Posted at 16 August 2023 / Categories Market Roundups
Market Roundup
•Fed policymakers divided in July over need for more rate hikes
•S&P 500 -0.76%, Nasdaq -1.15%, Dow -0.52%
•US crude stockpiles fall by nearly 6 million barrels - EIA
•US Jul Housing Starts (MoM) 3.9%,2.7% forecast,-8.0% previous
•US Jul Housing Starts 1.452M,1.448M forecast,1.434M previous
•US Jul Building Permits (MoM) 0.1%,-1.7% forecast-3.7% previous
•US Jul Building Permits 1.442M, 1.463M forecast,1.441M previous
•Canada Jul Wholesale Sales (MoM) -2.8%,-4.2% forecast,3.5% previous
•US Jul Manufacturing Production (MoM) 0.5%,0.0% forecast,-0.3% previous
•US Jul Industrial Production (YoY) -0.23%, -0.10% forecast,-0.43%previous
•US Jul Capacity Utilization Rate 79.3%,79.1% forecast,78.9% previous
•US Jul Industrial Production (MoM) 1.0%,0.3% forecast,-0.5% previous
•US Cushing Crude Oil Inventories -0.837M,0.131M forecast,0.159M previous
• US Crude Oil Inventories -5.960M, -2.320M forecast, 5.851M previous
Looking Ahead Economic Data(GMT)
•23:50 Japan Jul Trade Balance 24.6B forecast, 43.0B previous
•23:50 Japan Jun Core Machinery Orders (MoM) 3.6% forecast, -7.6% previous
•23:50 Japan Jul Imports (YoY) -14.7% forecast,-12.9% previous
•23:50 Japan Jul Exports (YoY) -0.8% forecast,1.5% previous
•23:50 Japan Foreign Bonds Buying 438.8B revious
•23:50 Japan Foreign Investments in Japanese Stocks -59.4B previous
•23:50 Japan Adjusted Trade Balance -0.66T forecast,-0.55T previous
•01:30 Australia Jul Reserve Assets Total 90,462.0M previous
•01:30 Australia Jul Employment Change 15.0K forecast,32.6K previous
•01:30 Australia Jul Unemployment Rate 3.6% forecast, 3.5% previous
•01:30 Australia Jul Full Employment Change 39.3K previous
•01:30 Australia Jul Participation Rate 66.8% forecast, 66.8% previous
•04:30 Japan Jun Tertiary Industry Activity Index -0.60 previous
•04:30 Japan Tertiary Industry Activity Index (MoM)-0.2% forecast,1.2% previous
Looking Ahead Events And Other Releases(GMT)
•No significant events
Currency Summaries
EUR/USD: The euro dipped against dollar on Wednesday after the Federal Reserve's July meeting minutes. Federal Reserve’s July meeting showed that Fed officials were divided over the need for more interest rate hikes, though most policymakers continued to prioritize the battle against inflation. The next Fed focus will be the Federal Reserve Bank of Kansas City’s annual symposium in Jackson Hole, Wyo., between Aug. 24 and Aug. 26. The Fed’s Sept. 19-20 meeting will also give new interest rate clues as Fed officials will update their interest rate projections for the coming quarters. The euro was down 0.22% to $1.0879. Immediate resistance can be seen at 1.0928(5DMA), an upside break can trigger rise towards 1.0956(38.2%fib).On the downside, immediate support is seen at 1.0877(23.6%fib), a break below could take the pair towards 1.0831(Lower BB).
GBP/USD: The British pound strengthened against dollar on Wednesday as the latest UK inflation numbers reinforced bets that the Bank of England will likely hike interest rates again. Consumer price inflation slowed to 6.8% in July. But core inflation, which strips out volatile food and energy prices, remained at 6.9% in July, flat versus the June reading, and higher than economist expectations for a reading of 6.8%.Services inflation picked up to 7.4% from 7.2% in June. Sterling surged 0.30% against the dollar to $1.2730, after hitting an almost one-week high of $1.2767 and was set for its biggest one-day jump since July 28. Immediate resistance can be seen at 1.2773(38.2%fib), an upside break can trigger rise towards 1.2784(21DMA).On the downside, immediate support is seen at 1.2665(38.2%fib), a break below could take the pair towards 1.2628(Lower BB).
USD/CAD: The Canadian dollar weakened to its lowest level in more than two months against its U.S. counterpart on Wednesday as the recent jump in long-term borrowing costs weighed on investor sentiment. A combination of sticky inflation and robust economic growth, particularly in the United States, has fanned fears of interest rates staying higher for longer. Canadian housing starts slipped by 10% in July compared with the previous month, which had produced the strongest figures in 10 years. Separate domestic data showed that wholesale trade fell by 2.8% in June from May.The loonie was trading 0.2% lower at 1.3525 to the greenback, or 73.94 U.S. cents, after touching its weakest intraday level since June 1 at 1.3539. 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 extended gains against Japanese yen on Wednesday after the Federal Reserve's July meeting minutes. Federal Reserve officials were divided over the need for more interest rate hikes at the U.S. central bank's July 25-26 meeting, with some participants citing the risks to the economy of pushing rates too far even as most" policymakers continued to prioritize the battle against inflation, according to minutes of the session that were released on Wednesday. Earlier in the day, fresh economic data continued to point to persistent strength in the U.S. economy, with single-family homebuilding jumping in July and industrial output growing more than expected. That followed stronger-than-expected retail sales data on Tuesday. Strong resistance can be seen at 146.30(Daily high) an upside break can trigger rise towards 146.86(Higher BB).On the downside, immediate support is seen 145.37(5DMA), a break below could take the pair towards 143.97(38.2%fib)
Equities Recap
European shares fell on Wednesday on a drag from banks, as increasing evidence of China's economy rapidly losing steam kept investors on the edge, while UK stocks came under pressure from rising worries over sticky inflation.
UK's benchmark FTSE 100 closed down by 0.44 percent, Germany's Dax ended up by 0.14 percent, France’s CAC finished the day down by 0. 10 percent.
Wall Street was lower on Wednesday after the release of the Federal Reserve's minutes showed central bank officials were divided over the need for more interest rate hikes at their last meeting.
Dow Jones closed down by 0.`52 percent, S&P 500 ended down by 0.76 percent, Nasdaq finished the day down by 1.15 percent.
Treasuries Recap
Benchmark 10-year U.S. Treasury yields hit a 10-month high on Wednesday after minutes from the Federal Reserve’s July meeting showed that Fed officials were divided over the need for more interest rate hikes, though “most” policymakers continued to prioritize the battle against inflation.
Benchmark 10-year yields reached 4.280%, the highest since Oct. 24. A break above the 4.338% level reached in October would bring yields to their highest since 2007.
Commodities Recap
Gold prices eased on Wednesday as the dollar ticked higher, while minutes from the Federal Reserve’s July policy meeting highlighted that policymakers remained divided over the need for more rate hikes
Spot gold dipped 0.2% at $1,897.00 per ounce by 2:15 p.m. EDT (1815 GMT), while U.S. gold futures settled 0.4% lower at $1,928.30.
Oil prices settled lower on Wednesday despite a large drawdown in U.S. crude stocks as investors weighed worries about China's embattled economy against expectations of tighter supply in the United States.
Brent crude futures fell $1.44, or 1.7%, to settle at $83.45 a barrel while U.S. West Texas Intermediate crude (WTI) fell $1.61, or 2%, to $79.38.