 0.2% lower at 1.3230 to the greenback, or 75.59 U.S. cents, after trading in a range of 1.3206 to 1.3269. On Friday, it touched a nine-month high at 1.3176 .Immediate resistance can be seen at 1.3264 (5 DMA), an upside break can trigger rise towards 1.3293 (38.2% fib).On the downside, immediate support is seen at 1.3188 (23.6%fib), a break below could take the pair towards 1.3157 (Lower BB).
USD/JPY: The U.S. dollar strengthened against Japanese yen on Tuesday surprisingly strong U.S. housing data supported dollar. Single family housing starts surged 21.7% in May against expectations they'd be more or less flat. Traders discounted it somewhat since the jump wasn't led by a leap in permits, but it still gave the dollar a boost ahead of Powell's testimony. The housing market has taken the biggest hit from the Fed's fastest monetary policy tightening campaign since the 1980s, but recent data have suggested the worst may have passed. Strong resistance can be seen at 142.23(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
German stocks led the decline among European peers on Tuesday as shares of speciality chemicals maker Lanxess plunged after lowering its forecast, while a modest interest rate cut by China failed to lift investor sentiment.
UK's benchmark FTSE 100 closed down by 0.25 percent, Germany's Dax ended down by 0.55 percent, France’s CAC finished the day down by 0.27 percent.
U.S. stocks softened on Tuesday, closing in negative territory as investors began the holiday-shortened week by taking profits in the wake of a sustained rally amid signs of weakening global demand.
Dow Jones closed down by 0.71 percent, S&P 500 ended down by 0.47 percent, Nasdaq finished the day down by 0.16 percent.
Commodities Recap
Gold retreated on Tuesday on strong U.S. housing starts data and a firmer dollar, while traders looked to Federal Reserve Chair Jerome Powell’s testimony on Capitol Hill for cues on the interest rate trajectory.
Spot gold down 0.7% at $1,936.98 per ounce by 14:26 EDT (1826 GMT), after dropping as much as 1% earlier in the session.
Oil futures eased in choppy trading on Tuesday on forecasts for slower oil demand growth in China, the world's second-biggest oil consumer, and disappointment with the size of cuts in China's key lending rates.
Brent futures for August delivery fell 19 cents, or 0.3%, to settle at $75.90 a barrel. U.S. West Texas Intermediate (WTI) crude for July delivery fell $1.28, or 1.8%, to settle at $70.50 on its last day as the U.S. front-month.