Posted at 11 July 2023 / Categories Market Roundups
Market Roundup
• US Redbook (YoY) -0.4%, 0.7% previous
• US IBD/TIPP Economic Optimism 41.3, 45.3 forecast, 41.7 previous
• US 52-Week Bill Auction 5.130%,4.930% previous
• US 3-Year Note Auction 4.534%,4.202% previous
Looking Ahead Economic Data(GMT)
•23:30 Japan May Core Machinery Orders (YoY) -0.2% forecast,-5.9% previous
•23:30 Japan May Core Machinery Orders (MoM) 1.0% forecast,5.5% previous
•23:30 Japan Jun PPI (YoY) 4.3% forecast,5.1% previous
Looking Ahead Events And Other Releases(GMT)
•02:00 New Zealand RBNZ Interest Rate Decision 5.50% forecast,5.50% previous
•02:00 New Zealand RBNZ Rate Statement
•03:10 Australia RBA Governor Lowe Speaks
Currency Summaries
EUR/USD: The euro steadied on Tuesday as dollar dipped a day ahead of U.S. inflation data that could warrant a quicker end to Federal Reserve rate hikes.U.S. consumer price data is due on Wednesday, while a producer prices report is due on Thursday. Economists polled expect the consumer price index, to be released Wednesday morning, to have risen by 3.1% in June, after May's 4% increase . That would be the lowest reading since March 2021. The core rate is expected to have dropped for a third month to 5% from 5.3%, though that is more than double the Fed's 2% target. Immediate resistance can be seen at 1.1005(23.6%fib), an upside break can trigger rise towards 1.1037 (23.6%fib).On the downside, immediate support is seen at 1.0928(38.2%fib), a break below could take the pair towards 1.0908( (5DMA).
GBP/USD: British pound reached its highest level against the US dollar in 15 months as gains were prompted by encouraging labor data from the United Kingdom, which reinforced market expectations of forthcoming interest rate hikes by the Bank of England (BOE). Tuesday data showed a key measure of British wages matched its highest growth rate on record, though the unemployment rate did rise unexpectedly. The pound rose as high as $1.2913, its highest since April 2022, and was last trading just shy of that level, up 0.37%. Immediate resistance can be seen at 1.2900 (23.6%fib), an upside break can trigger rise towards 1.2932(Higher BB).On the downside, immediate support is seen at 1.2858(Daily low), a break below could take the pair towards 1.2802(38.2%fib).
USD/CAD: The Canadian dollar strengthened to its highest in nearly one week against its U.S. counterpart on Tuesday, as oil prices rose and investors looked forward to a likely interest rate hike by the Bank of Canada. The price of oil, one of Canada’s major exports, settled 2.5% higher on Tuesday at $74.83 a barrel, boosted by a falling U.S. dollar, hopes for higher demand in the developing world and supply cuts by the world’s biggest oil exporters. The loonie was trading 0.3% higher at 1.3241 to the greenback, or 75.52 U.S. cents, its strongest level since last Wednesday. Immediate resistance can be seen at 1.3261(11DMA), an upside break can trigger rise towards 1.3281(38.2%fib).On the downside, immediate support is seen at 1.3179 (23.6%fib), a break below could take the pair towards 1.3129(Lower BB).
USD/JPY: The dollar declined against the yen on Tuesday after Federal Reserve officials signaled that the U.S. central bank is near the end of its tightening cycle. The comments knocked the greenback to a two-month low of 101.66 against a basket of currencies, as traders pared back their expectations about how much further U.S. rates may have to rise. The dollar index was last down 0.3% at 101.65. Against the yen, the dollar fell to a four-week trough of 140.17. It last traded down 0.7% at 140.385 yen. The focus this week will be on U.S. CPI (Consumer Price Index) data due on Wednesday, with core CPI in June expected to have risen 0.3% month-on-month, as per poll. Strong resistance can be seen at 141.31(Daily high) an upside break can trigger rise towards 142.58(23.6%fib).On the downside, immediate support is seen 140.16(38.2%fib), a break below could take the pair towards 139.68(Lower BB).
Equities Recap
European shares ended higher on Tuesday amid investor hopes the U.S. Federal Reserve was nearing the end of its interest rate hiking cycle and as China extended some policy measures to support its battered real estate sector.
UK's benchmark FTSE 100 closed up by 0.12 percent, Germany's Dax ended up by 0.75 percent, France’s CAC finished the day up by 1.07 percent.
U.S. stocks rose on Tuesday, helped by optimism ahead of key inflation reports and as JPMorgan and other financial shares gained before earnings later this week.
Dow Jones was trading upby 0.93percent, S&P 500 was trading up by 0.67 percent, Nasdaq was trading up by 0.55 percent.
Commodities Recap
Gold prices edged higher on Tuesday as the dollar and bond yields fell ahead of U.S. inflation data that could offer more cues on the Federal Reserve's rate-hike path.
Spot gold was up 0.4% at $1,931.83 per ounce by 02:11 p.m. EDT (1811 GMT), set for a third consecutive session of gains. U.S. gold futures rose 0.3% to $1,937.10.
Oil prices jumped on Tuesday, settling up about 2%, boosted by a falling U.S. dollar, hopes for higher demand in the developing world and supply cuts by the world's biggest oil exporters.
Brent futures rose $1.71, or 2.2%, to settle at $79.40 a barrel. U.S. West Texas Intermediate (WTI) crude rose $1.84, or 2.5%, to settle at $74.83.
Brent's settlement was its highest since April 28 and WTI's since May 1. Brent was in technically overbought territory for the second time in three days.