Posted at 06 July 2022 / Categories Market Roundups
Market Roundup
• German May Factory Orders (MoM) 0.1%, -0.6% forecast, -2.7% previous
•Sweden Industrial Production (MoM) 0.5%,-0.6% previous
•Sweden Industrial Production (YoY) 0.2%,0.1% previous
•UK Jun Construction PMI 52.6, 55.0 forecast, 56 previous
•UK Housing Equity Withdrawal (QoQ)-6.9B,-10.4B previous
•EU May Retail Sales (MoM) 0.2, 0.4%forecast, -1.3% previous
•EU May Retail Sales (YoY) 0.2, -0.4% forecast, 3.9% previous
Looking Ahead Economic Data(GMT)
•12:55 US Redbook (YoY) 11.7% previous
•13:45 US Jun S&P Global Composite PMI 1.2 forecast, 51.2 previous
•14:00 US Jun Services PMI 51.6 forecast, 51.6 previous
•14:00 US Jun ISM Non-Manufacturing PMI 54.3 forecast,55.9 previous
•14:00 US May JOLTs Job Openings 11.000M forecast,11.400M previous
•14:00 US Jun ISM Non-Manufacturing Employment 50.2 previous
•14:00 US Jun ISM Non-Manufacturing New Orders 57.6 previous
Looking Ahead - Events, Other Releases (GMT)
•18:00 US FOMC Meeting Minutes
Fxbeat
EUR/USD: The euro hit a fresh two-decade low against the dollar on Wednesday as fears of rising energy prices and possible shortages cast a long shadow over the bloc's economy, despite some reassuring headlines about gas supplies. All oil and gas fields that were affected by a strike in Norway's petroleum sector are expected to be back in full operation within a couple of days. The euro fell 0.7% against the dollar to 1.0186, the first time below 1.02 since December 2002.Euro zone consumers cut spending on food, drinks and tobacco for the second straight month in May amid a spike in prices, according to estimates from the European Union statistics office Eurostat released on Wednesday. Immediate resistance can be seen at 1.0272 (Daily high),an upside break can trigger rise towards 1.0349(38.2%fib).On the downside, immediate support is seen at 1.0176(23.6%fib), a break below could take the pair towards 1.0100(Psychological level).
GBP/USD: British pound declined on Wednesday as political uncertainty in UK weighed on British pound. Sterling was hobbling near a two-year low hit on Tuesday after the abrupt resignation of finance and health secretaries, along with several in more junior roles, saying they could no longer stay in government after a series of scandals blighted the administration . The pound dipped 0.34% against the dollar to $1.1904, but remained near Tuesday's low of $1.1899 its lowest level since March 2020. Immediate resistance can be seen at 1.1993(Daily high),an upside break can trigger rise towards 1.2100(38.2%fib).On the downside, immediate support is seen at 1.1874(23.6%fib), a break below could take the pair towards 1.1838(Lower BB).
USD/CHF: The dollar strengthened against the Swiss franc on Wednesday as investors continued to seek safety in the dollar amid mounting fears over the deteriorating global economic outlook. The U.S. Federal Reserve publishes minutes later on Wednesday from its June meeting, when it announced the sharpest hike in the benchmark interest rate in nearly 30 years. It is likely to foreshadow more hikes as Fed officials have said their top priority is fighting inflation, even at the cost of growth. At 12:00 GMT, the dollar was 0.01 percent lower versus the Swiss franc at 0.9388 . Immediate resistance can be seen at 0.9742 (38.2%fib), an upside break can trigger rise towards 0.9835 (23.6% fib).On the downside, immediate support is seen at 0.9645 (50% fib), a break below could take the pair towards 0.9630 (5DMA).
USD/JPY: The dollar dipped against Japanese yen on Wednesday as yen gained a little support from some safety bids after Japanese households' inflation expectations strengthened in the three months to June, with the ratio of homes expecting price rises over the coming year hitting the highest level in 14 years. Bank of Japan has said it would not withdraw monetary stimulus because inflation is due to soaring fuel and raw material costs blamed on the Ukraine crisis and will likely prove temporary. The dollar dropped 0.3% to 135.28 yen . It hit at the end of June its highest since 1998 at 137. Strong resistance can be seen at 136.10 (23.6%fib), an upside break can trigger rise towards 137.16(Higher BB).On the downside, immediate support is seen at 135.03(21DMA), a break below could take the pair towards 134.34(38.2%fib).
Equities Recap
European shares rose on Wednesday as an end to strike by Norwegian oil and gas workers eased worries of energy supply crunch, while Just Eat Takeaway.com jumped after Amazon agreed to buy a stake in unit Grubhub.
At (GMT 12:10 ),UK's benchmark FTSE 100 was last trading up at 1.56 percent, Germany's Dax was up by 1.18 percent, France’s CAC was up by 1.32 percent.
Commodities Recap
Gold prices rebounded slightly on Wednesday as some investors turned to bargain hunting after 2% fall in the previous session.
Spot gold rose 0.2% to $1,768.19 per ounce by 0836 GMT, after it dipped to $1,762.45, its lowest since mid-December. U.S. gold futures were up 0.3% to $1,768.50.
Oil prices rose on Wednesday, reversing some of Tuesday's heavy losses as supply concerns came to the fore again and continued worries about a possible global recession outweighed them.
Brent crude futures rose by $1.43, or 1.39%, to $104.20 a barrel at 1120 GMT.U.S. West Texas Intermediate (WTI) crude climbed 65 cents, or 0.65%, to $100.15 a barrel after closing below $100