Posted at 14 August 2023 / Categories Market Roundups
Market Roundup
•French 3-Month BTF Auction 3.627%,3.617% previous
•French 6-Month BTF Auction3.637%, 3.585% previous
•French 12-Month BTF Auction3.657%, 3.574% previous
•Canada BoC Senior Loan Officer Survey (Q2) 7.6,11.3 previous
•US Consumer Inflation Expectations 3.5%, 3.8% previous
•US 3-Month Bill Auction 5.295%, 5.290% previous
•US 6-Month Bill Auction 5.290%, 5.265% previous
Looking Ahead Economic Data(GMT)
•23:50 Japan GDP Capital Expenditure (QoQ) (Q2) 0.4%1.4% previous
•23:50 Japan GDP External Demand (QoQ) (Q2) 0.9% forecast,-0.3% previous
•23:50 Japan GDP Private Consumption (QoQ) (Q2) 0.1% forecast,0.5% previous
•23:50 Japan GDP (QoQ) (Q2) 0.8% forecast,0.7% previous
•01:30 Australia Wage Price Index (QoQ) (Q2) 1.0% forecast, 0.8% previous
•01:30 Australia Wage Price Index (YoY) (Q2) 3.8% forecast,3.7% previous
•02:00 China Jul Chinese Industrial Production YTD (YoY) 3.8% previous
•02:00 China Jul Chinese Retail Sales YTD (YoY) 8.15% previous
•02:00 China Jul Retail Sales (YoY) 4.8% forecast,3.1% previous
•02:00 China Jul Fixed Asset Investment (YoY) 3.8% forecast,3.8% previous
•02:00 China Jul Industrial Production (YoY) 4.5% forecast,4.4% previous
Looking Ahead Events And Other Releases(GMT)
• 01:30 Australia RBA Meeting Minutes
Currency Summaries
EUR/USD: The euro declined on Monday as investors sought a safe haven dollar on concerns about China's economy. Investors have been buying the safe-haven dollar over concerns about the health of the global economy, particularly China. Economic data could move currencies later in the week. Investors will scrutinise Chinese industrial output and consumer spending data on Tuesday, before minutes from the latest U.S. Federal Reserve meeting on Wednesday. A bunch of economic data from Eurozone is also slated for this week, including a flash estimate of euro-zone second-quarter GDP data, fresh euro-zone inflation data and British consumer prices data. Immediate resistance can be seen at 1.0946(38.2%fib), an upside break can trigger rise towards 1.0967 (9DMA).On the downside, immediate support is seen at 1.0906(Daily low), a break below could take the pair towards 1.0892(50%fib).
GBP/USD: The pound ticked a fraction higher against the dollar on Monday as traders stayed focused on key data due this week for hints on the Bank of England’s future interest rate hike trajectory. Figures on Friday from the Office for National Statistics showed British economic output growing by 0.5% in June, above expectations of economists in a poll for 0.2% growth. Traders are now awaiting wage and employment data due at 0600 GMT on Tuesday for more direction on the central bank’s next move. At 1100 GMT, sterling was up 0.07% against the dollar at $1.2706. The euro fell against the pound, dropping 0.05%. Immediate resistance can be seen at 1.2730(5DMA), an upside break can trigger rise towards 1.2765(23.6%fib).On the downside, immediate support is seen at 1.2639(38.2%fib), a break below could take the pair towards 1.2604(Lower BB).
USD/CAD: The loonie weakened against its US counterpart on Monday as lower oil prices and stronger dollar weighed on commodity linked currency. Investors bought the dollar as shelter from concerns about the health of the global economy, particularly China. Oil prices were down on Monday also on China worries, as concerns about the nation's ability to bounce back to pre-pandemic levels outweighed gains previously posted on tighter supply. The loonie was trading 0.1% lower at C$1.3457 to the greenback, after trading in a range of 1.3434 to 1.3469. Immediate resistance can be seen at 1.3484 (23.6%fib), an upside break can trigger rise towards 1.3519(Higher BB).On the downside, immediate support is seen at 1.3445 (5DMA), a break below could take the pair towards 1.3410 (38.2%fib).
USD/JPY: The U.S. dollar strengthened against Japanese yen on Monday to hit highest level against the yen since November, breaching the key 145 mark before regaining ground as traders looked for clues of possible intervention. The Bank of Japan has stuck to its ultra-loose monetary policy as other global central banks hiked interest rates, making returns in other countries look more attractive and weighing heavily on the yen.Japan intervened in currency markets last September when the dollar rose past 145 yen, prompting the Ministry of Finance (MOF) to buy the yen and push the pair back to around 140 yen. The yen is down nearly 10% against the dollar for the year. Strong resistance can be seen at 145.29(Daily high) an upside break can trigger rise towards 145.68(23.6%fib).On the downside, immediate support is seen 144.61(38.2%fib), a break below could take the pair towards 144.44(5DMA)
Equities Recap
European shares closed higher on Monday, rebounding from a near one-week low, as gains in retail and healthcare outpaced the fall in miners and energy, both bruised by concerns over China's embattled property sector.
UK's benchmark FTSE 100 closed down by 0.51 percent, Germany's Dax ended up by 0.26 percent, France’s CAC finished the day down by 0. 11 percent.
The S&P 500 and the Nasdaq closed higher on Monday as shares of chipmaker Nvidia surged following a bullish note from Morgan Stanley, leading gains in other megacap growth stocks.
Dow Jones closed up by 0.`30percent, S&P 500 ended down by 0.11 percent, Nasdaq finished the day down by 0.56 percent.
Commodities Recap
Gold prices fell to a more than one-month low on Monday as a stronger dollar took the shine off bullion, while investors awaited fresh catalysts to gauge the downside after mixed U.S. inflation numbers last week.
Spot gold was down 0.3% at $1,907.40 per ounce by 02:47 p.m. EDT (1847 GMT), after hitting its lowest since July 6. U.S. gold futures settled 0.1% lower at $1,944.00.
Oil prices finished down on Monday on worries about China's faltering economic recovery and a stronger dollar were taking the momentum out of seven weeks of gains on tight supply.
U.S. West Texas Intermediate crude settled down 68 cents, or 0.82%, at $82.51 a barrel. Brent crude futures finished at $86.21 a barrel, down 60 cents, or 0.69%.