Posted at 31 May 2022 / Categories Market Roundups
Market Roundup
•Canada Current Account (Q1) 5.0B, 3.2B forecast, -0.8B previous
•US 3-Month Bill Auction 1.060% previous
•French 6-Month BTF Auction -0.432%, -0.400% previous
•French 3-Month BTF Auction-0.561%, -0.603% previous
•French 12-Month BTF Auction 0.092%,0.051% previous
Looking Ahead - Economic Data (GMT)
• 01:00 New Zealand ANZ May Business Confidence -42.0 previous
• 01:00 New Zealand May NBNZ Own Activity 8.0% previous
• 01:30 Australia Company Gross Operating Profits (QoQ) (Q1) 4.0% forecast,2.0%previous
• 01:30 Australia Business inventories (MoM) (Q1)1.0% forecast, 1.1% previous
• 01:30 Australia Apr Private Sector Credit (MoM) 0.4% previous
• 01:30 Australia Current Account (Q1) 13.4B forecast,12.7B previous
• 01:30 Canada May Non-Manufacturing PMI 41.9 previous
• 01:30 Chinese May Composite PMI 42.7 previous
• 01:30 Australia Apr Building Approvals (MoM) 2.0% forecast, -18.5% previous
• 01:30 Australia Apr Private House Approvals -3.0% previous
• 05:00 Japan Apr Construction Orders (YoY) -21.2% previous
Looking Ahead - Economic events and other releases (GMT)
•No significant events
Currency Summaries
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. 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 1.2863 (23.6%fib),an upside break can trigger rise towards 1.2741 (Higher BB).On the downside, immediate support is seen at 1.2621(5DMA), a break below could take the pair towards 1.2582(38.2%fib).
USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Monday, adding to recent gains, as easing COVID restrictions in China bolstered investor sentiment and data showed Canada posting the widest current account surplus in nearly 14 years. Oil prices climbed to their highest in more than two months, as traders waited to see whether a European Union meeting would reach an agreement on banning Russian oil imports. U.S. crude rose 0.6% to $115.7 a barrel, while the Canadian dollar was trading 0.4% higher at 1.2673 to the greenback, its strongest since April 22. Immediate resistance can be seen at 1.2710(38.2%fib), an upside break can trigger rise towards 1.2784 (50%fib).On the downside, immediate support is seen at 1.2624 (23.6%fib), a break below could take the pair towards 1.2573(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 128.43(23.6%fib), an upside break can trigger rise towards 128.69(21DMA).On the downside, immediate support is seen at 127.45 (Daily low), a break below could take the pair towards 127.04(38.2%fib).
Equities Recap
European stocks closed higher on Monday as additional stimulus measures announced by the Chinese government and relaxations in some coronavirus restrictions in the country raised optimism about growth in the world's second largest economy and helped underpin sentiment.
UK's benchmark FTSE 100 closed up by 0.19 percent, Germany's Dax ended up by 0.79 percent, France’s CAC finished the day up by 0.72 percent.
Wall Street was closed on account of Memorial Day holiday.
Treasuries Recap
US bond market remained shut on account of Memorial Day.
Commodities Recap
Gold prices held firm on Monday in mostly range-bound trade, helped by a dip in the dollar, while investors have dialled down their expectations of further aggressive monetary policy tightening in the United States.
Spot gold edged up 0.1% to $1,854.49 per ounce by 2:18 p.m. ET (1818 GMT). U.S. gold futures rose 0.04 % to $1,858.00.
Oil prices climbed above $121 a barrel on Monday, hitting a two-month high as China eased COVID-19 restrictions and traders priced in expectations that the European Union will eventually reach an agreement to ban Russian oil imports.
The Brent crude futures contract for July, which will expire on Tuesday, settled up $2.24, or 1.9%, at $121.67 a barrel. U.S. West Texas Intermediate (WTI) crude futures were up $1.99, or 1.7%, to $117.06 a barrel at 18.03 GMT.