Posted at 08 July 2022 / Categories Market Roundups
Market Roundup
•US Challenger Job Cuts (YoY) 58.8%,-15.8% previous
•Canada May Trade Balance 5.32B,2.40B forecast, 1.50B previous
•Canada May Imports 63.11B, 62.81B previous
•US May Trade Balance -85.50B,-84.90B forecast,-87.10B previous
•Canada May Exports 68.44B, 64.31B previous
•US Exports 255.90B, 252.60B previous
•US Imports 341.40B , 339.70B previous
•US Initial Jobless Claims 235K ,230K forecast, 231K previous
•US Jobless Claims 4-Week Avg 232.50K, 231.75K previous
•US Continuing Jobless Claims 1,375K,1,327K forecast, 1,328K previous
•Canada Jun Ivey PMI 62.2,72.0 previous
•Canada Jun Ivey PMI n.s.a 57.8, 66.7 previous
•US Natural Gas Storage 60B, 74B forecast, 82B previous
•US Crude Oil Inventories 1.609M,-1.043M forecast, -2.762M previous
•US Gasoline Inventories -2.497M,-0.480M forecast, 2.645M previous
•US Cushing Crude Oil Inventorie s0.069M,-0.782M previous
•US 4-Week Bill Auction 1.530%, 1.240% previous
•US 8-Week Bill Auction 1.840%,1.650% previous
Looking Ahead - Economic Data (GMT)
•05:00 Japan Economy Watchers Current Index 54.0 previous
•Looking Ahead - Events, Other Releases (GMT)
•No significant events
Currency Summaries
Fxbeat
EUR/USD: The euro hit a fresh two-decade low against the dollar on Thursday as investors grappled with the risks of a recession and a potential pause in interest rate. Worries about economic growth and soaring inflation continued to dominate global market mood. The dollar index , a measure of the dollar's value against six counterparts, rose 0.065% to 107.11 after peaking at 107.27 on Wednesday, a level not seen since late 2002. The euro was down 0.26% to $1.0157 after setting a fresh two-decade low of 1.01445 on Thursday. Immediate resistance can be seen at 1.0237 (5DMA),an upside break can trigger rise towards 1.0317(38.2%fib).On the downside, immediate support is seen at 1.0141(23.6%fib), a break below could take the pair towards 1.0100(Psychological level).
GBP/USD: Sterling held on to its gains on Thursday after Boris Johnson said he was quitting as prime minister following a rush of ministerial resignations and calls for him to go. The gains versus the dollar and the euro began after media reports of his imminent resignation earlier in the day. But the moves were small, with Johnson's departure already seen as almost a certainty and largely priced in by markets. The pound against the dollar traded at $1.1993 by 1500 GMT, up around 0.6% on the day but below the high of $1.2024 hit before Johnson announced he was quitting. Immediate resistance can be seen at 1.2064 (9DMA),an upside break can trigger rise towards 1.2120(38.2%fib).On the downside, immediate support is seen at 1.1921(Lower BB), a break below could take the pair towards 1.1878(Lower BB).
USD/CAD: The Canadian dollar strengthened against its U.S. counterpart on Thursday as oil prices rebounded and the greenback's recent rally took a breather, with investors awaiting the release of June jobs data that could inform the outlook for interest rates.The loonie was up 0.4% at 1.2980 to the greenback , after trading in a range of 1.2964 to 1.3055. On Tuesday, it touched its weakest since November 2020 at 1.3083. Canadian and U.S. employment data, due on Friday, could provide clues on the strength of the North American economy as the Federal Reserve and Bank of Canada prepare markets for additional tightening to tackle soaring inflation. Immediate resistance can be seen at 1.3042 (Higher BB), an upside break can trigger rise towards 1.3083 (23.6% fib).On the downside, immediate support is seen at 1.2953 (38.2 %fib ), a break below could take the pair towards 1.2929 (9DMA)
USD/JPY: The dollar was little changed against Japanese yen on Thursday as investors awaited key U.S. data. Investors awaited U.S. jobs data on Friday and the consumer price index next week, which should signal the pace of inflation and whether the Federal Reserve continues to aggressively hike interest rates when policymakers next meet on July 26-27. The U.S. central bank should raise rates by 75 basis points later this month and then most likely deliver a 50 basis point hike at its following policy meeting in September, Fed Governor Christopher Waller said on Thursday. Strong resistance can be seen at 136.10(23.6%fib), an upside break can trigger rise towards 137.42(Higher BB).On the downside, immediate support is seen at 135.66(21DMA), a break below could take the pair towards 133.39(38.2%fib).
Equities Recap
European stocks closed on a buoyant note on Thursday, extending gains from the previous session, as worries about inflation eased a bit after the Fed minutes said the policymakers reiterated a tough stance to rein in soaring consumer prices.
The UK's benchmark FTSE 100 closed up by 1.14 percent, Germany's Dax ended up by 1.97 percent, and France’s CAC finished the up by 1.60 percent.
Wall Street benchmarks ended up on Thursday, with the S&P 500 and Nasdaq recording their fourth successive higher closes, as traders leaned in to U.S. equities after the Federal Reserve hinted at a more tempered program of interest rate hikes.
Dow Jones closed up by 1.12 percent, S&P 500 ended up by 1.50 percent, Nasdaq finished the day down by 2.28 percent.
Treasuries Recap
Treasury yields were higher as investors waited on U.S. jobs data due before the market opens on Friday for clues about the strength of the economy and the Fed's next moves.
Benchmark 10-year notes last fell 26/32 in price to yield 3.0075%, from 2.911% late on Wednesday. The 2-year note last fell 4/32 in price to yield 3.0285%, from 2.961%.
Commodities Recap
Gold rose on Thursday as a pause in the dollar’s rally encouraged some investors to snap up bargains after two sessions of heavy losses that sent prices to a nine-month low.
Spot gold rose 0.1% to $1,740.16 per ounce by 2:32 p.m. ET (1832 GMT). U.S. gold futures settled up 0.2% to $1,739.
Oil prices settled sharply higher on Thursday, rebounding from steep losses the previous two sessions, as investors returned their focus to tight supply despite nagging fears of a potential global recession.
Brent crude futures were up $3.96, or 3.9%, at $104.65 a barrel. U.S. WTI crude futures climbed $4.20, or 4.3%, to $102.73 a barrel.