Posted at 23 June 2022 / Categories Market Roundups
Market Roundup
•French Jun Business Survey 108, 105 forecast, 106 previous
•French Jun Services PMI 54.4 ,57.6 forecast, 58.3 previous
•French Jun Markit Composite PMI 52.8 , 56.0 forecast, 57.0 previous
•French Jun Manufacturing PMI 51.0 ,54.0 forecast, 54.6 previous
•German Jun Services PMI 52.4,54.5 forecast, 55.0 previous
•German Jun Manufacturing PMI 52.0 ,54.0 forecast, 54.8 previous
• German Jun Composite PMI 1.3,53.1 forecast, 53.7 previous
•EU June Markit Composite PMI 51.9,54.0 forecast, 54.8 previous
•EU June Manufacturing PMI 52.0, 53.9 forecast, 54.6 previous
•EU June Services PMI 52.8, 55.5 forecast, 56.1 previous
•UK June Manufacturing PMI 53.4. 54.6 forecast, 54.6 previous
•UK June Composite PMI 53.1, 51.8 forecast, 51.8 previous
•UK June Services PMI 53.4 ,51.8 forecast, 51.8 previous
•US Current Account (Q1) -291.4B, -273.5B forecast, -217.9B previous
•US Initial Jobless Claims 229K,227K forecast, 229K previous
•US Jobless Claims 4-Week Avg 223.50K,218.50K previous
•US Continuing Jobless Claims 1,315K, 1,315K forecast, 1,312K previous
•Canada Manufacturing Sales (MoM) -2.5%,1.7% previous
•Canada Wholesale Sales (MoM) 2.0%, -0.5% previous
Looking Ahead Economic Data (GMT)
•13:45 US Jun Services PMI 53.5 forecast, 53.4 previous
•13:45 US Jun Markit Composite PMI 53.6 previous
•13:45 US Jun Manufacturing PMI 56.0 forecast, 57.0 previous
•14:30 US Natural Gas Storage 65B forecast, 92B previous
•15:00 US Crude Oil Inventories -0.569M forecast,1.956M previous
•15:00 US Cushing Crude Oil Inventories -0.826M previous
Looking Ahead - Events, Other Releases (GMT)
•14:00 US Fed Chair Powell Testifies
Fxbeat
EUR/USD: The euro weakened broadly on Thursday as disappointing German and French PMI data confirmed the euro zone economy is struggling to gain traction, prompting traders to trim bets on big interest rate hikes from the European Central Bank.High prices in the euro zone meant demand for manufactured goods fell in June at the fastest rate since May 2020 when the coronavirus pandemic was taking hold, with S&P Global's headline factory Purchasing Managers' Index (PMI) falling to a near two- year low of 52.0 from 54.6. Against the U.S. dollar, the single currency declined 0.6% to $1.0498, falling below the $1.05 line for the third time this week. Immediate resistance can be seen at 1.0585(38.2%fib),an upside break can trigger rise towards 1.0666(50%fib).On the downside, immediate support is seen at 1.0471(23.6%fib), a break below could take the pair towards 1.0376(Lower BB).
GBP/USD: Sterling declined against dollar on Thursday after better-than-expected UK PMI numbers for June was offset by political risks and recession fears. Investors were on watch for further signs of political instability as the ruling Conservative Party was contesting two key by-elections on Thursday: one in Tiverton and Honiton in the southwest and another in Wakefield in the north. A defeat in either place could spur Conservative lawmakers to find a way to oust Prime Minister Boris Johnson. The PMI’s preliminary composite index held at 53.1 in June, above the median forecast of 52.6 in a poll of economists, and unchanged from May.The pound was down 0.5% against a strengthening U.S. dollar at $1.2223, having earlier fallen below $1.22. Immediate resistance can be seen at 1.2287(5DMA),an upside break can trigger rise towards 1.2406 (38.2%fib).On the downside, immediate support is seen at 1.2167(23.6%fib), a break below could take the pair towards 1.2032(Lower BB).
USD/CHF: The dollar initially against the Swiss franc on Thursday but gave up ground as grrennback was hurt by Treasury yields wallowing near two-week lows amid rising concerns of a recession. Powell on Wednesday noted that the Fed is not trying to engineer a recession to stop inflation but is fully committed to bringing prices under control even if doing so risks an economic downturn. Powell is due to testify again in Washington D.C. later on Thursday. The dollar rose 0.340%against a basket of major currencies. Immediate resistance can be seen at 0.9654 (5DMA), an upside break can trigger rise towards 0.9712(38.2%fib).On the downside, immediate support is seen at 0.9578(50%fib), a break below could take the pair towards 0.9488(61.8%fib).
USD/JPY: The dollar dipped against Japanese yen on Thursday as investors weighed the risk of hefty interest rate rises tipping economies into recession. Markets have become increasingly concerned that the Fed’s commitment to quelling red-hot inflation will spur a recession. U.S. Treasury yields remained lower on Thursday after Federal Reserve Chair Jerome Powell, in testimony to the U.S. Senate Banking Committee on Wednesday, underlined the central bank's commitment to cutting inflation at all costs and acknowledged a recession was certainly a possibility. The dollar slid 0.17% to 134.97 yen, retreating from a 24-year high of 136.71 reached on Wednesday. Strong resistance can be seen at 136.48 (23.6%fib), an upside break can trigger rise towards 138.03(Higher BB).On the downside, immediate support is seen at 134.28(5DMA), a break below could take the pair towards 133.78(38.2%fib).
Equities Recap
European shares dropped on Thursday after a survey showed euro zone business activity slowed significantly in June, adding to fears of a sharp economic downturn, while sliding oil and metal prices hit commodity-linked stocks.
At (GMT 12:48),UK's benchmark FTSE 100 was last trading down at 0.46 percent, Germany's Dax was down by 1.21 percent, France’s CAC was down by 0.32 percent.
Commodities Recap
Gold traded lower on Thursday as a stronger dollar and remarks from U.S. Federal Reserve Chair Jerome Powell about the central bank’s commitment to tame rising prices dimmed its safe-haven appeal.
Spot gold fell 0.4% to $1,829.89 per ounce by 1056 GMT. U.S. gold futures inched 0.4% lower to $1,830.70.
Oil prices edged higher on Thursday after earlier falls as investors weighed the risks of recession and how fuel demand will be affected by rising interest rates and tight supplies.
Brent crude futures rose by 38 cents, or 0.3%, to $112.12 by 1204 GMT, having dropped as low as $108.04 earlier in the session.
U.S. West Texas Intermediate (WTI) crude futures were up 32 cents, or 0.3%, at $106.51 after touching a session low of $102.32.