Posted at 01 June 2022 / Categories Market Roundups
Market Roundup
•UK May Nationwide HPI (YoY)11.2%, 10.5% forecast,12.1% previous
•UK May Nationwide HPI (MoM) 0.9%, 0.6% forecast,0.3% previous
•German Apr Retail Sales (YoY) -0.4%, 4.0% forecast,-2.7% previous
•German Apr Retail Sales (MoM) -5.4%, -0.2% forecast,-0.1% previous
•Spanish May Manufacturing PMI 53.8,52.0 forecast,53.3 previous
•Italian May Manufacturing PMI 51.9,53.5 forecast,54.5 previous
•French May Manufacturing PMI 54.6, 54.5 forecast, 55.7 previous
•German May Manufacturing PMI 54.8, 54.7 forecast,54.6 previous
•EU May Manufacturing PMI 54.6,54.4 forecast, 55.5 previous
•UK May Manufacturing PMI 54.6,54.6 forecast, 55.8 previous
•EU Apr Unemployment Rate 6.8%, 6.8% forecast, 6.8% previous
Looking Ahead - Economic Data (GMT)
•12:55 US Redbook (YoY) 11.4% previous
•13:30 Canada May Manufacturing PMI 56.2 previous
•13:45 Canada May Manufacturing PMI 57.5 forecast, 59.2 previous
•14:00 Canada Apr Construction Spending (MoM) 0.5% forecast, 0.1% previous
•14:00 US Apr Construction Spending (MoM) 0.5% forecast, 0.1% previous
•14:00 US May ISM Manufacturing Employment 56.0 forecast, 50.9 previous
•14:00 US May ISM Manufacturing PMI 54.5 forecast,55.4 previous
•14:00 US Apr JOLTs Job 11.400M forecast, 11.549M previous
•14:00 Canada BoC Interest Rate Decision1.50% forecast, 1.00% previous
•14:30 US May Texas Services Sector Outlook 8.2 previous
•14:30 US May Dallas Fed Services Revenues 11.2 previous
Looking Ahead - Economic events and other releases (GMT)
•15:15 ECB's Panetta Speaks
•15:30 US FOMC Member Williams Speaks
•15:30 ECB's Lane Speaks
•11:00 ECB President Lagarde Speaks
Fxbeat
EUR/USD: The euro declined on Wednesday as investors reacted to weak German retail sales and Eurozone manufacturing PMI data. German retail sales fell by more than expected in April as consumers feel the pinch of higher prices, especially for food, and retailers face supply problems from the China lockdowns. The Federal Statistics Office said on Wednesday that retail sales were down 5.4% on the month in real terms. Manufacturing growth in the euro zone slowed last month as factories faced supply shortages, high prices and a fall in demand, according to a survey which suggested consumers were switching their spending to tourism and recreation.S&P Global's final manufacturing Purchasing Managers' Index (PMI) fell to 54.6 in May from April's 55.5, its lowest since November 2020.Immediate resistance can be seen at 1.0740(5DMA), an upside break can trigger rise towards 1.0776 (38.2%fib).On the downside, immediate support is seen at 1.0667(23.6%fib), a break below could take the pair towards 1.0638(26th April low).
GBP/USD: The British pound fell against the U.S. dollar on Wednesday as investors were concerned about a deteriorating growth outlook but ruling out a further significant pound decline. With UK markets closed on Thursday and Friday, analysts expect reduced volatility ahead of the long weekend. British manufacturing activity expanded in May at the weakest rate since January 2021, as producers of consumer goods struggled against a worsening cost-of-living crunch, a survey showed. At 0835 GMT, sterling was 0.05% lower against the dollar at $1.2595. It remained well off its mid-May lows when it touched its lowest level since May 2020. Immediate resistance can be seen at 1.2710(38.2%fib),an upside break can trigger rise towards 1.2801 (50%fib).On the downside, immediate support is seen at 1.2565(23.6%fib), a break below could take the pair towards 1.2451(21DMA).
USD/CHF: The dollar strengthened against the Swiss franc on Wednesday as greenback was lifted by higher Treasury yields as global inflation worries flared. U.S. dollar nudged up, The dollar index hit a one-month low of 101.29 on Monday after pulling back from a nearly two-decade high above 105 in mid-May, as U.S. inflation and other economic indicators showed signs of peaking amid the Federal Reserve's aggressive policy tightening. A monthly U.S. jobs report due on Friday may offer new clues.At (GMT 12:16), Greenback gained 0.20% versus the Swiss franc to 0.9720. Immediate resistance can be seen at 0.9628 (38.2%fib), an upside break can trigger rise towards 0.9708 (50%fib).On the downside, immediate support is seen at 0.9585 (5 DMA), a break below could take the pair towards 0.9530(23.6%fib).
USD/JPY: The dollar strengthened against the Japanese yen on Wednesday as greenback rose as investors fretted over soaring inflation and the impact on global growth from looming interest rate rises. Market players were watching whether attempts to douse inflation by central banks across the world with tighter monetary policy would spark recessions - something that could in turn see rate hikes slow.The dollar was up 0.5% to 129.345 yen, having earlier touched 129.54, its highest since May 17. Strong resistance can be seen at 129.72 (23.6%fib), an upside break can trigger rise towards 131.14(Higher BB).On the downside, immediate support is seen at 128.10 (38.2%fib), a break below could take the pair towards 127.84(11DMA).
Equities Recap
European stocks traded mixed in cautious trade on Wednesday as investors react to weak German retail sales and Eurozone manufacturing PMI data.
At (GMT 12:46 ),UK's benchmark FTSE 100 was last trading up at 0.06 percent, Germany's Dax was up by 0.58 percent, France’s CAC was last up by 0.43 percent.
Commodities Recap
Gold prices slid to a two-week low on Wednesday on a stronger dollar and U.S. Treasury yields amid renewed global inflation concerns that could prompt aggressive monetary policy measures.
Spot gold was down 0.4% to $1,830.66 per ounce by 1147 GMT, after hitting its lowest since May 19 at $1,827.80. U.S. gold futures were down 0.9% at $1,832.50.
Oil prices firmed on Wednesday after European Union leaders agreed to a partial and phased ban on Russian oil and as China ended its COVID-19 lockdown in Shanghai.
Brent crude was up $1.30, or 1.1%, at $116.90 a barrel by 1149 GMT. U.S. West Texas Intermediate (WTI) crude rose $1.05, or 0.9%, to $115.72.