Posted at 30 May 2022 / Categories Market Roundups
Market Roundup
•Sweden GDP (YoY) 3.0%,5.2% previous
•Sweden GDP (QoQ) -0.8%, -0.4% forecast, 1.1% previous
•Spanish CPI (YoY) 8.7%,8.3% previous
•Spanish May HICP (YoY) 8.5%, 8.2% forecast, 8.3% previous
•EU May Services Sentiment 14.0,14.3 forecast, 13.5 previous
•EU May Business and Consumer Survey 105.0,104.9 forecast, 105.0 previous
•EU May Consumer Confidence -21.1,-21.1 forecast, -21.1 previous
• EU Industrial May Sentiment 6.3,7.5 forecast, 7.9 previous
• EU May Business Climate 1.26,1.98 previous
• Belgium May CPI (YoY) 8.97%, 8.31% previous
Looking Ahead - Economic Data (GMT)
•12:00 German May HICP (YoY) 8.0% forecast, 7.8% previous
•12:00 German May HICP (MoM) 0.5% forecast, 0.7% previous
•12:00 German May CPI (MoM) 0.5% forecast, 0.8% previous
•12:30 Canada Current Account (Q1) 3.2B forecast, -0.8B previous
•13:00 US 3-Month Bill Auction 1.060% previous
•13:00 French 6-Month BTF Auction -0.400% previous
•13:00 French 12-Month BTF Auction 0.051% previous
•16:23 Italian Apr PPI (YoY) 36.9% previous
•16:23 Italian Apr PPI (MoM) 4.0% previous
Looking Ahead - Economic events and other releases (GMT)
•15:00 US Fed Waller Speaks
•17:00 German Buba President Nagel Speaks
Fxbeat
EUR/USD: The euro strengthened on Monday after preliminary inflation data from the bloc turned out to be stronger than expected. Consumer prices in the German state of North Rhine-Westphalia in May were 8.1% higher than a year earlier, above expectations for the German consumer price index.Driven by climbing energy prices, German import prices were 31.7% higher in April than a year before year, the most substantial increase since September 1974.The pan-German consumer price data will be published later on Monday, and numbers from the euro area are due on Tuesday. The euro rose to a five-week high and was last up 0.2% at $1.0758. Immediate resistance can be seen at 1.0785(38.2%fib), an upside break can trigger rise towards 1.0798 (Higher BB).On the downside, immediate support is seen at 1.0729(5DMA), a break below could take the pair towards 1.0674(233.6%fib).
GBP/USD: Sterling steadied against dollar on Monday as the risk-sensitive currency benefited from improving sentiment. As markets have readjusted their rate hike expectations from the Federal Reserve lower, the dollar index has weakened over 3.5% from its mid-May peak. This helped lift sterling after it reached its lowest level since March 2020 earlier in the month. Trade was likely to be light through Monday as U.S. stock and bond markets close for the Memorial Day public holiday, while the UK calendar is looking light this week with markets closed on Thursday and Friday for the Spring Bank Holiday and Queen’s Platinum Jubilee. Immediate resistance can be seen at 1.2672(38.2%fib),an upside break can trigger rise towards 1.2725 (Higher BB).On the downside, immediate support is seen at 1.2596(5DMA), a break below could take the pair towards 1.2495 (23.6%fib).
USD/CHF: The dollar strengthened against the Swiss franc on Monday as risk appetite across markets tentatively strengthened, supported by more encouraging economic data and bets that the Federal Reserve will tighten policy at a slower pace. Trade was likely to be light through Monday as U.S. stock and bond markets close for the Memorial Day public holiday.Data on Friday showed that U.S. consumer spending rose more than expected in April as households boosted purchases of goods and services, and the increase in inflation slowed. At 12:00 GMT, the dollar was 0.01 percent lower versus the Swiss franc at 0.9388 . Immediate resistance can be seen at 0.9592 (5DMA), an upside break can trigger rise towards 0.9655 (38.2% fib).On the downside, immediate support is seen at 0.9541 (23.6% fib), a break below could take the pair towards 0.9478(Lower BB).
USD/JPY: The dollar edged higher against the Japanese yen on Monday after Bank of Japan sticks to powerful easing. Bank of Japan Governor Haruhiko Kuroda pledged on Monday to patiently stick to powerful monetary easing to help the economy recover from the COVID-19-induced doldrums, shrugging off any suggestion about a departure from its stimulus policy.Kuroda told parliament the yen was regaining stability after its recent rapid weakening, which was "undesirable," adding that the situation was due to the dollar's pullback. The Japanese currency weakened to two-decade lows beyond 131 to the dollar earlier this month, stoking concerns about the rising cost of living. Strong resistance can be seen at 127.78(11DMA), an upside break can trigger rise towards 128.38(23.6%fib).On the downside, immediate support is seen at 126.96 (38.2%fib), a break below could take the pair towards 125.81(50%fib).
Equities Recap
European shares scaled over three-week highs on Monday as new stimulus in China helped carry on last week's optimism, while investors looked for more economic data this week, including German inflation.
At (GMT 10:48 ),UK's benchmark FTSE 100 was last trading down at 0.04 percent, Germany's Dax was up by 0.66 percent, France’s CAC was last up by 0.67 percent.
Commodities Recap
Gold prices rose on Monday as the dollar slipped, while investors have dialled down their expectations of further aggressive monetary policy tightening in the United States.
Spot gold rose 0.4% to $1,859.18 per ounce by 1008 GMT. U.S. gold futures were 0.2% higher at $1,861.50.
Oil prices rose on Monday, hitting their highest in more than two months, as traders waited to see whether a planned European Union meeting would reach an agreement on banning Russian oil imports.
The Brent crude futures contract for July, which will expire on Tuesday, was up 54 cents, or 0.5%, at $119.97 a barrel at 0912 GMT.
U.S. West Texas Intermediate (WTI) crude futures jumped 62 cents, or 0.5%, to $115.69 a barrel, extending solid gains made last week.