Posted at 29 August 2023 / Categories Market Roundups
Market Roundup
•US Jun House Price Index 405.8,404.1 previous
• US Jun S&P/CS HPI Composite - 20 s.a. (MoM) 0.9%,1.2% forecast,1.0% previous
• US Jun House Price Index (YoY) 3.1%,2.8% previous
• US Jun House Price Index (MoM) 0.3%,0.2% forecast,0.7% previous
• US Jun S&P/CS HPI Composite - 20 n.s.a. (MoM) 0.9%,0.6% forecast,1.5% previous
• US Jun S&P/CS HPI Composite - 20 n.s.a. (YoY) -1.2%,-1.3% forecast,-1.7% previous
• US Jul JOLTs Job Openings 8.827M, 9.465M forecast,9.582M previous
• US Aug CB Consumer Confidence 106.1, 116.0 forecast,117.0 previous
• US Aug Texas Services Sector Outlook -2.7,-6.1 forecast,-4.2 previous
• US Aug Dallas Fed Services Revenues 16.2,6.8 forecast, 12.9 previous
Looking Ahead Economic Data(GMT)
•01:30 Australia Construction Work Done (QoQ) (Q2) 1.0% forecast,1.8% previous
•01:30 Australia Jul Private House Approvals -1.3% previous
•01:30 Australia Jul Weighted mean CPI (YoY) 5.20% forecast, 5.40% previous
•01:30 Australia Jul Building Approvals (YoY) -7.70% previous
•01:30 Australia Building Approvals (MoM) -0.8% forecast, -7.7% previous
•05:00 Japan Aug Household Confidence 37.5 forecast, 37.1 previous
Looking Ahead Events And Other Releases(GMT)
•01:30 Japan BoJ Tamura Speaks
Currency Summaries
EUR/USD: The euro edged higher on Tuesday after data showed that U.S. job openings fell in July, as investors await more comprehensive labor market numbers in this week's jobs report for August Job openings, a measure of labor demand, dropped 338,000 to 8.827 million on the last day of July, the lowest level since March 2021.U.S. economic data has shown resilience in the face of higher interest rates, but investors are on guard for signs of any lagging impacts from the monetary tightening The dollar briefly reached an almost 10-month high against the Japanese yen earlier on Tuesday, before dropping on the jobs data.The euro was last up 0.49% at $1.0871. It fell to $1.07655 on Friday, the lowest since June 13.Immediate resistance can be seen at 1.0890(38.2%fib), an upside break can trigger rise towards 1.0966(50%fib).On the downside, immediate support is seen at 1.0834(5DMA), a break below could take the pair towards 1.0769(23.6%fib).
GBP/USD: The pound strengthened against the dollar and euro on Tuesday as traders await comments by Bank of England Chief Economist Huw Pill later this week for more direction on the central bank's next move. Pill is due to speak on Thursday morning at the South African Reserve Bank Biennial conference, after BoE Deputy Governor Ben Broadbent said at the weekend that interest rates in Britain might have to stay high for some time yet .Traders are currently betting on a more than 90% chance of a 25 basis point hike from the Bank of England at its next meeting on Sept. 21 . Sterling was up 0.10% at $1.2643 . Immediate resistance can be seen at 1.2643(38.2%fib), an upside break can trigger rise towards 1.2687(5DMA).On the downside, immediate support is seen at 1.2586 (Lower BB), a break below could take the pair towards 1.2557(50%fib).
USD/CAD: The Canadian dollar strengthened against the greenback on Tuesday as higher oil prices and weaker greenback boosted commodity linked currency. Dollar dipped after data showed that U.S. job openings fell in July suggesting the Fed may not raise rates as much as previously anticipated .The Labor Department's Job Openings and Labor Turnover Survey (JOLTS) showed 2.3% of nonfarm payroll workers quit their jobs in July, down from a rate as high as 3% during the pandemic-driven great resignation. The reading was the lowest since January 2021. The loonie was trading 0.3% higher at C$1.3562 to the greenback, or 73.74 U.S. cents, after trading in a range of 1.3562 to 1.3637. Immediate resistance can be seen at 1.3578(5DMA), an upside break can trigger rise towards 1.3606 (23.6%fib).On the downside, immediate support is seen at 1.3544 (38.2%fib), a break below could take the pair towards 1.3514 (Aug 24th low).
USD/JPY: The dollar briefly reached an almost 10-month high against the Japanese yen earlier on Tuesday, before dropping on the jobs data. Traders are watching for any signs of intervention by Japanese officials to shore up the ailing currency. Japan intervened in currency markets last September when the dollar rose past 145 yen, prompting the Ministry of Finance to buy the yen and push the pair back to around 140 yen. Japan intervened in currency markets last September when the dollar rose past 145 yen, prompting the Ministry of Finance to buy the yen and push the pair back to around 140 yen. The dollar hit 147.375 yen, the highest since Nov. 7, and was last at 145.84, down 0.47% on the day. Strong resistance can be seen at 147.26(23.6%fib) an upside break can trigger rise towards 147.65Higher BB).On the downside, immediate support is seen 145.16(5DMA), a break below could take the pair towards 145.30(38.2%fib).
Equities Recap
European shares hit two-week highs on Tuesday as mining stocks led gains tracking strength in metal prices and NN Group jumped after reporting first-half results..
UK's benchmark FTSE 100 closed up by 1.72 percent, Germany's Dax ended up down by 0.88 percent, France’s CAC finished the day up by 0.67 percent.
Wall Street surged on Tuesday and Treasury yields dropped amid light, pre-holiday trading as a smattering of weak data had investors rejiggering their expectations regarding U.S. monetary policy.
Dow Jones closed up by 0.85 percent, S&P 500 ended up by 1.45 percent, Nasdaq finished the day up by 1.74 percent.
Commodities Recap
Gold climbed to a three-week peak on Tuesday as the dollar and Treasury yields slipped after weaker labour market readings cast doubts over the chances of another rate hike by the Federal Reserve.
Spot gold was up 0.9% at $1,936.84 per ounce as of 1:55 p.m. EDT (1754 GMT). U.S. gold futures settled 0.9% higher at $1,965.10.
Oil prices rallied more than a dollar a barrel on Tuesday as the greenback slid, while investors debated the potential impact to energy supply and demand from Hurricane Idalia set to hit Florida this week.
Brent crude futures rose by $1.07, or 1.3%, to settle at $85.49 a barrel, while U.S. West Texas Intermediate futures settled at $81.86 a barrel, up $1.06, or 1.3%.