Posted at 08 July 2022 / Categories Market Roundups
Market Roundup
• French May Current Account -3.90B, -3.40B previous
• French May Imports 60.8B, 58.9B previous
• French Trade Balance -13.0B, -12.8B forecast,-12.2B previous
• Italian May Industrial Production (MoM)-1.1% , -1.1% forecast, 1.6% previous
•Italian May Industrial Production (YoY) 3.4%,4.0% forecast, 4.2% previous
Looking Ahead - Economic Data (GMT)
• Canada Jun Employment Change 23.5K forecast, 39.8K previous
•12:30 US Jun Participation Rate 62.3% previous
•12:30 US Jun Average Hourly Earnings (YoY) (YoY) 5.0% forecast, 5.2% previous
•12:30 US Jun Unemployment Rate 3.6% forecast, 3.6% previous
•12:30 US Jun Average Weekly Hours 34.6 forecast, 34.6 previous
•12:30 Canada Jun Unemployment Rate 5.1% forecast, 5.1% previous
•12:30 US Jun Manufacturing Payrolls 15K forecast, 18K previous
•12:30 US Jun Nonfarm Payrolls 268K forecast, 390K previous
•12:30 US Jun Private Nonfarm Payrolls 240K forecast, 333K previous
•12:30 US Jun Average Hourly Earnings (MoM) 0.3% forecast, 0.3% previous
•12:30 Canada Jun Part Time Employment Change -95.8K previous
• 12:30 Canada Jun Participation Rate 65.3% forecast, 65.3% previous
•14:00 US May Wholesale Trade Sales (MoM) 0.9% forecast, 0.7% previous
•14:00US Wholesale Inventories (MoM) 2.0% previous
•17:00 U.S. Baker Hughes Oil Rig Count 595 previous
19:00 US May Consumer Credit 31.90B forecast,38.07B previous
Looking Ahead - Events, Other Releases (GMT)
•15:00 US FOMC Member Williams Speaks
Fxbeat
EUR/USD: The euro was pinned at a 20-year low on Friday, licking its wounds at the end of its worst week in two months as investors braced for Europe to tip in to recession, while markets awaited U.S. jobs data to set the next direction for the dollar. The single currency has hit successive 20-year low this week on signs the euro zone economy will tip into recession. The euro is down more than 2% this week on fears that gas shortages loom in Europe and economic growth will suffer. It hit a two-decade trough of $1.0144 overnight. Immediate resistance can be seen at 1.0234 (5DMA),an upside break can trigger rise towards 1.0272(38.2%fib).On the downside, immediate support is seen at 1.0097(23.6%fib), a break below could take the pair towards 1.0000(Psychological level).
GBP/USD: Sterling fell against a strengthening dollar as an unfavourable macroeconomic backdrop overshadowed concerns about politics after Prime Minister Boris Johnson announced his resignation. Johnson announced he would stay on until his successor was chosen. Concerns about post-Brexit spats with the European Union also weakened the pound. The pound rose on Thursday after media reports of his imminent resignation earlier in the day and held on to the gains after Johnson said he was quitting. The pound fell 0.8% to $1.1996. It hit its lowest since March 2020 of $1.1877 on July 6. Immediate resistance can be seen at 1.2080(9DMA),an upside break can trigger rise towards 1.2183(38.2%fib).On the downside, immediate support is seen at 1.1921(23.6%fib), a break below could take the pair towards 1.1846(Lower BB).
USD/CHF: The dollar strengthened against Swiss franc on Friday as investors waited for U.S. jobs data to indicate the health of the world's biggest economy. The latest indicator of the health of the U.S. economy is due later in the day with the release of U.S. non-farm payrolls data. The consensus expectation is for 268,000 jobs to have been added in May. The dollar index was up 0.2% on the day after earlier hitting its highest level since 2002 .Immediate resistance can be seen at 0.9801 (38.2%fib), an upside break can trigger rise towards 0.9880(19th May high).On the downside, immediate support is seen at 0.9679 (50%fib), a break below could take the pair towards 0.9632(9DMA).
USD/JPY: The dollar edged lower against Japanese yen on Friday after former Japanese prime minister Shinzo Abe was shot while campaigning for a parliamentary election. Abe, Japan's longest-serving leader, died on Friday after being shot as he spoke in the western city of Nara. The yen rose as much as 0.5% immediately after the news of the shooting but later ceded most of those gains and by 1047 GMT, it was up 0.1% at 135.89. Strong resistance can be seen at 136.52 (23.6%fib), an upside break can trigger rise towards 137.90(Higher BB).On the downside, immediate support is seen at 135.28(11DMA), a break below could take the pair towards 132.68(38.2%fib).
Equities Recap
European shares edged higher on Friday and were set for a small weekly gain as investors waited for U.S. jobs data to indicate the health of the world's biggest economy, while recession fears receded slightly.
At (GMT 12:10),UK's benchmark FTSE 100 was last trading down at 0.48 percent, Germany's Dax was up by 0.87 percent, France’s CAC was up by 0.14 percent.
Commodities Recap
Gold prices steadied on Friday but were set for a fourth straight weekly drop, as the dollar resumed its rally while focus shifted to U.S. non-farm payroll print that could influence expectations of interest rate hikes.
Spot gold was little changed at 1,740.31 per ounce by 1114 GMT. Bullion has lost nearly 4% so far this week, which would be its worst since mid-June last year.U.S. gold futures firmed at $1,739.90. could influence expectations of interest rate hikes.
Oil rose in volatile trade on Friday but was still heading for a weekly decline as concern over a potential recession-driven demand downturn outweighed tight global supplies.
Brent Crude rose 35 cents, or 0.3%, to $105.00 a barrel by 1045 GMT and U.S. West Texas Intermediate crude gained 19 cents, or 0.2%, to $102.92.