Posted at 27 June 2023 / Categories Market Roundups
Market Roundup
•US Building Permits (MoM) 5.6%,5.2% forecast,-1.4% previous
•US Building Permits 1.496M,1.491M forecast,1.417M previous
•Canada May Trimmed CPI (YoY) 3.8%, 3.9% forecast,4.2% previous
•Canada May CPI (MoM) 0.5% forecast, 0.7% previous
•US Core May Durable Goods Orders (MoM) 1.7%, -0.1% forecast,-0.2% previous
•US May Durables Excluding Defense (MoM) -0.7% previous
•US May Goods Orders Non Defense Ex Air (MoM) 0.0% forecast,1.4% previous
•US May Durable Goods Orders (MoM) -1.0% forecast,1.1% previous
•Canada May Median CPI (YoY) 3.9%,3.8% forecast, 4.2% previous
•Canada May CPI (YoY) 3.4%,3.4% forecast,4.4% previous
•Canada May Core CPI (YoY) 3.7%,3.9% forecast,4.1% previous
• Canada May Common CPI (YoY) 5.2%, 5.2% forecast,5.7% previous
•Canada May Core CPI (MoM) 0.4%,0.5% forecast,0.5% previous
•US Redbook (YoY) 0.5%,0.9% previous
•US Apr S&P/CS HPI Composite - 20 n.s.a. (MoM) 1.5% forecast,1.5% previous
•US Apr House Price Index (MoM) 0.7%, 0.3% forecast,0.6% previous
•US Apr House Price Index (YoY) 3.1%, 3.1% forecast,3.6% previous
• US Apr House Price Index 401.2, 402.1 forecast,398.0 previous
• US Apr S&P/CS HPI Composite - 20 s.a. (MoM) 0.9, 0.5% forecast,0.5% previous
• US Apr S&P/CS HPI Composite - 20 n.s.a. (YoY) -1.7%,-2.6% forecast,-1.1% previous
• US May New Home Sales 763K, 675K forecast,683K previous
• US Jun Richmond Services Index -3, 7 forecast,-10 previous
• US Jun CB Consumer Confidence 109.7,104.0 forecast, 102.3 previous
• US Jun Dallas Fed Services Revenues 6.0 ,forecast,6.9 previous
Looking Ahead Economic Data(GMT)
•01:30 Australia CPI (YoY) 6.1% forecast, 6.8% previous
•01:30 Chinese May Industrial profit YTD -20.6% previous
Looking Ahead Economic Events And Other Releases(GMT)
•No significant events
Currency Summaries
EUR/USD: The euro rose higher against dollar on Tuesday as comments from ECB policymakers at the European Central Bank's annual forum at Sintra in Portugal boosted euro. Latvian central bank governor and ECB official Martins Kazaks said in Portugal on Tuesday that the central bank will likely keep hiking interest rates after July.The euro zone's key interest rate currently stands at 3.5%. Kazaks' comments suggest they could go to 4% or higher.ECB President Christine Lagarde also spoke in Sintra on Tuesday, saying that policy needs to be decided meeting by meeting and has to remain data-dependent. Immediate resistance can be seen at 1.0977(23.6%fib), an upside break can trigger rise towards 1.1000(Psychological level).On the downside, immediate support is seen at 1.0935 (5DMA), a break below could take the pair towards 1.0908( (38.2%fib).
GBP/USD: The pound headed for its biggest daily gain against the dollar in two weeks on Tuesday, boosted by a modest return of risk appetite after an aborted mutiny by mercenaries in Russia at the weekend briefly threatened to upend markets.Investors are still trying to determine how Moscow will respond to the aborted uprising by the heavily armed Wagner Group over the weekend, bringing most of the focus back to the global economy and the outlook for interest rates, for now.Sterling was last up 0.14% against the dollar at 1.27429, on course for its largest one-day rise since June 16. Against the euro , sterling was flat at 85.80 pence. Immediate resistance can be seen at 1.2787(23.6%fib), an upside break can trigger rise towards 1.2845 (June 22nd igh).On the downside, immediate support is seen at 1.2734(5DMA), a break below could take the pair towards 1.2687(Daily low).
USD/CAD: The Canadian dollar weakened against its U.S. counterpart on Tuesday as domestic data showed inflation easing to its slowest pace in two years, but the move was not large enough to change the bullish technical outlook for the currency. The area around 1.3270 was the low point for the currency on June 20.Canada's annual inflation rate slowed to 3.4% in May from 4.4% in April, benefiting from a comparison to last May's strong price increases. The loonie was trading 0.2% lower at 1.3180 to the greenback, after earlier touching its strongest level since September at 1.3117.Immediate resistance can be seen at 1.3213 (38.2%fib), an upside break can trigger rise towards 1.3276 (50% fib).On the downside, immediate support is seen at 1.3173(5DMA), a break below could take the pair towards 1.3132 (23.6% fib).
USD/JPY: The dollar rose to a seven-month high against the yen on Tuesday, with investors on the look-out for possible intervention by Japan to boost the ailing currency. The dollar rose almost 0.3% to 143.94 yen , its highest since Nov. 10, despite Japanese officials vowing to respond appropriately if currency moves became excessive. Finance Minister Shunichi Suzuki said on Tuesday We will closely watch currency market moves with a strong sense of urgency and will respond appropriately if the moves become excessive. Strong resistance can be seen at 144.24(23.6% fib) an upside break can trigger rise towards 144.5600(Higher BB).On the downside, immediate support is seen 143.68(5DMA), a break below could take the pair towards 142.85(June 26th low)
Equities Recap
European shares rose on Tuesday supported by financials and luxury stocks as investors bet on further policy stimulus from China, while hawkish comments from European Central Bank President Christine Lagarde limited gains.
UK's benchmark FTSE 100 closed up by 0.11 percent, Germany's Dax ended up by 0.21 percent, France’s CAC finished the day up by 0.43 percent.
U.S. stocks advanced in a broad rally on Tuesday, and the dollar softened as robust economic data eased recession fears and stoked investors' risk appetite.
Dow Jones closed up by 0.63% percent, S&P 500 closed up by 1.15 % percent, Nasdaq settled up by 1.65 % percent.
Treasuries Recap
Treasury yields rose on Tuesday after data on housing and new orders for U.S.-manufactured capital goods came in better than expected, indicating a much-anticipated recession still can't be seen.
The two-year Treasury yield, which typically moves in step with interest rate expectations, rose 5.3 basis points to 4.724%, while the yield on benchmark 10-year notes rose 3.3 basis points to 3.752%.
Commodities Recap
Gold reversed course to slip on Tuesday after strong U.S. economic readings, while traders positioned for Federal Reserve Chair Jerome Powell's speech and more data that could offer clues on future interest rate hikes.
Spot gold fell 0.6% to $1,911.53 per ounce by 2:08 p.m. EDT (1808 GMT), while U.S. gold futures settled 0.5% lower at $1,923.80.
Oil prices slumped over 2% on Tuesday on signals that central banks may not be done with interest rate hikes, while industry data showed lower U.S. crude and gasoline inventories during the peak summer driving season.
Brent crude futures settled down $1.92, or 2.6%, at $72.26 a barrel. U.S. West Texas Intermediate (WTI) futures dropped $1.67, or 2.4%, to $67.70.