Posted at 14 July 2023 / Categories Market Roundups
Market Roundup
•Producer prices barely rise in June; core PPI subsides
•Dow ends up 0.1%, S&P 500 up 0.9%, Nasdaq up 1.6%
•US Jun PPI ex. Food/Energy/Transport (YoY) 2.6%,2.8% previous
•US Jun PPI (MoM) 0.1%, 0.2% forecast,-0.3% previous
•US Jun PPI ex. Food/Energy/Transport (MoM) 0.1%,0.0% previous
•US Jun Core PPI (MoM) 0.1%,0.2% forecast,0.2% previous
•US Continuing Jobless Claims 1,729K,1,723K forecast, 1,720K previous
•US Jobless Claims 4-Week Avg. 246.75K, 255.39K forecast, 253.25K previous
•US Initial Jobless Claims 237K,250K forecast, 248K previous
•US Jun Federal Budget Balance, -228.0B-175.0B forecast,-240.0B previous
• US Fed's Balance Sheet 8,297B,8,298B previous
Looking Ahead Economic Data(GMT)
•No data ahead
Looking Ahead Events And Other Releases(GMT)
•No significant events
Currency Summaries
EUR/USD: The euro rose against dollar on Thursday as traders took surprisingly slow U.S. inflation as a signal U.S. interest rate rises will be all but finished by month's end. U.S. data on Thursday reinforced the view that inflation is moderating. U.S. producer prices (PPI) inched up 0.1% in June, with the annual increase at 0.1% as well, the smallest year-on-year rise in nearly three years.The PPI data followed Wednesday's consumer price index (CPI) report, which showed U.S. core inflation slowed a lot faster than expected. It came in at 0.2% in June against market expectations for 0.3%, while headline annual CPI fell to 3%. Immediate resistance can be seen at 1.1244(23.6%fib), an upside break can trigger rise towards 1.1300 (Psychological level).On the downside, immediate support is seen at 1.1173(38.2%fib), a break below could take the pair towards 1.1116(50%fib).
GBP/USD: The pound rose for the sixth session running to a new 15-month high on Thursday after data showed the British economy shrank by less than expected in May.Figures showed the economy contracted 0.1% in May, after growth of 0.2% the previous month. Economists expected a contraction of 0.3%. Sterling rose to $1.3127, set for its sixth day of gains, having broken on Wednesday above $1.30 for the first time since April last year. Data on Tuesday showed that British wages rose at the joint highest rate on record in the three months to May, keeping the pressure on the BoE. Immediate resistance can be seen at 1.3149 (23.6%fib), an upside break can trigger rise towards 1.3200(Psychological level).On the downside, immediate support is seen at 1.3008(5DMA), a break below could take the pair towards 1.2976(38.2%fib).
USD/CAD: The Canadian dollar strengthened to a 10-month high against the greenback on Thursday, as a domestic dock worker strike ended and U.S. inflation data supported bets that the Federal Reserve is nearing the end of its interest rate hiking campaign. The loonie was trading 0.6% higher at 1.3104 to the U.S. dollar , its strongest level since September. The loonie was adding to its gains after the Bank of Canada on Wednesday hiked its benchmark interest rate by a quarter of a percentage point to a 22-year high of 5.0%.The central bank said it could raise rates further because of the risk that inflation stalls above its 2% target. Immediate resistance can be seen at 1.3183 (38.2% fib), an upside break can trigger rise towards 1.3224(9DMA).On the downside, immediate support is seen at 1.3105 (23.6%fib), a break below could take the pair towards 1.3058(Lower BB).
USD/JPY: The dollar declined against the yen on Thursday as cooling U.S. inflation bolstered expectations the Federal Reserve would hike interest rates just one more time this year, eroding the greenback's yield advantage over its peers.Against a basket of six currencies, the dollar index fell 0.8% to 99.738 , after dropping earlier to 99.767, a new 15-month trough. The dollar index was headed for its biggest weekly slide in 2023. The yen , which has gained 4% in the last five days, held steady against the dollar at 137.56.Strong resistance can be seen at 138.75(38.2%fib) an upside break can trigger rise towards 140.00(Psychological level).On the downside, immediate support is seen 137.20(50%fib), a break below could take the pair towards 136.76(Lower BB)
Equities Recap
European shares closed higher on Thursday led by technology stocks, as hopes grew that the Federal Reserve's post-pandemic tightening cycle was close to an end due to cooling U.S. inflation.
UK's benchmark FTSE 100 closed up by 0.32 percent, Germany's Dax ended up by 0.74 percent, France’s CAC finished the day up by 0.50 percent.
U.S. stocks extended recent gains to end higher on Thursday, with the Nasdaq rising more than 1% for a second straight day, as data showed the annual increase in U.S. producer inflation was the smallest in nearly three years.
Dow Jones was trading up by 0.14 percent, S&P 500 was trading up by 0.85 percent, Nasdaq was trading up by 1.58 percent.
Commodities Recap
Gold prices hovered near 1-month highs on Thursday as the dollar and Treasury yields fell on expectations the U.S. Federal Reserve could end its rate-hike cycle soon.
Spot gold was up 0.1% at $1,958.79 per ounce by 01:41 p.m. EDT (1741 GMT), after hitting its highest since June 16. U.S. gold futures rose 0.1% to $1,963.80.
Oil prices rose over 1% on Thursday to their highest in nearly three months after U.S. inflation data suggested interest rates in the world's biggest economy were close to their peak.
Brent crude futures rose $1.25, or 1.6%, to settle at $81.36 per barrel. The session peak was $81.57, the highest since April 25.