Posted at 08 September 2023 / Categories Market Roundups
Market Roundup
•U.S. jobless claims come in better than expected
•U.S. productivity rises less than forecast
•U.S. crude stockpiles fall for fourth straight week -EIA
•Canada Jul Building Permits (MoM) -1.5%,-5.0% forecast, 6.1% previous
•US Nonfarm Productivity (QoQ) (Q2) 3.5%, 3.7% forecast, -2.1% previous
•US Unit Labor Costs (QoQ) (Q2) 2.2%,1.6% forecast, 4.2% previous
•US Initial Jobless Claims 216K, 234K forecast, 228K previous
•US Jobless Claims 4-Week Avg. 229.25K,237.50K previous
•US Continuing Jobless Claims 1,679K,1,715K forecast, 1,725K previous
•Canada Aug Ivey PMI n.s.a 56.8,45.2 previous
•Canada Aug Ivey PMI 53.5, 49.2 forecast, 48.6 previous
•US Natural Gas Storage 33B,43B forecast, 32B previous
•US Distillate Fuel Production -0.006M, -0.043M previous
•US Gasoline Production -0.217M ,0.290M previous
•US Gasoline Inventories -2.666M,-0.950M forecast, -0.214M previous
•US Cushing Crude Oil Inventories -1.750M,-1.504M previous
•US Crude Oil Inventories-6.307M, -2.064M forecast,-10.584M previous
Looking Ahead Economic Data(GMT)
•05:00 Japan Aug Economy Watchers Current Index 54.4 forecast, 54.4 previous
Looking Ahead Events And Other Releases(GMT)
•No events ahead
Currency Summaries
EUR/USD: The euro dipped on Thursday as shorts gain some traction as the economic outlook for Europe continued to darken Data showed German industrial production fell slightly more than expected in July. The Ifo Institute said the German economy will contract by 0.4% this year, confirming its previous forecasts published in June. Meanwhile, European statistics agency Eurostat revised its estimate that gross domestic product (GDP) in the euro zone grew 0.1% in the second quarter compared to the previous three months.Year-on-year the GDP increased by 0.5%, Eurostat said, revising its earlier estimate of 0.6% growth. Immediate resistance can be seen at 1.0744(5DMA), an upside break can trigger rise towards 1.0788(38.2%fib).On the downside, immediate support is seen at 1.0697(23.6%fib), a break below could take the pair towards 1.0672(Lower BB).
GBP/USD: Sterling held at a three-month low against a stronger dollar on Thursday, as traders focused on dovish signals from the Bank of England and moderating corporate inflation expectations. Bank of England Governor Andrew Bailey said on Wednesday that the bank is "much nearer" to ending its run of interest rate increases but borrowing costs might still have further to rise because of stubborn inflation pressures.Interest rate hike expectations were further tempered on Thursday after a Bank of England (BoE) survey showed UK businesses are planning their lowest price rises since Feb 2022, and expect to raise prices over the coming year by less than they had planned previously. The survey will offer some reassurance to policymakers that inflation is on course to return to target. Immediate resistance can be seen at 1.2546(5DMA), an upside break can trigger rise towards 1.2588(38.2%fib).On the downside, immediate support is seen at 1.2455 (23.6%fib), a break below could take the pair towards 1.2426(Lower BB).
USD/CAD: The Canadian dollar weakened to a five-month low against its U.S. counterpart on Thursday as investors shunned risk-sensitive assets and bet that the Bank of Canada is finished raising interest rates in the current cycle. Bank of Canada Governor Tiff Macklem said interest rates may not be high enough to bring inflation back down to target, one day after the central bank left its benchmark rate on hold at a 22-year of 5%. Canada is a major producer of commodities, including oil, so the loonie is sensitive to shifts in investor sentiment. U.S. crude oil futures settled 0.8% lower at $86.87 a barrel.The Canadian dollar was trading 0.4% lower at 1.3684 to the greenback. Immediate resistance can be seen at 1.3691 (Daily high), an upside break can trigger rise towards 1.3709 (23.6%fib).On the downside, immediate support is seen at 1.3620 (38.2%fib), a break below could take the pair towards 1.3601 (5DMA).
USD/JPY: The dollar edged lower against Japanese yen on Thursday as investors were cautious after about intervention to support the weak yen while dollar strengthened on solid US data. More data on Thursday further pointed to an overall tenacious U.S. economy. Data showed that initial claims for state unemployment benefits fell unexpectedly to 216,000 in the week ended Sept. 2 from a revised 229,000 the week before. In Japan, traders continued to be on intervention watch as the yen struggled to make sustained headway against a resilient dollar, even as officials stepped up their warnings against further pushing the Japanese unit lower.The greenback scaled a fresh top of 147.875 yen earlier, its highest since November, and was last down 0.4% at 147.20. Strong resistance can be seen at 147.32(23.6%fib) an upside break can trigger rise towards 147.65 ( Higher BB).On the downside, immediate support is seen 146.62(9DMA), a break below could take the pair towards 145.95 (38.2%fib).
Equities Recap
European shares fell on Thursday as chipmakers slumped on reports that China has widened curbs on use of Apple iPhones by government staff, while miners tracked metal prices lower.
UK's benchmark FTSE 100 closed up by 0.21 percent, Germany's Dax ended down by 0.14 percent, France’s CAC finished the day down by 0.03 percent.
The S&P 500 and Nasdaq fell on Thursday, with the biggest drag from Apple and a sell-off in chip stocks over concerns about China's iPhone curbs, while a fall in weekly U.S. jobless claims fed worries about interest rates and sticky inflation.
Dow Jones closed up by 0.17% percent, S&P 500 closed down by 0.32 % percent, Nasdaq settled down by 0.89% percent.
Commodities Recap
Gold held steady after briefly trimming gains on Thursday as data showed tightness in the U.S. job market, with focus now shifting to a host of Federal Reserve speakers for cues on interest rate hikes.
Spot gold was up 0.1% at $1,918.68 per ounce by 1:47 p.m. EDT (1747 GMT), after hitting a one-week low on Wednesday. U.S. gold futures settled 0.1% lower at $1,942.50 per ounce.
Global benchmark Brent crude oil fell below $90 a barrel on Thursday in volatile trade, halting a near two-week rally, on multiple signals warning of weaker demand in the coming months.
Brent crude futures settled 68 cents, or 0.8%, lower at $89.92 a barrel, after trading between $89.46 and $90.89.
U.S. West Texas Intermediate crude (WTI) futures finished down 67 cents, or 0.8%, at $86.67 a barrel, after trading between $86.39 and $87.74.