Posted at 08 June 2022 / Categories Market Roundups
Market Roundup
•Swiss May Unemployment Rate n.s.a. 2.1%,2.1% forecast, 2.3% previous
• Swiss May Unemployment Rate s.a. 2.2%, 2.2% forecast,2.2% previous
• UK Halifax House Price Index (YoY) 10.5%,10.8% previous
• UK May Halifax House Price Index (MoM) 1.0%,0.8% forecast, 1.1% previous
• German Apr Industrial Production (MoM) 0.7%,1.0% forecast, -3.9% previous
• French Apr Trade Balance -12.2B,-12.2B forecast,-12.4B previous
• French Apr Imports 58.9B, 58.1B previous
•French Apr Current Account -3.40B,-3.20B previous
•French Apr Exports 46.7B,45.7B previous
•French May Reserve Assets Total 237,654.0M,245,991.0M previous
•UK May Construction PMI 56.4, 56.6 forecast, 58.2 previous
•EU GDP (QoQ) (Q1) 0.6%, 0.3% forecast, 0.3% previous
•EU Employment Change (YoY) (Q1) 2.9%,2.6% forecast, 2.6% previous
•EU GDP (YoY) (Q1) 5.4%,5.1% forecast, 5.1% previous
•EU Employment Change (QoQ) (Q1) 0.6%,0.5% forecast, 0.5% previous
Looking Ahead Economic Data
•14:00 US Apr Wholesale Trade Sales (MoM) 1.7% previous
•14:00 US Wholesale Inventories (MoM) 2.1% previous
•14:00 US Crude Oil Imports 0.083M previous
•14:00 US Gasoline Inventories 1.075M forecast,-0.711M previous
•14:30US Cushing Crude Oil Inventories 0.256M previous
•14:30 US Crude Oil Inventories -1.917M forecast,-5.068M previous
Looking Ahead - Events, Other Releases (GMT)
•No significant events
Fxbeat
EUR/USD: The euro steadied against dollar on Wednesday as investors focused on the European Central Bank's meeting on Thursday and U.S. CPI data on Friday. Investors raised their bets on ECB rate hikes, and as European markets opened, money markets were pricing in 75 basis points of rate hikes by September. With the bank largely expected to start hikes in July and move in 25 basis-point increments, the pricing implies traders now expect its hikes to include a rare 50 basis-point move at a single meeting by September. Immediate resistance can be seen at 1.2761(38.2%fib),an upside break can trigger rise towards 1.2844(50%fib).On the downside, immediate support is seen at 1.2649(23.6%fib), a break below could take the pair towards 1.2557(23rd May low).
GBP/USD: Sterling fell on Wednesday, staying close to a near three-week low touched this week against the U.S. dollar, amid investor nervousness about a confidence vote on British Prime Minister Boris Johnson that left him politically vulnerable. Heightened political uncertainty has added further pressure on sterling, which has declined more than 7% this year, weighed down by Britain's dismal growth outlook. The British currency fell 0.5% against a strengthening U.S. dollar to $1.2528 at 0840 GMT after touching its lowest level since May 19 at $1.2433 on Tuesday. Immediate resistance can be seen at 1.2606(50%fib),an upside break can trigger rise towards 1.2688(30th May high).On the downside, immediate support is seen at 1.2540(5DMA), a break below could take the pair towards 1.2430(23.6%fib).
USD/CHF: The dollar strengthened against the Swiss franc on Wednesday as investors looking ahead to U.S. inflation data for more direction on interest rates. The U.S. core consumer price index (CPI) due on Friday is expected to have gained 5.9% on the year, after an annual rise of 6.2% in April, according to a poll. The dollar index fell 0.176% to 102.270, with the euro up 0.14% to $1.0709.After touching a near 20-year high of 105.01 on May 13, the dollar index has eased back to around the 102 level, although Friday's strong payrolls report helped the greenback notch its first weekly gain in three. Immediate resistance can be seen at 0.9773 (38.2%fib), an upside break can trigger rise towards 0.9852 (23.6%fib).On the downside, immediate support is seen at 0.9706 (50%fib), a break below could take the pair towards 0.9657 (5DMA).
USD/JPY: The dollar strengthened on Wednesday as traders awaited a Fed meeting which is likely to leave Japan alone among peers in sticking to ultra-easy monetary policy. The U.S. Federal Reserve is expected to raise its benchmark funds rate by 50 basis points next week and again in July but Bank of Japan (BOJ) officials have given no indication of abandoning accommodative settings. The yen has accordingly lost more than 4.5% from 127.09 per dollar to touch 133.22 in eight sessions, dropping hard on crosses as investors see soaring consumer prices forcing central banks around the world to crimp demand with rapid hikes. The yen last traded at 133.02 per dollar. Strong resistance can be seen at 134.13 (Daily high), an upside break can trigger rise towards 135.00(Psychological level).On the downside, immediate support is seen at 133.16 (38.2%fib), a break below could take the pair towards 132.11(50%fib).
Equities Recap
European stocks slipped on Wednesday and Wall Street futures were in the red as worries that central bank tightening will stifle global growth weighed on markets.
At (GMT 11:17 ),UK's benchmark FTSE 100 was last trading down at 0.38 percent, Germany's Dax was down by 0.40 percent, France’s CAC was down by 0.56 percent.
Commodities Recap
Gold prices fell on Wednesday as the U.S. dollar and Treasury yields bounced back, with investors looking ahead to U.S. inflation data for more direction on interest rates.
Spot gold was down 0.3% at $1,847 per ounce as of 0733 GMT, while U.S. gold futures fell 0.1% to $1,850.20.
Oil prices rose on Wednesday, despite a likely rise in U.S. oil stocks, on the easing of Chinese COVID-19 related lockdowns and a possible strike by Norwegian oil workers.
Brent crude futures were up $1.01, or 0.8%, at $121.58 a barrel at 0927 GMT. U.S. West Texas Intermediate crude was at $120.62 a barrel, up $1.21, or 1%.