Posted at 09 August 2023 / Categories Market Roundups
Market Roundup
•UK 10-Year Treasury Gilt Auction 4.350%, 4.595% previous
•German 10-Year Bund Auction 2.460% , 2.640% previous
•Portuguese Unemployment Rate (Q2) 6.1%, 7.2% previous
• Portuguese Jun Trade Balance -6.84B ,-6.82B previous
Looking Ahead Economic Data(GMT)
•14:30 US Cushing Crude Oil Inventories -1.783M forecast,-1.259M previous
•14:30 US EIA Weekly Refinery Utilization Rates (WoW) -0.7% previous
•14:30 US Gasoline Production -0.056M forecast, 0.341M previous
•14:30 US Distillate Fuel Production 0.000M forecast, 0.080M previous
•14:30 US EIA Refinery Crude Runs (WoW) 0.039M previous
•14:30 US Heating Oil Stockpiles 0.361M forecast, 0.230M previous
•14:30 US EIA Weekly Distillates Stocks 0.006M forecast ,-0.796M previous
•14:30 US Gasoline Inventories -0.008M forecast , 1.480M previous
•14:30 US Crude Oil Inventories 0.567M forecast , -17.049M previous
Looking Ahead Events And Other Releases(GMT)
•No data Ahead
EUR/USD: The euro dipped against dollar on Wednesday as investors sought the safety of the currency amid risks from a floundering Chinese economy and downgrades for U.S. banks. Worries about the global economy flared again after data on Tuesday showed Chinese imports and exports contracting faster than expected in July. Concerns about U.S. banks added to the risk-averse sentiment, after Moody’s cut credit ratings of several small to mid-sized U.S. banks and said it may downgrade some of the nation’s biggest lenders The U.S. dollar was firm despite some more dovish signals coming from Federal Reserve officials overnight, with Philadelphia Fed President Patrick Harker suggesting interest rates are high enough already, echoing the view of Atlanta Fed President Raphael Bostic. Immediate resistance can be seen at 1.0979(5DMA), an upside break can trigger rise towards 1.1010(23.6%fib).On the downside, immediate support is seen at 1.0941(38.2%fib), a break below could take the pair towards 1.0855( (50%fib).
GBP/USD: Sterling fell against the U.S. dollar on Wednesday as traders stayed cautious on the currency and focused on the weak UK economy. Surging interest rate expectations were tempered after British inflation fell more than expected in June. Bank of England (BoE) raised interest rates for the 14th time since late 2021 to try to calm inflation. Traders are predicting around a 60% chance of a 25 basis point hike from the BoE at its next meeting on Sept. 21, and around a 40% chance of no change. At 1103 GMT, the pound was down 0.1% against the dollar at $1.2737 and 0.3% lower against the euro at 86.21 pence . Immediate resistance can be seen at 1.2741(5DMA), an upside break can trigger rise towards 1.2821(23.6%fib).On the downside, immediate support is seen at 1.2684(38.2%fib), a break below could take the pair towards 1.2607(Lower BB).
USD/CHF: The dollar steadied against the Swiss franc on Wednesday as dollar regained some footing, with investors awaiting U.S. inflation numbers due this week for clarity on whether more rate hikes are on the table. A hotter-than-expected CPI number on Thursday could raise the possibility of another rate hike when Fed officials meet again in September. Economists expect data on Thursday to show that the annual rate of U.S. core inflation in July was unchanged from the previous month at 4.8%, while headline inflation picked up slightly to 3.3%. Immediate resistance can be seen at 0.8815(Higher BB), an upside break can trigger rise towards 0.8838(38.2%fib).On the downside, immediate support is seen at 0.8742(5DMA), a break below could take the pair towards 0.8713(23.6%fib).
USD/JPY: The U.S. dollar strengthened against Japanese yen on Wednesday as focus shifted to U.S. inflation data due on Thursday, with investors looking to see if the Federal Reserve will pause its monetary tightening cycle this year. All eyes will be on U.S. consumer price index data due on Thursday. U.S. inflation likely accelerated slightly in July to an annual 3.3%, while the core rate was likely unchanged at 4.8%, according to a poll of economists. While, Philadelphia Fed President Patrick Harker said U.S. central bank may be at the stage where it can leave interest rates where they are, barring any abrupt change in the direction of recent economic data. Strong resistance can be seen at 143.54(23.6%fib) an upside break can trigger rise towards 144.29(Higher BB).On the downside, immediate support is seen 142.69(5DMA), a break below could take the pair towards 141.42(38.2%fib)
Equities Recap
European shares hit a one-week high on Wednesday, with Italian lenders rebounding from previous session's sharp losses after the government eased its stance on a new banking tax.
At (GMT 12:46 ),UK's benchmark FTSE 100 was last trading up at 0.60 percent, Germany's Dax was down by 0.73 percent, France’s CAC was up by 0.85 percent.
Commodities Recap
Gold steadied on Wednesday, buoyed by weakness in the dollar, although caution prevailed in the run-up to U.S. inflation readings that could set the tone for future monetary policy.
Spot gold was up 0.1% at $1,925.85 per ounce by 1145 GMT, having dropped to its lowest since July 10 at $1,922 on Tuesday. U.S. gold futures remained mostly unchanged at $1,959.80.
Oil hit new peaks on Wednesday with Brent crude touching the highest since April as tighter supply owing to Saudi and Russian output cuts offset concerns over slow demand from China and a report showing rising U.S. crude inventories.
Brent crude was 54 cents, or 0.6%, higher at $86.71 by 1110 GMT having touched $87.09, the highest since April 13. U.S. West Texas Intermediate (WTI) crude gained 51 cents, or 0.6%, to $83.43. The U.S. benchmark touched $83.91, the highest since November 2022.