Posted at 10 June 2022 / Categories Market Roundups
Market Roundup
• Canada May Employment Change 39.8K, 30.0K forecast,15.3K previous
• Canada May Full Employment Change 135.4K,-31.6K previous
• Canada Part Time Employment Change -95.8K,47.1K previous
• US May CPI (MoM) 1.0%, 0.7% forecast, 0.3% previous
• US Real May Earnings (MoM) -0.7%,-1.0% previous
• US May Core CPI (YoY) 6.0%,5.9% forecast, 6.2% previous
• US May Core CPI (MoM) 0.6%,0.5% forecast, 0.6% previous
• Canada May Unemployment Rate 5.1%, 5.2% forecast, 5.2% previous
• Canada May Participation Rate 65.3%, 65.3% previous
• US May CPI (YoY) 8.6%, 8.3% forecast, 8.3% previous
• US May CPI Index, n.s.a. 292.30,291.66 forecast, 289.11 previous
• US Jun Michigan 5-Year Inflation Expectations 3.30%, 3.00% previous
• US Jun Michigan Consumer Expectations 46.8 , 54.5 forecast,55.2 previous
• US Jun Michigan Consumer Sentiment 50.2, 58.0 forecast,58.4 previous
• US Jun Michigan Current Conditions 55.4,62.5 forecast,63.3 previous
• US May Cleveland CPI (MoM) 0.6%,0.5% previous
• US U.S. Baker Hughes Oil Rig Count 580,574 previous
• U.S. Baker Hughes Total Rig Count 733,727 previous
Looking Ahead Economic Data(GMT)
• No data ahead
Looking Ahead - Events, Other Releases (GMT)
• No significant events
Currency Summaries
EUR/USD: The euro declined against dollar on Friday after a bigger-than-expected U.S. inflation data. The U.S. consumer price index increased 8.6% last month, the largest year-on-year increase since December 1981, the Labor Department said. Economists polled had expected CPI to rise 8.3% annually. Many economists and market participants expected the data to show inflation had peaked, but gasoline prices hit a record high, the cost of food soared and rental prices surged. Immediate resistance can be seen at 1.0612(38.2%fib),an upside break can trigger rise towards 1.0644(5DMA).On the downside, immediate support is seen at 1.0508(23.6%fib), a break below could take the pair towards 1.0453(Lower BB).
GBP/USD: Sterling fell on Friday against the U.S. dollar as Britain's gloomy economic outlook left investors on edge while strong U.S. inflation data boosted the greenback. The pound fell below $1.24 after data showed that U.S. consumer prices accelerated in May, suggesting that the Federal Reserve could continue with its 50 basis point interest rate hikes through September to combat inflation. The Bank of England is expected to raise interest rates next week for the fifth time since December, its steepest run of rate hikes in 25 years. The pound slipped as much as 1.3% versus the dollar to $1.2310, hitting its lowest in three weeks. Immediate resistance can be seen at 1.2421(38.2%fib),an upside break can trigger rise towards 1.2497(5DMA).On the downside, immediate support is seen at 1.2291 (Lower BB), a break below could take the pair towards 1.2230(23.6%fib).
USD/CAD: The Canadian dollar fell to a two-week low against its broadly stronger U.S. counterpart on Friday as investors weighed economic data that could support additional aggressive interest rate hikes by the Bank of Canada and the Federal Reserve. The U.S. dollar jumped against a basket of major currencies, equity markets globally tumbled and the price of oil , one of Canada's major exports, settled 0.7% lower as U.S. consumer prices accelerated in May, cementing bets for a second consecutive half-percentage-point interest rate hike by the Fed at a policy decision next Wednesday. . Immediate resistance can be seen at 1.2797 (38.2%fib), an upside break can trigger rise towards 1.2867(23.6%fib).On the downside, immediate support is seen at 1.2724 (50%fib), a break below could take the pair towards 1.2662 (61.8%fib).
USD/JPY: The dollar declined against dollar on Friday after data showed U.S. consumer prices accelerated in May, strengthening expectations the Federal Reserve may have to continue with interest rate hikes through September to combat inflation.In the 12 months through May, the CPI increased 8.6% after rising 8.3% in April. Economists had hoped that the annual CPI rate peaked in April. The inflation report was published ahead of an anticipated second 50 basis points rate hike from the Fed next Wednesday. The U.S. central bank is expected to raise its policy interest rate by an additional half a percentage point in July. Strong resistance can be seen at 134.71 (23.6%fib), an upside break can trigger rise towards 135.35(Higher BB).On the downside, immediate support is seen at 133.43 (5DMA), a break below could take the pair towards 132.11(50%fib).
Equities Recap
European stocks closed lower on Friday, extending recent weakness, as the mood remained bearish amid rising rising concerns about inflation and interest rate hikes.
UK's benchmark FTSE 100 closed down by 2.12 percent, Germany's Dax ended up by 3.08 percent, France’s CAC finished the day down by 2.69 percent.
U.S. stocks posted their biggest weekly percentage declines since January and ended sharply lower on the day Friday as a steeper-than-expected rise in U.S. consumer prices in May fueled fears of more aggressive interest rate hikes by the Federal Reserve.
Dow Jones closed up by 2.73% percent, S&P 500 closed down by 2.91 % percent, Nasdaq settled down by 3.52% percent.
Commodities Recap
Gold prices bounced back in volatile trading on Friday, as focus turned to economic risks after elevated U.S. inflation readings bolstered bets for aggressive interest rate hikes.
Spot gold rose 1.4% to $1,873.58 per ounce by 2:40 p.m. EDT (1840 GMT).U.S. gold futures settled up 1.2% at $1,875.50.
Oil prices fell on Friday, after U.S. consumer prices rose more than expected and China imposed new COVID-19 lockdown measures.
Brent crude fell $1.06 to settle at $122.01 a barrel. U.S. West Texas Intermediate crude fell 84 cents to settle at $120.67 a barrel.