Posted at 22 August 2023 / Categories Market Roundups
Market Roundup
• US Redbook (YoY) 2.9%,0.7% previous
• US Jul Existing Home Sales 4.07M, 4.15M forecast,4.16M previous
• US Aug Richmond Manufacturing Index -7,-7 forecast ,-9 previous
• US Richmond Services Index 4,-4 forecast ,-2 previous
• US Aug Richmond Manufacturing Shipments -5,-6 previous
• US Jul Existing Home Sales (MoM) -2.2%,-3.3% previous
• US API Weekly Crude Oil Stock -6.195M previous
Looking Ahead Economic Data(GMT)
•22:45 New Zealand Retail Sales Quarterly Vs. Year Ago (Q2) 3.1% forecast ,-4.1% previous
•22:45 New Zealand Retail Sales (QoQ) (Q2) -2.6% forecast ,-1.4% previous
•22:45 New Zealand Core Retail Sales (QoQ) -2.5% forecast ,-1.1% previous
•23:00 Australian Manufacturing PMI 49.6 forecast , 49.6 previous
•23:00 Australian Services PMI 47.9 forecast , 47.9 previous
•00:30 Japan Services PMI 53.8 previous
•00:30 Japan Aug Manufacturing PMI 49.5 forecast ,49.6 previous
Looking Ahead Events And Other Releases(GMT)
•No events Ahead
Currency Summaries
EUR/USD: The euro edged lower on Tuesday as focus shifted to European Central Bank President Christine Lagarde and Federal Reverse Chair Jerome Powell at Jackson Hole later this week for a read on the interest rate outlook. European Central Bank President Christine Lagarde and Federal Reverse Chair Jerome Powell are expected to provide clues about the interest rate outlook. Traders have nearly priced in that the Fed will hold rates at its next meeting, while leaning towards another 25-basis point hike by the ECB next month. The euro was 0.43% weaker at $1.0848. 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: Britain’s pound dipped on Tuesday dollar strengthened as traders awaited the Fed’s central bank symposium at Jackson Hole, Wyoming, set for Aug. 24-26. The U.S. dollar index - which measures the currency against six major counterparts - was up 0.2% at 103.57. The index was sitting just shy of the two-month high of 103.68. Overall moves in currency markets were expected to be limited ahead of a speech by Federal Reserve Chair Jerome Powell at the Fed's central bank symposium at Jackson Hole, Wyoming, set for Aug. 24-26. Britain's pound slipped 0.1 % on Tuesday, taking little solace from a moderate pick-up in risk appetite. Immediate resistance can be seen at 1.2762(21DMA), an upside break can trigger rise towards 1.2816(23.6%fib).On the downside, immediate support is seen at 1.2686(38.2%fib), a break below could take the pair towards 1.2628(Lower BB).
USD/CAD: The Canadian dollar edged lower against its U.S. counterpart on Tuesday but stopped short of a recent two-and-a-half-month low, as investors awaited domestic retail sales data and the Jackson Hole Symposium this week. Canadian retail sales data for June, due on Wednesday, could offer clues on the strength of the domestic economy after it was buffeted by labor strikes and wildfires in recent months. Analysts expect the level of sales to be unchanged compared to May.The loonie was trading 0.1% lower at 1.3553 to the greenback, or 73.78 U.S. cents, after trading in a range of 1.3514 to 1.3564. On Friday, the currency touched its weakest intraday level since June 1 at 1.3574 .Immediate resistance can be seen at 1.3413 (5 DMA), an upside break can trigger rise towards 1.3433 (38.2% retracement level).On the downside, immediate support is seen at 1.3288 (61.8% retracement level), a break below could take the pair towards 1.3267 (50 DMA).
USD/JPY: The dollar edged lower on Tuesday after Bank of Japan Governor Kazuo Ueda met with the prime minister, although he said exchange-rate volatility was not discussed. It was the second such meeting since Ueda assumed the top BOJ post in April .The BOJ last month tweaked its yield curve control (YCC) to allow long-term rates to rise more freely. But it stressed its resolve to maintain ultra-easy policy, keeping markets focused on the gap between U.S. and Japanese yields. The dollar was 0.24% lower against the yen , but not far from the 9-month high touched last week. Strong resistance can be seen at 146.45(23.6%fib) an upside break can trigger rise towards 147.04(Higher BB).On the downside, immediate support is seen 145.58(9DMA), a break below could take the pair towards 145.05(38.2%fib)
Equities Recap
European shares extended their rebound on Tuesday as chipmakers led a rally in technology stocks ahead of Nvidia's earnings, while Ubisoft touched a three-week high on "call of duty" maker Activision's plans to sell streaming rights to it.
UK's benchmark FTSE 100 closed up by 0.18 percent, Germany's Dax ended up by 0.66 percent, France’s CAC finished the day up by 0.59 percent.
The Dow and S&P 500 ended slightly lower on Tuesday as investors stayed worried the Federal Reserve will keep interest rates higher for longer and as banks shares eased.
Dow Jones closed down by 0.51% percent, S&P 500 closed by 0.28% percent, Nasdaq settled up by 0.06% percent.
Treasuries Recap
U.S. Treasury yields hit multi-year highs on growing worries about interest rates staying higher for longer.
The benchmark 10-year Treasury yield hit almost 16-year peaks on Tuesday.
Commodities Recap
Gold prices hovered near a five-month low on Tuesday as a stronger dollar and higher bond yields dented bullion’s appeal, while focus shifted to the Jackson Hole symposium due later this week for more cues on the interest rate outlook.
Spot gold was nearly unchanged at $1,896.60 an ounce by 1:43 p.m. EDT (1743 GMT), but still held near the low of $1,883.70 touched on Friday. U.S. gold futures settled 0.2% higher at $1,926.00.
Oil prices settled lower on Tuesday as investors remained focused on the likelihood that China's economic malaise will keep hobbling demand from the world's top crude importer.
Brent crude settled down 43 cents, or 0.5% at $84.03 a barrel while the more active U.S. West Texas Intermediate October contract slipped 48 cents to $79.64.