Posted at 28 June 2022 / Categories Market Roundups
Market Roundup
• German Jul GfK German Consumer Climate -27.4, -27.6 forecast,-26.0 previous
•Sweden May Retail Sales (YoY) -2.3%, 2.4% previous
• French Jun Consumer Confidence 82, 84 forecast, 86 previous
• Italian Apr Industrial Sales (YoY) 22.00% forecast, 21.40% previous
• Italian Apr Industrial Sales (MoM) 2.70% forecast, 2.40% previous
• Irish May Retail Sales (MoM) 0.0% forecast, 3.8% previous
Looking Ahead - Economic Data (GMT)
• 12:30 US May Goods Trade Balance -106.70B previous
•12:30 US May Retail Inventories Ex Auto 1.7% previous
• 12:30 US Wholesale Inventories (MoM) 2.1% forecast, 2.2% previous
• 12:55 US Redbook (YoY) 12.8% previous
• 13:00 US Apr S&P/CS HPI Composite - 20 n.s.a. (YoY) 21.0% forecast, 21.2% previous
• 13:00 US Apr S&P/CS HPI Composite - 20 n.s.a. (MoM) 3.1% previous
• 13:00 US S&P/CS HPI Composite - 20 s.a. (MoM) 2.0% forecast, 2.4% previous
• 14:00 US CB Jun Consumer Confidence 100.4 forecast, 106.4 previous
• 14:00 US Jun Richmond Manufacturing Shipments -14 previous
•14:00 US Jun Texas Services Sector Outlook 1.5 previous
•14:00 US Jun Dallas Fed Services Revenues 6.3 previous
Looking Ahead - Events, Other Releases (GMT)
•No significant events
Fxbeat
EUR/USD: The euro held below $1.06 as European Central Bank (ECB) President Christine Lagarde offered no fresh insight on the central bank's policy outlook. The ECB is widely expected to follow its global peers by raising interest rates in July to check soaring inflation though economists are divided on the magnitude of the rate hike to protect a struggling economic recovery due to high oil prices. The euro held below $1.06 after the ECB's Lagarde said the central bank would move gradually but with the option to act decisively on any deterioration in medium-term inflation. Immediate resistance can be seen at 1.0606(38.2%fib),an upside break can trigger rise towards 1.0693(50%fib).On the downside, immediate support is seen at 1.0546(5DMA), a break below could take the pair towards 1.0476(23.6%fib).
GBP/USD: Sterling dipped against dollar on Tuesday amid flaring Brexit-related risks and a murky economic backdrop. Monday saw British Prime Minister Boris Johnson pressing on with plans to pass legislation through parliament this year to scrap some of the rules on post-Brexit trade with Northern Ireland. Attention instead remains on the UK economic backdrop, which saw inflation hit a 40-year record of 9.1% last month, the highest level of the G7 countries. Traders will be listening closely to the Bank of England governor Andrew Bailey who is due to speak Wednesday at the European Central Bank Forum on Central Banking 2022. Immediate resistance can be seen at 1.2257(5DMA),an upside break can trigger rise towards 1.2336(38.2%fib).On the downside, immediate support is seen at 1.2178(23.6%fib), a break below could take the pair towards 1.2107(June 13th low).
USD/CHF: The dollar edged higher from recent low against the Swiss franc on Tuesday as investors awaited a speech from central bank chief Christine Lagarde, while worries about a recession kept the U.S. slightly dollar firm. The European Central Bank's Forum on Central Banking in Sintra continued on Tuesday with ECB President Christine Lagarde affirming plans to begin hiking interest rates from next month.Lagarde said the ECB will move gradually when it begins raising rates but with the option to act decisively on any deterioration in medium-term inflation, especially if there are signs of a de-anchoring of inflation expectations. Immediate resistance can be seen at 0.9592(5DMA), an upside break can trigger rise towards 0.9677 (38.2%fib).On the downside, immediate support is seen at 0.9539(23.6%fib), a break below could take the pair towards 0.9422(Lower BB).
USD/JPY: The dollar steadied against the Japanese yen on Tuesday as investors remained focused on inflation risks and monetary tightening. The dollar held modest overnight gains on other currencies and traded at 135.37 yen .The U.S. dollar index struck a two-decade high of 105.79 this month and was last steady at 103.93. German inflation figures are due on Wednesday, French data on Thursday and euro zone numbers on Friday.At (GMT 12:16),greenback was trading higher 0.45 % versus the yen to 136.06. Strong resistance can be seen at 136.19 (23.6%fib), an upside break can trigger rise towards 137.00(Psychological level).On the downside, immediate support is seen at 134.90(14DMA), a break below could take the pair towards 132.92(38.2%fib).
Equities Recap
European shares rose on Tuesday, led by commodity-linked stocks and automakers after China relaxed its COVID-19 quarantine mandate, with investors eyeing the European Central Bank's (ECB) annual forum for clues on monetary policies.
At (GMT 12:10 ),UK's benchmark FTSE 100 was last trading up at 1.39 percent, Germany's Dax was up by 0.94 percent, France’s CAC was last up by 1.36 percent.
Commodities Recap
Gold edged up on Tuesday but gains were capped by higher U.S. Treasury yields as investors focus on the ECB central bankers’ forum in Portugal.
Spot gold rose 0.2% to $1,826.09 per ounce by 0935 GMT. U.S. gold futures firmed 0.1% to $1,827.30.
Oil costs rallied for a 3rd day on Tuesday as major producers Kingdom of Saudi Arabia and United Arab Emirates looked unlikely to be able to boost output considerably and political unrest in African country and Ecuador added to supply concerns.
U.S. West Texas Intermediate (WTI) crude futures rose $1.65, or 1.5%, to $111.22 a barrel by 0927 GMT, extending a 1.8% gain in the previous session.
Brent crude futures climbed $1.83, or 1.5%, to $116.92, adding to the previous session's 1.7% rise.