Posted at 03 June 2022 / Categories Market Roundups
Market Roundup
•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
• US Crude Oil Inventories -1.350M forecast, -1.019M previous
Looking Ahead - Economic Data (GMT)
• 01:30 Australia Home Loans (MoM)-1.0% forecast, 0.9% previous
• 01:30 Australia Invest Housing Finance (MoM) 2.9% previous
Looking Ahead - Economic events and other releases (GMT)
•No significant events
Currency Summaries
EUR/USD: The euro strengthened on Thursday as dollar eased after lower-than-expected private payrolls data stirred hopes that the American economy was likely cooling and the Federal Reserve might be persuaded to modify its aggressive stance on interest rates and inflation. 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 1.0761(38.2%fib), an upside break can trigger rise towards 1.0845 (50%fib).On the downside, immediate support is seen at 1.0647(23.6%fib), a break below could take the pair towards 1.0607(21DMA).
GBP/USD: The British pound strengthened against the U.S. dollar on Thursday as firmer risk sentiment across the board 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 1.2576(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/CAD: The Canadian dollar on Thursday strengthened for the sixth day in seven against its broadly weaker U.S. counterpart as oil prices rose and the Bank of Canada signaled it has much more work to do to bring inflation under control. Canada's central bank will probably have to raise its policy rate to the top of its neutral range, double its current level of 1.5%, and could go higher, to prevent soaring inflation from becoming entrenched, Deputy Governor Paul Beaudry said. The price of oil, one of Canada's major exports, settled 1.4% higher at $116.87 a barrel after U.S. crude inventories fell more than expected amid high demand for fuel and OPEC+ agreed to boost crude output to compensate for a drop in Russian production. Immediate resistance can be seen at 1.2618 (5DMA), an upside break can trigger rise towards 1.2646 (38.2%fib).On the downside, immediate support is seen at 1.2556 (23.6%fib), a break below could take the pair towards 1.2475 (Lower BB).
USD/JPY: The dollar was little changed against the Japanese yen on Thursday after data showed U.S. private payrolls increased far less than expected in May. Private payrolls rose by 128,000 jobs last month, the ADP National Employment Report showed on Thursday. Data for April was revised down to show 202,000 jobs added instead of the initially reported 247,000. Economists polled had forecast private payrolls increasing by 300,000 jobs. Investors will now keep a close eye out on Friday’s nonfarm payrolls data. The U.S. dollar currency index , which tracks the greenback against six major currencies, was 0.8% lower at 101.78, on pace to snap a two-day streak of gains. 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
The major European markets found support on Thursday as bourses in Germany and France erased losses from the previous session, while the UK was shuttered for its Spring Bank holiday.
Germany's Dax ended up by 1.01 percent, France’s CAC finished the day up by 1.21percent.
Wall Street ended sharply higher on Thursday, led by Tesla, Nvidia and other megacap growth stocks in a choppy session ahead of a key jobs report due on Friday.
Dow Jones closed up by 1.33% percent, S&P 500 closed up by 1.84% percent, Nasdaq settled up by 2.69% percent.
Treasuries Recap
U.S. Treasury yields were mixed on Thursday amid market expectations that the U.S. non-farm payrolls report for May is likely to keep the Federal Reserve on track to raise interest rates by half a percentage point a few more times this year.
The U.S. benchmark 10-year yield rose less than a basis point to 2.9369% .U.S. 30-year yields were up 3.3 bps at 3.1102% US30YT=RR.
Commodities Recap
Gold prices rose over 1% on Thursday supported by a dip in the dollar and data showing U.S. private payrolls rose less than expected last month.
Spot gold rose 1.2% to $1,868.41 per ounce by 1:46 p.m. ET (1746 GMT), having earlier risen to a one-week high. U.S. gold futures also settled up 1.2%, at $1,871.4.
Oil rose more than 1% on Thursday after U.S. crude inventories fell more than expected amid high demand for fuel, shrugging off OPEC+'s agreement to boost crude output to compensate for a drop in Russian production.
Brent futures settled $1.32, or 1.1%, higher at $117.61 a barrel, while U.S. West Texas Intermediate (WTI) crude rose $1.61, or 1.4%, to $116.87.