Posted at 12 August 2023 / Categories Market Roundups
Market Roundup
•Producer prices increase 0.3% in July
•PPI rises 0.8% year-on-year on base effects
•Consumer sentiment little changed in August
•US indexes: Dow up 0.3%, S&P down 0.11%, Nasdaq down 0.56%
•US Jul PPI (MoM) 0.3%, 0.2% forecast,0.1% previous
•US Jul PPI (YoY) 0.8%, 0.7% forecast, 0.1% previous
•US Jul Core PPI (MoM) 0.3%, 0.2% forecast, 0.1% previous
•US Jul Core PPI (YoY) 2.4% ,2.3% forecast, 2.4% previous
•US Jul PPI ex. Food/Energy/Transport (MoM) 0.2% ,0.1% forecast,0.1% previous
•US PPI ex. Food/Energy/Transport (YoY) 2.7% ,2.6% previous
•US Aug Michigan 5-Year Inflation Expectations 2.9% ,3.0% forecast,3.0% previous
•US Aug Michigan Inflation Expectations 3.3%, 3.8% forecast,3.4% previous
•US Aug Michigan Consumer Sentiment 71.2 ,71.0 forecast,71.6 previous
•US Michigan Consumer Expectations 67.3 ,68.1 forecast,68.3 previous
•US Aug Michigan Current Conditions 77.4 ,76.9 forecast,76.6 previous
•U.S. Baker Hughes Oil Rig Count 525 ,525 previous
•U.S. Baker Hughes Total Rig Count 654 ,659 previous
Looking Ahead Economic Data(GMT)
•No data Ahead
Looking Ahead Events And Other Release(GMT)
• No Events Ahead
Currency Summaries
EUR/USD: The euro dipped against dollar on Friday after as hotter-than-expected U.S. producer prices data pushed dollar higher. U.S. producer prices increased slightly more than expected in July as the cost of services rebounded at the fastest pace in nearly a year, but the trend remained consistent with a moderation in inflationary pressures.The report from the Labor Department on Friday also showed goods prices outside food and energy were unchanged last month, indicating that the recent goods disinflation was becoming entrenched. Underlying producer prices also rose moderately. Immediate resistance can be seen at 1.0992(38.2%fib), an upside break can trigger rise towards 1.1068(23.6%fib).On the downside, immediate support is seen at 1.0926(50%fib), a break below could take the pair towards 1.0867(61.8%fib).
GBP/USD: The pound edged higher on Friday after data showed the British economy grew more than expected in June, which boosted sterling slightly against the dollar.British economic output grew by 0.5% in June, figures from the Office for National Statistics showed on Friday, above expectations in a Reuters poll of economists which had forecast growth of 0.2%.The stronger than expected showing helped to justify bets that the Bank of England will keep on raising interest rates, given the central bank stressed this month that resilience in the economy was one of the factors that would underpin its judgement. Immediate resistance can be seen at 1.2730(5DMA), an upside break can trigger rise towards 1.2784(23.6%fib).On the downside, immediate support is seen at 1.2662(38.2%fib), a break below could take the pair towards 1.2611(Lower BB).
USD/CAD: The Canadian dollar weakened on Friday as dollar strengthened after a slightly bigger increase in U.S. producer prices in July lifted greenback even as speculation grows that the Federal Reserve is at the end of hiking interest rates. The PPI for final demand rose 0.3%, the Labor Department said, as data for June was revised lower to show the PPI unchanged, instead of rising by a previously reported 0.1%.In the 12 months through July, the PPI rose 0.8% after a 0.2% gain the prior month. The PPI was forecast to climb 0.2% on the month and advance 0.7% year-over-year, a poll of economists showed. The loonie was trading lower at C$1.3437 to the greenback , after trading in a range of 1.3378 to 1.3449. Immediate resistance can be seen at 1.3454 (23.6%fib), an upside break can trigger rise towards 1.3499(Aug 8th high).On the downside, immediate support is seen at 1.3418 (5DMA), a break below could take the pair towards 1.3383(38.2%fib)
USD/JPY: The U.S. dollar strengthend against Japanese yen on Friday after data showed U.S. producer prices increased in July. The U.S. producer price index (PPI) for final demand rose 0.3% in July, according to the Labor Department. This compared with economist expectations for 0.2%. And in the 12 months through July, the PPI rose 0.8% against estimates for 0.7%. A survey also showed U.S. consumer sentiment climbing to the highest level in nearly two years in July with calming inflation and a strong labor market boosting consumers.The stronger dollar led the yen to briefly touch 145.03 in late afternoon trade, its highest since June 30.The dollar was last at 144.95 yen, up 0.15% on the day. Immediate resistance can be seen at 145.09(30th June high) an upside break can trigger rise towards 145.66(23.6%fib).On the downside, immediate support is seen 143.84(5DMA), a break below could take the pair towards 143.17(38.2%fib)
Equities Recap
European shares fell on Friday as concerns that global interest rates could stay elevated for longer took centre stage, while UBS shares jumped after the Swiss lender ended a state guarantee granted for its takeover of Credit Suisse.
UK's benchmark FTSE 100 closed down by 1.24 percent, Germany's Dax ended down by 1.03 percent, France’s CAC finished the day down by 1.26 percent.
The S&P 500 and the Nasdaq Composite fell on Friday and posted their second straight weekly losses, as hotter-than-expected U.S. producer prices data pushed Treasury yields higher and sank rate-sensitive megacap growth stocks..
Dow Jones closed up by 0.30% percent, S&P 500 closed by 0.11% percent, Nasdaq settled down by 0.56% percent.
Treasuries Recap
Benchmark 10-year notes were up 8.4 basis points at 4.166%, from 4.082% late on Thursday. The 30-year bond was last up 3.9 basis points to yield 4.2717%. The 2-year note was last up 7.6 basis points to yield 4.8968%.
Commodities Recap
Gold prices on Friday were on track for their worst week in seven, hurt by an overall stronger dollar and elevated bond yields as investors digested the latest U.S. inflation numbers and awaited for more economic data later in the day.
Spot gold rose 0.3% to $1,917.73 per ounce by 1037 GMT, after touching its lowest level since July 7 earlier. U.S. gold futures edged up 0.1% to $1,950.20.
Oil prices edged higher on Friday after the International Energy Agency forecast record global demand and tightening supplies, propelling prices to the seventh straight week of gains, the longest such streak since 2022.
Brent crude futures rose 41 cents, or 0.5%, to settle $86.81 a barrel, while U.S. West Texas Intermediate (WTI) crude futures gained 37 cents, or 0.5%, to settle at $83.19. On a weekly basis, both benchmarks rose about 0.5%.