Posted at 10 June 2022 / Categories Market Roundups
Market Roundup
• US Initial Jobless Claims 229K,210K forecast,200K previous
• US Continuing Jobless Claims 1,306K,1,305K forecast,1,309K previous
• US Jobless Claims 4-Week Avg 215.00K,206.50K previous
• US Natural Gas Storage 97B, 96B forecast, 90B previous
• US 8-Week Bill Auction 1.150%,1.040% previous
• US 4-Week Bill Auction 1.040%,0.860% previous
Looking Ahead Economic Data(GMT)
•01:15 China May PPI (YoY) 6.4% forecast,8.0% previous
•01:15 China May CPI (YoY) 2.2% forecast, 2.1% previous
•01:15 China May CPI (MoM) -0.3% forecast,0.4% previous
Looking Ahead - Events, Other Releases (GMT)
•No data ahead
Currency Summaries
EUR/USD: The euro declined against dollar on Thursday after the European Central Bank prepared to hike interest rates next month for the first time since 2011 and as pending inflation data spooked investors. While the ECB decision was widely expected, the possibility of a larger hike from September weighed on sentiment as the euro zone economy grapples with slowing growth and soaring inflation. For months, markets have focused on how fast central banks have been moving to curb inflation. Investors now expect the Federal Reserve to hike rates by 50 basis points next week, especially if U.S. CPI data confirms an elevated inflation reading. Immediate resistance can be seen at 1.0673(38.2%fib),an upside break can trigger rise towards 1.0705(11DMA).On the downside, immediate support is seen at 1.0560(23.6%fib), a break below could take the pair towards 1.0483(Lower BB).
GBP/USD: Sterling fell against dollar on Thursday after the European Central Bank signalled it will hike euro zone interest rates next month for the first time in a decade. Markets have been anticipating the ECB's decision for weeks, and the prospect of a greater rate hike in September impacted sentiment at a time when the euro zone economy is struggling with slowing growth and rising inflation. The focus now shifts to U.S. inflation data due on Friday, with the Federal Reserve expected to continue with a 50 basis point rate increases at its meeting next week and again in July. Immediate resistance can be seen at 1.2509(21DMA),an upside break can trigger rise towards 1.2599(38.2%fib).On the downside, immediate support is seen at 1.2431(23.6%fib), a break below could take the pair towards 1.2364(Lower BB).
USD/CAD: The Canadian dollar fell to a 10-day low against its broadly stronger U.S. counterpart on Thursday, as equity markets slid ahead of key data and despite the Bank of Canada leaving the door open to a three-quarter-percentage-point interest rate hike. Wall Street's main indexes fell and the U.S. dollar rallied against a basket of major currencies as investors braced for a U.S. inflation report on Friday that could help determine the pace of Federal Reserve interest rate hikes. The Canadian dollar was trading 1.1% lower at 1.2695 to the greenback , after touching its weakest since May 30 at 1.2698. It was the currency's biggest decline since August last year. Immediate resistance can be seen at 1.2727 (5DMA), an upside break can trigger rise towards 1.2753 (23.6%fib).On the downside, immediate support is seen at 1.2686 (38.2%fib), a break below could take the pair towards 1.2636 (50%fib).
USD/JPY: The dollar strengthened on Thursday as investors were cautious ahead of data on Friday that is expected to show consumer prices remained elevated in May. The data is expected to show that consumer prices rose 0.7% in May, while the core consumer price index (CPI), which excludes the volatile food and energy sectors, rose 0.5% in the month. Higher-than-expected inflation readings could increase fears that the U.S. Federal Reserve will raise interest rates more aggressively than previously expected. The central bank has raised its short-term interest rate by three-quarters of a percentage point this year and intends to keep at it with 50 basis points increases at its meeting next week and again in July. Strong resistance can be seen at 134.34 (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 closed lower on Thursday, extending recent slide, as the European Central Bank (ECB) confirmed its intention to hike interest rates at its policy meeting next month and downgraded its growth forecasts.
UK's benchmark FTSE 100 closed down by 1.54 percent, Germany's Dax ended down by 1.71 percent, France’s CAC finished the day down by 1.40 percent.
U.S. stocks slid sharply Thursday as investor anxiety heightened ahead of data on Friday that is expected to show consumer prices remained elevated in May..
Dow Jones closed down by 1.94%percent, S&P 500 closed down by 2.38% percent, Nasdaq settled down by 2.75 % percent.
Treasuries Recap
U.S. Treasury yields rose on Thursday after the European Central Bank (ECB) signaled a series of upcoming interest rate hikes and before highly anticipated U.S. inflation data due on Friday.
Two-year yields , which are highly sensitive to interest rate moves, got as high as 2.842% and benchmark 10-year note yields reached 3.073%, both the highest since May 11.
Commodities Recap
Gold prices fell on Thursday as elevated U.S. Treasury yields and a firm dollar dimmed bullion’s appeal in the run-up to U.S. inflation data that could strengthen the case for aggressive policy tightening by the Federal Reserve.
Spot gold was down 0.3% at $1,848.49 per ounce by 1:57 p.m. EDT (1757 GMT), while U.S. gold futures fell 0.2% to $1,852.80.
Oil prices dipped on Thursday but still hovered near three-month highs after parts of Shanghai imposed new COVID-19 lockdown measures, as strong gains in refined products contributed to an ongoing bullish backdrop for crude oil.
Brent crude futures for August settled down 51 cents at $123.07 a barrel, a 0.4% decline, while U.S. West Texas Intermediate crude for July lost 60 cents, or 0.5%, to $121.51 a barrel.