Posted at 09 August 2023 / Categories Market Roundups
Market Roundup
•Canada Jun Building Permits (MoM) 6.1%,-3.5% forecast, 10.5% previous
•US Cushing Crude Oil Inventories 0.159M ,-1.783M forecast,-1.259M previous
•US EIA Weekly Refinery Utilization Rates (WoW) -0.7% previous
•US Gasoline Production 0.092M,-0.056M forecast, 0.341M previous
•US Distillate Fuel Production 0.050M,0.000M forecast, 0.080M previous
•US EIA Refinery Crude Runs (WoW) 0.062M,0.039M previous
•US Heating Oil Stockpiles 0.166M,0.361M forecast, 0.230M previous
•US EIA Weekly Distillates Stocks -1.706M,0.006M forecast ,-0.796M previous
•US Gasoline Inventories -2.661M,-0.008M forecast , 1.480M previous
•US Crude Oil Inventories 5.851M, 0.567M forecast , -17.049M previous
Looking ahead Economic Data(GMT)
•23:30 Japan Jul PPI (MoM) 0.2% forecast ,-0.2% previous
•23:30 Japan Jul PPI (YoY) 3.5% forecast ,4.1% previous
•23:30 Japan Jun Large Scale Retail Sales YoY (YoY) 4.0% previous
•23:30 Japan Foreign Bonds Buying 208.9B previous
•23:30 Japan Foreign Investments in Japanese Stocks 196.0B previous
•01:00 Australia MI Inflation Expectations 5.2% previous
Looking Ahead Events And Other Releases(GMT)
•No Events Ahead
Currency Summaries
EUR/USD: The euro edged higher against dollar on Wednesday but gains were limited as investors waited for release of key U.S. inflation data that could influence Federal Reserve interest rate decisions. U.S. consumer price index (CPI) data, due on Thursday, is expected to show inflation slightly accelerated in July to an annual 3.3%.Most traders expect no change from the Fed at its policy meeting in September. There is just a 13.5% chance of a quarter-point rise, according to the CME’s FedWatch Tool. The dollar index , which measures the performance of the U.S. currency against six others, slipped 0.1% to 102.46, partly reversing Tuesday's rise.The euro gained 0.2% to $1.0976. Immediate resistance can be seen at 1.0978(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. The pound was last down 0.2% against the dollar at $1.2717. 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/CAD: The Canadian dollar was little changed against dollar on Wednesday as caution prevailed in the run-up to U.S. inflation readings that could set the tone for future monetary policy . U.S. consumer price index (CPI) data, due on Thursday, is expected to show inflation slightly accelerated in July to an annual 3.3%.Most traders expect no change from the Fed at its policy meeting in September. There is just a 13.5% chance of a quarter-point rise, according to the CME’s FedWatch Tool.The loonie was trading flat at C$1.3420 to the greenback , after trading in a range of 1.3407 to 1.3456. Immediate resistance can be seen at 1.3452 (Daily high), an upside break can trigger rise towards 1.3471(23.6%fib).On the downside, immediate support is seen at 1.3404 (38.2%fib), a break below could take the pair towards 1.3361(5 DMA).
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 on a boost from energy stocks and as Italian lenders rebounded from the previous session's sharp losses after the government eased its stance on the windfall tax on banks.
UK's benchmark FTSE 100 closed up by 0.80percent, Germany's Dax ended up by 0.49 percent, France’s CAC finished the day up by 0. 72 percent.
U.S. stocks closed lower on Wednesday, the day after a report showed Americans borrowed more than ever on their credit cards in the last quarter, and a day ahead of U.S. Consumer Price Index (CPI) inflation data that could influence Federal Reserve interest rate decisions.
Dow Jones closed down by 0.54 percent, S&P 500 ended down by 0.74 percent, Nasdaq finished the day up by 1.17 percent.
Treasuries Recap
U.S. Treasury yields dipped on Wednesday in chopping trading before the U.S. Treasury Department sells $38 billion in 10-year notes, testing demand for the debt after a sharp increase in yields last week.
Benchmark 10-year yields fell one basis point to 4.012%. They reached 4.206% on Friday, their highest since Nov. 8.
Two-year yields also dipped one basis point to 4.751%. The yields have fallen from 5.120% on July 6, which was the highest since June 2007.
Commodities Recap
Gold prices slipped on Wednesday as investors stayed on the sidelines ahead of key U.S. inflation data that could offer more cues on the Federal Reserve’s stance on monetary policy.
Spot gold was down 0.5% at $1,915.98 per ounce by 1:57 p.m. ET (1757 GMT), lowest since July 10. U.S. gold futures settled 0.5% lower at $1,950.60 per ounce.
Oil prices hit new peaks on Wednesday with the global Brent benchmark touching its highest since January after a steep drawdown in U.S. fuel stockpiles and Saudi and Russian output cuts offset concerns about slow demand from China.
Brent crude settled $1.38, or 1.6%, higher at $87.55 a barrel, its highest since Jan. 27.West Texas Intermediate crude (WTI) closed $1.48, or 1.8%, higher at $84.40, at its highest since November 2022.