Posted at 18 August 2023 / Categories Market Roundups
Market Roundup
•Canada Jul IPPI (YoY) -2.7%,-6.3% forecast ,-5.5% previous
•Canada Jul IPPI (MoM) 0.4%,-2.3% forecast ,-0.6% previous
•Canada Jul RMPI (MoM) 3.5%,0.0% forecast ,-1.5% previous
•Canada Jul RMPI (YoY) -11.1%,-19.2% forecast ,-19.7% previous
•U.S. Baker Hughes Oil Rig Count 520, 525 previous
•U.S. Baker Hughes Total Rig Count 642,654 previous
Looking Ahead Economic Data (GMT)
•No Data Ahead
Looking Ahead Events And Other Releeases (GMT)
•No Significant Events
Currency Summaries
EUR/USD: The euro dipped on Friday as concern over interest rates staying higher for longer globally and China's dwindling growth prospects hit investor sentiment. Meanwhile, data showed euro zone inflation slowed further and even underlying price pressures appeared to have peaked, easing pressure on the European Central Bank to keep raising rates after its fastest rate-hike cycle on record. The Federal Reserve's Jackson Hole meeting next week is the next major market focus. Traders are adjusting for the likelihood that the U.S. central bank will hold rates higher for longer as U.S. economic data remains solid and Fed officials focus on bringing inflation down closer to their 2% annual target. Immediate resistance can be seen at 1.0904(5DMA), an upside break can trigger rise towards 1.0915(23.6%fib).On the downside, immediate support is seen at 1.0850(38.2%fib), a break below could take the pair towards 1.0825(Lower BB).
GBP/USD: The pound softened on Friday as gloomy market sentiment sent investors to the safe haven of the U.S. dollar, and British retailers reported a bigger-than-expected drop in sales in July. Official data showed British sales volumes last month were 1.2% lower than in June, as heavy rain put off shoppers who are also feeling the hit from high inflation and 14 back-to-back increases in interest rates. Economists polled by Reuters had forecast a 0.5% drop. Recent British data, including GDP and wage numbers, has come in stronger than expected, driving market expectations for more Bank of England interest rate hikes.These signs of economic resilience at a time when inflation remains sticky mean markets are nearly pricing in a 6% peak for the UK benchmark rate, which currently stands at 5.25%. Immediate resistance can be seen at 1.2780(23.6%fib), an upside break can trigger rise towards 1.2832(30DMA).On the downside, immediate support is seen at 1.2692(38.2%fib), a break below could take the pair towards 1.2614(50%fib).
USD/CAD: The Canadian dollar was little changed against its U.S. counterpart on Friday, with the currency unable to claw back its weekly decline as the recent rise in global bond yields crimped investor sentiment. The price of oil, one of Canada’s major exports, was up 1% at $81.17 a barrel but was headed for a weekly decline as China’s economic woes eclipsed signs of tight supply.Domestic data showed producer prices grew by 0.4% in July from June, while the pace of annual decline slowed to 2.7% from 5.5%.The loonie was trading nearly unchanged at 1.3540 to the greenback, or 73.86 U.S. cents, after touching its weakest level since June 1 at 1.3574. For the week, the currency was down 0.8%, its fifth straight weekly decline .Immediate resistance can be seen at 1.3576 (38.2% fib), an upside break can trigger rise towards 1.3660 (23.6% fib).On the downside, immediate support is seen at 1.3529(5DMA), a break below could take the pair towards 1.350(38.2%fib).
USD/JPY: The dollar declined on Friday as investors grappled with the potential for longer-lasting high interest rates and a struggling Chinese economy . Minutes from the Federal Reserve's last meeting showed this week that most members of the rate-setting committee continued to see significant upside risks to inflation, suggesting a bias toward further rate increases.Strong economic data this week, particularly retail sales, had already bolstered the case for additional tightening. The U.S. dollar index , which measures the currency against six peers, edged 0.01% lower at 103.380, after touching a new two-month high of 103.680 earlier in the session. For the week, it is set to gain 0.5%. The yen was trading at 145.33 against the dollar, having been hammered this week to a nine-month low of 146.56 per dollar. Strong resistance can be seen at 146.00(Psychological level) an upside break can trigger rise towards 146.70(23.6%fib).On the downside, immediate support is seen 144.84(38.2%fib), a break below could take the pair towards 144.19(14DMA)
Equities Recap
European shares sank to their lowest level in six weeks on Friday, dragged down by financials and healthcare.
UK's benchmark FTSE 100 closed down by 0.65 percent, Germany's Dax ended down by 0.65 percent, France’s CAC finished the day down by 0. 38 percent.
Wall Street ended mixed Friday as investors awaited further interest rate insight from the Federal Reserve next week.
Dow Jones closed up by 0.07 percent, S&P 500 ended down by 0.01 percent, Nasdaq finished the day down by 0.20 percent.
Treasuries Recap
Benchmark 10-year U.S. Treasury yields dropped from 10-month highs on Friday after they approached - but failed to break through - levels that would have been the highest since 2007 on Thursday.
Ten-year yields were last at 4.253%, after reaching 4.328% on Thursday. A break above the 4.338% level reached in October would bring yields to their highest since November 2007.
Commodities Recap
Gold was little changed on Friday, but bullion was bound for its third straight weekly dip as recent sound U.S. economic data raised bets for interest rates staying higher for longer.
Spot gold was steady at $1,887.79 per ounce by 2:22 p.m. ET (1822 GMT), down 1.4% for the week so far. U.S. gold futures settled 0.1% higher at $1,916.5
Oil prices rose about 1% on Friday on signs of slowing U.S. output, but both crude benchmarks also ended their longest weekly rally of 2023 on mounting concerns about global demand growth.
West Texas Intermediate (WTI) crude futures gained 86 cents, or 1.1%, to settle at $81.25 a barrel, and Brent crude futures rose 68 cents, or 0.8%, to settle at $84.80 a barrel.