Posted at 06 September 2023 / Categories Market Roundups
Market Roundup
•Canada Labor Productivity (QoQ) (Q2) -0.6%,-0.1% forecast,-0.6% previous
•US Imports 316.70B ,313.00B previous
•US Exports 251.66B,247.50B previous
•US Jul Trade Balance -65.00B,-68.00B forecast,-65.50B previous
•Canada Jul Trade Balance -0.99B, -3.65B forecast,-3.73B previous
•Canada Jul Imports 61.40B,64.43B previous
•Canada Jul Exports 60.42B,60.70B previous
•US Redbook (YoY) 4.1%, 4.2% previous
•US Aug S&P Global Composite PMI 50.2,50.4 forecast,52.0 previous
•US Aug Services PMI 50.5,51.0 forecast,52.3 previous
•US Aug ISM Non-Manufacturing Employment 54.7, 50.7 previous
•US Aug ISM Non-Manufacturing New Orders 57.5, 55.0 previous
•US Aug ISM Non-Manufacturing Prices 58.9, 56.8 previous
•US Aug ISM Non-Manufacturing PMI 54.5, 52.5 forecast,52.7 previous
•US Aug ISM Non-Manufacturing Business Activity 57.3, 57.1 previous
•Canada BoC Interest Rate Decision 5.00%, 5.00% forecast, 5.00% previous
• US IBD/TIPP Economic Optimism 41.1 forecast,40.3 previous
Looking Ahead Economic Data(GMT)
•01:30 Australia Jul Imports (MoM) -4.0% previous
•01:30 Australia Jul Trade Balance 10.000B forecast,11.321B previous
•01:30 Australia Jul Exports (MoM) -2.0% previous
•01:30 Australia Building Approvals (MoM) -8.1% forecast, -7.9% previous
•01:30 Australia Private House Approvals 0.1% forecast, -1.3% previous
•03:00 China Aug Trade Balance (USD) 78.00B forecast, 80.60B previous
•03:00 China Aug Imports (YoY) -8.8% forecast, -12.4% previous
•03:00 China Aug Exports (YoY) -9.8% forecast, -14.5% previous
Looking Ahead Events And Other Releases(GMT)
•01:30 Japan BoJ Board Member Nakagawa Speaks
Currency Summaries
EUR/USD: The euro hit three-month low against dollar on Wednesday after stronger-than-expected U.S. services sector data. he Institute for Supply Management (ISM) said its non-manufacturing PMI rose in August, with new orders firming and businesses paying higher prices for inputs.Some investors said the data may add to signs that interest rates could remain elevated for longer. Fed Governor Christopher Waller said on Tuesday the latest round of economic data was giving the U.S. central bank space to see if it needs to raise rates again. Markets were all but certain that the Fed will keep rates unchanged at its Sept. 19-20 meeting, but still bet on a 43% chance of a hike before 2024, according to CME’s FedWatch tool. Immediate resistance can be seen at 1.0748(5DMA), an upside break can trigger rise towards 1.0799 (38.2%fib).On the downside, immediate support is seen at 1.0704 (23.6%fib), a break below could take the pair towards 1.0674(Lower BB).
GBP/USD: Sterling hit a three-month low against dollar on Wednesday after data showed the US services sector unexpectedly accelerated in August. The Institute for Supply Management (ISM) said on Wednesday its non-manufacturing PMI rose to 54.5 last month, the highest reading since February and up from 52.7 in July, while a gauge of prices paid also increased from the prior month. A reading above 50 indicates expansion in the services industry, which accounts for more than two-thirds of the economy.The data raised concerns the economy remains resilient enough for the Federal Reserve to keep rates at higher levels for a longer period of time. Sterling was down 0.5% at $1.2505.Immediate resistance can be seen at 1.2555(5DMA), an upside break can trigger rise towards 1.2610(38.2%fib).On the downside, immediate support is seen at 1.2496 (23.6%fib), a break below could take the pair towards 1.2463(Lower BB).
USD/CAD: The Canadian dollar was little changed against its U.S. counterpart on Wednesday, with the currency holding near a five-month low as the Bank of Canada left rates on hold and after data showed unexpected strength in the U.S. services sector. The Canadian central bank held its key interest rate at 5%, noting the economy had entered a period of weaker growth. The U.S. dollar added to its recent gains against a basket of major currencies as the Institute for Supply Management (ISM) said its non-manufacturing PMI rose last month to its highest level since February. The loonie was trading nearly unchanged at 1.3639 to the greenback, or 73.32 U.S. cents, after touching its weakest level since March 28 at 1.3676.. Immediate resistance can be seen at 1.3664 (23.6%fib), an upside break can trigger rise towards 1.3662 (Higher BB).On the downside, immediate support is seen at 1.3618 (5DMA), a break below could take the pair towards 1.3551 (38.2%fib).
USD/JPY: The dollar strengthened against Japanese yen on Wednesday after U.S. data showed the services sector surprisingly picked up steam last month amid a rise in new orders and businesses paying higher prices . Data showed the Institute for Supply Management (ISM)'s non-manufacturing PMI rose to 54.5 last month, the highest since February and up from 52.7 in July. Economists polled had forecast the non-manufacturing PMI would decrease to 52.5. The data suggested interest rates will remain elevated for longer, although it does not alter expectations that the Federal Reserve will pause its rate hikes at a meeting later this month. The dollar index was last at 104.84, up 0.1%, after earlier hitting a fresh six-month high of 105.03. Strong resistance can be seen at 147.40(23.6%fib) an upside break can trigger rise towards 147.70 ( Higher BB).On the downside, immediate support is seen 146.36 (5DMA), a break below could take the pair towards
Equities Recap
European stocks extended losses to a sixth consecutive session on Wednesday as worries about slowing global growth dented risk appetite, while rising bond yields also pressured equities..
UK's benchmark FTSE 100 closed down by 0.16 percent, Germany's Dax ended down by 0.19 percent, France’s CAC finished the day down by 0.84 percent.
Wall Street's three major averages closed lower on Wednesday with the Nasdaq's 1% loss leading declines after stronger-than-expected services sector data fueled concerns that still sticky inflation would mean that interest rates stay higher for longer.
Dow Jones closed down by 0.57% percent, S&P 500 closed down by 0.70 % percent, Nasdaq settled down by 1.06% percent.
Treasuries Recap
U.S. Treasury yields rose after economic data showed resilience and Fed Governor Christopher Waller said it suggests that the central bank need not change rates any time soon.
The yield on the benchmark U.S. 10-year Treasury note rose 9 basis points to 4.26% after reaching 4.268%, its highest level since Aug. 25.
Commodities Recap
Gold extended its retreat to a fifth day on Wednesday as yields climbed and bets for higher-for-longer U.S. interest rates and global growth concerns continued to drive safe-haven flows into the dollar.
Spot gold fell 0.4% to $1,917.50 per ounce by 1:53 p.m. EDT (1753 GMT), its lowest since Aug. 29. U.S. gold futures settled 0.4% lower at $1,944.20.
Oil prices settled higher on Wednesday, reversing early declines as traders anticipated further draws on U.S. crude oil inventory following extended production cuts in Saudi Arabia and Russia.
Brent crude futures settled up 56 cents to $90.60 a barrel while U.S. West Texas Intermediate crude (WTI) futures settled up 85 cents to $87.54. Both benchmarks rose by $1 and then pared gains