Posted at 06 July 2022 / Categories Market Roundups
Market Roundup
•US Redbook (YoY) 13.1%, 11.7% previous
•US Jun S&P Global Composite PMI 52.3, 51.2 forecast, 51.2 previous
•US Jun Services PMI 52.7,51.6 forecast, 51.6 previous
•US Jun ISM Non-Manufacturing PMI 55.3, 54.3 forecast,55.9 previous
•US May JOLTs Job Openings 11.254M,11.000M forecast,11.400M previous
•US Jun ISM Non-Manufacturing Employment 47.4,50.2 previous
•US Jun ISM Non-Manufacturing New Orders 55.6, 57.6 previous
Looking Ahead - Economic Data (GMT)
•23:50 Japan June Foreign Reserves (USD) 1,329.7B previous
•23:50 Japan Foreign Investments in Japanese Stocks -429.7B previous
•01:30 Australia May Imports (MoM) -1% previous
•01:30 Australia May Exports (MoM) 1% previous
•01:30 Australia May Trade Balance 10.725B forecast,10.495B previous
•05:00 Japan May Leading Index (MoM) 2.1% previous
•05:00 Japan Leading Index 102.9 previous
Looking Ahead - Economic events and other releases (GMT)
•No significant events
Currency Summaries
EUR/USD: The euro hit a fresh two-decade low against the dollar on Wednesday as rising energy prices cast a long shadow over the euro zone's economy but bolstered the U.S. currency's safe-haven appeal. The dollar and the euro were little changed following the release of the Federal Reserve's June meeting minutes, when the Federal Reserve raised interest rates by 75 basis points in a bid to curb inflation. The dollar index rose 0.498% to $107.04 and the euro fell 0.8% to $1.0184.The index hit a high of 107.27 and the euro fell 1% to a previous low of $1,063. 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/CAD: The Canadian dollar was little changed against the greenback on Wednesday, stabilizing near a 20-month low hit the previous day as oil prices fell and investors digested minutes from the Federal Reserve's latest monetary policy meeting. Oil prices, one of Canada's top exports, extended Tuesday's sharp losses as investors were concerned that a potential global recession could hit energy demand . The loonie was trading nearly unchanged at 1.3030 to the greenback after touching on Tuesday its weakest level since November 2020 at 1.3083. It traded on Wednesday in a range of 1.3013 to 1.3078.Immediate resistance can be seen at 1.3049(23.6%fib), an upside break can trigger rise towards 1.3094(Higher BB).On the downside, immediate support is seen at 1.2969 (5DMA), a break below could take the pair towards 1.2936 (38.2%fib).
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 stocks rose on Wednesday after Norwegian oil and gas workers ended their strike, easing concerns about energy supplies, while Just Eat Takeaway.com rose jumped 15.5% after Amazon agreed to buy a stake in its Grubhub business.
UK's benchmark FTSE 100 closed up by 1.17 percent, Germany's Dax ended up by 1.56 percent, France’s CAC finished the day up by 2.03 percent.
Wall Street rose as oil prices fell further on Wednesday as investors juggled concerns about inflation versus a recession after Federal Reserve minutes showed officials supported large rate hike at their June meeting.
Dow Jones closed up by 0.23% percent, S&P 500 closed up by 0.36% percent, Nasdaq settled up by 0.35% percent.
Treasuries Recap
Benchmark U.S. Treasury yields edged higher on Wednesday but had a relatively muted reaction after minutes from the Federal Reserve's June meeting showed that a deteriorating inflation situation prompted Fed officials to rally around an outsized interest rate increase.
The two-year, 10-year part of the Treasury yield curve reached minus 7 basis points, after inverting on Tuesday for the first time in three weeks, a move that is seen as a reliable indicator that a recession will follow in one to two years.
Commodities Recap
Gold extended its selloff to an over nine-month low on Wednesday hurt by a stronger dollar, while the Federal Reserve’s June meeting minutes established a more “restrictive” monetary policy.
Spot gold fell 1.4% to $1,738.99 per ounce by 2:52 p.m. ET (1852 GMT), after falling as much as 2.6% on Tuesday, largely unchanged after the release of the Fed minutes.U.S. gold futures settled down 1.6% at $1,736.5.
Oil prices fell about 2% in volatile trading on Wednesday, extending sharp losses from the previous session as investors grew more concerned that energy demand could be hit by a possible global recession.
Brent futures for September delivery fell $2.08, or 2.0%, to settle at $100.69 a barrel. U.S. West Texas Intermediate (WTI) crude fell 97 cents, or 1.0%, to settle at $98.53. Both benchmarks closed at their lowest since April 11, in technically oversold territory for a second straight day.