Posted at 27 July 2023 / Categories Market Roundups
Market Roundup
• Fed raised rates by 25 basis point
•US Indexes: Dow up 0.23%, S&P 500 down 0.02%, Nasdaq down 0.12%
• US Jun New Home Sales (MoM) -2.5%,-0.7% forecast , 12.2% previous
• US Jun New Home Sales 697K, 725K forecast , 763K previous
• US Crude Oil Imports -1.584M, -1.937M forecast , -0.376M previous
• US Heating Oil Stockpiles -1.002M, 0.222M forecast , 0.223M previous
• US EIA Weekly Distillates Stocks -0.245M,-0.301M forecast ,0.014M previous
•US Gasoline Inventories -0.786M, -1.678M forecast ,-1.066M previous
•US Crude Oil Inventories -0.600M,-2.348M forecast ,-0.708M previous
•US Cushing Crude Oil Inventories -2.609M,-1.442M forecast , -2.891M previous
Looking Ahead Economic Data(GMT)
•01:30 Australia Import Price Index (QoQ) (Q2) -7.3% forecast , -4.2% previous
•01:30 Australia Export Price Index (QoQ) (Q2) 7.8% forecast ,1.6% previous
•01:30 China Jun Chinese Industrial profit YTD -18.8% previous
Looking Ahead Events And Other Release(GMT)
•No Data Ahead
Currency Summaries
EUR/USD: Euro edged higher on Wednesday as dollar dipped after the Federal Reserve raised interest rates by 25 basis points (bps). The rate hike, the Fed's 11th in its last 12 meetings, set the benchmark overnight interest rate in the 5.25%-5.50% range, and the accompanying policy statement left the door open to another increase. In his remarks, Fed Chair Jerome Powell was hawkish. He said the Fed could raise rates in consecutive meetings if warranted. U.S. rate futures have priced in about an 18% chance the Fed raises rates by another 25 bps at the September meeting. Immediate resistance can be seen at 1.1092(5DMA), an upside break can trigger rise towards 1.11221 (23.6%fib).On the downside, immediate support is seen at 1.1031(38.2%fib), a break below could take the pair towards 1.0952 (50%fib).
GBP/USD: The pound edged up against the dollar on Wednesday as investors digested Federal Reserve rate hike that left the door open for future hikes. The Fed lifted its benchmark overnight interest rate by a widely expected 25 basis points, marking the 11th hike in the U.S. central bank's past 12 policy meetings.Fed Chair Jerome Powell said in a press conference the central bank will make decisions meeting by meeting, closely watching economic data, but noted that a rate cut is very unlikely this year. Immediate resistance can be seen at 1.2958 (23.6%fib), an upside break can trigger rise towards 1.3000(Psychological level).On the downside, immediate support is seen at 1.2893(38.2%fib), a break below could take the pair towards 1.2874(21DMA).
USD/CAD: The Canadian dollar weakened against its U.S. counterpart on Wednesday as oil prices fell and investors assessed prospects of additional tightening by the Federal Reserve in September following the U.S. central bank's latest rate hike. The price of oil, one of Canada's major exports, settled 1.1% lower at $78.78 a barrel after U.S. crude inventories fell less than expected. The loonie was trading 0.4% lower at 1.3215 to the greenback. It touched its weakest intraday level since July 18 at 1.3237 before clawing back some of its decline .Immediate resistance can be seen at 1.3217 (21DMA), an upside break can trigger rise towards 1.3255 (38.2% fib).On the downside, immediate support is seen at 1.3161(23.6% fib), a break below could take the pair towards 1.3161 (Lower BB).
USD/JPY: The dollar eased slightly against yen on Wednesday as investors digested widely expected interest-rate hike by U.S. Federal Reserve. The Fed raised interest rates by a quarter of a percentage point on Wednesday, marking the 11th hike in the U.S. central bank’s past 12 policy meetings, and the accompanying policy statement left the door open to another increase. Powell said it’s not an environment where we want to provide a lot of forward guidance” about future rate actions, and whether the Fed hikes again will be determined by where the data stands at the time of future policy gatherings. Strong resistance can be seen at 140.92 (5DMA) an upside break can trigger rise towards 142.09(23.6%fib).On the downside, immediate support is seen 140.35(38.2%fib), a break below could take the pair towards 139.07(38.2%fib )
Equities Recap
European shares snapped a six-day winning run on Wednesday, hurt by underwhelming results from French luxury goods giant LVMH as well as nerves ahead of the Federal Reserve's interest rate decision later in the day.
UK's benchmark FTSE 100 closed down by 0.19 percent, Germany's Dax ended down by 0.49 percent, France’s CAC finished the day down by 1. 35 percent.
U.S. stocks ended Wednesday little changed following a Federal Reserve rate hike that left the door open for future hikes, but the Dow scored a 13-day winning streak.
Dow Jones closed up by 0.23 percent, S&P 500 ended down by 0.02 percent, Nasdaq finished the day down by 0.12 percent.
Treasuries Recap
U.S. Treasury yields fell on Wednesday after the Federal Reserve raised rates by 25 basis points, as was widely expected, citing still elevated inflation. Interest-rate sensitive two-year yields fell to 4.883%, from around 4.910% before the statement. Benchmark 10-year yields fell to 3.881%, from around 3.900%.
Commodities Recap
Gold prices extended gains on Wednesday, helped by a weaker dollar and bond yields after the U.S. Federal Reserve delivered a widely expected interest-rate hike and investors digested comments from Chair Jerome Powell.
Spot gold was up 0.5% at $1,974.09 per ounce by 03:21 p.m. EDT (1921 GMT). U.S. gold futures settled 0.3% higher at $1,970.10.
Oil prices fell about 1% on Wednesday, after data showed U.S. crude inventories fell less than expected and the Federal Reserve raised interest rates by a quarter of a percentage point.
Brent crude futures closed down 72 cents, or 0.9%, at $82.92 a barrel, while U.S. West Texas Intermediate (WTI) crude settled at $78.78, down 85 cents, or 1.1%.
Both benchmarks fell by more than $1 earlier in the session, after hitting three-month highs on Tuesday.