Posted at 23 August 2023 / Categories Market Roundups
Market Roundup
•Canada Jun Core Retail Sales (MoM) -0.8%,0.3% forecast , 0.0% previous
•Canada Jun Retail Sales (MoM) 0.1%,0% forecast,0.2% previous
• US Aug S&P Global Composite PMI 50.4, 52.0 forecast, 52.0 previous
• US Aug Services PMI 51.0, 52.3 forecast, 52.3 previous
• US Aug Manufacturing PMI 47.0,49.3 forecast,49.0 previous
• US Jul New Home Sales (MoM) 4.4%,-2.5% previous
• US Jul New Home Sales 714K,705K forecast,697K previous
• EU Aug Consumer Confidence -16.0,-14.3 forecast,-15.1 previous
• US Payrolls Benchmark, n.s.a. -306.00K, 506.00K previous
• US EIA Weekly Distillates Stocks 0.945M,0.218M forecast, 0.296M previous
• US Cushing Crude Oil Inventories -3.133M,-0.906M forecast, -0.837M previous
• US Crude Oil Inventories -6.135M,-2.850M forecast, -5.960M previous
Looking Ahead Economic Data(GMT)
• 23:50 Japan Foreign Bonds Buying -334.6B previous
• 23:50 Japan Foreign Investments in Japanese Stocks 227.2B previous
Looking Ahead Events And Other Releases(GMT)
• No significant Events
Currency Summaries
EUR/USD: The euro initially dipped on Wednesday after a survey showed German business activity contracted but recovered some ground as investor focus will shift to the Jackson Hole Symposium. German business activity contracted at the fastest pace for more than three years in August, a preliminary survey showed on Wednesday. The HCOB German Flash Composite Purchasing Managers' Index (PMI), compiled by S&P Global, fell to 44.7 from July's 48.5, hitting its lowest since May 2020 and confounding analysts' expectations for a reading of 48.3. Investor focus shifted to the Jackson Hole Symposium starting Aug. 24, where major central bankers, including U.S. Federal Reserve Chair Jeremy Powell, will share their views on the trajectory of global monetary policy. Immediate resistance can be seen at 1.0868(5DMA), an upside break can trigger rise towards 1.0898(23.6%fib).On the downside, immediate support is seen at 1.0843(38.2%fib), a break below could take the pair towards 1.0800 (50%fib).
GBP/USD: The British pound initially dipped against the dollar after weak UK PMI data but recovered ground after data showed U.S. business activity approached the stagnation point in August. U.S. business activity approached the stagnation point in August, with growth at its weakest since February as demand for new business in the vast service sector contracted.S&P Global said its flash U.S. Composite PMI index, which tracks manufacturing and service sectors, fell to a reading of 50.4 in August from 52 in July, the biggest drop since November 2022. The pound was last down 0.12% against the dollar to $1.2715. Immediate resistance can be seen at 1.2757(23.6%fib), an upside break can trigger rise towards 1.2815(30DMA).On the downside, immediate support is seen at 1.2682(38.2%fib), a break below could take the pair towards 1.2611(50%fib).
USD/CAD: The Canadian dollar edged higher against its U.S. counterpart on Wednesday as a rally in equity markets offset underwhelming domestic retail sales data, with the currency recovering after it hit its weakest level in nearly three months. Wall Street’s main indexes rose and the price of oil, one of Canada’s major exports, clawed back some of its earlier decline. U.S. crude oil futures settled 0.9% lower at $78.99 a barrel. A pullback in the U.S. dollar also helped the loonie. The greenback fell against a basket of currencies and bond yields fell after data showed U.S. business activity approaching stagnation. The loonie was trading 0.1% higher at 1.3540 to the greenback, after earlier touching its weakest intraday level since May 31 at 1.3603. Immediate resistance can be seen at 1.3569(Aug 21st high), an upside break can trigger rise towards 1.3596(23.6%fib).On the downside, immediate support is seen at 1.3514 (38.2%fib), a break below could take the pair towards 1.3502 (11DMA).
USD/JPY: The dollar declined further against yen on Wednesday after data showed U.S. business activity approached the stagnation point in August. S&P Global said its flash U.S. Composite PMI index, which tracks manufacturing and service sectors, fell to a reading of 50.4 in August from 52 in July, the biggest drop since November 2022. While August's reading was the seventh straight month of growth, it was only fractionally above the 50 level separating expansion and contraction as demand weakened for both manufactured goods and services. Investors now await the Jackson Hole Symposium in Wyoming later, with a particular focus on Federal Reserve Chair Jerome Powell’s speech on Friday. Strong resistance can be seen at 145.84(Daily high) an upside break can trigger rise towards 146.69(23.6%fib).On the downside, immediate support is seen 144.66(38.2%fib), a break below could take the pair towards 143.75(21DMA)
Equities Recap
European shares closed off their day's highs on Wednesday on growing evidences of slowing economic activity in the continent, while strong gains in drugmaker Roche boosted the Swiss stock index to a one-week high.
UK's benchmark FTSE 100 closed up by 0.68 percent, Germany's Dax ended up down by 0.15 percent, France’s CAC finished the day up by 0.08 percent.
U.S. stocks ended sharply higher on Wednesday as shares of Nvidia gained ahead of quarterly results from the company whose chips are widely used for artificial intelligence (AI) computing.
Dow Jones closed up by 0.54 percent, S&P 500 ended up by 1.10 percent, Nasdaq finished the day up by 1.59 percent.
Treasuries Recap
Treasury yields slid on Wednesday after weak U.S. and European business activity signaled global disinflation as markets await possible indications of where the Federal Reserve sees interest rates ahead of its annual summit at Jackson Hole, Wyoming.
The yield on 10-year Treasuries fell 13.6 basis points to 4.192%, after earlier this week touching 4.366%, a high for the U.S. benchmark last seen in November 2007.
The two-year's yield, which reflects interest rate expectations, slid 7.2 basis points to 4.965% as it fell below the key 5% threshold.
Commodities Recap
Gold prices jumped 1% to a near two-week high on Wednesday, helped by a pullback in U.S. bond yields and the dollar as investors looked ahead to the Jackson Hole symposium for guidance on interest rates.
Spot gold rose 1% to $1,916.20 per ounce by 2:17 p.m. EDT (1817 GMT), after hitting its highest since Aug. 11. It was also poised to register its biggest daily percentage rise in over a month.
Oil prices dipped 1% on Wednesday as demand woes stemming from a build in U.S. gasoline stocks and weak manufacturing data globally outweighed optimism around a larger-than-expected drop in U.S. crude stocks.
Brent crude was down 82 cents, or 0.98%, at $83.21 a barrel, bouncing off a 2.5% decline earlier in the session. U.S. West Texas Intermediate crude was down 75 cents, or 0.9%, at $78.89. At the session low it was down 3.4%.