Posted at 21 July 2023 / Categories Market Roundups
Market Roundup
•US Jul Philadelphia Fed Manufacturing Index -13.5,-10.0 forecast, -13.7 previous
•US Initial Jobless Claims 228K, 242K forecast, 237K previous
•US Continuing Jobless Claims 1,754K, 1,729K forecast, 1,729K previous
•US Jobless Claims 4-Week Avg 237.50K , 250.01K forecast, 246.75K previous
•US Jul Philly Fed CAPEX Index 8.60, 6.20 forecast, 9.90 previous
•US Jul Philly Fed Prices Paid 9.50 ,10.70 forecast, 10.50 previous
•US Jul Philly Fed Employment -1.0,-4.5 forecast,-0.4 previous
•US Philly Fed New Orders-15.9,-10.0 forecast,-11.0 previous
•US Philly Fed Business Conditions 29.1,10.0 forecast,12.7 previous
•US Jun Leading Index (MoM) -0.7%,-0.6% forecast,-0.7% previous
•EU Consumer Confidence -15.1,-16.0forecast,-16.1 previous
•US Existing Home Sales 4.16M,4.20M forecast,4.30M previous
•US Existing Home Sales (MoM) -3.3%, 0.2% previous
•US Natural Gas Storage 41B,40B forecast,49B previous
•US 8-Week Bill Auction 5.255% ,5.230% previous
•US 4-Week Bill Auction 5.255% ,5.210% previous
Looking Ahead Economic Data(GMT)
•03:00 New Zealand Credit Card Spending (YoY) 9.9% forecast,3.3% previous
Looking Ahead Events And Other releases(GMT)
•No Events ahead
Currency Summaries
EUR/USD: The euro eased on Thursday as investors looked towards next week's European Central Bank (ECB) policy meeting.ECB policymakers have struck a more dovish tone of late. Governing council member Yannis Stournaras was the latest to signal future rate rises past July's likely 25 basis points increase are up in the air. Traders and analysts expect the European Central Bank to raise its benchmark rate by 25 basis points next week, but what comes after that has been up for debate in the wake of a recent dovish tone taken by the central bank's policymakers. The dollar index rose 0.62% against a basket of currencies to 100.85. The euro fell 0.67% to $1.1127.Immediate resistance can be seen at 1.1220(5DMA), an upside break can trigger rise towards 1.1245 (23.6%fib).On the downside, immediate support is seen at 1.1129(38.2%fib), a break below could take the pair towards 1.1097 (50%fib).
GBP/USD: Sterling continued its slide against dollar on Thursday as the UK’s declining inflation pulled back market expectations of further aggressive rate hikes from the Bank of England (BoE). Data showed on Wednesday that British annual consumer price inflation fell to a much lower than expected 7.9% in June. Economists polled by had forecast the CPI rate in the 12 months to June would drop to 8.2% from May’s 8.7%. The Sterling was last down 0.2% against the dollar at $1.2914, set for its fifth consecutive daily drop against the greenback, after falling 0.74% on Wednesday. Immediate resistance can be seen at 1.2691 (38.2%fib), an upside break can trigger rise towards 1.3000(5DMA).On the downside, immediate support is seen at 1.2851(50%fib), a break below could take the pair towards 1.2745(50%fib).
USD/CAD: The Canadian dollar edged lower against its U.S. counterpart on Thursday U.S. dollar rallied after data showed that the number of Americans filing new claims for unemployment benefits unexpectedly fell last week, boosting expectations the Federal Reserve may continue hiking interest rates if the economy remains strong. The Expectations had increased that the Fed’s rate hike campaign was nearing a peak after data last week showed a slowdown in U.S. inflation. Canada’s economy is closely tied to the U.S. economy, which can help shield the loonie from big moves in the greenback.The loonie was trading 0.1% lower at 1.3172 to the greenback, or 75.92 U.S. cents, after moving in a range of 1.3120 to 1.3194. Immediate resistance can be seen at 1.3179 (5DMA), an upside break can trigger rise towards 1.3224 (38.2%fib).On the downside, immediate support is seen at 1.3141 (23.6%fib), a break below could take the pair towards 1.3100(Lower BB).
USD/JPY: The dollar strengthened against the yen on Thursday after data showed that the number of Americans filing new claims for unemployment benefits unexpectedly fell last week, boosting expectations the Federal Reserve may continue hiking interest rates if the economy remains strong.Initial claims for state unemployment benefits dropped 9,000 to a seasonally adjusted 228,000 for the week ended July 15, the Labor Department said. Economists polled by Reuters had forecast 242,000 claims for the latest week. Investors will focus on comments by Fed Chair Jerome Powell after the U.S. central bank's interest rate decision on Wednesday for any new clues. The greenback rose 0.35% against the Japanese yen to 140.20. Strong resistance can be seen at 140.57 (50DMA) an upside break can trigger rise towards 141.01(23.6%fib).On the downside, immediate support is seen 139.00(38.2%fib), a break below could take the pair towards 137.33(50%fib)
Equities Recap
Europe's STOXX 600 index closed at a one-month high on Thursday, supported by miners, banks and healthcare sectors, although chip stocks saw a heavy selloff after Taiwanese chipmaker TSMC's bleak sales forecast.
UK's benchmark FTSE 100 closed up by 0.76percent, Germany's Dax ended up by 0.59 percent, France’s CAC finished the day up by 0.79 percent.
The S&P 500 and Nasdaq fell on Thursday, weighed down by drops in Tesla and Netflix following their quarterly results, but the Dow advanced for a ninth straight day thanks to gains in Johnson & Johnson following a strong annual forecast.
Dow Jones closed up by 0.47 percent, S&P 500 ended down by 0.68 percent, Nasdaq finished the day down by 2.05 percent.
Treasuries Recap
U.S. Treasury yields rose on Thursday following new unemployment and manufacturing data that both came in below forecasts, as investors bet on whether the Federal Reserve is nearing the end of its interest rate-hiking cycle.
Benchmark 10-year Treasury yields spiked following the news, and were last at 3.846%, a 10.4 basis point increase from Wednesday's close.
Commodities Recap
Gold prices slipped from a two-month high on Thursday as the dollar and bond yields ticked higher, although hopes for a pause in rate hikes by the U.S. Federal Reserve after July meeting limited the decline.
Spot gold was down 0.4% at $1,969.53 per ounce by 1:42 p.m. EDT (1742 GMT) after hitting its highest since May 17 earlier in the session.U.S. gold futures settled 0.5% lower at $1,970.90.
Oil prices settled slightly higher on Thursday on lower U.S. crude inventories and strong crude imports by China, but a weaker demand outlook kept investors cautious.
September Brent futures climbed 18 cents, or 0.2%, to settle at $79.64 a barrel. August U.S. West Texas Intermediate (WTI) crude gained 28 cents, or 0.4%, to settle at $75.63 a barrel.
The August WTI contract expires on Thursday. The more active September WTI crude settled 36 cents higher at $75.65.