Posted at 17 May 2022 / Categories Market Roundups
Market Roundup
•Canada Apr Housing Starts 267.3K,246.4K forecast,246.2K previous
•US May NY Empire State Manufacturing Index -11.60,17.00 forecast, 24.60 previous
•Canada Mar Manufacturing Sales (MoM) 2.5%, 1.7% forecast,4.2% previous
•US Mar Wholesale Sales (MoM) 0.3%, -0.3% forecast,-0.4% previous
•French 12-Month BTF Auction -0.147%,-0.120% previous
•French 3-Month BTF Auction -0.628%, -0.631% previous
•French 6-Month BTF Auction -0.471% ,-0.477% previous
•US 3-Month Bill Auction 1.050%, 0.900% previous
•US 6-Month Bill Auction 1.490%, 1.385% previous
Looking Ahead - Economic Data (GMT)
• 04:30 Japan Tertiary Industry Activity Index (MoM) -1.3% previous
Looking Ahead - Events, Other Releases (GMT)
• 01:30 Australia RBA Meeting Minutes
Currency Summaries
EUR/USD: The euro edged higher against dollar on Monday after European Central Bank policymaker Francois Villeroy de Galhau said a weak euro threatened price stability in the currency bloc. The currency has tumbled almost 9% since February and fell to its lowest levels since 2017 last week, a move that accelerated upward pressure on inflation in the euro area, which is already running at record highs at 7.5%. The euro's weakness on currency markets could threaten the ECB's efforts to steer inflation towards its target, Villeroy said . The euro up 0.18% at $1.0446. Immediate resistance can be seen at 1.0449(38.2% fib), an upside break can trigger rise towards 1.0501 (10DMA).On the downside, immediate support is seen at 1.0345 (23.6% fib), a break below could take the pair towards 1.0316 (Lower BB).
GBP/USD: Sterling strengthened against dollar on Monday as traders awaited upcoming UK and U.S. data that may possibly diminish downward pressure on sterling. Risk-sensitive sterling has fallen 10% against the dollar this year as the war in Ukraine, rising inflation, poor domestic economic growth and fears for a slowdown in the global economy have hit risk sentiment. Sterling was up 0.2%, recovering from Friday's two-year low at 1.2156 and bracing for UK employment and U.S. retail sales data Tuesday . Immediate resistance can be seen at 1.2303 (38.2%fib),an upside break can trigger rise towards 1.2342 (9 DMA).On the downside, immediate support is seen at 1.2185 (23.6%fib), a break below could take the pair towards 1.2100 (Psychological level).
USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Monday as higher oil prices and weaker dollar boosted Canadian dollar across the board. U.S. June crude futures rose $3.71 to settle at $114.2 a barrel on Monday?.Canadian factory sales fell 2.5% in March from March, Statistics Canada said. Analysts polled had expected factory sales growth of 1.7%.Canadian wholesale trade grew by 0.3% in March. The loonie was trading 0.5% higher at C$1.2838 to the greenback, after trading in a range of 1.2838 to 1.2981. Immediate resistance can be seen at 1.2903 (23.6%fib), an upside break can trigger rise towards 1.2921 (5DMA).On the downside, immediate support is seen at 1.2818 (38.2%fib), a break below could take the pair towards 1.2753 (50%fib).
USD/JPY: The dollar lost steam against the Japanese yen on Monday after a dismal result from the New York Fed's Empire State manufacturing survey reminded markets of the potential for U.S. economic weakness as investors prepare for Tuesday's retail sales and comments from Fed Chair Jerome Powell. Factory activity in New York state slumped in May for the third time this year amid a collapse in new orders and shipments, though manufacturers were slightly upbeat about business conditions over the next six months. The Empire State followed dour Chinese data in illustrating the precarious state of the global economy, which could become an issue for the Fed. Strong resistance can be seen at 129.80 (10 DMA), an upside break can trigger rise towards 130.17 (23.6%fib).On the downside, immediate support is seen at 128.54 (38.2%fib), a break below could take the pair towards 127.27(50%fib).
Equities Recap
European stocks were broadly lower on Monday after the latest data out of China showed the gloomy impact of the country's "zero-COVID" policy.
The UK's benchmark FTSE 100 closed up by 0.63 percent, Germany's Dax ended down by 0.45 percent, and France’s CAC finished the down by 0.23 percent.
The S&P 500 ended lower on Monday, with Tesla and other growth stocks losing ground after downbeat Chinese economic data added to worries about a global slowdown and rising interest rates.
Dow Jones closed up by 0.08 percent, S&P 500 ended down 0.39 percent, Nasdaq finished the day down by 1.20 percent.
Treasuries Recap
U.S. Treasury yields eased on Monday, as mounting global growth concerns deepened after unexpectedly weak economic data from China and a steep drop in New York state's factory activity.
The yield on 10-year Treasuries slid 5.1 basis points to 2.882%, while the 30-year bond yield was little changed at 3.091%.
Commodities Recap
Gold rose slightly on Monday as a retreat in U.S. Treasury yields offset headwinds from a relatively firm dollar, which, along with looming interest rate hikes, earlier pushed bullion to a more than three-and-a-half-month low.
Spot gold rose 0.3% to $1,817.12 per ounce by 1:52 p.m. ET (1752 GMT), after earlier hitting its lowest since Jan. 31 at $1,786.60. U.S. gold futures settled up 0.3% at $1,814.
Oil prices rose on Monday on optimism that China would see significant demand recovery after positive signs that the country's coronavirus pandemic was receding in the hardest-hit areas.
Brent crude futures for July delivery rose $2.69 to settle at $114.24 a barrel, a 2.4% gain, while U.S. West Texas Intermediate (WTI) crude rose $3.71, or 3.4%, to $114.20 a barrel.