Posted at 02 June 2022 / Categories Market Roundups
Market Roundup
•Swiss May CPI (YoY) 2.9%, 2.6% forecast, 2.5% previous
•Swiss May CPI (MoM) 0.7%,0.3% forecast, 0.4% previous
•Spanish Unemployment Change -99.5K , -86.3K previous
•EU Apr PPI (YoY) 37.2%, 38.5% forecast, 36.8% previous
•EU Apr PPI (MoM) 1.2%,2.3% forecast, 5.3% previous
•US May ADP Nonfarm Employment Change 128K,300K forecast, 247K previous
•US Continuing Jobless Claims 1,309K,1,325K forecast, 1,346K previous
•US Unit Labor Costs (QoQ) (Q1) 12.6%,11.6% forecast, 11.6% previous
•US Jobless Claims 4-Week Avg 206.50K,206.75K previous
•US Initial Jobless Claims 200K,210K forecast,210K previous
•US Nonfarm Productivity (QoQ) (Q1) -7.3%, -7.5% forecast,-7.5% previous
•Canada Apr Building Permits (MoM) -0.6%,0.7% forecast,-9.3% previous
•US Apr Factory orders ex transportation (MoM) 0.3%,2.1% previous
•US Apr Durables Excluding Defense (MoM) 0.3%,0.3% previous
•US Apr Factory Orders (MoM) 0.3%,0.7% forecast,1.8% previous
•US Natural Gas Storage 90B,86B forecast, 80B previous
Looking Ahead - Economic Data (GMT
•15:00 US Crude Oil Inventories -1.350M forecast, -1.019M previous
•15:30 US 8-Week Bill Auction 0.915% previous
•15:30 US 4-Week Bill Auction 0.740% previous
Looking Ahead - Economic events and other releases (GMT)
•17:00 US FOMC Member Mester Speaks
Fxbeat
EUR/USD: The euro strengthened on Thursday as dollar eased after hitting a more than one-week peak in the previous session. Fears about slowing growth have gripped markets recently as inflation surges and central banks scramble to tame it without tipping economies into recession.The dollar index fell 0.4% to 102.16, reversing part of Wednesday's gains. That helped the euro climb 0.4% to $1.069 .On the data front, U.S. private payrolls increased far less than expected in May, which would suggest demand for labor was starting to slow amid higher interest rates and tightening financial conditions, though job openings remain extremely high. Private payrolls rose by 128,000 jobs last month, the ADP National Employment Report showed on Thursday. Immediate resistance can be seen at 1.0720(5DMA), an upside break can trigger rise towards 1.0759 (38.2%fib).On the downside, immediate support is seen at 1.0654(23.6%fib), a break below could take the pair towards 1.0561(19th May low).
GBP/USD: The British pound strengthened against the U.S. dollar on Thursday as slightly lower U.S. Treasury yields and a retreat in the dollar supported sterling. The risk for sterling is that weak growth shifts the BoE to a more dovish rate outlook to bolster an economy suffering a cost-of-living crisis. Money markets still discount an aggressive monetary tightening path from the Bank of England (BoE) despite concerns of economic slowdown as they price in 140 basis points of BoE rate hikes by year-end. UK politics remain in investors' focus as Prime Minister Boris Johnson faces a potential confidence vote from his lawmakers, with commentators suggesting he could consider holding an early election before an expected date in 2024 to rebuild his authority. Immediate resistance can be seen at 1.2566(Daily high),an upside break can trigger rise towards 1.2618 (38.2%fib).On the downside, immediate support is seen at 1.2488(23.6%fib), a break below could take the pair towards 1.2447 (21DMA).
USD/CHF: The dollar dipped against the Swiss franc on Thursday after data showed Swiss inflation soared to its highest in 14-years. Swiss prices increased by their highest level in 14 years during May, the government said on Thursday, as Switzerland became the latest country to be hit by more expensive fuel and food costs.The consumer price index rose by 2.9% compared with a year earlier as transport, food and drinks became much more expensive in a country noted for its historically low inflation. Immediate resistance can be seen at 0.9652 (38.2%fib), an upside break can trigger rise towards 0.9758 (23.6%fib).On the downside, immediate support is seen at 0.9564 (50%fib), a break below could take the pair towards 0.9486(61.8%fib).
USD/JPY: The dollar strengthened against the Japanese yen on Thursday as stronger-than-expected economic data was unable to assuage investor concerns of high inflation and an impending recession driven partly by rising oil prices. Investors remained cautious due to uncertainty caused by the pace of the U.S. Federal Reserve's interest rate hikes, and the impact of the Russia-Ukraine war on food and commodity prices. The dollar was up 0.7% to 129.88 yen , its highest since May 17. Strong resistance can be seen at 130.44 (23.6%fib), an upside break can trigger rise towards 131.05(Higher BB).On the downside, immediate support is seen at 129.02 (38.2%fib), a break below could take the pair towards 128.78(5DMA).
Equities Recap
European shares bounced back on Thursday, led by tech and healthcare names, with gains limited by a slide in energy stocks and worries over slowing economic growth.
At (GMT 02:33),UK's benchmark FTSE 100 was last trading down at 0.98% percent, Germany's Dax was up by 0.55% percent, France’s CAC finished was up by 0.97% percent.
Commodities Recap
Gold prices rose on Thursday buoyed by a pullback in the dollar while investors also focused on the Fridays U.S. jobs report.
Spot gold rose 0.6% to $1,856.30 per ounce by 1216 GMT. U.S. gold futures was also 0.6% higher at $1,858.70.
Oil prices were little changed after erasing early losses on Thursday after OPEC+ agreed to boost crude output to compensate for a drop in Russian production.
Brent futures rose 40 cents, or 0.3%, to $116.69 a barrel by 9:36 a.m. EDT (1336 GMT), while U.S. West Texas Intermediate (WTI) crude rose 49 cents, or 0.4%, to $115.75.