Posted at 02 August 2023 / Categories Market Roundups
Market Roundup
•U.S. private payrolls beat expectations in July, ADP says
• US Indexes down: Dow 0.98%, S&P 1.38%, Nasdaq 2.17%
•US Jul ADP Nonfarm Employment Change 324K, 189K forecast,497K previous
•US Gasoline Inventories 1.480M,-1.300M forecast,-0.786M previous
•US Distillate Fuel Production 0.080M, -0.005M forecast,-0.251M previous
•US Gasoline Production -1.259M,-0.049M forecast,-0.035M previous
•US Cushing Crude Oil Inventories -1.259M,-2.494M forecast,-2.609M previous
• US Crude Oil Inventories -17.049M,-1.367M forecast,-0.600M previous
Looking Ahead Economic Data(GMT)
•23:30 Japan Jun Large Scale Retail Sales YoY (YoY) 4.0% previous
•23:30Japan Foreign Bonds Buying -973.8B previous
•23:30 Japan Foreign Investments in Japanese Stocks 101.0B previous
•00:30 Japan Jul Services PMI 53.9 forecast, 53.9 previous
•01:00 New Zealand ANZ Commodity Price Index (MoM) -2.3% forecast,-2.3% previous
•01:30 Australia Jun Imports (MoM) 2.0% previous
•01:30 Australia Retail Sales (QoQ) (Q2) -1.8% forecast,-0.6% previous
•01:30 Australia Jun Exports (MoM) 4.0% previous
•01:30 Australia Jun Trade Balance 11.250B forecast,11.791B previous
•01:45 China Jul Caixin Services PMI 52.5 forecast, 53.9 previous
Looking Ahead Events And Other Releasres(GMT)
•No Events Ahead
Currency Summaries
EUR/USD: The euro eased on Wednesday as dollar also found some support after data showed U.S. private payrolls increased more than expected in July. U.S. private payrolls rose by 324,000 jobs last month, the ADP National Employment Report showed, well above the increase of 189,000 that economists polled had forecast.The Federal Reserve raised interest rates by 25 basis points last week. According to the CME’s FedWatch Tool, the probability that the U.S. central bank would leave rates unchanged at its Sept. 19-20 meeting was at 83%. The euro was down 0.37% to $1.0941. Immediate resistance can be seen at 1.0977(5DMA), an upside break can trigger rise towards 1.1020(23.6%fib).On the downside, immediate support is seen at 1.0926(38.2%fib), a break below could take the pair towards 1.0850( (50%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/CAD: The Canadian dollar weakened to a near four-week low against its U.S. counterpart on Wednesday as Fitch's move to downgrade the U.S. government's credit rating sparked a selloff in risk-sensitive currencies. U.S. dollar rose against a basket of major currencies as Fitch downgraded the United States to AA+ from AAA. Data showing a larger-than-expected increase in U.S. private payrolls in July added to support for the greenback. Canada is a major producer of commodities, including oil, so it tends to be sensitive to risk appetite. Oil gave back some recent gains, settling 2.3% lower at $79.49 a barrel. The Canadian dollar was last trading 0.5% lower at 1.3342 to the greenback . Immediate resistance can be seen at 1.3367 (23.6%fib), an upside break can trigger rise towards 1.2950 (Ichimoku Cloud base).On the downside, immediate support is seen at 1.3311(38.2%fib), a break below could take the pair towards 1.3281 (5 DMA).
USD/JPY: The U.S. dollar initially dipped against Japanese yen on Wednesday but recovered ground as investors shrugged off Fitch's U.S. credit rating downgrade while data showing a larger-than-expected increase in private payrolls in July bolstered the greenback as it points to labor market resilience.Private payrolls rose by 324,000 jobs last month, the ADP National Employment report showed, more than an increase of 189,000 that economists polled had forecast.The U.S. labor market is gradually slowing after the Federal Reserve's hiking of interest rates by 525 basis points since March 2022. But the economy remains strong, as indicated by the Atlanta Fed's GDPNow running estimate of real GDP growth for the third quarter at 3.9%. 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, with broad-based losses as investors fled riskier assets after a surprise downgrade of the U.S. credit rating by Fitch.
UK's benchmark FTSE 100 closed down by 1.36 percent, Germany's Dax ended down by 1.36 percent, France’s CAC finished the day up by 1.26 percent.
Wall Street finished lower on Wednesday, with the S&P 500 and Nasdaq Composite down for a second straight day as investors took profits on five months of gains a day after rating agency Fitch cut the U.S. government's credit rating.
Dow Jones closed down by 0.98 percent, S&P 500 ended down by 1.38 percent, Nasdaq finished the day down by 2.17 percent.
Commodities Recap
Gold prices slipped on Wednesday as the dollar rose and bond yields strengthened after data showed U.S. private payrolls increased more than expected in July.
Spot gold was down 0.4% at $1,935.77 per ounce at 2:45 p.m. EDT (1845 GMT).U.S. gold futures settled 0.2% lower at $1,975.
Oil prices settled down 2% on Wednesday despite a historic drop in U.S. crude stocks, as traders derisk following the downgrade of the U.S. government's top credit by a major ratings agency.
U.S. crude futures settled down $1.88, or 2.3%, to $79.49 a barrel while Brent crude futures settled down $1.71, or 2%, to $83.20 a barrel.