Posted at 04 July 2023 / Categories Market Roundups
Market Roundup
•Canada Jun Manufacturing PMI 48.8 ,49.6 forecast, 49.0 previous
•New Zealand GlobalDairyTrade Price Index -3.3%, -1.0% forecast, 0.0% previous
Looking Ahead Economic Data(GMT)
• 23:00 Australia Jun AIG Manufacturing Index -5.1 previous
•00:30 Japan Jun Services PMI 54.2 forecast, 55.9 previous
•01:30 Australia Retail Sales (MoM) 0.7% forecast, 0.0% previous
•01:45 China Jun Caixin Services PMI 56.2 forecast, 57.1 previous
Looking Ahead Events And Other Releases(GMT)
•No significant events
Currency Forecast
EUR/USD: The euro dipped against dollar on Tuesday as a lack of fresh economic data from the region and uncertainty over the direction of global interest rates caused investors to be cautious. Top central bankers have maintained their focus on bringing inflation back to their target levels, even in the face of slowing growth in the U.S. and the euro zone, adding to uncertainty about future global monetary policy steps.The euro was down 0.15% against the dollar at $1.0880. U.S. markets will be closed on Tuesday for the Independence Day holiday. Immediate resistance can be seen at 1.0916(5DMA), an upside break can trigger rise towards 1.0957 (23.6%fib).On the downside, immediate support is seen at 1.0867(38.2%fib), a break below could take the pair towards 1.0832( (July 3rd low).
GBP/USD: Sterling steadied on Tuesday as traders waited for service sector data due on Wednesday and pondered whether any positive impact from expected higher interest rates on the British currency has run its course. Amid fears that more expected rate hikes by the Bank of England (BoE) could slow the British economy further, traders are awaiting PMI service data due on Wednesday to gauge business sentiment. The BoE is watching economic indicators closely as it judges how many more interest rate hikes are needed to control Britain's rate of inflation.In trading thinned by a bank holiday in the U.S., sterling edged 0.08% higher against the dollar at $1.2713. Immediate resistance can be seen at 1.2771(23.6%fib), an upside break can trigger rise towards 1.2852(June 22nd high).On the downside, immediate support is seen at 1.2670(5DMA), a break below could take the pair towards 1.2609(38.2%fib).
USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Tuesday as oil prices rose and despite domestic data that showed factory activity slowing further in June .Contraction in Canada's manufacturing sector deepened slightly in June as an uncertain economic outlook weighed on both domestic and foreign demand. The S&P Global Canada Manufacturing Purchasing Managers' Index (PMI) dipped to a seasonally adjusted 48.8 in June from 49.0 in May . The loonie was up 0.2% at 1.3225 to the greenback. The currency traded in a range of 1.3204 to 1.3256. Immediate resistance can be seen at 1.3245 (5 DMA), an upside break can trigger rise towards 1.3322 (38.2% retracement level).On the downside, immediate support is seen at 1.3205 (23.8% fib), a break below could take the pair towards 1.3124 (Lower BB).
USD/JPY: The dollar was little changed against the yen on Tuesday as markets remained on high alert for signs of Japanese intervention, but the broader market was placid with U.S. traders off for a public holiday. Market activity was relatively subdued with U.S. markets closed for the July 4 public holiday. Investors were also waiting for Friday's U.S. non-farm payrolls employment report which could influence the Federal Reserve's next decision.The greenback was down 0.18% at 1104 GMT to 144.44 yen , after rising 0.27% on Monday. Strong resistance can be seen at 145.26(23.6%fib) an upside break can trigger rise towards 145.75(Higher BB).On the downside, immediate support is seen 144.17(5DMA), a break below could take the pair towards 142.51(38.2%fib)
Equities Recap
European shares closed lower in thin trading on Tuesday, with a lack of fresh economic data from the region and uncertainty around the direction of global interest rates keeping investors cautious..
UK's benchmark FTSE 100 closed down by 0.10 percent, Germany's Dax ended down by 0.26 percent, France’s CAC finished the day down by 0.23 percent.
US stock market was closed on account of US independence day
Commodities Recap
Gold prices edged higher on Tuesday as some traders bet that recent weak U.S. economic data may prompt the Federal Reserve to rethink its rate-hike trajectory, while also awaiting further cues from the minutes of the central bank’s last meeting.
Spot gold rose 0.4% to $1,928.09 per ounce by 09:31 a.m. EDT (1331 GMT), with trading volumes likely thinned by a U.S. holiday.
Oil prices climbed 2% on Tuesday as markets weighed August supply cuts by top exporters Saudi Arabia and Russia against a weak global economic outlook.
Brent crude futures settled up $1.60 at $76.25 a barrel. U.S. West Texas Intermediate crude was trading $1.44 higher at $71.23.