Posted at 24 June 2023 / Categories Market Roundups
Market Roundup
• US Jun Manufacturing PMI 46.3, 48.5 forecast, 48.4 previous
• US Jun Services PMI 54.1,54.0 forecast, 54.9 previous
• US Jun S&P Global Composite PMI 53.0,54.3 previous
• US Jun U.S. Baker Hughes Oil Rig Count 546, 552 previous
• U.S. Baker Hughes Total Rig Count 682,687 previous
Looking Ahead Economic Data(GMT)
•No data ahead
Looking Ahead Evensts And Other Releases(GMT)
•No significant events
Currency Summaries
EUR/USD: The euro fell against dollar on Friday after dismal business activity data from around the globe soured risk sentiment and as hawkish comments from central banks added to pressure on euro. U.S. business activity fell to a three-month low in June as services growth eased for the first time this year and the contraction in the manufacturing sector deepened . Earlier in the session data showed euro zone business growth virtually stalled in June. A downturn in manufacturing deepened, while activity in the bloc's dominant services sector barely expanded . The euro fell 0.57% to $1.08925, a three-day low against the U.S. dollar. Immediate resistance can be seen at 1.0928(38.2%fib), an upside break can trigger rise towards 1.0960 (Daily high).On the downside, immediate support is seen at 1.0848(50%fib), a break below could take the pair towards 1.0777( (61.8%fib).
GBP/USD: The pound fell on Friday, heading for its largest weekly loss in over a month on rising expectations the UK economy could slip into recession after the Bank of England delivered an outsized rate hike in response to persistent inflation. The BoE on Thursday raised interest rates to their highest level since 2008, with a half-point hike that markets had anticipated, but that caught a number of investors off guard. Money markets show UK rates could peak as high as 6% by the end of this year and stay there for another six months, given how entrenched inflation is becoming in the broader economy. Immediate resistance can be seen at 1.2843(23.6%fib), an upside break can trigger rise towards 1.2876 (Higher BB).On the downside, immediate support is seen at 1.2705(38.2%fib), a break below could take the pair towards 1.2603(50%fib).
USD/CAD: The Canadian dollar weakened against its U.S. counterpart on Friday, pulling back from a nine-month high, as global business data pointed to a slowdown in economic activity . Euro zone business growth stalled this month as a manufacturing recession deepened and a previously resilient services sector barely grew, while a measure of U.S. business activity fell to a three-month low.Canada is a major producer of commodities, including oil, so the loonie tends to be sensitive to the global economic outlook. The loonie was trading 0.3% lower at 1.3193 to the greenback, or 75.80 U.S. cents, after moving in a range of 1.3144 to 1.3225. Immediate resistance can be seen at 1.3187 (5 DMA), an upside break can trigger rise towards 1.3221 (38.2% fib).On the downside, immediate support is seen at 1.3138(23.6%fib), a break below could take the pair towards 1.3101(Lower BB).
USD/JPY: The U.S. dollar strengthened against Japanese yen on Friday as the dollar strengthened after U.S. Federal Reserve Chief Jerome Powell reiterated that more interest rate hikes were in the offing. The Japanese currency has come under renewed pressure as the Bank of Japan (BOJ) maintains an ultra-dovish stance.Data out on Friday showed that Japan's core consumer inflation exceeded forecasts in May and an index excluding fuel costs rose at the fastest annual pace in 42 years, putting pressure on the BOJ to phase out its massive stimulus. The dollar was largely steady against yen at 143.05, languishing near an over seven-month high of 143.23 per dollar .Strong resistance can be seen at 143.85(23.6%fib) an upside break can trigger rise towards 144.00(Psychological level).On the downside, immediate support is seen 142.30(5DMA), a break below could take the pair towards 141.73(38.2%fib)
Equities Recap
European shares dipped on Friday at the end of a central bank policy-packed week that reinforced views that interest rates could stay higher for longer, while shares of Siemens Energy plunged as it withdrew its annual profit outlook.
UK's benchmark FTSE 100 closed down by 0.54 percent, Germany's Dax ended down by 0.99 percent, France’s CAC finished the day down by 0.55 percent.
U.S. stocks closed lower on Friday, capping a week dominated by Federal Reserve Chairman Jerome Powell's testimony in which he signaled more interest rate hikes ahead but vowed the central bank would proceed with caution.
Dow Jones closed down by 0.65 percent, S&P 500 ended down by 0.77 percent, Nasdaq finished the day down by 1.01 percent.
Treasuries Recap
U.S. Treasury yields fell on Friday, in line with the European bond market following weaker-than-expected euro zone data, with investors overall not buying statements from Federal Reserve officials that there will be two more interest rate hikes by the end of the year.
The yield on 10-year Treasury notes was down 6.4 bps at 3.735%.U.S. 30-year bond yields fell 5.9 bps to 3.814%.
Commodities Recap
Gold prices on Friday were heading for their biggest weekly percentage fall in over four months, weighed by a stronger dollar and hawkish comments by Federal Reserve officials.
Spot gold rose 0.3% to $1,919.99 per ounce as of 2:19 p.m. EDT (1819 GMT), after adding as much as 1.2% on a retreat in U.S. bond yields.U.S. gold futures settled 0.3% higher at $1,929.6.
Oil prices settled lower on Friday, posting a weekly decline as traders worried interest rate hikes could sap demand despite signs of tighter supplies including lower U.S. crude stocks.
In a second straight day of losses, Brent crude closed down 29 cents, or 0.4%, to $73.85 a barrel. U.S. West Texas Intermediate (WTI) crude fell 35 cents, or 0.5%, at $69.16.