Posted at 02 August 2023 / Categories Market Roundups
Market Roundup
•Swiss SECO Consumer Climate (Q3)-8, -13 previous
•Spanish Unemployment Change-11.0K , -38.2K forecast,-50.3K previous
•German Jul Car Registration (YoY) 32.40%, 48.70% previous
Looking Ahead Economic Data(GMT)
•12:15 US Jul ADP Nonfarm Employment Change 189K forecast,497K previous
•14:30 US Crude Oil Inventories -1.367M forecast,-0.600M previous
•14:30 US Cushing Crude Oil Inventories -2.494M forecast, -2.609M previous
•14:30 US Distillate Fuel Production -0.005M forecast,-0.251M previous
•14:30 US Gasoline Production -0.049M forecast,-0.035M previous
•14:30 US Cushing Crude Oil Inventories-2.494M forecast,-2.609M previous
•14:30 US Crude Oil Inventories -1.367M forecast,-0.600M previous
Looking Ahead Events And Other Releases(GMT)
•No Events Ahead
Currency Forecast
EUR/USD: The euro eased on Wednesday as dollar also found some support from Tuesday's economic data that showed U.S. job openings remained at levels consistent with a tight labour market, even as they fell to the lowest level in more than two years in June.A separate report suggested U.S. manufacturing might be stabilising at weaker levels. The dollar index , which tracks the currency against six peers, stood 0.23% higher at 102.24, just shy of Tuesday's three-week high of 102.43. The euro was down 0.1% against the dollar at $1.098. Immediate resistance can be seen at 1.1014(23.6%fib), an upside break can trigger rise towards 1.1030(Higher BB).On the downside, immediate support is seen at 1.0950(5DMA), a break below could take the pair towards 1.0912( (38.2%fib).
GBP/USD: Sterling was little changed against the dollar on Wednesday ahead of a key Bank of England (BoE) meeting on Thursday, with investors split on the size of the central bank rate increase after 13 back-to-back hikes. After a surprise 50 basis point (bps) hike in June, money markets are pricing in a 63% chance of a 25 bps rate increase by the BoE to a 15-year high of 5.25%. They see a 37% probability of a larger 50 bps increase on Thursday. The pound was flat against the dollar at $1.2782, after touching a three-week low against the greenback on Tuesday.Immediate resistance can be seen at 1.2842(Daily high), an upside break can trigger rise towards 1.2868(23.6%fib).On the downside, immediate support is seen at 1.2761(38.2%fib), a break below could take the pair towards 1.2669(50%fib).
USD/CHF: The dollar strengthened against the Swiss franc on Wedneday as investors looked forward to more U.S. economic data this week that could influence the Federal Reserve's policy stance. The focus remains on Friday’s non-farm payrolls report for July, a key barometer of the health of the U.S. economy. Chicago Federal Reserve President Austan Goolsbee on Monday said the central bank was walking the line pretty wellon bringing inflation down without causing a recession and will watch the data to judge if more monetary tightening may be appropriate in September. Immediate resistance can be seen at 0.8790(Daily high), an upside break can trigger rise towards 0.8810(38.2%fib).On the downside, immediate support is seen at 0.8689(38.2%fib), a break below could take the pair towards 0.8662(9DMA).
USD/JPY: The U.S. dollar edged lower against Japanese yen on Wednesday as traders still assessing the implications of the BOJ's move on Friday to loosen its grip on interest rates.Deputy governor Shinichi Uchida said on Wednesday the central bank's decision was aimed at making its massive stimulus more sustainable and was not a prelude to an exit from ultra-low interest rates. Uchida said there was still a long way to go before conditions fall in place for the BOJ to raise its short-term interest rate target from the current -0.1%.He added the BOJ stood ready to step in to stem sharp rises in long-term interest rates, even before the 10-year bond yield hits the newly set 1.0% cap. Strong resistance can be seen at 143.72(23.6%fib) an upside break can trigger rise towards 144.00(Psychological level).On the downside, immediate support is seen 142.39(Daily low), a break below could take the pair towards 141.64(38.2%fib)
Equities Recap
European shares tumbled to two-week lows on Wednesday, dragged by broad-based losses, as investors fled riskier assets after a surprise downgrade on U.S. credit rating by Fitch.
At (GMT 12:21` ),UK's benchmark FTSE 100 was last trading down at 0.93 percent, Germany's Dax was down by 0.90 percent, France’s CAC was down by 0.57 percent.
Commodities Recap
Gold prices gained on Wednesday, helped by some safe-haven bids after Fitch downgraded the United States’ top credit rating, but an uptick in the dollar capped bullion’s gains.
Spot gold was up 0.5% to $1,952.79 per ounce at 1133 GMT, while U.S. gold futures rose 0.6% to $1,989.90.
Oil prices surged on Wednesday, trading near their highest levels since April, buoyed by crude and fuel product inventory data showing robust U.S. demand.
Brent crude futures for October were up 44 cents, or 0.5%, to $85.35 a barrel by 0949 GMT. U.S. West Texas Intermediate crude for September climbed 48 cents, or 0.6%, to $81.85 a barrel.