Posted at 22 July 2023 / Categories Market Roundups
Market Roundup
•Canada May Core Retail Sales (MoM) 0.1%, 0.3% forecast, 1.3% previous
•Canada May Retail Sales (MoM) 0.0%, 0.5% forecast,1.1% previous
•Canada Jun New Housing Price Index (MoM) 0.2%,0.0% forecast, 0.1% previous
•Canada Manufacturing Sales (MoM) 0.2%,1.2% previous
•U.S. Baker Hughes Total Rig Count 669 , 675 previous
•U.S. Baker Hughes Oil Rig Count 530,537 previous
Looking Ahead Economic Data(GMT)
•No data Ahead
Looking Ahead Events And Other Releases(GMT)
• No Events Ahead
Currency Summaries
EUR/USD: The euro eased Friday as investors looked towards next week's European Central Bank (ECB) policy meeting.ECB policymakers have struck a more dovish tone of late. The European Central Bank is expected to raise interest rates by 25 basis points on July 27, according to all economists in a poll, a slight majority of whom were now also expecting another hike in September. The euro was broadly flat against the dollar at $1.11240, having dropped 0.6% on Thursday. 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 1.1119(Daily low), a break below could take the pair towards 1.1097 (50%fib).
GBP/USD: The pound was on track for its biggest weekly fall since February on Friday, as markets reacted decisively to signs that Britain may finally be turning a page on inflation. It climbed after data showed retail sales rose more than economists anticipated in June, but then slipped back as the dollar rallied. The rise in the greenback was triggered by a report that showed Japan's central bank is leaning towards keeping its ultra-loose monetary policy in place next week. Sterling was down 0.1% at $1.2851 putting it on track for a weekly fall of 1.74%. 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 1.2824(Daily low), a break below could take the pair towards 1.2745(50%fib).
USD/CAD: The Canadian dollar weakened against its U.S. counterpart on Friday as investors reduced bets for another interest rate hike by the Bank of Canada after domestic data showed retail sales rising less than expected in May.Canadian retail sales rose 0.2% in May, missing estimates for a 0.5% gain, and were likely unchanged in June, pointing toward a slowdown in economic growth that would allow the BoC to leave interest rates unchanged . Money markets see a 23% chance that the BoC will raise its benchmark rate in September, down from roughly 30% before the data. The Canadian dollar was trading 0.3% lower at 1.3207 to the greenback. Immediate resistance can be seen at 1.3233 (38.2%fib), an upside break can trigger rise towards 1.3310 (50%fib).On the downside, immediate support is seen at 1.3186 (5DMA), a break below could take the pair towards 1.3140 (23.6%fib).
USD/JPY: The dollar headed for its largest one-day rise against the yen in a month after sources familiar with the Bank of Japan's thinking said central bank officials were leaning towards maintaining its yield-control policy at next week's policy meeting. With inflation having exceeded the BoJ's target for more than a year, markets have been simmering with speculation the central bank could tweak yield curve control as early as the July 27-28 meeting.Data earlier on Friday showed Japan's core inflation rose to 3.3%, matching a median market forecast but remaining ahead of the BoJ's 2% target.The dollar gained 1.24% to 141.81 yen , after earlier reaching 141.95, the highest since July 10. It is trading just below the 145.07 level reached on June 30, which was the highest since Nov. 10. Strong resistance can be seen at 141.92 (Daily high) an upside break can trigger rise towards 142.62(23.6%fib).On the downside, immediate support is seen 140.60(38.2%fib), a break below could take the pair towards 137.59(5DMA)
Equities Recap
European shares rose on Friday to end the week higher, while German stocks lagged as SAP's bleak revenue forecast weighed on the tech sector, which also recorded its biggest weekly drop this year.
UK's benchmark FTSE 100 closed up by 0.23 percent, Germany's Dax ended down by 0.17 percent, France’s CAC finished the day up by 0. 65 percent.
U.S. stocks ended mixed on Friday, with the Dow Jones Industrial Average rising marginally to notch its 10th straight day of advances, its longest rally in almost six years.
Dow Jones closed up by 0.01 percent, S&P 500 ended up by 0.03 percent, Nasdaq finished the day down by 0.22 percent.
Treasuries Recap
U.S. Treasury yields ticked down on Friday but were still slightly up on the week, after a slew of economic data that left mixed signals as to whether the Federal Reserve is nearing its rate-hiking cycle.
Benchmark 10-year Treasury yields were down 1.1 basis points on the day at 3.842%.
Commodities Recap
Gold fell on Friday, moving further away from a two-month peak hit in the last session, due to a stronger dollar and as investors remained cautious ahead of the U.S. Federal Reserve policy meeting next week.
Spot gold was down 0.3% at $1,962.85 per ounce by 01:45 p.m. EDT (1745 GMT), but was set for a 0.4% rise this week. U.S. gold futures settled 0.2% lower at $1,966.60.
Oil prices rose nearly 2% on Friday to record a fourth consecutive weekly gain, buoyed by growing evidence of supply shortages in the coming months and rising tensions between Russia and Ukraine that could further hit supplies.
Brent crude futures rose $1.43, or 1.8%, to settle at $81.07 a barrel, with a weekly gain of about 1.2%. U.S. West Texas Intermediate crude ended $1.42, or 1.9%, higher at $77.07 a barrel, its highest since April 25. WTI gained nearly 2% in the week.