Posted at 15 June 2022 / Categories Market Roundups
Market Roundup
•German May WPI (YoY)22.9%,23.8%previous
•Swiss May PPI (MoM) 0.9%,1.3% previous
•Swiss May PPI (YoY) 6.9%,6.7% previous
•French May HICP (YoY) 5.8%,5.8%forecast,5.4% previous
•French May HICP (MoM) 0.8%,0.7% forecast,0.5% previous
•French May CPI (MoM) 0.7%,0.6% forecast,0.4% previous
•EU Apr Industrial Production (MoM) 0.4%,-2.0% forecast,-1.8% previous
•EU Apr Trade Balance -32.4B,-16.4B forecast
Looking Ahead Economic Data
•12:15 Canada May Housing Starts 252.6K forecast,267.3K previous
•12:30 US May Import Price Index (MoM) 1.1% forecast,2.9% previous
•12:30 US May Retail Sales (MoM) 0.2% forecast, 0.9% previous
•12:30 US May Core Retail Sales (MoM) 0.8% forecast, 0.6% previous
•12:30 US May Export Price Index (MoM) 1.3% forecast,0.6% previous
•12:30 US Jun NY Empire State Manufacturing Index 3.00 forecast,-11.60 previous
•12:30 US May Retail Control (MoM) 0.5% forecast,1.0% previous
•14:00 US Apr Retail Inventories Ex Auto 1.7% previous
•14:00 US Apr Business Inventories (MoM) 1.2% forecast, 2.0% previous
•14:00 US Crude Oil Inventories -1.314M forecast, 2.025M previous
•14:30 US Gasoline Inventories 1.066M forecast,-0.812M previous
•18:00 US Fed Interest Rate Decision1.50% forecast,- 1.00% previous
Looking Ahead - Events, Other Releases (GMT)
•18:00 US FOMC Economic Projections
•18:00 US FOMC Statement
•18:30 US FOMC Press Conference
Fxbeat
EUR/USD: The euro jumped on Wednesday after the ECB's governing council said it would hold an emergency meeting on Wednesday to discuss the recent sell-off in government bond markets, briefly distracting traders ahead of a much-watched Fed meeting. The European common currency rose as much as 0.7% against the dollar to $1.04945, following the announcement of the meeting, which comes after the spread between the yields of Germany and more indebted southern nations, particularly Italy, soared to its highest in over two years. Immediate resistance can be seen at 1.0499(38.2%fib),an upside break can trigger rise towards 1.0587(50%fib).On the downside, immediate support is seen at 1.0395(23.6%fib), a break below could take the pair towards 1.0361(Lower BB).
GBP/USD: Sterling recovered from its lowest level against the dollar since March 2020 on Wednesday, but the reprieve could prove temporary with slowing UK economic growth and a potential trade conflict with the European Union weighing on the currency.Britain's growth prospects are seen among the weakest for rich countries in 2023, and there is uncertainty over how fast the Bank of England - which is expected to raise interest rates again on Thursday - can tighten policy this year to tame inflation without further hurting the economy. The pound, which plunged below $1.20 on Tuesday for the first time since the COVID-19 crash in March 2020, bounced back 0.75% to 1.2086.Immediate resistance can be seen at 1.2088(Daily high),an upside break can trigger rise towards 1.2159 (38.2%fib).On the downside, immediate support is seen at 1.9984(Daily low), a break below could take the pair towards 1.9925 (23.6%fib).
USD/CHF: The dollar dipped against the Swiss franc on Wednesday as investors waited to see just how aggressive the Federal Reserve would go on rates.The Federal Reserve policy meeting is due to conclude later on Wednesday, and markets are pricing in an 87% chance of an outsized 75 basis point interest rate hike as policymakers try to rein in rampant inflation. Expectations picked up following media reports, first by the Wall Street Journal, that a bigger rate increase was on the cards, after data released last week showed the U.S. consumer price index surged 8.6% in the 12 months to May, the largest year-on-year increase in four decades .Immediate resistance can be seen at 1.0041 (23.6%fib), an upside break can trigger rise towards 1.0059(May 16th high).On the downside, immediate support is seen at 0.9944 (38.2%fib), a break below could take the pair towards 0.9875(50%fib).
USD/JPY: The dollar dipped against dollar on Wednesday as investors waited to see just how aggressive the Federal Reserve would be on rates, with many fearing drastic action would risk tipping the world into recession. Investors await the Federal Open Market Committee’s policy decision on interest rate, due at 1800 GMT. Hotter-than-expected U.S. inflation data released last week has prompted investors to price in an interest rate increase of 75 basis points (bps) rather than reached heights last visited in 1998 at 135.60. The dollar was trading at 135.27 yen, having reached heights last visited in 1998 at 135.60.Strong resistance can be seen at 135.89 (23.6%fib), an upside break can trigger rise towards 136.51(Higher BB).On the downside, immediate support is seen at 133.18 (10DMA), a break below could take the pair towards 131.83(38.2%fib).
Equities Recap
European stocks rallied on Wednesday, with banks leading the gains, after the European Central Bank said its rate-setting Governing Council would hold an unscheduled meeting to discuss the recent sell-off in government bond markets.
At (GMT 10:50 ),UK's benchmark FTSE 100 was last trading up at 1.33 percent, Germany's Dax was down by 1.37 percent, France’s CAC was down by 0.90 percent.
Commodities Recap
Gold prices rose 1% on Wednesday bolstered by a pullback in the U.S. dollar and U.S. Treasury yields, ahead of a potentially aggressive interest rate hike from the Federal Reserve.
Spot gold climbed 0.9% to $1,824.80 per ounce by 1002 GMT while U.S. gold futures rose 0.8% to $1,827.30.
Oil prices fell on Wednesday on concerns about fuel demand and global economic growth before an expected big hike in interest rates by the U.S. Federal Reserve.
Brent crude futures for August were down $1.27, or 1%, at $119.90 a barrel as of 1001 GMT, in volatile trading.U.S. West Texas Intermediate crude for July fell $1.44, or 1.2%, to $117.49 a barrel.