Posted at 10 June 2022 / Categories Market Roundups
Market Roundup
•Spanish May CPI (YoY) 8.7% 8.7% forecast, 8.3%previous
•Spanish May HICP (YoY) 8.5%, 8.5% forecast, 8.3% previous
•Spanish May HICP (MoM) 0.7%,0.7% forecast, -0.3% previous
•Italian Apr Industrial Production (YoY) 4.2%, -0.2% forecast, 3.0% previous
Looking Ahead Economic Data(GMT)
•12:30 Canada May Employment Change 30.0K forecast,15.3K previous
•12:30 Canada May Full Employment Change -31.6K previous
•12:30 Canada Part Time Employment Change 47.1K previous
•12:30 US May CPI (MoM) 0.7% forecast, 0.3% previous
•12:30 US Real May Earnings (MoM) -1.0% previous
•12:30 US May Core CPI (YoY) 5.9% forecast, 6.2% previous
•12:30 US May Core CPI (MoM) 0.5% forecast, 0.6% previous
•12:30 US May Unemployment Rate 5.2% forecast, 5.2% previous
•12:30 US May Participation Rate 65.3% previous
•12:30 US May CPI (YoY) 8.3% forecast, 8.3% previous
•12:30 US May CPI Index, n.s.a.291.66 forecast,289.11 previous
•14:00 US Jun Michigan 5-Year Inflation Expectations 3.00% previous
•14:00 US Jun Michigan Consumer Expectations 54.5 forecast,55.2 previous
•14:00 US Jun Michigan Consumer Sentiment 58.0 forecast,58.4 previous
•14:00 US Jun Michigan Current Conditions 62.5 forecast,63.3 previous
•15:00 US May Cleveland CPI (MoM) 0.5% previous
•17:00 US U.S. Baker Hughes Oil Rig Count 574 previous
•17:00 U.S. Baker Hughes Total Rig Count 727 previous
Looking Ahead - Events, Other Releases (GMT)
•13:45 ECB President Lagarde Speaks
Fxbeat
EUR/USD: The euro declined against dollar on Friday after the ECB ended a long-running stimulus scheme on Thursday and signalled it would deliver its first interest rate hike since 2011 next month, followed by a potentially larger move in September if inflation does not cool down. The focus now shifts to U.S. consumer inflation data due out later in the day that could influence the Federal Reserve's rate-hike roadmap for fighting inflation.The annual rate of consumer price growth is expected to hold at 8.3 percent in May, while the annual rate of core consumer price growth is expected to slow to 5.9 percent from 6.2 percent. Immediate resistance can be seen at 1.2648(5DMA),an upside break can trigger rise towards 1.2676(38.2%fib).On the downside, immediate support is seen at 1.2567(23.6%fib), a break below could take the pair towards 1.2467(Lower BB).
GBP/USD: Sterling fell on Friday against the U.S. dollar and was set for a second consecutive week of declines as Britain’s gloomy economic outlook left investors on edge. Financial markets are pricing in Bank of England rates hitting 2% by September’s policy meeting and 3% by May 2023, up from 1% now as central banks battle surging inflation. The pound slipped 0.35% versus the dollar to $1.2454 pence, not far from a three-week low touched earlier this week. Sterling was little changed versus the euro at 85.04 pence but was heading to its best week against the weakening single currency since April. Immediate resistance can be seen at 1.2512(5DMA),an upside break can trigger rise towards 1.2552(38.2%fib).On the downside, immediate support is seen at 1.2430(23.6%fib), a break below could take the pair towards 1.2354(Lower BB).
USD/CHF: The dollar strengthened against the Swiss franc on Friday as investors awaited inflation data that should guide the Federal Reserve's policy tightening path. U.S. core consumer price growth is expected to cool a fraction. This could give the Fed some wiggle room to raise rates less aggressively later in the year as it tries to rein in inflation without tipping the economy into recession. Markets expect the Fed next week to announce the second of its three consecutive 50-basis-point interest rate hikes .Immediate resistance can be seen at 0.9844 (38.2%fib), an upside break can trigger rise towards 0.9908 (23.6%fib).On the downside, immediate support is seen at 0.9783 (50%fib), a break below could take the pair towards 0.9722 (61.8%fib).
USD/JPY: The dollar declined against dollar on Friday after the government and the central bank in a rare joint statement expressed concern about the yen's recent slide to hit two-decade lows.After a meeting with his Bank of Japan (BOJ) counterpart, the country's top currency diplomat Masato Kanda told reporters that Tokyo will take appropriate action as needed, a sign Japan may be edging closer to intervening in the market in a bid to arrest the yen's declines. Japan's yen has been battered by traders wagering that the BOJ will stick with its ultra-accommodative policy stance just as the Federal Reserve and other central banks accelerate their tightening to tame soaring inflation. 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 are seen opening a tad lower on Friday, a day after the European Central Bank joined the growing number of central banks to cease easy-money policies.
At (GMT 11:50 ),UK's benchmark FTSE 100 was last trading down at 1.24 percent, Germany's Dax was down by 1.24 percent, France’s CAC finished was down by 1.52 percent.
Commodities Recap
Gold prices dipped on Friday, as the dollar firmed ahead of the release of key U.S. inflation data that could drive the Federal Reserve’s upcoming policy decisions.
Spot gold fell 0.3% to $1,842.77 per ounce, as of 0954 GMT, and was down about 0.4% for the week. U.S. gold futures declined 0.4% to $1,845.40.
Oil rose on Friday and was on track for another weekly gain supported by solid fuel demand in the United States, although fresh COVID-19 alerts in Shanghai and Beijing curbed gains.
Brent crude was up 40 cents, or 0.3%, at $123.47 a barrel at 0934 GMT while U.S. West Texas Intermediate crude rose 30 cents, or 0.3%, to $121.81 a barrel.