Posted at 15 July 2023 / Categories Market Roundups
Market Roundup
•US Export Price Index (YoY) -12.0% ,-11.1% forecast,-10.1% previous
• US Import Price Index (YoY) -6.1% ,-3.6% forecast,-5.9% previous
• Canada May Manufacturing Sales (MoM) 1.2% ,0.8% forecast,0.3% previous
• US Export Price Index (MoM) -0.9% ,-0.2% forecast,-1.9% previous
• US Jun Import Price Index (MoM) -0.2%, -0.1% forecast,-0.6% previous
• US Jul Michigan 5-Year Inflation Expectations 3.1%, 3.1% forecast, 3.0% previous
• US Jul Michigan Inflation Expectations 3.4% ,3.3% forecast,3.3% previous
• US Jul Michigan Consumer Sentiment 72.6, 65.5 forecast,64.4 previous
• US Jul Michigan Consumer Expectations 69.4 ,61.8 forecast,61.5 previous
• US Jul Michigan Current Conditions 77.5, 70.4 forecast, 69.0 previous
• US Jul U.S. Baker Hughes Total Rig Count 675 ,680 previous
• U.S. Baker Hughes Oil Rig Count 537, 540 previous
Looking Ahead Economic Data(GMT)
•No data ahead
Looking Ahead Events And Other Releases(GMT)
•No events ahead
Currency Summaries
EUR/USD: EUR/USD: The euro steadied against dollar on Friday as optimism the U.S. rate-hiking cycle would end earlier than previously expected supported euro . Bets on the U.S. Federal Reserve approaching the end of rate hikes following softening inflation data has set the dollar on track for its biggest weekly decline since November. Data on Thursday showed U.S. producer prices barely rose in June, providing more evidence the economy had entered a disinflation phase.Meanwhile, the number of Americans filing new claims for unemployment benefits unexpectedly fell last week, indicating the labor market remained tight. Immediate resistance can be seen at 1.1240(Daily high), an upside break can trigger rise towards 1.1300 (Psychological level).On the downside, immediate support is seen at 1.1113(38.2%fib), a break below could take the pair towards 1.1057 (50%fib).
GBP/USD: The pound held near 15-month high on Friday as bets that the Federal Reserve was nearly done raising rates supported riskier assets. Data on Thursday showed U.S. producer prices barely rose in June, providing more evidence the economy had entered a disinflation phase, while jobless claims unexpectedly fell last week, indicating the labour market remained tight. The markets, however, have mostly priced in one rate hike at the Fed’s July 25-26 meeting, but the odds of further increases have dropped. Immediate resistance can be seen at 1.3139 (Daily high), an upside break can trigger rise towards 1.3200(Psychological level).On the downside, immediate support is seen at 1.3090(Daily low), a break below could take the pair towards 1.3011(38.2%fib).
USD/CAD: The Canadian dollar weakened against its U.S. counterpart on Friday, giving back much of its weekly gain, as investors grew more confident that the Bank of Canada will raise interest rates less than some other major central banks from this point. The price of oil, one of Canada’s major exports. U.S. crude oil futures settled 1.9% lower at $75.42 a barrel. Canadian home sales rose in June at a slower pace than in recent months as the BoC restarted its interest rate hiking campaign. The Canadian dollar was trading 0.8% lower at 1.3210 to the greenback, or 75.70 U.S. cents, pulling back from an earlier 10-month high at 1.3093.Immediate resistance can be seen at 1.3216 (38.2% fib), an upside break can trigger rise towards 1.3300(50% fib ).On the downside, immediate support is seen at 1.3087 (23.6% fib), a break below could take the pair towards 1.3055(Lower BB).
USD/JPY: The U.S. dollar bounced against yen on Friday after falling sharply the last few days, as investors consolidated losses ahead of the weekend, but its trajectory remained tilted to the downside with the Federal Reserve thought near the end of its rate hike cycle amid softening inflation. The weekly decline was exacerbated by June U.S. producer and consumer inflation data that showed easing price pressures.U.S. producer prices barely rose last month and the annual increase was the smallest in nearly three years, data showed on Thursday, a day after a report indicated that consumer prices gained modestly last month. The dollar rose 0.5% to 138.805 yen , but was on course for its worst week since January. Strong resistance can be seen at 138.87 (38.2%fib) an upside break can trigger rise towards 139.36(5DMA).On the downside, immediate support is seen 137.05(23.6%fib), a break below could take the pair towards 136.59(Lower BB)
Equities Recap
European shares edged slightly lower on Friday, but that did little to change their biggest weekly percentage jump in more than three months on hopes that easing inflation would allow the U.S. Federal Reserve to pause rate hikes soon.
UK's benchmark FTSE 100 closed down by 0.08 percent, Germany's Dax ended down by 0.22 percent, France’s CAC finished the day up by 0.06 percent.
The S&P 500 ended down slightly on Friday, with bank and financial shares mostly lower on the day following quarterly reports that kicked off earnings season, but all three major U.S. stock indexes posted solid weekly gains.
Dow Jones closed up by 0.33 percent, S&P 500 ended down by 0.10 percent, Nasdaq finished the day down by 0.18 percent.
Commodities Recap
Gold prices eased on Friday but were on track for their biggest weekly gain since April, after signs of slowing U.S. inflation raised expectations of a pause in Federal Reserve's interest rate hikes after this month.
Spot gold fell 0.1% to $1,959.27 per ounce by 01:45 p.m. EDT (1745 GMT), but has gained about 1.8% so far this week. U.S. gold futures settled little changed at $1,964.40.
Oil prices fell more than a dollar a barrel on Friday as the dollar strengthened and oil traders booked profits from a strong rally, with crude benchmarks recording their third-straight weekly gain.
Brent crude futures settled at $79.87 per barrel, down $1.49, or 1.8%, while the U.S. West Texas Intermediate crude futures fell $1.47, or 1.9%, to settle at $75.42 a barrel.