Posted at 05 July 2023 / Categories Market Roundups
Market Roundup
• US May Factory Orders (MoM) 0.3% ,0.8% forecast,0.4% previous
• US May Factory orders ex transportation (MoM) -0.5%,0.5% forecast,-0.2% previous
•US May Durables Excluding Transport (MoM) 0.7%,-0.3% previous
•US May Durables Excluding Defense (MoM) 3.0%,3.0% previous
•Canada June Leading Index (MoM) -0.05%,-0.08% previous
Looking Ahead Economic Data( GMT )
• 01:30 Australia May Exports (MoM) -5.0% previous
•01:30 Australia May Imports (MoM) 2.0% previous
•01:30 Australia May Trade Balance 10.500B forecast, 11.158B previous
Looking Ahead Events And Other Releases(GMT)
•No events ahead
Currency Summaries
EUR/USD: The euro dipped against dollar on Wednesday as traders waited for minutes from the Federal Reserve's last policy meeting that could offer clues to the outlook for interest rates. The Federal Open Market Committee is due to release the minutes from its most recent policy meeting later on Wednesday.Markets are pricing in an 86% chance that the Fed will raise rates by another quarter-point in July and a near-20% chance of another 25-basis point increase in September. The euro was flat at $1.088, while sterling was down 0.1% at $1.2698. Immediate resistance can be seen at 1.0887(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 edged lower on Wednesday as traders considered whether the British currency will be hurt by several expected interest rate increases by the Bank of England (BoE) that could put more strain on the economy. The BoE raised interest rates by half a point in June to 5%, and markets expect it to deliver an identical increase when it meets on Aug. 3. The BoE is watching economic indicators closely as it considers how many more rate hikes are needed to control inflation. The pound edged 0.02% lower against the dollar at $1.2713 by 0840 GMT, 1.2% below the 14-month high it touched against the dollar last month. 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 weakened to a near three-week low against its U.S. counterpart on Wednesday as a shift to more cautious investor sentiment helped to trigger technical buying of the greenback.The loonie was trading 0.4% lower at 1.3280 to the greenback, or 75.30 U.S. cents, after touching its weakest intraday level since June 15 at 1.3292. The price of oil, one of Canada’s major exports, narrowed the price gap with global benchmark Brent in a post-holiday response to supply cuts announced on Monday by Saudi Arabia and Russia. U.S. crude oil futures settled 2.9% higher at $71.79 a barrel .Immediate resistance can be seen at 1.3294 (38.2% fib), an upside break can trigger rise towards 1.3363 (50% fib).On the downside, immediate support is seen at 1.3240 (5DMA), a break below could take the pair towards 1.3210(23.6%fib).
USD/JPY: The dollar was little changed against the yen on Wednesday after minutes from the Federal Reserve's June policy meeting reinforced market expectations of another interest rate hike at the end of July.Almost all Fed officials agreed to hold interest rates steady last month and most expected policymakers would eventually need to tighten policy further, a view that pushed Treasury yields higher and added to earlier dollar gains.Fed funds futures showed expectations of a 25 basis point hike at the end of a two-day policy meeting on July 26 rose to 88.7%, according to CME Group's FedWatch Tool. Strong resistance can be seen at 145.05(23.6%fib) an upside break can trigger rise towards 145.58(Higher BB).On the downside, immediate support is seen 144.23(5DMA), a break below could take the pair towards 142.73(38.2%fib)
Equities Recap
Eurozone blue-chip stocks fell on Wednesday as tech shares were pressured ahead of U.S. Federal Reserve's minutes from the June policy meeting, while weak data from the single-currency bloc and China stoked fears of a sharp hit to global growth.
UK's benchmark FTSE 100 closed down by 1.03 percent, Germany's Dax ended down by 0.63 percent, France’s CAC finished the day down by 0. 80 percent.
Wall Street's main indexes ended with modest declines on Wednesday as investors digested minutes from the U.S. Federal Reserve's latest meeting and braced for significant economic data in the days to come.
Dow Jones closed down by 0.38 percent, S&P 500 ended down by 0.20 percent, Nasdaq finished the day down by 0.18 percent.
Treasuries Recap
U.S. Treasury yields were mostly higher on Wednesday after a softer-than-expected reading on U.S.-made goods and the minutes from the Federal Reserve's June policy meeting did little to alter expectations on the path of rate hikes.
The yield on 10-year Treasury notes was up 7.9 basis points to 3.938%.The two-year U.S. Treasury yield, which typically moves in step with interest rate expectations, was up 0.2 basis point at 4.942%.
Commodities Recap
Gold prices fell on Wednesday, weighed down by an uptick in the dollar and U.S. Treasury yields after minutes from the Federal Reserve’s June policy meeting cemented expectations that rates will stay higher for longer.
Spot gold was down 0.5% at $1,916.49 per ounce by 02:32 p.m. EDT (1832 GMT). U.S. gold futures settled 0.1% lower at $1,927.10.
U.S. crude oil gained about 3% on Wednesday, narrowing the price gap with global benchmark Brent in a post-holiday response to supply cuts announced on Monday by Saudi Arabia and Russia.
U.S. West Texas Intermediate crude (WTI) rose $2 from Monday's close, or 2.9%, to settle at $71.79 a barrel. Brent crude futures rose 40 cents, or 0.5%, to settle at $76.65 a barrel, after gaining $1.60 a barrel on Tuesday.