Posted at 17 June 2022 / Categories Market Roundups
Market Roundup
•EU May CPI (MoM) 0.8%,0.8% forecast, 0.6%previous
•Italian Apr Trade Balance -3.666B,-0.084B previous
• EU May CPI (YoY) 8.1%,8.1% forecast,8.1% previous
• EU May Core CPI (YoY) 3.8%,3.8% forecast,3.8% previous
• EU May HICP ex Energy and Food (MoM) 0.7%,0.7% forecast, 1.2% previous
• EU May CPI ex Tobacco (MoM) 0.8%, 0.6% previous
•Canada May IPPI (MoM) 1.7%, 0.5% forecast, 0.8% previous
•Canada May IPPI (YoY) 15.0%,16.4% previous
•Canada Apr Foreign Securities Purchases 22.23B, 46.94B previous
•Canada Apr Foreign Securities Purchases by Canadians 29.20B,-23.98B previous
• US May Industrial Production (YoY) 5.83%, 6.40% previous
• US May Manufacturing Production (MoM) -0.1%,0.3% forecast,0.8% previous
• US May Capacity Utilization Rate 79.0%,79.2% forecast, 79.0% previous
• US May Industrial Production (MoM) 0.2%, 0.4% forecast, 1.1% previous
Looking Ahead Economic Data(GMT)
• 14:00 US Leading Index (MoM) -0.4% forecast, -0.3% previous
•17:00 U.S. Baker Hughes Oil Rig Count 580 previous
•17:00 U.S. Baker Hughes Total Rig Count 733 previous
Looking Ahead - Events, Other Releases (GMT)
•12:45 US Fed Chair Powell Speaks
•16:00 US Fed Monetary Policy Report
Fxbeat
EUR/USD: The euro declined against dollar on Friday as a slew of interest rate hikes from major central banks fuelled worries about a sharp economic slowdown. Markets were heading for their biggest weekly decline since markets' pandemic meltdown in March 2020, hit by growing worries about a recession after rate increases in the United States and Britain were followed by a surprise move in Switzerland to quell an inflation surge. The ECB also faces high inflation, though perhaps a more delicate task because its economies feel even more strongly the headwinds from Russia's invasion of Ukraine, which has driven up energy prices worldwide. Immediate resistance can be seen at 1.0570(11DMA),an upside break can trigger rise towards 1.0637(50%fib).On the downside, immediate support is seen at 1.0445(23.6%fib), a break below could take the pair towards 1.0332(Lower BB).
GBP/USD: Sterling slipped on Friday against a strengthening U.S. dollar, giving up gains made a day earlier after the Bank of England raised interest rates. The pound had on Thursday gained 1.4% versus the dollar, buoyed by the Bank of England’s 0.25% interest rate rise.The increase surprised some investors who had expected a more aggressive move to douse soaring inflation in Britain, though most predicted it would support the pound with further rate hikes likely through the year. The pound fell as much as 0.5% against the dollar to $1.2290 , off from a one-week high of $1.2405 touched a day earlier. It was last at $1.23015. Immediate resistance can be seen at 1.2309(38.2%fib),an upside break can trigger rise towards 1.2508 (50%fib).On the downside, immediate support is seen at 1.2180(5DMA), a break below could take the pair towards 1.2068(23.8%fib).
USD/CHF: The dollar declined sharply against the Swiss franc on Friday as shock Swiss rate hike boosted Swiss franc. A shock 50 basis point rate hike from the Swiss National Bank overnight sent the franc on its sharpest rise in seven years, forced an unwind of carry trades and set off a new round of worry that rising global rates will snuff out growth. The Swiss franc surged to a two-week high against dollar, and was 1.8% higher at 1.0194 as of 0905 GMT.Immediate resistance can be seen at 0.9683 (50%fib), an upside break can trigger rise towards 0.9815(38.2%fib).On the downside, immediate support is seen at 0.9622 (Daily low), a break below could take the pair towards 0.9550(61.8%fib).
USD/JPY: The dollar strengthened against Japanese yen on Friday after the Bank of Japan bucked a wave of tightening and stuck with its ultra-accommodative stance, adding to soaring volatility in currency markets hit by a series of rate hikes this week . The Bank of Japan maintained ultra-low interest rates on Friday and vowed to defend its cap on bond yields with unlimited buying, bucking a global wave of monetary tightening in a show of resolve to focus on supporting a tepid economic recovery. The yen fell as much as 1.9% and bond yields fell after the decision, which was widely expected but disappointed some market players who speculated the BOJ could give into market forces and tweak its yield cap policy. Strong resistance can be seen at 135.25 (23.6%fib), an upside break can trigger rise towards 136.74(Higher BB).On the downside, immediate support is seen at 133.44 (11DMA), a break below could take the pair towards 131.52(38.2%fib).
Equities Recap
European stocks inched higher on Friday but were set for sharp weekly losses as a slew of interest rate hikes from major central banks fuelled worries about a sharp economic slowdown.
At (GMT 14:23 ),UK's benchmark FTSE 100 was last trading up at 0.54 percent, Germany's Dax was up by 0.68 percent, France’s CAC was up by 0.60percent.
Commodities Recap
Gold prices declined on Friday and was on pace to post a more than 1% fall for the week, dented by a stronger dollar and hawkish policy signals from global central banks even as recessionary fears loom.
Spot gold fell 0.4% to $1,849.50 per ounce by 0923 GMT. U.S. gold futures rose 0.3% to $1,854.40.
Oil rose on Friday, supported by supply tightness and new sanctions on Iran, but prices were on track for a weekly decline amid interest rate hikes from major central banks that fuelled worries about a sharp economic slowdown.
Brent crude was up $1.13, or 0.9%, to $120.94 a barrel at 1016 GMT, and U.S. West Texas Intermediate (WTI) crude had gained $1.03, or 0.9%, to $118.62.