Posted at 31 May 2022 / Categories Market Roundups
Market Roundup
•French GDP (QoQ) (Q1) -0.2%,0.0% forecast, 0.7% previous
•French Apr Consumer Spending (MoM) -0.4%,0.8% forecast, -1.3% previous
•French CPI (MoM) 0.6%,0.4% previous
•French HICP (MoM) 5.2%,0.5% previous
•Swiss GDP (QoQ) (Q1) 0.5%,0.3% forecast,0.3% previous
•Swiss GDP (YoY) (Q1) 4.4%,4.3% forecast, 3.7% previous
•German May Unemployment Rate 5.0%, 5.0% forecast, 5.0% previous
•German May Unemployment Change -4K, -16K forecast, -13K previous
•UK Apr M4 Money Supply (MoM) 0.0%,0.1% previous
•UK Apr Mortgage Approvals 65.97K, 69.00K forecast, 70.69K previous
•EU May CPI (YoY) 8.1%, 7.7% forecast,7.4% previous
•EU May CPI (MoM) 0.8%,0.6% forecast, 0.6% previous
•EU May Core CPI (YoY) 3.8% ,3.5% previous
Looking Ahead - Economic Data (GMT)
•12:30 Canada Mar GDP (MoM) 0.5% forecast,1.1% previous
•12:30 Canada GDP (QoQ) (Q1) 1.6% previous
•12:30 Canada GDP Annualized (QoQ) (Q1) 5.4% forecast, 6.7% previous
•12:30 Canada GDP (YoY) (Q1) 3.26% previous
•13:00 US Mar House Price Index (YoY) 19.4% previous
•13:00 US Mar S&P/CS HPI Composite - 20 n.s.a. (MoM) 2.4% previous
•13:00 US Mar House Price Index 381.4 previous
•13:00 US Mar S&P/CS HPI Composite - 20 n.s.a. (YoY) 20.0% forecast, 20.2% previous
•13:45 US May Chicago PMI 55.0 forecast, 56.4 previous
•14:00 US May CB Consumer Confidence 103.9 forecast, 107.3 previous
•14:00 US May Dallas Fed Mfg Business Index 1.1 previous
•15:30 US 3-Month Bill Auction 1.060% previous
•15:30 US 6-Month Bill Auction 1.530% previous
Looking Ahead - Economic events and other releases (GMT)
•No significant events
Fxbeat
EUR/USD: The euro's losses deepened on Tuesday after data showing euro zone inflation hit a record high in May, but expectations the European Central Bank will soon hike rates kept the single currency on track for its best monthly performance in a year.Rising inflation is usually considered a precursor to tighter monetary policy. The ECB is wary that interest rate hikes might tip the economy into a recession, however, especially as the European Union's plans to cut its reliance on Russian energy could push inflation even higher. Inflation in the 19 countries sharing the euro accelerated to 8.1% in May from 7.4% in April, beating expectations for 7.7%. Immediate resistance can be seen at 1.0725(5DMA), an upside break can trigger rise towards 1.0780 (38.2%fib).On the downside, immediate support is seen at 1.0683(23.6%fib), a break below could take the pair towards 1.0658(11DMA).
GBP/USD: The British pound fell against the U.S. dollar on Tuesday but remained on track for its first monthly gain of 2022 even as Britain’s murky growth outlook continued to weigh on sentiment.At 0850 GMT, the pound was 0.32% lower against the dollar at $1.26140.Despite the weakness, sterling remains well off its mid-May lows when it touched its lowest level since March 2020.Earlier this month the Bank of England raised interest rates to their highest level since 2009, as inflation soared to a four-decade high and warned that Britain risks a recession. Sterling regained ground on the back of strong labour market and CPI data, but focus remains on soaring inflation and how the central bank will manage future potential rate hikes. Immediate resistance can be seen at 1.26533 (Daily high),an upside break can trigger rise towards 1.2716 (38.2%fib).On the downside, immediate support is seen at 1.2584(23.6%fib), a break below could take the pair towards 1.2539(11DMA).
USD/CHF: The dollar strengthened against the Swiss franc on Tuesday as hawkish comments by a senior Federal Reserve boosted greenback. The U.S. Federal Reserve should be prepared to raise interest rates by a half percentage point at every meeting from now on until inflation is decisively curbed, Fed Governor Christopher Waller said on Monday, underscoring tensions at the central bank about how aggressively to tighten policy as it battles to bring down high inflation.At (GMT 11:20), greenback gained 0.20% versus the Swiss franc to 0.9599. Immediate resistance can be seen at 0.9643(38.2%fib), an upside break can trigger rise towards 0.9674 (11DMA).On the downside, immediate support is seen at 0.9564(50%fib), a break below could take the pair towards 0.9472(61.8%fib).
USD/JPY: The dollar strengthened against the Japanese yen on Tuesday after hawkish comments Federal Reserve official. Fed Governor Christopher Waller on Monday said the central bank should be prepared to raise interest rates by 50 basis points at every meeting from now on until inflation is decisively curbed.The dollar index was up 0.2%, while the benchmark U.S. 10-year Treasury yields jumped as Waller’s comments prompted markets to pare expectations that the Fed might pause for breath after hikes in June and July. Strong resistance can be seen at 128.41(23.6%fib), an upside break can trigger rise towards 128.69(21DMA).On the downside, immediate support is seen at 127.72 (11DMA), a break below could take the pair towards 126.58(38.2%fib).
Equities Recap
European shares fell on Tuesday, ahead of euro zone inflation data after a larger-than-expected rise in German consumer prices spurred bets of an aggressive central bank response.
At (GMT 11:20 ),UK's benchmark FTSE 100 was last trading up at 0.35 percent, Germany's Dax was down by 0.68 percent, France’s CAC was last down by 0.85 percent.
Commodities Recap
Gold prices fell on Tuesday as an uptick in the dollar and U.S. bond yields overshadowed support from concerns over soaring inflation, with bullion on track to decline for a second straight month.
Spot gold fell 0.4% to $1,848.60 per ounce by 1025 GMT, and was down 2.5% for the month in its biggest decline since last September. U.S. gold futures dipped 0.2% to $1,852.70.
Oil prices extended a bull run on Tuesday after the EU agreed to a partial ban on Russian oil and China decided to lift some coronavirus restrictions amid rising demand ahead of peak U.S. and European summer driving season.
Brent crude for July, which expires on Tuesday, rose $2.31, or 1.9%, to $123.98 a barrel by 0823 GMT.
U.S. West Texas Intermediate (WTI) crude was trading at $119.34 a barrel, up $4.27 in a fourth session of gains in a row, or 3.7% from Friday's close