Posted at 05 July 2022 / Categories Market Roundups
Market Roundup
•Spanish Jun Services PMI 54.0, 53.5 forecast, 56.5 previous
•Italian Jun Services PMI 51.6, 51.5 forecast, 53.7 previous
•French Jun Services PMI 53.9, 54.4 forecast, 58.3 previous
•German Jun Services PMI 52.4, 52.4 forecast, 55.0 previous
•EU Jun Services PMI 53.0, 52.8 forecast,56.1 previous
•EU Jun S&P Global Composite PMI 52.0, 51.9 forecast, 54.8 previous
•UK Jun Services PMI 54.3, 53.4 forecast, 53.4 previous
•UK Jun Composite PMI 53.7, 53.1 forecast, 53.1 previous
•Canada May Building Permits (MoM) 2.3%, 0.7% forecast, -0.6% previous
Looking Ahead Economic Data(GMT)
•14:00 US Factory May orders ex transportation (MoM) 0.3% previous
•14:00 US May Durables Excluding Defense (MoM) 0.6% previous
•14:00 US May Factory Orders (MoM) 0.5% forecast,0.3% previous
•15:00 GlobalDairyTrade Price Index -1.3% previous
•15:30 US 3-Month Bill Auction 1.750% previous
•15:30 US 6-Month Bill Auction 2.500% previous
Looking Ahead - Events, Other Releases (GMT)
•16:00 EU German Buba Balz Speaks
•16:30 UK MPC Member Tenreyro Speaks
Fxbeat
EUR/USD: The euro sank to a two-decade low versus the dollar on Tuesday as a jump in natural gas prices reignited worries about the euro zone economy and data showed business growth in the region slowed sharply in June. Survey data on Tuesday showed business growth across the euro zone slowed further last month and forward-looking indicators suggested the region could slip into decline this quarter as the cost of living crisis keeps consumers wary. The euro dropped by as much as 1.3% against the dollar to $1.0281 , its weakest since December 2002. Versus the Swiss franc, it dropped 0.9 %to 0.9925 francs , its lowest since 2015. Immediate resistance can be seen at 1.0357 (50%fib),an upside break can trigger rise towards 1.0438 (61.8%fib).On the downside, immediate support is seen at 1.0274 (38.2%fib), a break below could take the pair towards 1.0162 (23.6%fib).
GBP/USD: Sterling dipped against dollar Tuesday as markets awaited sign from the Bank of England on its monetary policy path. The BoE, tasked with tackling soaring inflation while trying to avoid hurting further the economy, has raised rates five times since December. Some market players expect a bigger increase of 50 basis points at the next meeting on Aug. 4. In the absence of major UK economic data expected this week, traders were waiting for Bank of England policymakers speeches. The pound fell 0.4% against the dollar to $1.19999, marching towards a two-week low of $1.1976 hit on Friday. Immediate resistance can be seen at 1.2095(5DMA),an upside break can trigger rise towards 1.2211 (38.2%fib).On the downside, immediate support is seen at 1.1947(23.6%fib), a break below could take the pair towards 1.8884(Lower BB).
USD/CHF: The dollar strengthened against the Swiss franc on Tuesday as growing recession fears increased demand for dollar. Minutes of the Fed's June policy meeting on Wednesday are expected to sound hawkish, however, given the committee chose to hike rates by a super-sized 75 basis points.The market is pricing in around an 85% chance of another hike of 75 basis points this month and rates at 3.25-3.5% by year end. The dollar index shot up 1.1% to 106.24 , a two-decade high for a currency that investors tend to buy during times of acute economic uncertainty. Immediate resistance can be seen at 0.9675 (Daily high), an upside break can trigger rise towards 0.9789 (23.6% fib).On the downside, immediate support is seen at 0.9632(38.2% fib), a break below could take the pair towards 0.9504 (50% fib).
USD/JPY: The dollar rose against Japanese yen on Tuesday as the dollar stood tall as investors awaited non-farm payroll data later in the week. The payrolls report on Friday is forecast to show jobs growth slowing to 270,000 in June, with average earnings slowing a touch to 5.0%. Tuesday offers little in the way of economic data, but later this week the U.S. Federal Reserve and European Central Bank release their minutes from recent policy meetings and on Friday widely watched U.S. payrolls data will be published. The dollar’s strength, nudged the yen back down toward a 24-year low. It was last at 135.89 per dollar. Strong resistance can be seen at 135.55 (5DMA), an upside break can trigger rise towards 136.77(23.6%fib).On the downside, immediate support is seen at 134.89 (July 5th low), a break below could take the pair towards 133.44(June 5th low).
Equities Recap
European stocks fell on Tuesday as a strike by Norwegian oil and gas workers exacerbated worries about an energy shock in Europe and added to concerns over red-hot inflation.
At (GMT 13:00 ),UK's benchmark FTSE 100 was last trading down at 2.11 percent, Germany's Dax was down by 2.54 percent, France’s CAC was last down by 2.66 percent.
Commodities Recap
Gold fell on Tuesday pressured by rate hike expectations and a stronger dollar, but growing recession fears kept safe-haven bullion above the key support level of $1,800 an ounce.
Spot gold was down 0.4% to $1,801.20 per ounce by 0907 GMT, while U.S. gold futures were little changed at $1,800.80 per ounce.
Brent oil slipped on Tuesday as concerns of a possible global recession curtailing demand outweighed supply disruption fears, highlighted by an expected production cut in Norway.
Brent crude was $1.33, or 1.2%, lower at $112.17 a barrel by 1231 GMT, while U.S. West Texas Intermediate (WTI) crude rose 30 cents, or 0.3%, to $108.73 a barrel from Friday's close. There was no settlement for WTI on Monday because of the U.S. Independence Day public holiday.