Posted at 25 July 2023 / Categories Market Roundups
Market Roundup
•Canada Wholesale Sales (MoM) -4.4%, 3.5% previous
•French 12-Month BTF Auction 3.659%,3.759% previous
•French 3-Month BTF Auction 3.613%, 3.584% previous
•French 6-Month BTF Auction 3.644%,3.671% previous
•US Jul Manufacturing PMI 49.0,46.4 forecast ,46.3 previous
•US Jul S&P Global Composite PMI 52.0,53.1 forecast ,53.2 previous
• US Jul Services PMI 52.4, 54.0 forecast ,54.4 previous
•US 3-Month Bill Auction 5.270%, 5.250% previous
•US 6-Month Bill Auction 5.270%, 5.250% previous
Looking Ahead Economic Data(GMT)
•No data Ahead
Looking Ahead Evenst And Other Releases(GMT)
• No data ahead
Currency Summaries
EUR/USD: The euro slid on Monday after activity data in key economies came in much softer than expected, giving markets a jolt at the start of a week packed with central bank meetings at which investors expect rate hikes in Europe and the United States. The European common currency fell 0.4% to $1.1083 on PMI data that showed euro zone business activity shrank much more than expected in July. Investors expect both the ECB and Fed to raise rates by 25 basis points and the focus in both cases is on the signals they send around their September meetings. Softening inflation gauges might allow the Fed room to hint at a pause. Immediate resistance can be seen at 1.1165(23.6%fib), an upside break can trigger rise towards 1.1281 (Jul 20th high).On the downside, immediate support is seen at 1.1071(38.2%fib), a break below could take the pair towards 1.1030 (21DMA).
GBP/USD: The pound headed for a seventh straight day of losses on Monday against the dollar after a survey showed Britain's private sector growing at its slowest pace in six months in July. Britain's private sector is growing at its weakest pace in six months in July, as orders for businesses stagnate in the face of rising interest rates and still-high inflation, a survey showed on Monday. The S&P Global/CIPS composite Purchasing Managers' Index (PMI) showed a preliminary reading of 50.7, down from 52.8 in June in the biggest month-on-month drop in 11 months. The survey reinforced a sluggish outlook for Britain's economy, which has so far defied forecasts of recession in 2023 but has yet to feel the full impact of 13 back-to-back interest rate increases by the Bank of England. 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 strengthened against its U.S. counterpart on Monday as oil prices rose and after a Bank of Canada survey showed that investors were more optimistic about the economic outlook. A second-quarter survey by the Bank of Canada showed that market participants expect gross domestic product growth of 0.7% year-over-year at the end of 2023, instead of a 0.1% contraction forecast in the previous survey.The central bank is due on Wednesday to release minutes from its policy decision earlier this month when it raised its benchmark interest rate to a 22-year high of 5%.The loonie was trading 0.4% higher at 1.3170 to the greenback, or 75.93 U.S. cents, after moving in a range of 1.3158 to 1.3228 .Immediate resistance can be seen at 1.3178(5 DMA), an upside break can trigger rise towards 1.3246 (38.2% fib).On the downside, immediate support is seen at 1.3150(38.2%fib), a break below could take the pair towards 1.3108 (Lower BB).
USD/JPY: The dollar steadied against yen on Monday as traders focused on key central bank meetings later this week for further direction. The Bank of Japan (BOJ) is the most likely of the three central banks to throw up a market-moving surprise, traders say, with a tweak to its yield curve control policy seen as a possibility. Last Friday the Japanese currency dived to as weak as 141.92 per dollar, also sliding on crosses, following a report that the BOJ was leaning towards keeping its yield curve control policy unchanged, though volatility gauges have spiked as the meeting looms. The yen strengthened with the dollar down 0.47% at 141.2 yen. Strong resistance can be seen at 141.92 (38.2%fib) an upside break can trigger rise towards 142.98(Jul 10th high).On the downside, immediate support is seen 140.60(Daily low), a break below could take the pair towards 140.03(50%fib )
Equities Recap
European shares were marginally higher on Monday as gains in energy firms and telecom stocks were countered by worsening fears of recession in the euro zone and losses in Spanish stocks after the country's general election yielded no clear winner.
UK's benchmark FTSE 100 closed up by 0.19 percent, Germany's Dax ended up by 0.08 percent, France’s CAC finished the day down by 0.07 percent.
The Dow Jones Industrial Average led Wall Street higher on Monday and notched its longest winning streak in six years as investors bet on sectors beyond technology in a week filled with earnings reports and a Federal Reserve meeting.
Dow Jones closed up by 0.54 percent, S&P 500 ended up by 0.48 percent, Nasdaq finished the day up by 0.22 percent.
Treasuries Recap
Treasury yields mostly edged lower on Monday after data showed U.S. business activity slowed to a five-month low in July, as traders awaited a widely expected decision later this week by the Federal Reserve to hike interest rates to quell inflation.
The two-year U.S. Treasury yield, which typically moves in step with interest rate expectations, rose 0.9 basis points at 4.857%, while the yield on benchmark 10-year notes fell 0.6 basis points to 3.833%.fell 0.6 basis points to 3.833%.
Commodities Recap
Gold prices traded in a tight range on Monday as traders braced for a widely anticipated interest rate hike along with clues on future monetary policy from the Federal Reserve this week.
Spot gold was mostly unchanged at $1,959.00 per ounce by 1:57 p.m. EDT (1757 GMT). U.S. gold futures settled 0.2% lower at $1,962.20.
Oil prices climbed about 2% to a near three-month high on Monday on tightening supply, rising U.S. gasoline demand, hopes for Chinese stimulus measures and technical buying.
Brent futures rose $1.67, or 2.1%, to settle at $82.74 a barrel, while U.S. West Texas Intermediate (WTI) crude rose $1.67, or 2.1%, to settle at $78.74.