Posted at 10 June 2021 / Categories Market Roundups
Market Roundup
•Investors await U.S CPI data, ECB meet on Thursday
• 10-year U.S. debt yield at lowest since May
•World stocks hover near record highs
• US Apr Wholesale Trade Sales (MoM) 0.8%, 1.0% forecast, 4.6% previous
• Canada BoC Interest Rate Decision 0.25%,0.25% forecast, 0.25% previous
• US Apr Wholesale Inventories (MoM) 0.8%,0.8% previous
• US Gasoline Inventories 7.046M,0.698M forecast, 1.500M previous
• US Crude Oil Inventories -5.241M,-2.036M forecast, -5.080M previous
• US Cushing Crude Oil Inventories 0.165M,0.784M previous
Looking Ahead - Economic data ahead (GMT)
•23:50 Japan May PPI (MoM) 0.5% forecast, 0.7% previous
•23:50 Japan May PPI (YoY) 4.5% forecast, 3.6% previous
•23:50 Japan Foreign Investments in Japanese Stocks 181.3B previous
•23:50 Japan Foreign Bonds Buying-1,090.0B previous
•06:30 Australia MI Inflation Expectations 3.5% previous
Looking Ahead - Economic events and other releases (GMT)
•No significant events
Currency Summaries
EUR/USD: The euro edged higher against dollar on Wednesday as investors focused on a European Central Bank meeting and the upcoming U.S. consumer price index report to gauge the current pace of the economic recovery.Both are due Thursday, and investors have adopted a wait-and-see attitude .With the ECB, investors will be watching for any clues of an imminent slowdown to its bond buying program. The euro could be sensitive to changes in the bank's economic forecasts or any signal that the pace of bond buying could be reduced in months ahead. Immediate resistance can be seen at 1.2198 (23.6%fib), an upside break can trigger rise towards 1.2245(Higher BB).On the downside, immediate support is seen at 1.2144 (38.2%fib), a break below could take the pair towards 1.2129(Lower BB).
GBP/USD:The British pound rose slightly against the U.S. dollar on Wednesday as Britain and the European Union failed to agree on solutions to post-Brexit trade problems in the British province of Northern Ireland . The pound had been ignoring a dispute between Britain and the EU over trading arrangements in the British province of Northern Ireland, which remained within the European Union’s single market after Brexit due to its open land border with Ireland.But the currency fell after European Commission Vice President Maros Sefcovic said that the EU is considering advancing its legal challenge to Britain over UK action in Northern Ireland, which could result in a court case by autumn or the eventual imposition of tariffs and quotas. Immediate resistance can be seen at 1.4129(38.2%fib), an upside break can trigger rise towards 1.4210(Higher BB).On the downside, immediate support is seen at 1.4082 (Lower BB), a break below could take the pair towards 1.4030(Lower BB).
USD/CAD: The Canadian dollar was little changed against its U.S. counterpart on Wednesday, paring gains as the Bank of Canada stayed on course to reduce stimulus further over the coming months and as upcoming U.S. inflation data drew attention. The Bank of Canada left unchanged its key interest rate at a record low 0.25% and said it would maintain the pace of quantitative easing, saying the economy would rebound strongly as vaccinations against COVID-19 picked up.The Canadian dollar was trading nearly unchanged at 1.2113 to the greenback .Immediate resistance can be seen at 1.2142(38.2% fib), an upside break can trigger rise towards 1.2231 (50%fib).On the downside, immediate support is seen at 1.2096(5DMA), a break below could take the pair towards 1.2035 (23.6%fib).
USD/JPY: The dollar rose against the Japanese yen on Wednesday as investors focused on a European Central Bank meeting and the U.S. consumer price index report, both due on Thursday, to gauge the current pace of the economic recovery. Thursday’s U.S. consumer price data is expected to show the overall annual inflation rate spiking to 4.7%, worrying many investors who are not persuaded by the Federal Reserves’s insistence the spike in prices will be transitory. The dollar was last up 0.01 % at 109.60 yen. Strong resistance can be seen at 109.71(38.2%fib), an upside break can trigger rise towards 110.00 (Psychological level).On the downside, immediate support is seen at 109.46 (5DMA), a break below could take the pair towards 109.24 (50%fib).
Equities Recap
European stocks remained near record highs on Wednesday, with investors holding off on taking big bets ahead of a policy decision from the European Central Bank and a U.S. inflation reading later this week.
UK's benchmark FTSE 100 closed down by 0.20 percent, Germany's Dax ended down by 0.38 percent, France’s CAC finished the day up by 0.19percent.
Wall Street ended a see-saw session lower on Wednesday as market participants awaited inflation data for clues as to when the U.S. Federal Reserve might tighten its dovish monetary policy.
Dow Jones closed down by 0.44% percent, S&P 500 closed down by 0.18% percent, Nasdaq settled down by 0.09% percent.
Treasuries Recap
U.S. Treasury yields moved lower on Wednesday for a second day as traders positioned for inflation data due on Thursday and showed strong demand at an auction, pushing the benchmark 10-year yield below 1.5% for the first time since May 7.
The yield on the 10-year note was down 3.4 basis points at 1.4941% in afternoon trading, after reaching as low as 1.472% earlier in the session.
Commodity Recap
Gold held in a tight range on Wednesday as investors looked forward to U.S. inflation data that could shape the course of the Federal Reserve’s monetary policy.
Spot gold was down 0.1% at $1,891.05 per ounce by 1:44 p.m EDT (1744 GMT), while U.S. gold futures settled 0.1% up at $1,895.50.
Oil prices were steady on Wednesday after U.S. inventory data showed a surge in gasoline inventories due to weak fuel demand following U.S. Memorial Day weekend, traditionally the beginning of the peak summer driving season.
Brent crude futures remained unchanged to settle at $72.22 a barrel, having earlier touched $72.83, their highest since May 20, 2019.
U.S. West Texas Intermediate (WTI) crude closed 9 cents, or 0.1%, lower at $69.96 a barrel, after reaching $70.62, its highest since Oct. 17, 2018.